Document:

<PAGE>

                                                                     Exhibit 4.3

                               MAX RE CAPITAL LTD.

                                       AND

                          [____________________________],
                                     TRUSTEE

                                SENIOR INDENTURE

                      Dated as of [____________________]

<PAGE>

                             CROSS REFERENCE SHEET*

Provisions of Trust Indenture Act of 1939 and Indenture to be dated as of
_________ by and between Max Re Capital Ltd. and [__________________], as
Trustee:

<TABLE>
<CAPTION>
                            Section of the Act                                            Section of Indenture
--------------------------------------------------------------------------------  -----------------------------------
<S>                                                                               <C>
310(a)(1) and (2)...............................................................                         6.9 and 6.10
310(a)(3) and (4)...............................................................                         Inapplicable
310(b)..........................................................................                         6.8 and 6.10
310(c)..........................................................................                         Inapplicable
311(a)..........................................................................                                 6.13
311(b)..........................................................................                                 6.13
311(c)..........................................................................                         Inapplicable
312(a)..........................................................................                          4.1 and 4.2
312(b)..........................................................................                                  4.2
312(c)..........................................................................                                  4.2
313(a)..........................................................................                                  4.3
313(b)(1).......................................................................                         Inapplicable
313(b)(2).......................................................................                                  4.3
313(c)..........................................................................  4.3, 5.11, 6.10, 6.11, 8.2 and 12.2
313(d)..........................................................................                                  4.3
314(a)..........................................................................                                  3.4
314(b)..........................................................................                         Inapplicable
314(c)(1) and (2)...............................................................                                 11.5
314(c)(3).......................................................................                         Inapplicable
314(d)..........................................................................                         Inapplicable
314(e)..........................................................................                                 11.5
314(f)..........................................................................                         Inapplicable
315(a), (c) and (d).............................................................                                  6.1
315(b)..........................................................................                         5.11 and 6.1
315(e)..........................................................................                        5.12 and 6.10
316(a)(1).......................................................................                         5.9 and 5.10
316(a)(2).......................................................................                         Not required
316(a) (last sentence)..........................................................                                  7.4
316(b)..........................................................................                                  5.7
317(a)..........................................................................                                  5.2
317(b)..........................................................................                                  3.3
318(a)..........................................................................                                 11.7
</TABLE>

* This Cross Reference Sheet is not part of the Indenture.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                  Page
<S>                                                                                                               <C>
ARTICLE 1 DEFINITIONS.........................................................................................      1
   Section 1.1   Certain Terms Defined........................................................................      1

ARTICLE 2 SECURITIES..........................................................................................      6
   Section 2.1   Forms Generally..............................................................................      6
   Section 2.2   Form of Trustee's Certificate of Authentication..............................................      6
   Section 2.3   Amount Unlimited; Issuable in Series.........................................................      7
   Section 2.4   Authentication and Delivery of Securities....................................................     10
   Section 2.5   Execution of Securities......................................................................     12
   Section 2.6   Certificate of Authentication................................................................     13
   Section 2.7   Denomination and Date of Securities; Payments of Interest....................................     13
   Section 2.8   Registration, Transfer and Exchange..........................................................     14
   Section 2.9   Mutilated, Defaced, Destroyed, Lost and Stolen Securities....................................     18
   Section 2.10  Cancellation of Securities; Destruction Thereof..............................................     18
   Section 2.11  Temporary Securities.........................................................................     19
   Section 2.12  Global Securities............................................................................     19
   Section 2.13  CUSIP Numbers................................................................................     19

ARTICLE 3 COVENANTS OF THE ISSUER.............................................................................     20
   Section 3.1   Payment of Principal, Premium and Interest...................................................     20
   Section 3.2   Offices for Payments, Etc. ..................................................................     20
   Section 3.3   Money for Security Payments to be Held in Trust; Unclaimed Money.............................     21
   Section 3.4   Statements of Officers of Issuer as to Default; Notice of Default............................     22
   Section 3.5   Existence....................................................................................     22
   Section 3.6   Maintenance of Properties....................................................................     23
   Section 3.7   Payment of Taxes and Other Claims............................................................     23
   Section 3.8   Further Instruments and Acts.................................................................     23
   Section 3.9   Commission Reports...........................................................................     23
   Section 3.10  Calculation of Original Issue Discount.......................................................     24

ARTICLE 4 SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE.....................................     24
   Section 4.1   Issuer to Furnish Trustee Information as to Names and Addresses of Securityholders...........     24
   Section 4.2   Preservation of Information; Communications to Holders.......................................     24
   Section 4.3   Reports by the Trustee.......................................................................     24

ARTICLE 5 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT.....................................     25
   Section 5.1   Event of Default Defined; Acceleration of Maturity; Waiver of Default........................     25
   Section 5.2   Collection of Indebtedness by Trustee; Trustee May Prove Debt................................     28
   Section 5.3   Application of Proceeds......................................................................     30
   Section 5.4   Suits for Enforcement........................................................................     31
</TABLE>

                                        i
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                                <C>
   Section 5.5   Restoration of Rights on Abandonment of Proceedings..........................................     31
   Section 5.6   Limitations on Suits by Securityholders......................................................     31
   Section 5.7   Unconditional Right of Securityholders to Institute Certain Suits............................     32
   Section 5.8   Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default......................     32
   Section 5.9   Control by Holders of Securities.............................................................     32
   Section 5.10  Waiver of Past Defaults......................................................................     33
   Section 5.11  Trustee to Give Notice of Default, but May Withhold in Certain Circumstances.................     33
   Section 5.12  Right of Court to Require Filing of Undertaking to Pay Costs.................................     33

ARTICLE 6 CONCERNING THE TRUSTEE..............................................................................     34
   Section 6.1   Duties and Responsibilities of the Trustee; During Default; Prior to Default.................     34
   Section 6.2   Certain Rights of the Trustee................................................................     35
   Section 6.3   Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds
                 Thereof......................................................................................     37
   Section 6.4   Trustee and Agents May Hold Securities or Coupons; Collections, Etc..........................     37
   Section 6.5   Moneys Held by Trustee.......................................................................     37
   Section 6.6   Compensation and Indemnification of Trustee..................................................     37
   Section 6.7   Right of Trustee to Rely on Officer's Certificate, Etc.......................................     38
   Section 6.8   Indentures Not Creating Potential Conflicting Interests for the Trustee......................     38
   Section 6.9   Persons Eligible for Appointment as Trustee..................................................     38
   Section 6.10  Resignation and Removal; Appointment of Successor Trustee....................................     39
   Section 6.11  Acceptance of Appointment by Successor Trustee...............................................     40
   Section 6.12  Merger, Amalgamation, Conversion, Consolidation or Succession to Business of Trustee.........     41
   Section 6.13  Preferential Collection of Claims Against the Issuer.........................................     42
   Section 6.14  Appointment of Authenticating Agent..........................................................     42

ARTICLE 7 CONCERNING THE SECURITYHOLDERS......................................................................     43
   Section 7.1   Evidence of Action Taken by Securityholders..................................................     43
   Section 7.2   Proof of Execution of Instruments and of Holding of Securities...............................     43
   Section 7.3   Holders to Be Treated as Owners..............................................................     44
   Section 7.4   Securities Owned by Issuer Deemed Not Outstanding............................................     44
   Section 7.5   Right of Revocation of Action Taken..........................................................     45

ARTICLE 8 SUPPLEMENTAL INDENTURES.............................................................................     45
   Section 8.1   Supplemental Indentures Without Consent of Securityholders...................................     45
   Section 8.2   Supplemental Indentures With Consent of Securityholders......................................     46
   Section 8.3   Effect of Supplemental Indenture.............................................................     48
   Section 8.4   Documents to Be Given to Trustee.............................................................     48
   Section 8.5   Notation on Securities in Respect of Supplemental Indentures.................................     48
   Section 8.6   Conformity with Trust Indenture Act of 1939..................................................     48

ARTICLE 9 CONSOLIDATION, MERGER, AMALGAMATION OR SALE.........................................................     49
   Section 9.1   Issuer May Consolidate, Etc., Only on Certain Terms..........................................     49
</TABLE>

                                     ii
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                                <C>
   Section 9.2   Successor Substituted for the Issuer.........................................................     49

ARTICLE 10 SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS..........................................     49
   Section 10.1  Termination of Issuer's Obligations Under the Indenture......................................     49
   Section 10.2  Application of Trust Funds...................................................................     50
   Section 10.3  Applicability of Defeasance Provisions; Issuer's Option to Effect Legal Defeasance or
                 Covenant Defeasance..........................................................................     51
   Section 10.4  Legal Defeasance.............................................................................     51
   Section 10.5  Covenant Defeasance..........................................................................     51
   Section 10.6  Conditions to Legal Defeasance or Covenant Defeasance........................................     52
   Section 10.7  Deposited Money and U.S. Government Obligations to be Held in Trust..........................     53
   Section 10.8  Repayment to Issuer..........................................................................     54
   Section 10.9  Indemnity For U.S. Government Obligations....................................................     54
   Section 10.10 Reimbursement................................................................................     54

ARTICLE 11 MISCELLANEOUS PROVISIONS...........................................................................     54
   Section 11.1  Incorporators, Shareholders, Officers and Directors of Issuer Exempt from Individual
                 Liability....................................................................................     54
   Section 11.2  Provisions of Indenture for the Sole Benefit of Parties and Holders of Securities and
                 Coupons......................................................................................     54
   Section 11.3  Successors and Assigns of Issuer Bound by Indenture..........................................     55
   Section 11.4  Notices and Demands on Issuer, Trustee and Holders of Securities and Coupons.................     55
   Section 11.5  Officer's Certificates and Opinions of Counsel; Statements to Be Contained Therein...........     55
   Section 11.6  Payments Due on Saturdays, Sundays and Holidays..............................................     56
   Section 11.7  Conflict of Any Provision of Indenture with Trust Indenture Act of 1939......................     56
   Section 11.8  New York Law to Govern; Waiver of Jury Trial.................................................     57
   Section 11.9  Counterparts.................................................................................     57
   Section 11.10 Effect of Headings...........................................................................     57
   Section 11.11 Securities in a Foreign Currency or in ECU...................................................     57
   Section 11.12 Judgment Currency............................................................................     58
   Section 11.13 Separability Clause..........................................................................     58

ARTICLE 12 REDEMPTION OF SECURITIES AND SINKING FUNDS.........................................................     58
   Section 12.1  Applicability of Article.....................................................................     58
   Section 12.2  Notice of Redemption; Partial Redemptions....................................................     58
   Section 12.3  Payment of Securities Called for Redemption..................................................     60
   Section 12.4  Exclusion of Certain Securities from Eligibility for Selection for Redemption................     61
   Section 12.5  Mandatory and Optional Sinking Funds.........................................................     61
</TABLE>

                                       iii
<PAGE>

      INDENTURE, dated as of [___________], by and between MAX RE CAPITAL LTD.,
a Bermuda [________________] (the "ISSUER"), and [________________], a
[______________], as trustee (the "TRUSTEE").

                                   WITNESSETH:

      WHEREAS, the Issuer has duly authorized the issue from time to time of its
notes, debentures or other evidences of indebtedness to be issued in one or more
series (the "SECURITIES") up to such principal amount or amounts as may from
time to time be authorized in accordance with the terms of this Indenture;

      WHEREAS, the Issuer has duly authorized the execution and delivery of this
Indenture to provide, among other things, for the authentication, delivery and
administration of the Securities; and

      WHEREAS, all things necessary to make this Indenture a valid indenture and
agreement according to its terms have been done;

      NOW, THEREFORE:

      In consideration of the premises and the purchases of the Securities by
the holders thereof, the Issuer and the Trustee mutually covenant and agree for
the equal and proportionate benefit of the respective holders from time to time
of the Securities and of the Coupons, if any, appertaining thereto as follows:

                                    ARTICLE 1

                                   DEFINITIONS

   Section 1.1 Certain Terms Defined. The following terms (except as otherwise
expressly provided or unless the context otherwise clearly requires) for all
purposes of this Indenture and of any indenture supplemental hereto shall have
the respective meanings specified in this Section. All other terms used in this
Indenture that are defined in the Trust Indenture Act of 1939 or the definitions
of which in the Securities Act of 1933 are referred to in the Trust Indenture
Act of 1939, including terms defined therein by reference to the Securities Act
of 1933 (except as herein otherwise expressly provided or unless the context
otherwise requires), shall have the meanings assigned to such terms in said
Trust Indenture Act of 1939 and in said Securities Act as in force at the date
of this Indenture. All accounting terms used herein and not expressly defined
shall have the meanings assigned to such terms in accordance with generally
accepted accounting principles, and the term "GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES" means such accounting principles as are generally accepted at the
time of any computation. The words "HEREIN," "HEREOF" and "HEREUNDER" and other
words of similar import refer to this Indenture as a whole and not to any
particular Article, Section or other subdivision. The terms defined in this
Article have the meanings assigned to them in this Article and include the
plural as well as the singular.

      "AUTHENTICATING AGENT" shall have the meaning set forth in Section 6.14.

                                       1

<PAGE>

      "AUTHORIZED NEWSPAPER" means a newspaper of general circulation, in the
official language of the country of publication or in the English language
customarily published on each Business Day whether or not published on
Saturdays, Sundays or holidays. Whenever successive publications in an
Authorized Newspaper are required hereunder they may be made (unless otherwise
expressly provided herein) on the same or different days of the week and in the
same or different Authorized Newspapers.

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

      "BOARD RESOLUTION" means a copy of one or more resolutions, certified by
the secretary or an assistant secretary of the Issuer to have been duly adopted
or consented to by the Board of Directors and to be in full force and effect,
and delivered to the Trustee.

      "BUSINESS DAY" means, with respect to any Security, a day that in the city
(or in any of the cities, if more than one) in which amounts are payable, as
specified in the form of such Security, and in The City of New York, is not a
day on which banking institutions are authorized or required by law, executive
order or regulation to close.

      "COMMISSION" means the Securities and Exchange Commission, as from time to
time constituted, created under the Securities Exchange Act of 1934, or if at
any time after the execution and delivery of this Indenture such Commission is
not existing and performing the duties now assigned to it under the Trust
Indenture Act of 1939, then the body performing such duties on such date.

      "CORPORATE TRUST OFFICE" means the principal office of the Trustee at
which, at any time, its corporate trust business shall be administered, which
office at the date hereof is located at [___________________________________],
or such other address as the Trustee may designate from time to time by notice
to the Holders and the Issuer, or the principal corporate trust office of any
successor Trustee (or such other address as such successor Trustee may designate
from time to time by notice to the Holders and the Issuer).

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

      "COVENANT DEFEASANCE" shall have the meaning set forth in Section 10.5.

      "DEPOSITARY" means, with respect to the Securities of any series issuable
or issued in global form, the Person designated as Depositary by the Issuer
pursuant to Section 2.3 until a successor Depositary shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Depositary" shall mean or include each Person who is then a Depositary
hereunder, and if at any time there is more than one such Person, "Depositary"
as used with respect to the Securities of any such series shall mean the
Depositary with respect to the Registered Securities in global form of that
series.

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

                                       2

<PAGE>

      "ECU" means the European Currency Unit as defined and revised from time to
time by the Council of European Communities.

      "EVENT OF DEFAULT" means any event or condition specified as such in
Section 5.1.

      "FOREIGN CURRENCY" means a currency issued by the government of a country
other than the United States.

      "HOLDER," "HOLDER OF SECURITIES," "SECURITYHOLDER" or other similar terms
mean (a) in the case of any Registered Security, the person in whose name such
Security is registered in the security register kept by the Issuer for that
purpose in accordance with the terms hereof, and (b) in the case of any
Unregistered Security, the bearer of such Security, or any Coupon appertaining
thereto, as the case may be.

      "INDENTURE" means this instrument as originally executed and delivered or,
if amended or supplemented as herein provided, as so amended or supplemented or
both, and shall include the forms and terms of particular series of Securities
established as contemplated hereunder.

      "ISSUER" means Max Re Capital Ltd., a Bermuda [_____________________],
and, subject to Article 9, its successors and assigns.

      "ISSUER ORDER" means a written statement, request or order of the Issuer
signed in its name by the chairman or vice chairman of the Board of Directors,
the president, any executive, senior or other vice president or the treasurer of
the Issuer.

      "JUDGMENT CURRENCY" shall have the meaning set forth in Section 11.12.

      "LEGAL DEFEASANCE" shall have the meaning set forth in Section 10.4.

      "OFFICER'S CERTIFICATE" means a certificate signed by the chairman or vice
chairman of the Board of Directors, the president or any executive, senior or
other vice president or the treasurer of the Issuer and delivered to the
Trustee. Each such certificate shall comply with Section 314 of the Trust
Indenture Act of 1939 and include the statements provided for in Section 11.5.

      "OPINION OF COUNSEL" means an opinion in writing signed by the general
counsel of the Issuer or by such other legal counsel who may be an employee of
or counsel to the Issuer and who shall be satisfactory to the Trustee. Each such
opinion shall comply with Section 314 of the Trust Indenture Act of 1939 and
include the statements provided for in Section 11.5.

      "ORIGINAL ISSUE DATE" of any Security (or portion thereof) means the
earlier of (1) the date of such Security or (2) the date of any Security (or
portion thereof) for which such Security was issued (directly or indirectly) on
registration of transfer, exchange or substitution.

      "ORIGINAL ISSUE DISCOUNT SECURITY" means any Security that 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 5.1.

                                       3

<PAGE>

      "OUTSTANDING" (except as otherwise provided in Sections 7.4, 10.4 and
10.5), when used with reference to Securities, shall, subject to the provisions
of Sections 7.4, 10.4 and 10.5 mean, as of any particular time, all Securities
authenticated and delivered by the Trustee under this Indenture, except

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

      (2) Securities, or portions thereof, for the payment or redemption of
which moneys or U.S. Government Obligations (as provided for in Section 10.1) in
the necessary amount shall have been deposited in trust with the Trustee or with
any paying agent (other than the Issuer) or shall have been set aside,
segregated and held in trust by the Issuer for the Holders of such Securities
(if the Issuer shall act as its own paying agent), provided that if such
Securities, or portions thereof, are to be redeemed prior to the maturity
thereof, notice of such redemption shall have been given as herein provided, or
provision satisfactory to the Trustee shall have been made for giving such
notice; and

      (3) Securities which shall have been paid or in substitution for which
other Securities shall have been authenticated and delivered pursuant to the
terms of Section 2.9 (except with respect to any such Security as to which proof
satisfactory to the Trustee is presented that such Security is held by a person
in whose hands such Security is a legal, valid and binding obligation of the
Issuer) or Securities not deemed outstanding pursuant to Section 12.2.

      In determining whether the Holders of the requisite principal amount of
Outstanding Securities of any or all series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a declaration
of acceleration of the maturity thereof pursuant to Section 5.1.

      "PERIODIC OFFERING" means an offering of Securities of a series from time
to time, the specific terms of which Securities, including, without limitation,
the rate or rates of interest, if any, thereon, the stated maturity or
maturities thereof and the redemption provisions, if any, with respect thereto,
are to be determined by the Issuer or its agents upon the issuance of such
Securities.

      "PERSON" means a legal person, including any individual, company, limited
liability company, corporation, estate, partnership, limited liability
partnership, joint venture, association, joint shares company, trust,
unincorporated organization or government or any agency or political subdivision
thereof or any other entity of whatever nature.

      "PRINCIPAL" whenever used with reference to the Securities or any Security
or any portion thereof, shall be deemed to include "and premium, if any."

      "RECORD DATE" shall have the meaning set forth in Section 2.7.

      "REGISTERED SECURITY" means any Security registered on the Security
register of the Issuer.

                                       4

<PAGE>

      "REQUIRED CURRENCY" shall have the meaning set forth in Section 11.12.

      "RESPONSIBLE OFFICER" when used with respect to the Trustee means any vice
president, any senior trust officer or any trust officer, any assistant vice
president, any assistant treasurer, or any other officer or assistant officer
associated with the corporate trust department of the Trustee customarily
performing functions similar to those performed by the persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of his or her knowledge of and familiarity with the particular
subject.

      "SECURITY" or "SECURITIES" has the meaning stated in the first recital of
this Indenture, or, as the case may be, Securities that have been authenticated
and delivered under this Indenture.

      "SUBSIDIARY" means any corporation, partnership or other entity of which
at the time of determination the Issuer owns or controls directly or indirectly
more than 50% of the voting power of the shares of Voting Shares.

      "TRUST INDENTURE ACT OF 1939" (except as otherwise provided in Sections
8.1 and 8.2) means the Trust Indenture Act of 1939 as in force at the date as of
which this Indenture was originally executed.

      "TRUSTEE" means the Person identified as "Trustee" in the first paragraph
hereof and, subject to the provisions of Article 6, shall also include any
successor trustee. "Trustee" shall also 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 the Securities of such series.

      "UNREGISTERED SECURITY" means any Security other than a Registered
Security.

      "U.S. GOVERNMENT OBLIGATIONS" means securities which are (1) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (2) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the timely payment of which is unconditionally guaranteed by the full
faith and credit of the United States of America which, in either case, are not
callable or redeemable at the option of the issuer thereof or otherwise subject
to prepayment, and shall also include a depository receipt issued by a New York
Clearing House bank or trust company as custodian with respect to any such U.S.
Government Obligation or a specific payment of interest on or principal of any
such U.S. Government Obligation held by such custodian for the account of the
holder of a depository receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt or from any amount held by the custodian in
respect of the U.S. Government Obligation or the specific payment of interest on
or principal of the U.S. Government Obligation evidenced by such depository
receipt.

      "VOTING SHARES" means shares of any class or classes having general voting
power under ordinary circumstances to elect a majority of the board of
directors, managers or trustees of the corporation in question, provided that,
for the purposes hereof, shares which carry only the right to vote conditionally
on the happening of an event shall not be considered voting shares whether or
not such event shall have happened.

                                       5

<PAGE>

      "YIELD TO MATURITY" means the yield to maturity on a series of securities,
calculated at the time of issuance of such series, or, if applicable, at the
most recent redetermination of interest on such series, and calculated in
accordance with accepted financial practice.

                                    ARTICLE 2

                                   SECURITIES

      Section 2.1 Forms Generally. The Securities of each series and the
Coupons, if any, to be attached thereto shall be substantially in such form (not
inconsistent with this Indenture) as shall be established by or pursuant to one
or more Board Resolutions (as set forth in a Board Resolution or, to the extent
established pursuant to rather than set forth in a Board Resolution, an
Officer's Certificate detailing such establishment) 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 imprinted or otherwise reproduced thereon such legend or
legends or endorsements, not inconsistent with the provisions of this Indenture,
as may be required to comply with any law or with any rules or regulations
pursuant thereto, or with any rules of any securities exchange or to conform to
general usage, all as may be determined by the officers executing such
Securities and Coupons, if any, as evidenced by their execution of such
Securities and Coupons. If temporary Securities of any series are issued as
permitted by Section 2.11, the form thereof also shall be established as
provided in the preceding sentence. If the forms of Securities and Coupons, if
any, of the series are established by, or by action taken pursuant to, a Board
Resolution, a copy of the Board Resolution together with an appropriate record
of any such action taken pursuant thereto, including a copy of the approved form
of Securities or Coupons, if any, shall be certified by the Secretary or an
Assistant Secretary of the Issuer and delivered to the Trustee at or prior to
the delivery of the Issuer Order contemplated by Section 2.4 for the
authentication and delivery of such Securities.

      The definitive Securities and Coupons, if any, shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers executing such Securities and
Coupons, if any, as evidenced by their execution of such Securities and Coupons,
if any.

      Section 2.2 Form of Trustee's Certificate of Authentication. The Trustee's
certificate of authentication on all Securities shall be in substantially the
following form:

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

      ______________________________,
      as Trustee

      By____________________________
      Authorized Signatory"

      If at any time there shall be an Authenticating Agent appointed with
respect to any series of Securities, then the Trustee's Certificate of
Authentication to be borne by the Securities of each such series shall be
substantially as follows:

                                       6

<PAGE>

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

      _____________________________,
      as Authenticating Agent

      By____________________________
      Authorized Signatory"

      Section 2.3 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 and each such series
shall rank equally and pari passu with all other unsubordinated debt of the
Issuer. There shall be established in or pursuant to one or more Board
Resolutions (and to the extent established pursuant to rather than set forth in
a Board Resolution, in an Officer's Certificate detailing such establishment) or
established in one or more indentures supplemental hereto, prior to the initial
issuance of Securities of any series, the following information with respect to
the Securities of such series, to the extent applicable:

      (a) the designation of the Securities of the series, which shall
distinguish the Securities of the series from the Securities of all other
series;

      (b) the aggregate principal amount of such Securities to be issued;

      (c) any limit upon the aggregate principal amount of Securities of such
series that may be authenticated and delivered under this Indenture (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of the series pursuant to Section
2.8, 2.9, 2.11, 8.5 or 12.3);

      (d) the price or prices at which such Securities will be issued;

      (e) the date or dates on which the principal of such Securities is
payable;

      (f) the rate or rates of interest, if any, which may be fixed or variable,
at which such Securities will bear interest, or the method of determining such
rate or rates, if any; (g) the date or dates from which any interest will accrue
or the method by which such date or dates will be determined;

      (h) in the case of Original Issue Discount Securities, the rate of
accretion of principal, which may be fixed or variable, or the method of
determining such rate, and the date or dates from which principal will accrete
or the method by which such date or dates will be determined;

      (i) whether the amount of payments of principal of (and premium, if any)
or interest on such Securities may be determined with reference to any index,
formula or other method, such as one or more currencies, commodities, equity
indices or other indices, and the manner of determining the amount of such
payments;

                                       7

<PAGE>

      (j) the dates on which interest on such Securities shall be payable and
the regular record date for determining holders who are entitled to the interest
payable on any interest payment date or the method by which such date or dates
will be determined;

      (k) the right, if any, to extend the interest payment periods and the
duration of any such deferral period, including the maximum consecutive period
during which interest payment periods may be extended;

      (l) the currency or currencies in which such Securities will be
denominated and in which principal, any premium and any interest will or may be
payable or a description of any units based on or relating to a currency or
currencies in which such Securities will be denominated;

      (m) the place or places where the principal of (and premium, if any) and
interest on such Securities will be payable, where such Securities may be
surrendered for registration of transfer, exchange or conversion, as applicable,
and where notices and demands may be delivered to or upon the Issuer;

      (n) if the Issuer shall possess the option to do so, the periods within
which and the prices at which the Issuer may redeem such Securities, in whole or
in part, pursuant to optional redemption provisions, and the other terms and
conditions of any such provisions;

      (o) the Issuer's obligations, if any, to redeem, repay or purchase such
Securities prior to the maturity date, to set aside funds or other assets or
make periodic payments to a sinking fund or provide security for any redemption
or purchase through an analogous provision or at the option of holders of such
Securities, and the period or periods within which and the price or prices at
which the Issuer will redeem, repay or purchase such Securities, in whole or in
part, or set aside such assets, make such payments or provide such security
pursuant to such obligations, and the other terms and conditions of such
obligations;

      (p) if other than denominations of $1,000 and any integral multiple
thereof in the case of Registered Securities, or $1,000 and $5,000 in the case
of Unregistered Securities, the denominations in which such Securities shall be
issuable;

      (q) the portion, or methods of determining the portion, of the principal
amount of such Securities which the Issuer must pay upon the acceleration of the
maturity of such Securities in connection with an Event of Default, if other
than the full principal amount;

      (r) provisions, if any, granting special rights to holders of such
Securities upon the occurrence of specified events;

      (s) any deletions from, modifications of or additions to the Events of
Default or the covenants with respect to such series of Securities, and whether
or not such Events of Default or covenants are consistent with those contained
in this Indenture;

      (t) any limitation on the Issuer's ability to incur debt, grant liens,
redeem stock, pay dividends, sell assets or other restrictions;

                                       8

<PAGE>

      (u) the application, if any, of the terms of this Indenture relating to
legal defeasance and covenant defeasance to such Securities;

      (v) the terms, if any, upon which the holders may convert or exchange (or
upon which the Issuer may require the holders to convert or exchange) such
Securities into or for common stock, preferred stock or other securities or
property (or upon which such Securities shall automatically convert or be
exchanged into or for such other securities or property);

      (w) any change in the right of the Trustee or the requisite holders of
such Securities to declare the principal amount thereof due and payable because
of an Event of Default;

      (x) to whom any interest on any such Security shall be payable, if other
than the Person in whose name the Security is registered, on the record date for
such interest, and the extent to which, or the manner in which, any interest
payable on a temporary global Security will be paid if other than in the manner
provided in this Indenture;

      (y) if the principal of or any premium or interest on such Securities is
to be payable in one or more currencies or currency units other than as stated,
the currency, currencies or currency units in which it shall be paid and the
periods within and terms and conditions upon which such election is to be made
and the amounts payable (or the manner in which such amount shall be
determined);

      (z) the collateral, if any, securing such Securities, and the guarantors,
if any, who will guarantee such Securities, or the methods of determining such
collateral, if any, and such guarantors, if any;

      (aa) if the principal amount payable at the stated maturity of any such
Securities will not be determinable as of any one or more dates prior to the
stated maturity, the amount which shall be deemed to be the principal amount of
such Securities as of any such date for any purpose, including the principal
amount thereof which shall be due and payable upon any maturity other than the
stated maturity or which shall be deemed to be outstanding as of any date prior
to the stated maturity (or, in any such case, the manner in which such amount
deemed to be the principal amount shall be determined);

      (bb) whether any of such Securities will be issued in global form and, if
so, the terms and conditions upon which global Securities may be exchanged for
certificated Securities;

      (cc) the depositary for global or certificated Securities;

      (dd) whether such Securities will be issued in registered form, in bearer
form or in both registered and bearer form;

      (ee) any restrictions or special procedures applicable to (i) the place of
payment of the principal, any premium and any interest on Unregistered
Securities, (ii) the exchange of Unregistered Securities for Registered
Securities, (iii) the offer, sale or delivery of Unregistered Securities or (iv)
the payment of interest on such Securities;

                                       9

<PAGE>

      (ff) certain U.S. federal income tax consequences and special
considerations applicable to such Securities;

      (gg) any Bermuda tax consequences applicable to such Securities, including
any Securities denominated and made payable, as described in the prospectus
supplements, in Foreign Currencies, or units based on or related to Foreign
Currencies;

      (hh) any proposed listing of such Securities on a securities exchange;

      (ii) whether and under what circumstances the Issuer will pay additional
amounts on such Securities held by a Person who is not a U.S. person in respect
of any tax, assessment or governmental charge withheld or deducted and, if so,
whether the Issuer will have the option to redeem such Securities rather than
pay such additional amounts;

      (jj) if such Securities are to be issuable in definitive form (whether
upon original issue or upon exchange of a temporary Security) only upon receipt
of certain certificates or other documents or satisfaction of other conditions,
the form and terms of such certificates, documents or conditions;

      (kk) the date as of which such Securities shall be dated if other than the
date of original issuance thereof;

      (ll) the names of any trustee, depositary, authenticating or paying agent,
transfer agent, registrar or other agent with respect to such Securities; and

      (mm) any other specific terms of such Securities, including any other
terms which may be required by or advisable under applicable laws or
regulations.

      All Securities of any one series and Coupons, if any, appertaining
thereto, shall be substantially identical, except in the case of Registered
Securities as to denomination and except as may otherwise be provided by or
pursuant to the Board Resolution or Officer's Certificate referred to above or
as set forth in any such indenture supplemental hereto. All Securities of any
one series need not be issued at the same time and may pursuant to the Board
Resolution or Officer's Certificate be issued from time to time, consistent with
the terms of this Indenture, if so provided by or pursuant to such Board
Resolution, such Officer's Certificate or in any such indenture supplemental
hereto.

      Section 2.4 Authentication and Delivery of Securities.

      (a) The Issuer may deliver Securities of any series having attached
thereto appropriate Coupons, if any, executed by the Issuer to the Trustee for
authentication together with the applicable documents referred to below in this
Section, and the Trustee shall thereupon authenticate and deliver such
Securities to or upon the order of the Issuer (contained in the Issuer Order
referred to below in this Section) or pursuant to such procedures acceptable to
the Trustee and to such recipients as may be specified from time to time by an
Issuer Order. The maturity date, original issue date, interest rate and any
other terms of the Securities of such series and Coupons, if any, appertaining
thereto shall be determined by or pursuant to such Issuer Order and procedures.
In authenticating such Securities and accepting the additional responsibilities
under

                                       10

<PAGE>

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,
unless and until such documents have been superseded or revoked:

      (i) an Issuer Order requesting such authentication and setting forth
delivery instructions if the Securities and Coupons, if any, are not to be
delivered to the Issuer, provided that, with respect to Securities of a series
subject to a Periodic Offering, (A) such Issuer Order may be delivered by the
Issuer to the Trustee prior to the delivery to the Trustee of such Securities
for authentication and delivery, (B) the Trustee shall authenticate and deliver
Securities of such series for original issue from time to time, in an aggregate
principal amount not exceeding the aggregate principal amount established for
such series, pursuant to an Issuer Order or pursuant to procedures acceptable to
the Trustee as may be specified from time to time by an Issuer Order and (C) the
maturity date or dates, original issue date or dates, interest rate or rates and
any other terms of Securities of such series shall be determined by an Issuer
Order or pursuant to such procedures;

      (ii) any Board Resolution, Officer's Certificate and/or executed
supplemental indenture referred to in Sections 2.1 and 2.3 by or pursuant to
which the forms and terms of the Securities and Coupons, if any, were
established;

      (iii) an Officer's Certificate setting forth the form or forms and terms
of the Securities and Coupons, if any, stating that the form or forms and terms
of the Securities and Coupons, if any, have been established pursuant to
Sections 2.1 and 2.3 and comply with this Indenture, and covering such other
matters as the Trustee may reasonably request; and

      (iv) at the option of the Issuer, either one or more Opinions of Counsel,
or a letter addressed to the Trustee permitting it to conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, on one or more Opinions of Counsel, substantially to the effect that:

            (A) the forms of the Securities and Coupons, if any, have been duly
      authorized and established in conformity with the provisions of this
      Indenture;

            (B) the terms of the Securities have been duly authorized and
      established in conformity with the provisions of this Indenture, and, if
      applicable, certain terms of the Securities have been established pursuant
      to a Board Resolution, an Officer's Certificate or a supplemental
      indenture in accordance with this Indenture, and when such other terms as
      are to be established pursuant to procedures set forth in an Issuer Order
      shall have been established, all such terms will have been duly authorized
      by the Issuer and will have been established in conformity with the
      provisions of this Indenture;

            (C) when the Securities and Coupons, if any, have been executed by
      the Issuer and authenticated by the Trustee in accordance with the
      provisions of this Indenture and delivered to and duly paid for by the
      purchasers thereof, they will have been duly issued under this Indenture,
      will be entitled to the benefits of this Indenture, and will be valid and
      binding obligations of the Issuer, enforceable in accordance with their
      respective terms except as the enforceability thereof may be limited by
      bankruptcy, insolvency or

                                       11

<PAGE>

      similar laws affecting creditors' rights generally and equitable
      principles of general applicability; and

            (D) that all applicable laws and requirements in respect of the
      execution and delivery by the Issuer of such Securities have been complied
      with.

      In rendering such opinions, counsel may qualify such opinions with other
customary or necessary qualifications, assumptions, limitations and exceptions.
Such counsel may rely upon opinions of other counsel (copies of which shall be
delivered to the Trustee), who shall be counsel reasonably satisfactory to the
Trustee. Such counsel may also state that, insofar as such opinion involves
factual matters, he or she has relied, to the extent he or she deems proper,
upon certificates of officers of the Issuer and its subsidiaries and
certificates of public officials.

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

      (c) If the Issuer shall establish pursuant to Section 2.3 that the
Securities of a series are to be issued in whole or in part in global form, then
the Issuer shall execute and the Trustee shall, in accordance with this Section
and the Issuer Order with respect to such series, authenticate and deliver one
or more Securities in global form that (i) shall represent and shall be
denominated in an amount equal to the aggregate principal amount of all of the
Securities of such series issued and not yet canceled, (ii) if such Securities
are Registered Securities, shall be registered in the name of the Depositary for
such Security or Securities in global form or the nominee of such Depositary,
(iii) if such Securities are Registered Securities, shall be delivered by the
Trustee to such Depositary or pursuant to such Depositary's instructions and
(iv) shall bear a legend substantially to the following effect:

            "Unless and until it is exchanged in whole or in part for Securities
            in definitive form, this Security may not be transferred except as a
            whole by the Depositary to the nominee of the Depositary or by a
            nominee of the Depositary to the Depositary or another nominee of
            the Depositary or by the Depositary or any such nominee to a
            successor Depositary or a nominee of such successor Depositary."

The Trustee shall have no responsibility for any action taken or not taken by
the Depositary.

      (d) Each Depositary designated pursuant to Section 2.3 must, at the time
of its designation and at all times while it serves as Depositary, be a clearing
agency registered under the Securities Exchange Act of 1934 and any other
applicable statute or regulation.

      Section 2.5 Execution of Securities. The Securities and, if applicable,
each Coupon appertaining thereto shall be signed on behalf of the Issuer by the
chairman or vice chairman of its Board of Directors or its president or any
executive, senior or other vice president or its

                                       12

<PAGE>

treasurer, but need not be attested. Such signatures may be the manual or
facsimile signatures of the present or any future such officers. Typographical
and other minor errors or defects in any such signature shall not affect the
validity or enforceability of any Security that has been duly authenticated and
delivered by the Trustee.

      In case any officer of the Issuer who shall have signed any of the
Securities or Coupons, if any, shall cease to be such officer before the
Security or Coupon so signed (or the Security to which the Coupon so signed
appertains) shall be authenticated and delivered by the Trustee or disposed of
by the Issuer, such Security or Coupon nevertheless may be authenticated and
delivered or disposed of as though the person who signed such Security or Coupon
had not ceased to be such officer of the Issuer; and any Security or Coupon may
be signed on behalf of the Issuer by such persons as, at the actual date of the
execution of such Security or Coupon, shall be the proper officers of the
Issuer, although at the date of the execution and delivery of this Indenture any
such person was not such an officer.

      Section 2.6 Certificate of Authentication. Only such Securities as shall
bear thereon a certificate of authentication substantially in the form herein
before recited, executed by the Trustee by the manual signature of one of its
authorized signatories, shall be entitled to the benefits of this Indenture or
be valid or obligatory for any purpose. No Coupon shall be entitled to the
benefits of this Indenture or shall be valid and obligatory for any purpose
until the certificate of authentication on the Security to which such Coupon
appertains shall have been duly executed by the Trustee. The execution of such
certificate by the Trustee upon any Security executed by the Issuer shall be
conclusive evidence that the Security so authenticated has been duly
authenticated and delivered hereunder and that the Holder is entitled to the
benefits of this Indenture.

      Section 2.7 Denomination and Date of Securities; Payments of Interest. The
Securities of each series shall be issuable as Registered Securities or
Unregistered Securities in denominations established as contemplated by Section
2.3 or, with respect to the Registered Securities of any series, if not so
established, in denominations of $1,000 and any integral multiple thereof. If
denominations of Unregistered Securities of any series are not so established,
such Securities shall be issuable in denominations of $1,000 and $5,000. The
Securities of each series shall be numbered, lettered or otherwise distinguished
in such manner or in accordance with such plan as the officers of the Issuer
executing the same may determine with the approval of the Trustee, as evidenced
by the execution and authentication thereof.

      Each Registered Security shall be dated the date of its authentication.
Each Unregistered Security shall be dated as provided in the resolution or
resolutions of the Board of Directors of the Issuer referred to in Section 2.3.
The Securities of each series shall bear interest, if any, from the date, and
such interest shall be payable on the dates, established as contemplated by
Section 2.3.

      The person in whose name any Registered Security of any series is
registered at the close of business on any record date applicable to a
particular series with respect to any interest payment date for such series
shall be entitled to receive the interest, if any, payable on such interest
payment date notwithstanding any transfer or exchange of such Registered
Security subsequent to the record date and prior to such interest payment date,
except if and to the extent

                                       13

<PAGE>

the Issuer shall default in the payment of the interest due on such interest
payment date for such series, in which case such defaulted interest shall be
paid to the persons in whose names Outstanding Registered Securities for such
series are registered at the close of business on a subsequent record date
(which shall be not less than five Business Days prior to the date of payment of
such defaulted interest) established by notice given by mail by or on behalf of
the Issuer to the Holders of Registered Securities not less than 15 days
preceding such subsequent record date. The term "RECORD DATE" as used with
respect to any interest payment date (except a date for payment of defaulted
interest) for the Securities of any series shall mean the date specified as such
in the terms of the Registered Securities of such series established as
contemplated by Section 2.3, or, if no such date is so established, if such
interest payment date is the first day of a calendar month, the fifteenth day of
the next preceding calendar month or, if such interest payment date is the
fifteenth day of a calendar month, the first day of such calendar month, whether
or not such record date is a Business Day.

      Section 2.8 Registration, Transfer and Exchange.

      (a) The Issuer will keep at each office or agency to be maintained for the
purpose as provided in Section 3.2 for each series of Securities a register or
registers in which, subject to such reasonable regulations as it may prescribe,
it will provide for the registration of Registered Securities of such series and
the registration of transfer of Registered Securities of such series. Such
register shall be in written form in the English language. At all reasonable
times such register or registers shall be open for inspection by the Trustee.

      (b) Subject to the prior written consent of the Bermuda Monetary
Authority, where applicable, upon due presentation for registration of transfer
of any Registered Security of any series at any such office or agency to be
maintained for the purpose as provided in Section 3.2, the Issuer shall execute
and the Trustee shall authenticate and deliver in the name of the transferee or
transferees a new Registered Security or Registered Securities of the same
series, maturity date, interest rate and original issue date in authorized
denominations for a like aggregate principal amount.

      Unregistered Securities (except for any temporary Unregistered Securities
in global form) and Coupons (except for Coupons attached to any temporary
Unregistered Securities in global form) shall be transferable by delivery.

      (c) (i) At the option of the Holder thereof, Registered Securities of any
series (other than a Registered Security in global form, except as set forth
below) may be exchanged for a Registered Security or Registered Securities of
such series having authorized denominations and an equal aggregate principal
amount, upon surrender of such Registered Securities to be exchanged at the
agency of the Issuer that shall be maintained for such purpose in accordance
with Section 3.2 and upon payment, if the Issuer shall so require, of the
charges hereinafter provided. Whenever any Registered Securities are so
surrendered for exchange, the Issuer shall execute, and the Trustee shall
authenticate and deliver, the Registered Securities which the Holder making the
exchange is entitled to receive.

      (ii) Unless otherwise specified as contemplated by Section 2.3, at the
option of the Holder, Unregistered Securities of such series may be exchanged
for Registered Securities (if the

                                       14

<PAGE>

Securities of such series are issuable in registered form) or Unregistered
Securities (if Unregistered Securities of such series are issuable in more than
one denomination and such exchanges are permitted by such series) of the same
series, of any authorized denominations and of like tenor and aggregate
principal amount, upon surrender of the Securities to be exchanged at the agency
of the Issuer that shall be maintained for such purpose in accordance with
Section 3.2, with all unmatured Coupons and all matured Coupons in default
thereto appertaining. If the Holder of an Unregistered Security is unable to
produce any such unmatured Coupon or Coupons or matured Coupon or Coupons in
default, such exchange may be effected if the Unregistered Securities are
accompanied by payment in funds acceptable to the Issuer and the Trustee in an
amount equal to the face amount of such missing Coupon or Coupons, or the
surrender of such missing Coupon or Coupons may be waived by the Issuer and the
Trustee if there be furnished to them such security or indemnity as they may
require to save each of them and any paying agent harmless. If thereafter the
Holder of such Security shall surrender to any paying agent any such missing
Coupon in respect of which such a payment shall have been made, such Holder
shall be entitled to receive the amount of such payment as provided in Section
3.2. Notwithstanding the foregoing, in case any Unregistered Security of any
series is surrendered at any such office or agency in exchange for a Registered
Security of the same series after the close of business at such office or agency
on (A) any record date and before the opening of business at such office or
agency on the relevant interest payment date, or (B) any special record date for
payment of defaulted interest and before the opening of business at such office
or agency on the related date for payment of defaulted interest, such
Unregistered Security shall be surrendered without the Coupon relating to such
interest or defaulted interest payment date or proposed date of payment, as the
case may be (or, if such Coupon is so surrendered with such Unregistered
Security, such Coupon shall be returned to the person so surrendering the
Unregistered Security), and interest or defaulted interest, as the case may be,
will not be payable on such date or proposed date for payment, as the case may
be, in respect of the Registered Security issued in exchange for such
Unregistered Security, but will be payable only to the Holder of such Coupon,
when due in accordance with the provisions of this Indenture.

      (iii) Registered Securities of any series may not be exchanged for
Unregistered Securities of such series unless (A) otherwise specified pursuant
to Section 2.3 and (B) the Issuer has delivered to the Trustee an Opinion of
Counsel that (1) the Issuer has received from the Internal Revenue Service a
ruling or (2) since the date hereof, there has been a change in the applicable
Federal income tax law, in either case to the effect that the inclusion of terms
permitting Registered Securities to be exchanged for Unregistered Securities
would result in no adverse Federal income tax effect to the Issuer or to any
Holder. Whenever any Securities are so surrendered for exchange, the Issuer
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder making the exchange is entitled to receive. All Securities and
Coupons surrendered upon any exchange or transfer provided for in this Indenture
shall be canceled promptly and disposed of by the Trustee in accordance with its
procedures for the disposition of cancelled securities in effect as of the date
of such cancellation and the Trustee will deliver a certificate of disposition
thereof to the Issuer.

      (d) All Registered Securities presented for registration of transfer,
exchange, redemption or payment shall (if so required by the Issuer or the
Trustee) be duly endorsed by, or be accompanied by a written instrument or
instruments of transfer in form satisfactory to the

                                       15

<PAGE>

Issuer and the Trustee duly executed by, the Holder or his or her attorney duly
authorized in writing.

      The Issuer may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any exchange or
registration of transfer of Securities. No service charge shall be made for any
such transaction.

      The Issuer shall not be required to exchange or register a transfer of (i)
any Securities of any series for a period of 15 days next preceding the first
mailing of notice of redemption of Securities of such series to be redeemed or
(ii) any Securities selected, called or being called for redemption, in whole or
in part, except, in the case of any Security to be redeemed in part, the portion
thereof not so to be redeemed.

      (e) Notwithstanding any other provision of this Section 2.8, unless and
until it is exchanged in whole or in part for Securities in definitive
registered form, a Registered Security in global form representing all or a
portion of the Securities of a series may not be transferred except as a whole
by the Depositary for such series to a nominee of such Depositary or by a
nominee of such Depositary to such Depositary or another nominee of such
Depositary or by such Depositary or any such nominee to a successor Depositary
for such series or a nominee of such successor Depositary.

      If at any time the Depositary for any Registered Securities of a series
represented by one or more Registered Securities in global form notifies the
Issuer that it is unwilling or unable to continue as Depositary for such
Registered Securities or if at any time the Depositary for such Registered
Securities shall no longer be eligible under Section 2.4, the Issuer shall
appoint a successor Depositary eligible under Section 2.4 with respect to such
Registered Securities. If a successor Depositary eligible under Section 2.4 for
such Registered Securities is not appointed by the Issuer within 90 days after
the Issuer receives such notice or becomes aware of such ineligibility, the
Issuer's election pursuant to Section 2.3 that such Registered Securities be
represented by one or more Registered Securities in global form shall no longer
be effective and the Issuer will execute, and the Trustee, upon receipt of an
Officer's Certificate for the authentication and delivery of definitive
Securities of such series, will authenticate and deliver, Securities of such
series in definitive registered form without Coupons, in any authorized
denominations, in an aggregate principal amount equal to the principal amount of
the Registered Security or Securities in global form representing such
Registered Securities in exchange for such Registered Security or Securities in
global form.

      The Issuer may at any time and in its sole discretion determine that the
Registered Securities of any series issued in the form of one or more Registered
Securities in global form shall no longer be represented by a Registered
Security or Securities in global form. In such event the Issuer will execute,
and the Trustee, upon receipt of an Officer's Certificate for the authentication
and delivery of definitive Securities of such series, will authenticate and
deliver, Securities of such series in definitive registered form without
Coupons, in any authorized denominations, in an aggregate principal amount equal
to the principal amount of the Registered Security or Securities in global form
representing such Registered Securities, in exchange for such Registered
Security or Securities in global form.

                                       16

<PAGE>

      If specified by the Issuer pursuant to Section 2.3 with respect to
Securities represented by a Registered Security in global form, the Depositary
for such Registered Security in global form may surrender such Registered
Security in global form in exchange in whole or in part for Registered
Securities of the same series in definitive form on such terms as are acceptable
to the Issuer and such Depositary. Thereupon, the Issuer shall execute, and the
Trustee shall authenticate and deliver, without service charge,

      (i) to the Person specified by such Depositary a new Registered Security
or Securities of the same series, of any authorized denominations as requested
by such Person, in an aggregate principal amount equal to and in exchange for
such Person's beneficial interest in the Registered Security in global form; and

      (ii) to such Depositary a new Registered Security in global form in a
denomination equal to the difference, if any, between the principal amount of
the surrendered Registered Security in global form and the aggregate principal
amount of Registered Securities authenticated and delivered pursuant to clause
(i) above.

      Upon the exchange of a Registered Security in global form for Registered
Securities in definitive form without Coupons, in authorized denominations, such
Registered Security in global form shall be canceled by the Trustee or an agent
of the Issuer or the Trustee. Registered Securities in definitive form issued in
exchange for a Registered Security in global form pursuant to this Section 2.8
shall be registered in such names and in such authorized denominations as the
Depositary for such Registered Security in global form, pursuant to instructions
from its direct or indirect participants or otherwise, shall instruct the
Trustee or an agent of the Issuer or the Trustee. The Trustee or such agent
shall deliver such Securities to or as directed by the Persons in whose names
such Securities are so registered.

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

      (g) Notwithstanding anything herein or in the terms of any series of
Securities to the contrary, none of the Issuer, the Trustee or any agent of the
Issuer or the Trustee (any of which, other than the Issuer, may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, on an Officer's Certificate and an Opinion of Counsel) shall
be required to exchange any Unregistered Security for a Registered Security if
such exchange would result in adverse income tax consequences to the Issuer.

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

                                       17

<PAGE>

      Section 2.9 Mutilated, Defaced, Destroyed, Lost and Stolen Securities. In
case any Security or any Coupon appertaining to any Security shall become
mutilated, defaced or be destroyed, lost or stolen, the Issuer in its discretion
may execute, and upon the written request of any officer of the Issuer, the
Trustee shall authenticate and deliver a new Security of the same series,
maturity date, interest rate and original issue date, bearing a number or other
distinguishing symbol not contemporaneously outstanding, in exchange and
substitution for the mutilated or defaced Security, or in lieu of and in
substitution for the Security so destroyed, lost or stolen with Coupons
corresponding to the Coupons appertaining to the Securities so mutilated,
defaced, destroyed, lost or stolen, or in exchange or substitution for the
Security to which such mutilated, defaced, destroyed, lost or stolen Coupon
appertained, with Coupons appertaining thereto corresponding to the Coupons so
mutilated, defaced, destroyed, lost or stolen. In every case the applicant for a
substitute Security or Coupon shall furnish to the Issuer and to the Trustee and
any agent of the Issuer or the Trustee such security or indemnity as may be
required by them to indemnify and defend and to save each of them harmless and,
in every case of destruction, loss or theft, evidence to their satisfaction of
the destruction, loss or theft of such Security or Coupon and of the ownership
thereof and in the case of mutilation or defacement shall surrender the Security
and related Coupons to the Trustee or such agent.

      Upon the issuance of any substitute Security or Coupon, the Issuer may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee) of its agent connected therewith. In case
any Security or Coupon which has matured or is about to mature or has been
called for redemption in full shall become mutilated or defaced or be destroyed,
lost or stolen, the Issuer may instead of issuing a substitute Security, pay or
authorize the payment of the same or the relevant Coupon (without surrender
thereof except in the case of a mutilated or defaced Security or Coupon), if the
applicant for such payment shall furnish to the Issuer and to the Trustee and
any agent of the Issuer or the Trustee such security or indemnity as any of them
may require to save each of them harmless, and, in every case of destruction,
loss or theft, the applicant shall also furnish to the Issuer and the Trustee
and any agent of the Issuer or the Trustee evidence to their satisfaction of the
destruction, loss or theft of such Security or Coupon and of the ownership
thereof.

      Every substitute Security or Coupon of any series issued pursuant to the
provisions of this Section by virtue of the fact that any such Security or
Coupon is destroyed, lost or stolen shall constitute an additional contractual
obligation of the Issuer, whether or not the destroyed, lost or stolen Security
or Coupon shall be at any time enforceable by anyone and shall be entitled to
all the benefits of (but shall be subject to all the limitations of rights set
forth in) this Indenture equally and proportionately with any and all other
Securities or Coupons of such series duly authenticated and delivered hereunder.
All Securities and Coupons shall be held and owned upon the express condition
that, to the extent permitted by law, the foregoing provisions are exclusive
with respect to the replacement or payment of mutilated, defaced or destroyed,
lost or stolen Securities and Coupons and shall preclude any and all other
rights or remedies notwithstanding any law or statute existing or hereafter
enacted to the contrary with respect to the replacement or payment of negotiable
instruments or other securities without their surrender.

      Section 2.10 Cancellation of Securities; Destruction Thereof. All
Securities and Coupons surrendered for payment, redemption, registration of
transfer or exchange, or for credit

                                       18

<PAGE>

against any payment in respect of a sinking or analogous fund, if surrendered to
the Issuer or any agent of the Issuer or the Trustee or any agent of the
Trustee, shall be delivered to the Trustee or its agent for cancellation or, if
surrendered to the Trustee, shall be canceled by it; and no Securities or
Coupons shall be issued in lieu thereof except as expressly permitted by any of
the provisions of this Indenture. The Trustee or its agent shall dispose of
canceled Securities and Coupons held by it in accordance with its procedures for
the disposition of cancelled securities in effect as of the date of such
cancellation. If the Issuer or its agent shall acquire any of the Securities or
Coupons, such acquisition shall not operate as a redemption or satisfaction of
the indebtedness represented by such Securities or Coupons unless and until the
same are delivered to the Trustee or its agent for cancellation.

      Section 2.11 Temporary Securities. Pending the preparation of definitive
Securities for any series, the Issuer may execute and the Trustee shall
authenticate and deliver temporary Securities for such series (printed,
lithographed, typewritten or otherwise reproduced, in each case in form
satisfactory to the Trustee). Temporary Securities of any series shall be
issuable as Registered Securities without Coupons, or as Unregistered Securities
with or without Coupons attached thereto, of any authorized denomination, and
substantially in the form of the definitive Securities of such series but with
such omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Issuer with the concurrence of the
Trustee as evidenced by the execution and authentication thereof. Temporary
Securities may contain such references to any provisions of this Indenture as
may be appropriate. Every temporary Security shall be executed by the Issuer and
be authenticated by the Trustee upon the same conditions and in substantially
the same manner, and with like effect, as the definitive Securities. Without
unreasonable delay the Issuer shall execute and shall furnish definitive
Securities of such series and thereupon temporary Registered Securities of such
series may be surrendered in exchange therefor without charge at each office or
agency to be maintained by the Issuer for that purpose pursuant to Section 3.2
and, in the case of Unregistered Securities, at any agency maintained by the
Issuer for such purpose as specified pursuant to Section 3.2, and the Trustee
shall authenticate and deliver in exchange for such temporary Securities of such
series an equal aggregate principal amount of definitive Securities of the same
series having authorized denominations and, in the case of Unregistered
Securities, having attached thereto any appropriate Coupons. Until so exchanged,
the temporary Securities of any series shall be entitled to the same benefits
under this Indenture as definitive Securities of such series, unless otherwise
established pursuant to Section 2.3. The provisions of this Section are subject
to any restrictions or limitations on the issue and delivery of temporary
Unregistered Securities of any series that may be established pursuant to
Section 2.3 (including any provision that Unregistered Securities of such series
initially be issued in the form of a single Unregistered Security in global form
to be delivered to a Depositary or agency located outside the United States and
the procedures pursuant to which Unregistered Securities in definitive or global
form of such series would be issued in exchange for such temporary Unregistered
Security in global form).

      Section 2.12 Global Securities. Neither the Trustee nor any Agent shall
have any responsibility for any actions taken or not taken by the Depositary.

      Section 2.13 CUSIP Numbers. The Issuer in issuing the Securities may use
"CUSIP" numbers (if then generally in use), and, if so used by the Issuer, the
Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to
Holders; provided that any such notice

                                       19

<PAGE>

may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers. The Issuer will promptly notify
the Trustee of any change in the "CUSIP" numbers.

                                    ARTICLE 3

                             COVENANTS OF THE ISSUER

      Section 3.1 Payment of Principal, Premium and Interest. The Issuer
covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay or cause to be paid the principal of, and premium, if
any, and interest on, each of the Securities of such series (together with any
additional amounts payable pursuant to the terms of such Securities) at the
place or places, at the respective times and in the manner provided in such
Securities and in the Coupons, if any, appertaining thereto and in this
Indenture. The interest on Securities with Coupons attached (together with any
additional amounts payable pursuant to the terms of such Securities) shall be
payable only upon presentation and surrender of the several Coupons for such
interest installments as are evidenced thereby as they severally mature. If any
temporary Unregistered Security provides that interest thereon may be paid while
such Security is in temporary form, the interest on any such temporary
Unregistered Security (together with any additional amounts payable pursuant to
the terms of such Security) shall be paid, as to the installments of interest
evidenced by Coupons attached thereto, if any, only upon presentation and
surrender thereof, and, as to the other installments of interest, if any, only
upon presentation of such Securities for notation thereon of the payment of such
interest, in each case subject to any restrictions that may be established
pursuant to Section 2.3. The interest on Registered Securities (together with
any additional amounts payable pursuant to the terms of such Securities) shall
be payable only to or upon the written order of the Holders thereof and, at the
option of the Issuer, may be paid by wire transfer or by mailing checks for such
interest payable to or upon the written order of such Holders at their last
addresses as they appear on the registry books of the Issuer.

      Section 3.2 Offices for Payments, Etc. So long as any Securities are
issued as Registered Securities, the Issuer will maintain in the Borough of
Manhattan, The City of New York, an office or agency where the Registered
Securities of each series may be presented for payment, where the Securities of
each series may be presented for exchange as is provided in this Indenture and,
if applicable, pursuant to Section 2.3 and where the Registered Securities of
each series may be presented for registration of transfer as in this Indenture
provided.So long as any Securities are issued as Unregistered Securities, the
Issuer will maintain one or more offices or agencies in a city or cities located
outside the United States (including any city in which such an agency is
required to be maintained under the rules of any shares exchange on which the
Securities of such series are listed) where the Unregistered Securities, if any,
of each series and Coupons, if any, appertaining thereto may be presented for
payment. No payment on any Unregistered Security or Coupon will be made upon
presentation of such Unregistered Security or Coupon at an agency of the Issuer
within the United States nor will any payment be made by transfer to an account
in, or by mail to an address in, the United States unless pursuant to applicable
United States laws and regulations then in effect such payment can be made
without

                                       20

<PAGE>

adverse tax consequences to the Issuer. Notwithstanding the foregoing, payments
in Dollars of Unregistered Securities of any series and Coupons appertaining
thereto which are payable in Dollars may be made at an agency of the Issuer
maintained in the Borough of Manhattan, The City of New York, if such payment in
Dollars at each agency maintained by the Issuer outside the United States for
payment on such Unregistered Securities is illegal or effectively precluded by
exchange controls or other similar restrictions.

      The Issuer will maintain in the Borough of Manhattan, The City of New
York, an office or agency where notices and demands to or upon the Issuer in
respect of the Securities of any series, the Coupons appertaining thereto or
this Indenture may be served.

      The Issuer will give to the Trustee written notice of the location of each
such office or agency and of any change of location thereof. In case the Issuer
shall fail to maintain any agency required by this Section, or shall fail to
give such notice of the location or of any change in the location of any of the
above agencies, presentations and demands may be made and notices may be served
at the Corporate Trust Office of the Trustee.

      The Issuer may from time to time designate one or more additional offices
or agencies where the Securities of a series and any Coupons appertaining
thereto may be presented for payment, where the Securities of that series may be
presented for exchange as provided in this Indenture and pursuant to Section 2.3
and where the Registered Securities of that series may be presented for
registration of transfer as in this Indenture provided, and the Issuer may from
time to time rescind any such designation, as the Issuer may deem desirable or
expedient; provided, however, that no such designation or rescission shall in
any manner relieve the Issuer of its obligation to maintain the agencies
provided for in this Section. The Issuer will give to the Trustee prompt written
notice of any such designation or rescission thereof.

      Section 3.3 Money for Security Payments to be Held in Trust; Unclaimed
Money. If the Issuer shall at any time act as its own paying agent, it will, on
or before each due date of the principal of and premium, if any, or interest on
any of the Securities, segregate and hold in trust for the benefit of the
Holders entitled thereto a sum sufficient to pay the principal (and premium, if
any) or interest so becoming due until such sums shall be paid to such Holders
or otherwise disposed of as herein provided and will promptly notify the Trustee
of its action or failure so to act.

      Whenever the Issuer shall have one or more paying agents, it will, on or
prior to each due date of the principal of and premium, if any, or interest on
any Securities, deposit with the paying agent or paying agents a sum sufficient
to pay the principal, premium, if any, or interest so becoming due, such sum to
be held in trust for the benefit of the Holders entitled to such principal,
premium, if any, or interest, and, unless such paying agent is the Trustee, the
Issuer will promptly notify the Trustee of its action or failure so to act.

      The Issuer will cause each paying agent other than the Trustee to execute
and deliver to the Trustee an instrument in which such paying agent shall agree
with the Trustee, subject to the provisions of this Section, that such paying
agent will:

                                       21

<PAGE>

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

      (b) give the Trustee notice of any default by the Holders (or any other
obligor upon the Securities) in the making of any payment of principal and
premium, if any, or interest; and

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

      The Issuer may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, pay, or by Issuer
Order direct any paying agent to pay, to the Trustee all sums held in trust by
the Issuer or such paying agent, such sums to be held by the Trustee upon the
same trusts as those upon which such sums were held by the Issuer 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 Issuer in trust for the payment of the principal of and premium, if any, or
interest on any Security and remaining unclaimed for two years after such
principal and premium, if any, or interest has become due and payable shall be
paid to the Issuer on Issuer Order, or, if then held by the Issuer, shall be
discharged from such trust; and the Holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Issuer for payment thereof, and
all liability of the Trustee or such paying agent with respect to such trust
money, and all liability of the Issuer as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such paying agent, before being
required to make any such repayment, shall at the expense of the Issuer cause to
be published at least once, in an Authorized Newspaper in the Borough of
Manhattan, The City of New York, and at least once in an Authorized Newspaper in
London, 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 Issuer.

      Section 3.4 Statements of Officers of Issuer as to Default; Notice of
Default.

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

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

      Section 3.5 Existence. Subject to Article 9, the Issuer will do or cause
to be done all things necessary to preserve and keep in full force and effect
its existence, rights (charter and

                                       22

<PAGE>

statutory) and franchises and those of each of its Subsidiaries; provided,
however, that the Issuer shall not be required to preserve any such right or
franchise if its Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Issuer or
the business of any Subsidiary and that the loss thereof is not disadvantageous
in any material respect to the Holders.

      Section 3.6 Maintenance of Properties. The Issuer 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 Issuer may be necessary so that the business
carried on in connection therewith may be properly and advantageously conducted
at all times; provided, however, that nothing in this Section shall prevent the
Issuer from discontinuing the operation or maintenance of any such properties if
such discontinuance is, in the judgment of the Issuer, desirable in the conduct
of its business or the business of any Subsidiary and not disadvantageous in any
material respect to the Holders.

      Section 3.7 Payment of Taxes and Other Claims. The Issuer shall pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, (a) all taxes, assessments and governmental charges (including
withholding taxes and any penalties, interest and additions to taxes) levied or
imposed upon the Issuer or any Subsidiary or upon the income, profits or
property of the Issuer or any Subsidiary, and (b) all material lawful claims for
labor, materials and supplies which, if unpaid, might by law become a lien upon
the property of the Issuer or any Subsidiary; provided, however, that the Issuer
shall not be required to pay or discharge or cause to be paid or discharged any
such tax, assessment, charge or claim whose amount, applicability or validity is
being contested in good faith by appropriate proceedings and for which disputed
amounts adequate reserves have been made.

      Section 3.8 Further Instruments and Acts. Upon request of the Trustee, the
Issuer will execute and deliver such further instruments and perform such
further acts as may be reasonably necessary or proper to carry out more
effectively the purposes of this Indenture.

      Section 3.9 Commission Reports. The Issuer shall file with the Trustee,
within 15 days after it files such annual and quarterly reports, information,
documents and other reports with the Commission, copies of its annual report and
of the information, documents and other reports (or copies of such portions of
any of the foregoing as the Commission may by rules and regulations prescribe)
which the Issuer is required to file with the Commission pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934. Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee's receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Issuer's compliance with any of its covenants hereunder.
The Trustee shall be under no obligation to analyze or make any credit decisions
with respect to reports or other information received by it pursuant to this
section, but shall hold such reports and other information solely for the
benefit of, and review by, the security holders.

                                       23

<PAGE>

      Section 3.10 Calculation of Original Issue Discount. The Issuer shall file
with the Trustee promptly at the end of each calendar year (a) a written notice
specifying the amount of original issue discount (including daily rates and
accrual periods), if any, accrued on Outstanding Securities as of the end of
such year and (b) such other specific information relating to such original
issue discount as may then be relevant under the Internal Revenue Code of 1986,
as amended from time to time.

                                    ARTICLE 4

         SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

      Section 4.1 Issuer to Furnish Trustee Information as to Names and
Addresses of Securityholders. If and so long as the Trustee shall not be the
Security registrar for the Securities of any series, the Issuer and any other
obligor on the Securities will furnish or cause to be furnished to the Trustee a
list in such form as the Trustee may reasonably require of the names and
addresses of the Holders of the Registered Securities of such series pursuant to
Section 312 of the Trust Indenture Act of 1939 (a) semi-annually not more than 5
days after each record date for the payment of interest on such Registered
Securities, as hereinabove specified, as of such record date and on dates to be
determined pursuant to Section 2.3 for non-interest bearing Registered
Securities in each year, and (b) at such other times as the Trustee may request
in writing, within thirty days after receipt by the Issuer of any such request
as of a date not more than 15 days prior to the time such information is
furnished.

      Section 4.2 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 4.1 and the names and
addresses of Holders received by the Trustee in its capacity as Security
Registrar or paying agent. The Trustee may destroy any list furnished to it as
provided in Section 4.1 upon receipt of a new list so furnished.

      (b) The rights of 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 of 1939.

      (c) Every Holder of Securities, by receiving and holding the same, agrees
with the Issuer and the Trustee that neither the Issuer nor the Trustee nor any
agent of any of them shall be held accountable by reason of the disclosure of
any such information as to the names and addresses of the Holders in accordance
with Sections 4.1 and 4.2, regardless of the source from which such information
was derived, and that the Trustee shall not be held accountable by reason of
mailing any material pursuant to a request made under Section 4.2.

      Section 4.3 Reports by the Trustee. Any Trustee's report required under
Section 313(a) of the Trust Indenture Act of 1939 shall be transmitted within 60
days after April 15 in each year beginning with the first such date after the
issuance of Securities under this Indenture, as provided in Section 313(c) of
the Trust Indenture Act of 1939, so long as any Securities are

                                       24

<PAGE>

Outstanding hereunder, and shall be dated as of April 15, if required by and in
compliance with Section 313(a) of the Trust Indenture Act of 1939.

      A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with each shares exchange, if any, upon which
the Securities are listed, with the Commission and with the Issuer. The Issuer
will promptly notify the Trustee when the Securities are listed on any shares
exchange and of any delisting thereof.

                                    ARTICLE 5

         REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

      Section 5.1 Event of Default Defined; Acceleration of Maturity; Waiver of
Default. "EVENT OF DEFAULT" with respect to Securities of any series wherever
used herein, means each one of the following events which shall have occurred
and be continuing (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body) unless it is either inapplicable to
a particular series or it is specifically deleted or modified in an indenture
supplemental hereto, if any, under which such series of Securities is issued:

      (a) default in the payment of any installment of interest upon any of the
Securities of such series as and when the same shall become due and payable, and
continuance of such default for a period of 30 days and the interest payment
date has not been properly extended or deferred; provided, however, that if the
Issuer is permitted by the terms of the Securities of the applicable series to
defer the payment in question, the date on which such payment is due and payable
shall be the date on which the Issuer is required to make payment following such
deferral, if such deferral has been elected pursuant to the terms of the
Securities of that series; or

      (b) default in the payment of all or any part of the principal of, or
premium, if any, on any of the Securities of such series as and when the same
shall become due and payable either at maturity, upon any redemption, by
declaration or otherwise; provided, however, that if the Issuer is permitted by
the terms of the Securities of the applicable series to defer the payment in
question, the date on which such payment is due and payable shall be the date on
which the Issuer is required to make payment following such deferral, if such
deferral has been elected pursuant to the terms of the Securities of that
series; or

      (c) default in the payment of any sinking fund installment as and when the
same shall become due and payable by the terms of the Securities of such series;
or

      (d) default in the observance or performance of any covenant or agreement
on the part of the Issuer in the Securities of such series (other than a
covenant or agreement, a default in the observance or performance of which is
specifically dealt with elsewhere in this Section) (other than a covenant or
agreement included in this Indenture solely for the benefit of a series of
Securities other than such series) and continuation of such default for a period
of 90 days after the date on which written notice specifying such failure,
stating that such notice is a "Notice of Default" hereunder and demanding that
the Issuer remedy the same, shall have been given by

                                       25

<PAGE>

registered or certified mail, return receipt requested, to the Issuer by the
Trustee, or to the Issuer and the Trustee by the holders of at least 25% in
aggregate principal amount of the Outstanding Securities of all series affected
thereby; or

      (e) a decree or order by a court having jurisdiction in the premises shall
have been entered adjudging the Issuer as bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization of the Issuer under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, and such decree or order shall have continued undischarged and unstayed
for a period of 120 days; or a decree or order of a court having jurisdiction in
the premises for the appointment of a receiver or liquidator or trustee or
assignee in bankruptcy or insolvency of the Issuer or of its property, or for
the winding up or liquidation of its affairs, shall have been entered, and such
decree or order shall have remained in force and unstayed for a period of 120
days; or

      (f) the Issuer shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
consent to the entry of an order for relief in an involuntary case under any
such law, or consent to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
the Issuer or for any substantial part of its property, or make any general
assignment for the benefit of creditors, or shall admit in writing its inability
to pay its debts generally as they become due; or

      (g) default (i) in any scheduled payment of principal of any indebtedness
of the Issuer (other than with respect to such series of the Securities and
other than non-recourse indebtedness), having an aggregate principal amount
outstanding of at least $50,000,000, when due and payable after giving effect to
any applicable grace period or (ii) in the performance of any other term or
provision of any indebtedness of the Issuer (other than with respect to such
series of the Securities and other than non-recourse indebtedness) having an
aggregate principal amount outstanding of at least $50,000,000 which results in
such indebtedness becoming or being declared due and payable prior to the date
on which it would otherwise become due and payable, and such acceleration shall
not have been cured, waived, rescinded or annulled, or such indebtedness shall
not have been discharged, within a period of 30 days after notice has been given
by registered or certified mail, return receipt requested, to the Issuer by the
Trustee or to the Issuer and the Trustee by the Holders of at least 25% in
aggregate principal amount of the Outstanding Securities (treated as one class)
which notice shall state that it is a "Notice of Default" hereunder; or

      (h) any other Event of Default provided in the supplemental indenture
under which such series of Securities is issued or in the form of Security for
such series;

provided that if any such default or acceleration referred to in clause (g)
above shall cease or be cured, waived, rescinded or annulled, then the Event of
Default hereunder by reason thereof shall be deemed likewise to have been
thereupon cured.

      If an Event of Default described in clause (a), (b), (c), (d) or (h) (if
the Event of Default under clause (d) or (h), as the case may be, is with
respect to less than all series of Securities then Outstanding) occurs and is
continuing, then, and in each and every such case, except for any

                                       26

<PAGE>

series of Securities the principal of which shall have already become due and
payable, either the Trustee or the Holders of not less than 25% in aggregate
principal amount of the Securities of each such affected series then Outstanding
hereunder (voting as a single class) by notice in writing to the Issuer (and to
the Trustee if given by Securityholders), may declare the entire principal (or,
if the Securities of any such affected series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of such series) of all Securities of all such affected series, and the
interest accrued thereon, if any, to be due and payable immediately, and upon
any such declaration, the same shall become immediately due and payable. If an
Event of Default described in clause (d) or (h) (if the Event of Default under
clause (d) or (h), as the case may be, is with respect to all series of
Securities then Outstanding) or (g) occurs and is continuing, then and in each
and every such case, unless the principal of all the Securities shall have
already become due and payable, either the Trustee or the Holders of not less
than 25% in aggregate principal amount of all the Securities then Outstanding
hereunder (treated as one class), by notice in writing to the Issuer (and to the
Trustee if given by Securityholders), may declare the entire principal (or, if
any Securities are Original Issue Discount Securities, such portion of the
principal as may be specified in the terms thereof) of all the Securities then
Outstanding, and interest accrued thereon, if any, to be due and payable
immediately, and upon any such declaration the same shall become immediately due
and payable. If an Event of Default specified in clause (e) or (f) occurs, all
unpaid principal (or, if any Securities are Original Issue Discount Securities,
such portion of the principal as may be specified in the terms thereof) of all
the Securities then Outstanding, and interest accrued thereon, if any, shall be
due and payable immediately, without any declaration or other act on the part of
the Trustee or any Securityholder.

      The foregoing provisions, however, are subject to the condition that if,
at any time after the principal (or, if the Securities are Original Issue
Discount Securities, such portion of the principal as may be specified in the
terms thereof) of the Securities of any series (or of all the Securities, as the
case may be) shall have been so declared due and payable, and before any
judgment or decree for the payment of the moneys due shall have been obtained or
entered as hereinafter provided, the Issuer shall pay or shall deposit with the
Trustee a sum sufficient to pay all matured installments of interest upon all
the Securities of such series (or of all the Securities, as the case may be) and
the principal of any and all Securities of each such series (or of all the
Securities, as the case may be) which shall have become due otherwise than by
acceleration (with interest upon such principal and, to the extent that payment
of such interest is enforceable under applicable law, on overdue installments of
interest, at the same rate as the rate of interest or Yield to Maturity (in the
case of Original Issue Discount Securities) specified in the Securities of each
such series (or at the respective rates of interest or Yields to Maturity of all
the Securities, as the case may be) to the date of such payment or deposit) and
such amount as shall be sufficient to cover reasonable compensation to the
Trustee and each predecessor Trustee, its agents, attorneys and counsel, and all
other expenses and liabilities incurred, and all advances made, by the Trustee
and each predecessor Trustee except as a result of negligence, bad faith or
willful misconduct, and if any and all Events of Default under the Indenture,
other than the non-payment of the principal of Securities which shall have
become due by such acceleration, shall have been cured, waived or otherwise
remedied as provided herein, then and in every such case the Holders of a
majority in aggregate principal amount of all the Securities of each such
series, or of all the Securities, in each case voting as a single class, then
Outstanding, by written notice to the Issuer and to the Trustee, may waive all
defaults with respect to each such series (or with

                                       27

<PAGE>

respect to all the Securities, as the case may be) and rescind and annul such
declaration and its consequences, but no such waiver or rescission and annulment
shall extend to or shall affect any subsequent default or shall impair any right
consequent thereon.

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

      Section 5.2 Collection of Indebtedness by Trustee; Trustee May Prove Debt.

      (a) The Issuer covenants that (i) in case default shall be made in the
payment of any installment of interest on any of the Securities of any series
when such interest shall have become due and payable, and such default shall
have continued for a period of 30 days or (ii) in case default shall be made in
the payment of all or any part of the principal of any of the Securities of any
series when the same shall have become due and payable, whether upon maturity of
the Securities of such series or upon any redemption or by declaration or
otherwise, then upon demand of the Trustee, the Issuer will pay to the Trustee
for the benefit of the Holders of the Securities of such series the whole amount
that then shall have become due and payable on all Securities of such series,
and such Coupons, for principal or interest, as the case may be (with interest
to the date of such payment upon the overdue principal and, to the extent that
payment of such interest is enforceable under applicable law, on overdue
installments of interest at the same rate as the rate of interest or Yield to
Maturity (in the case of Original Issue Discount Securities) specified in the
Securities of such series); and in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, including
reasonable compensation to the Trustee and each predecessor Trustee, their
respective agents, attorneys and counsel, and any expenses and liabilities
incurred, and all advances made, by the Trustee and each predecessor Trustee
except as a result of its negligence, bad faith or willful misconduct.

      Until such demand is made by the Trustee, the Issuer may pay the principal
of and interest on the Securities of any series to the registered holders,
whether or not the Securities of such series be overdue.

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

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<PAGE>

      (c) In case there shall be pending proceedings relative to the Issuer or
any other obligor upon the Securities under Title 11 of the United States Code
or any other applicable Federal or state bankruptcy, insolvency or other similar
law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor, or in case
of any other comparable judicial proceedings relative to the Issuer or other
obligor upon the Securities, or to the creditors or property of the Issuer or
such other obligor, the Trustee, irrespective of whether the principal of the
Securities shall then be due and payable as therein expressed or by declaration
or otherwise and irrespective of whether the Trustee shall have made any demand
pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such proceedings or otherwise:

      (i) to file and prove a claim or claims for the whole amount of principal
and interest (or, if the Securities of any series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of such series) owing and unpaid in respect of the Securities of any
series, and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
reasonable compensation to the Trustee and each predecessor Trustee, and their
respective agents, attorneys and counsel, and for reimbursement of all expenses
and liabilities incurred, and all advances made, by the Trustee and each
predecessor Trustee, except as a result of negligence, bad faith or willful
misconduct) and of the Securityholders allowed in any judicial proceedings
relative to the Issuer or other obligor upon the Securities, or to the creditors
or property of the Issuer or such other obligor;

      (ii) unless prohibited by applicable law and regulations, to vote on
behalf of the holders of the Securities of any series in any election of a
trustee or a standby trustee in arrangement, reorganization, liquidation or
other bankruptcy or insolvency proceedings or person performing similar
functions in comparable proceedings; and

      (iii) to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute all amounts received with
respect to the claims of the Securityholders and of the Trustee on their behalf;
and any trustee, receiver, or liquidator, custodian or other similar official is
hereby authorized by each of the Securityholders to make payments to the
Trustee, and, in the event that the Trustee shall consent to the making of
payments directly to the Securityholders, to pay to the Trustee such amounts as
shall be sufficient to cover reasonable compensation to the Trustee, each
predecessor Trustee and their respective agents, attorneys and counsel, and all
other expenses and liabilities incurred, and all advances made, by the Trustee
and each predecessor Trustee except as a result of negligence, bad faith or
willful misconduct.

      Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities of any series or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Securityholder in any such proceeding except, as aforesaid, to vote for the
election of a trustee in bankruptcy or similar person.

                                       29

<PAGE>

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

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

      Section 5.3 Application of Proceeds. Any moneys collected by the Trustee
pursuant to this Article in respect of any series shall be applied in the
following order at the date or dates fixed by the Trustee and, in case of the
distribution of such moneys on account of principal or interest, upon
presentation of the several Securities and Coupons appertaining to such
Securities in respect of which moneys have been collected and stamping (or
otherwise noting) thereon the payment, or issuing Securities of such series in
reduced principal amounts in exchange for the presented Securities of like
series if only partially paid, or upon surrender thereof if fully paid:

      FIRST: To the payment of costs and expenses applicable to such series in
respect of which moneys have been collected, including reasonable compensation
to the Trustee and each predecessor Trustee and their respective agents and
attorneys and of all expenses and liabilities incurred, and all advances made,
by the Trustee and each predecessor Trustee except as a result of negligence,
bad faith or willful misconduct;

      SECOND: In case the principal of the Securities of such series in respect
of which moneys have been collected shall not have become and be then due and
payable, to the payment of interest on the Securities of such series in default
in the order of the maturity of the installments of such interest, with interest
(to the extent that such interest has been collected by the Trustee) upon the
overdue installments of interest at the same rate as the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) specified
in such Securities, such payments to be made ratably to the Persons entitled
thereto, without discrimination or preference;

      THIRD: In case the principal of the Securities of such series in respect
of which moneys have been collected shall have become and shall be then due and
payable, to the payment of the whole amount then owing and unpaid upon all the
Securities of such series for principal and interest, with interest upon the
overdue principal, and (to the extent that such interest has been collected by
the Trustee) upon overdue installments of interest at the same rate as the rate
of interest or Yield to Maturity (in the case of Original Issue Discount
Securities) specified in the Securities of such series; and in case such moneys
shall be insufficient to pay in full the whole

                                       30

<PAGE>

amount so due and unpaid upon the Securities of such series, then to the payment
of such principal and interest or Yield to Maturity, without preference or
priority of principal over interest or Yield to Maturity, or of interest or
Yield to Maturity over principal, or of any installment of interest over any
other installment of interest, or of any Security of such series over any other
Security of such series, ratably to the aggregate of such principal and accrued
and unpaid interest or Yield to Maturity; and

      FOURTH: To the payment of the remainder, if any, to the Issuer or any
other Person lawfully entitled thereto.

      Section 5.4 Suits for Enforcement. In case an Event of Default has
occurred, has not been waived and is continuing, the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in this Indenture or in aid of the exercise
of any power granted in this Indenture or to enforce any other legal or
equitable right vested in the Trustee by this Indenture or by law.

      Section 5.5 Restoration of Rights on Abandonment of Proceedings. In case
the Trustee shall have proceeded to enforce any right under this Indenture and
such proceedings shall have been discontinued or abandoned for any reason, or
shall have been determined adversely to the Trustee, then and in every such case
the Issuer and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the
Issuer, the Trustee and the Securityholders shall continue as though no such
proceedings had been taken.

      Section 5.6 Limitations on Suits by Securityholders. No Holder of any
Security of any series or of any Coupon appertaining thereto shall have any
right by virtue or by availing of any provision of this Indenture to institute
any action or proceeding at law or in equity or in bankruptcy or otherwise upon
or under or with respect to this Indenture, or for the appointment of a trustee,
receiver, liquidator, custodian or other similar official or for any other
remedy hereunder, unless such Holder previously shall have given to the Trustee
written notice of default and of the continuance thereof, as hereinbefore
provided, and unless also the Holders of not less than 25% in aggregate
principal amount of the Securities of each affected series then Outstanding
(treated as a single class) shall have made written request upon the Trustee to
institute such action or proceedings in its own name as trustee hereunder and
shall have offered to the Trustee indemnity reasonably satisfactory to it
against the costs, expenses and liabilities to be incurred therein or thereby
and the Trustee for 60 days after its receipt of such notice, request and offer
of indemnity shall have failed to institute any such action or proceeding and no
direction inconsistent with such written request shall have been given to the
Trustee pursuant to Section 5.9; it being understood and intended, and being
expressly covenanted by the taker and Holder of every Security or Coupon with
every other taker and Holder and the Trustee, that no one or more Holders of
Securities of any series or Coupons appertaining to such Securities shall have
any right in any manner whatever by virtue or by availing of any provision of
this Indenture to affect, disturb or prejudice the rights of any other such
Holder of Securities or Coupons appertaining to such Securities, or to obtain or
seek to obtain priority over or preference to any other such Holder or to
enforce any right under this Indenture, except in the manner herein

                                       31

<PAGE>

provided and for the equal, ratable and common benefit of all Holders of
Securities of the applicable series and Coupons appertaining to such Securities.
For the protection and enforcement of the provisions of this Section, each and
every Securityholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.

      Section 5.7 Unconditional Right of Securityholders to Institute Certain
Suits. Notwithstanding any other provision in this Indenture and any provision
of any Security, the right of any Holder of any Security or Coupon to receive
payment of the principal of and interest on such Security or Coupon on or after
the respective due dates expressed in such Security or Coupon, or to institute
suit for the enforcement of any such payment on or after such respective dates,
shall not be impaired or affected without the consent of such Holder.

      Section 5.8 Powers and Remedies Cumulative; Delay or Omission Not Waiver
of Default. Except as provided in Section 5.6, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders of Securities or
Coupons is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

      No delay or omission of the Trustee or of any Holder of Securities or
Coupons to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power or
shall be construed to be a waiver of any such Event of Default or an
acquiescence therein; and, subject to Section 5.6, every power and remedy given
by this Indenture or by law to the Trustee or to the Holders of Securities or
Coupons may be exercised from time to time, and as often as shall be deemed
expedient, by the Trustee or by the Holders of Securities or Coupons.

      Section 5.9 Control by Holders of Securities. The Holders of a majority in
aggregate principal amount of the Securities of each series affected (with all
such series voting as a single class) at the time Outstanding shall have the
right to direct the time, method, and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee with respect to the Securities of such series by this Indenture;
provided that such direction shall not be otherwise than in accordance with law
and the provisions of this Indenture; provided further that (subject to the
provisions of Section 6.1) the Trustee shall have the right to decline to follow
any such direction if the Trustee, being advised by counsel, shall determine
that the action or proceeding so directed may not lawfully be taken or if the
Trustee in good faith by its board of directors, the executive committee, or a
trust committee of directors or Responsible Officers of the Trustee shall
determine that the action or proceedings so directed would involve the Trustee
in personal liability or if the Trustee in good faith shall so determine that
the actions or forbearances specified in or pursuant to such direction would be
unduly prejudicial to the interests of Holders of the Securities of all series
so affected not joining in the giving of said direction, it being understood
that (subject to Section 6.1) the Trustee shall have no duty to ascertain
whether or not such actions or forbearances are unduly prejudicial to such
Holders.

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<PAGE>

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

      Section 5.10 Waiver of Past Defaults. Prior to the acceleration of the
maturity of any Securities as provided in Section 5.1, the Holders of a majority
in aggregate principal amount of the Securities of all series at the time
Outstanding with respect to which an Event of Default shall have occurred and be
continuing (voting as a single class) may on behalf of the Holders of all such
Securities waive any past default or Event of Default described in Section 5.1
and its consequences, except a default in respect of a covenant or provision
hereof which cannot be modified or amended without the consent of the Holder of
each Security affected. In the case of any such waiver, the Issuer, the Trustee
and the Holders of all such Securities shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend to
any subsequent or other default or impair any right consequent thereon.

      Upon any such waiver, such default shall cease to exist and be deemed to
have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured, and not to have occurred for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or Event of Default or impair any right consequent thereon.

      Section 5.11 Trustee to Give Notice of Default, but May Withhold in
Certain Circumstances. The Trustee shall, within ninety days after the
occurrence of a default with respect to the Securities of any series, give
notice of all defaults with respect to that series actually known to a
Responsible Officer of the Trustee (a) if any Unregistered Securities of that
series are then Outstanding, to the Holders thereof, by publication at least
once in an Authorized Newspaper in the Borough of Manhattan, The City of New
York and at least once in an Authorized Newspaper in London and (b) to all
Holders of Securities of such series in the manner and to the extent provided in
Section 313(c) of the Trust Indenture Act of 1939, unless in each case such
defaults shall have been cured before the mailing or publication of such notice
(the term "defaults" for the purpose of this Section being hereby defined to
mean any event or condition which is, or with notice or lapse of time or both
would become, an Event of Default); provided that, except in the case of default
in the payment of the principal of or interest on any of the Securities of such
series, or in the payment of any sinking fund installment on such series, the
Trustee shall be protected in withholding such notice if and so long as the
board of directors, the executive committee, or a trust committee of directors,
trustees or Responsible Officers of the Trustee in good faith determines that
the withholding of such notice is in the interests of the Securityholders of
such series.

      Section 5.12 Right of Court to Require Filing of Undertaking to Pay Costs.
All parties to this Indenture agree, and each Holder of any Security or Coupon
by his or her acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action
taken, suffered or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys'
fees and expenses, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses

                                       33

<PAGE>

made by such party litigant; but the provisions of this Section shall not apply
to any suit instituted by the Trustee, to any suit instituted by any
Securityholder or group of Securityholders of any series holding in the
aggregate more than 10% in aggregate principal amount of the Securities of such
series, or, in the case of any suit relating to or arising under clause (d) or
(h) of Section 5.1 (if the suit relates to Securities of more than one but less
than all series), 10% in aggregate principal amount of Securities then
Outstanding and affected thereby, or in the case of any suit relating to or
arising under clause (d) or (h) (if the suit under clause (d) or (h) relates to
all the Securities then Outstanding), (e), (f) or (g) of Section 5.1, 10% in
aggregate principal amount of all Securities then Outstanding, or to any suit
instituted by any Securityholder for the enforcement of the payment of the
principal of or interest on any Security on or after the due date expressed in
such Security or any date fixed for redemption.

                                    ARTICLE 6

                             CONCERNING THE TRUSTEE

      Section 6.1 Duties and Responsibilities of the Trustee; During Default;
Prior to Default.

      (a) With respect to the Holders of any series of Securities issued
hereunder, the Trustee, prior to the occurrence of an Event of Default with
respect to the Securities of a particular series and after the curing or waiving
of all Events of Default which may have occurred with respect to such series,
undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture. In case an Event of Default with respect to the
Securities of a series has occurred (which has not been cured or waived), the
Trustee shall exercise with respect to such series of Securities such of the
rights and powers vested in it by this Indenture, and use the same degree of
care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of his or her own affairs.

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

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

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

            (B) in the absence of bad faith on the part of the Trustee, the
      Trustee may conclusively rely, as to the truth of the statements and the
      correctness of the opinions expressed therein, upon any statements,
      certificates or opinions furnished to the Trustee and conforming to the
      requirements of this Indenture; but in the case of any such

                                       34

<PAGE>

      statements, certificates or opinions which by any provision hereof are
      specifically required to be furnished to the Trustee, the Trustee shall be
      under a duty to examine the same to determine whether or not they conform
      to the requirements of this Indenture (but need not confirm or investigate
      the accuracy of mathematical calculations or other facts stated therein
      unless specifically required by this Indenture);

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

      (iii) the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders pursuant to Section 5.9 relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee, under this Indenture; and

      (iv) the Trustee shall not be required to take notice, and shall not be
deemed to have notice, of any default or Event of Default hereunder, except
Events of Default described in paragraphs (a), (b) and (c) of Section 5.1
hereof, unless a Responsible Officer of the Trustee shall be notified
specifically of the default or Event of Default on a written instrument or
document delivered to it at its notice address by the Issuer or by the Holders
of at least 10% of the aggregate principal amount of Securities then
outstanding. In the absence of delivery of notice satisfying those requirements,
the Trustee may assume conclusively that there is no default or Event of
Default, except as noted.

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

      The provisions of this Section 6.1 are in furtherance of and subject to
Section 315 of the Trust Indenture Act of 1939.

      Section 6.2 Certain Rights of the Trustee. In furtherance of and subject
to the Trust Indenture Act of 1939, and subject to Section 6.1:

      (a) the Trustee may conclusively rely, as to the truth of the statements
and the correctness of the opinions expressed therein, and shall be protected in
acting or refraining from acting upon any resolution, Officer's Certificate or
any other certificate, statement, instrument, opinion, report, notice, request,
consent, order, bond, debenture, note, coupon, security or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;

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

                                       35

<PAGE>

      (c) the Trustee may consult with legal counsel of its choice or other
experts, and the advice of such experts within the scope of such expert's area
of expertise or opinion of counsel with respect to legal matters shall be full
and complete authorization and protection in respect of any action taken,
suffered or omitted to be taken by it hereunder in good faith and in accordance
with such advice or opinion.

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

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

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

      (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 such agent or attorney appointed with due care by
it hereunder;

      (h) the Trustee shall not be liable for any action taken, suffered, or
omitted to be taken by it in good faith in accordance with the direction of the
holders pursuant to Section 5.9 relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon it by this Indenture;

      (i) the rights, privileges, protections, immunities and benefits given to
the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and each agent, custodian and other Person employed to act hereunder;

      (j) the Trustee may request that the Issuer deliver an Officer's
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified

                                       36

<PAGE>

actions pursuant to this Indenture, which Officer's Certificate may be signed by
any person authorized to sign an Officer's Certificate, including any person
specified as so authorized in any such certificate previously delivered and not
superseded;

      (k) 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 Issuer, at a time reasonably determined by
the Issuer, personally or by agent or attorney at the sole cost of the Issuer
and shall incur no liability or additional liability of any kind by reason of
such inquiry or investigation; and

      (l) 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 such agent or attorney appointed with due care by
it hereunder.

      Section 6.3 Trustee Not Responsible for Recitals, Disposition of
Securities or Application of Proceeds Thereof. The recitals contained herein and
in the Securities, except the Trustee's certificates of authentication, shall be
taken as the statements of the Issuer, and the Trustee assumes no responsibility
for the correctness of the same. The Trustee makes no representation as to the
validity or sufficiency of this Indenture or of any Securities or Coupons. The
Trustee shall not be accountable for the use or application by the Issuer of any
of the Securities or of the proceeds thereof.

      Section 6.4 Trustee and Agents May Hold Securities or Coupons;
Collections, Etc. The Trustee or any agent of the Issuer or the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Securities
or Coupons with the same rights it would have if it were not the Trustee or such
agent and may otherwise deal with the Issuer and receive, collect, hold and
retain collections from the Issuer with the same rights it would have if it were
not the Trustee or such agent.

      Section 6.5 Moneys Held by Trustee. Subject to the provisions of Section
3.3 hereof, all moneys received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were received,
but need not be segregated from other funds except to the extent required by
mandatory provisions of law. Neither the Trustee nor any agent of the Issuer or
the Trustee shall be under any liability for interest on any moneys received by
it hereunder.

      Section 6.6 Compensation and Indemnification of Trustee. The Issuer
covenants and agrees to pay to the Trustee from time to time, and the Trustee
shall be entitled to, such compensation as shall be agreed in writing between
the Issuer and the Trustee from time to time (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust)
and the Issuer covenants and agrees to pay or reimburse the Trustee and each
predecessor Trustee upon its request for all reasonable expenses, disbursements
and advances

                                       37

<PAGE>
'
incurred or made by or on behalf of it in accordance with any of the provisions
of this Indenture (including the reasonable compensation and the expenses and
disbursements of its counsel and of all agents and other persons not regularly
in its employ) except any such expense, disbursement or advance as may arise
from its negligence, bad faith or willful misconduct. The Issuer also covenants
to indemnify the Trustee, each predecessor Trustee and their respective
directors, officers, employees, and agents (the "INDEMNITEES") for, and to hold
the indemnitees harmless against, any and all loss, liability, claim, damage,
penalty, fine or expense, including taxes and reasonable out-of-pocket expenses,
reasonable incidental expenses and reasonable legal fees and expenses incurred
without negligence, bad faith or willful misconduct on the indemnitees' part,
arising out of or in connection with the acceptance or administration of this
Indenture or the trusts hereunder and the indemnitees' duties hereunder,
including the costs and expenses of defending themselves against or
investigating any claim, whether asserted by the Issuer or any Holder or any
other Person, or liability in connection with the exercise or performance of the
indemnitees' duties or obligations hereunder. The obligations of the Issuer
under this Section to compensate and indemnify the indemnitees and to pay or
reimburse the indemnitees for expenses, disbursements and advances shall
constitute additional indebtedness hereunder and shall survive the satisfaction
and discharge of this Indenture and the resignation or removal of the Trustee in
accordance with Section 6.10 herein. Such additional indebtedness shall be a
senior claim to that of the Securities upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the benefit of
the Holders of particular Securities or Coupons, and the Securities are hereby
subordinated to such senior claim.

      When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 5.1(e) or (f), the expenses (including the
reasonable charges and expenses of its counsel) and the compensation for the
services are intended to constitute expenses of administration under any
applicable Federal or state bankruptcy, insolvency or other similar law.

      Section 6.7 Right of Trustee to Rely on Officer's Certificate, Etc.
Subject to Sections 6.1 and 6.2, whenever in the administration of the trusts of
this Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or suffering or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence, bad faith or willful
misconduct on the part of the Trustee, be deemed to be conclusively proved and
established by an Officer's Certificate delivered to the Trustee, and such
certificate, in the absence of negligence, bad faith or willful misconduct on
the part of the Trustee, shall be full warrant to the Trustee for any action
taken, suffered or omitted by it under the provisions of this Indenture upon the
faith thereof.

      Section 6.8 Indentures Not Creating Potential Conflicting Interests for
the Trustee. The following indentures are hereby specifically described for the
purposes of Section 310(b)(1) of the Trust Indenture Act of 1939: this Indenture
with respect to the Securities of any series.

      Section 6.9 Persons Eligible for Appointment as Trustee. The Trustee for
each series of Securities hereunder shall at all times be a corporation or
banking association organized and doing business under the laws of the United
States of America or of any State or the District of Columbia having a combined
capital and surplus of at least $50,000,000, and which is authorized under such
laws to exercise corporate trust powers and is subject to supervision or
examination

                                       38

<PAGE>

by Federal, State or District of Columbia authority. Such corporation or banking
association shall have a place of business or an affiliate with a place of
business in the Borough of Manhattan, The City of New York if there be such a
corporation or association in such location willing to act upon reasonable and
customary terms and conditions. If such corporation or association publishes
reports of condition at least annually, pursuant to law or to the requirements
of the aforesaid supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such corporation or
association shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the
Trustee shall cease to be eligible in accordance with the provisions of this
Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 6.10.

      The provisions of this Section 6.9 are in furtherance of and subject to
Section 310(a) of the Trust Indenture Act of 1939.

      Section 6.10 Resignation and Removal; Appointment of Successor Trustee.

      (a) The Trustee, or any trustee or trustees hereafter appointed, may at
any time resign with respect to one or more or all series of Securities by
giving written notice of resignation to the Issuer and (i) if any Unregistered
Securities of a series affected are then Outstanding, by giving notice of such
resignation to the Holders thereof, by publication, at the Issuer's expense, at
least once in an Authorized Newspaper in the Borough of Manhattan, The City of
New York, and at least once in an Authorized Newspaper in London, (ii) if any
Unregistered Securities of a series affected are then Outstanding, by mailing
notice of such resignation to the Holders thereof who have filed their names and
addresses with the Trustee pursuant to Section 313(c)(2) of the Trust Indenture
Act of 1939 at such addresses as were so furnished to the Trustee and (iii) by
mailing notice of such resignation to the Holders of then Outstanding Registered
Securities of each series affected at their addresses as they shall appear on
the registry books. Upon receiving such notice of resignation, the Issuer shall
promptly appoint a successor Trustee or Trustees with respect to the applicable
series by written instrument in duplicate, executed by authority of the Board of
Directors, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor Trustee or Trustees. If no successor
Trustee shall have been so appointed with respect to any series and have
accepted appointment within 30 days after the mailing of such notice of
resignation, the resigning Trustee may, at the Issuer's expense, petition any
court of competent jurisdiction for the appointment of a successor Trustee, or
any Securityholder who has been a bona fide Holder of a Security or Securities
of the applicable series for at least six months may, subject to the provisions
of Section 5.12, on behalf of himself or herself and all others similarly
situated, petition any such court for the appointment of a successor Trustee.
Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor Trustee.

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

      (i) the Trustee shall fail to comply with the provisions of Section 310(b)
of the Trust Indenture Act of 1939 with respect to any series of Securities
after written request therefor by the Issuer or by any Securityholder who has
been a bona fide Holder of a Security or Securities of such series for at least
six months; or

                                       39

<PAGE>

      (ii) the Trustee shall cease to be eligible in accordance with the
provisions of Section 6.9 and Section 310(a) of the Trust Indenture Act of 1939
and shall fail to resign after written request therefor by the Issuer or by any
Securityholder; or

      (iii) the Trustee shall become incapable of acting with respect to any
series of Securities, or shall be adjudged bankrupt or insolvent, or a receiver
or liquidator of the Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation;

then, in any such case, the Issuer may remove the Trustee with respect to the
applicable series of Securities and appoint a successor Trustee for such series
by written instrument, in duplicate, executed by order of the Board of Directors
of the Issuer, one copy of which instrument shall be delivered to the Trustee so
removed and one copy to the successor Trustee, or, subject to the provisions of
Section 315(e) of the Trust Indenture Act of 1939, any Securityholder who has
been a bona fide Holder of a Security or Securities of such series for at least
six months may on behalf of himself or herself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee with respect to such series.
Such court may thereupon, after such notice, if any, as it may deem proper,
remove the Trustee and appoint a successor Trustee.

      (c) The Holders of a majority in aggregate principal amount of the
Securities of each series at the time Outstanding may at any time remove the
Trustee with respect to Securities of such series and appoint a successor
Trustee with respect to the Securities of such series by delivering to the
Trustee so removed, to the successor Trustee so appointed and to the Issuer the
evidence provided for in Section 7.1 of the action in that regard taken by such
Securityholders.

      (d) Any resignation or removal of the Trustee with respect to any series
and any appointment of a successor Trustee with respect to such series pursuant
to any of the provisions of this Section 6.10 shall become effective upon
acceptance of appointment by the successor Trustee as provided in Section 6.11.

      Section 6.11 Acceptance of Appointment by Successor Trustee. Any successor
Trustee appointed as provided in Section 6.10 shall execute and deliver to the
Issuer and to its predecessor Trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor Trustee
with respect to all or any applicable series shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all rights, powers, duties and obligations with respect to such
series of its predecessor hereunder, with like effect as if originally named as
Trustee for such series hereunder; but, nevertheless, on the written request of
the Issuer or of the successor Trustee, upon payment of its charges then unpaid,
the Trustee ceasing to act shall, subject to Section 3.3, pay over to the
successor Trustee all moneys at the time held by it hereunder and shall execute
and deliver an instrument transferring to such successor trustee all such
rights, powers, duties and obligations. Upon request of any such successor
Trustee, the Issuer shall execute any and all instruments in writing for more
fully and certainly vesting in and confirming to such successor Trustee all such
rights and powers. Any Trustee ceasing to act shall, nevertheless, retain a
prior claim upon all property or funds held or collected by such Trustee to
secure any amounts then due it pursuant to the provisions of Section 6.6.

                                       40

<PAGE>

      If a successor Trustee is appointed with respect to the Securities of one
or more (but not all) series, the Issuer, the predecessor Trustee and each
successor Trustee with respect to the Securities of any applicable series shall
execute and deliver an indenture supplemental hereto which shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the predecessor Trustee with respect to the
Securities of any series as to which the predecessor Trustee is not retiring
shall continue to be vested in the predecessor Trustee, and shall add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee, it being understood that nothing herein or in such supplemental
indenture shall constitute such Trustees co-trustees of the same trust and that
each such Trustee shall be Trustee of a trust or trusts under separate
indentures.

      No successor Trustee with respect to any series of Securities shall accept
appointment as provided in this Section 6.11 unless at the time of such
acceptance such successor Trustee shall be qualified under Section 310(b) of the
Trust Indenture Act of 1939 and eligible under the provisions of Section 6.9.

      Upon acceptance of appointment by any successor Trustee as provided in
this Section 6.11, the Issuer shall give notice thereof (a) if any Unregistered
Securities of a series affected are then Outstanding, to the Holders thereof, by
publication of such notice at least once in an Authorized Newspaper in the
Borough of Manhattan, The City of New York, and at least once in an Authorized
Newspaper in London, (b) if any Unregistered Securities of a series affected are
then Outstanding, to the Holders thereof who have filed their names and
addresses with the Trustee pursuant to Section 313(c)(2) of the Trust Indenture
Act of 1939, by mailing such notice to such Holders at such addresses as were so
furnished to the Trustee (and the Trustee shall make such information available
to the Issuer for such purpose) and (c) if any Registered Securities of a series
affected are then Outstanding, to the Holders thereof, by mailing such notice to
such Holders at their addresses as they shall appear on the registry books. If
the acceptance of appointment is substantially contemporaneous with the
resignation, then the notice called for by the preceding sentence may be
combined with the notice called for by Section 6.10. If the Issuer fails to give
such notice within ten days after acceptance of appointment by the successor
Trustee, the successor Trustee shall cause such notice to be given at the
expense of the Issuer.

      Section 6.12 Merger, Amalgamation, Conversion, Consolidation or Succession
to Business of Trustee. Any corporation into which the Trustee may be merged or
amalgamated or converted or with which it may be consolidated, or any
corporation resulting from any merger, amalgamation, 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 that such corporation shall be
qualified under Section 310(b) of the Trust Indenture Act of 1939 and eligible
under the provisions of Section 6.9, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.

      In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture any of the Securities of any series shall have
been authenticated but not delivered, any such successor to the Trustee may
adopt the certificate of authentication of any predecessor Trustee and deliver
such Securities so authenticated; and, in case at that time any of the

                                       41

<PAGE>

Securities of any series shall not have been authenticated, any successor to the
Trustee may authenticate such Securities either in the name of any predecessor
hereunder or in the name of the successor Trustee; and in all such cases such
certificate shall have the full force which it is anywhere in the Securities of
such series or in this Indenture provided that the certificate of the Trustee
shall have; provided, that the right to adopt the certificate of authentication
of any predecessor Trustee or to authenticate Securities of any series in the
name of any predecessor Trustee shall apply only to its successor or successors
by merger, amalgamation, conversion or consolidation.

      Section 6.13 Preferential Collection of Claims Against the Issuer. The
Trustee shall comply with Section 311(a) of the Trust Indenture Act of 1939,
excluding any creditor relationship listed in Section 311(b) of the Trust
Indenture Act of 1939. A Trustee who has resigned or been removed shall be
subject to Section 311(a) of the Trust Indenture Act of 1939 to the extent
indicated therein.

      Section 6.14 Appointment of Authenticating Agent. As long as any
Securities of a series remain Outstanding, the Trustee may, by an instrument in
writing, appoint with the approval of the Issuer an authenticating agent (the
"Authenticating Agent") which shall be authorized to act on behalf of the
Trustee to authenticate Securities, including Securities issued upon exchange,
registration of transfer, partial redemption or pursuant to Section 2.9.
Securities of each such series authenticated by such Authenticating Agent shall
be entitled to the benefits of this Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee. Whenever reference is made
in this Indenture to the authentication and delivery of Securities of any series
by the Trustee or to 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 for such series and a Certificate of Authentication
executed on behalf of the Trustee by such Authenticating Agent. Such
Authenticating Agent shall at all times be a corporation organized and doing
business under the laws of the United States of America or of any State,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $50,000,000 (determined as provided in Section
6.9 with respect to the Trustee) and subject to supervision or examination by
Federal or State authority.

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

      Upon receiving such a notice of resignation or upon such a termination, or
in case at any time any Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 6.14 with respect to one or more
series of Securities, the Trustee shall upon receipt of an Issuer Order appoint
a successor Authenticating Agent and the Issuer shall provide notice of such
appointment to all Holders of Securities of such series in the manner and to the
extent provided

                                       42
<PAGE>

in Section 11.4. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all rights, powers, duties and
responsibilities of its predecessor hereunder, with like effect as if originally
named as Authenticating Agent. The Issuer agrees to pay to the Authenticating
Agent for such series from time to time reasonable compensation. The
Authenticating Agent for the Securities of any series shall have no
responsibility or liability for any action taken by it as such at the direction
of the Trustee.

      Sections 6.2, 6.3, 6.4, 6.6 and 7.3 shall be applicable to any
Authenticating Agent.

                                   ARTICLE 7

                         CONCERNING THE SECURITYHOLDERS

      Section 7.1 Evidence of Action Taken by Securityholders. Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by a specified percentage in
principal amount of the Securityholders of any or all series may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed
by such specified percentage of Securityholders in person or by 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. Proof of execution of any instrument or of a writing appointing
any such agent shall be sufficient for any purpose of this Indenture and
(subject to Sections 6.1 and 6.2) conclusive in favor of the Trustee and the
Issuer, if made in the manner provided in this Article.

      Section 7.2 Proof of Execution of Instruments and of Holding of
Securities. Subject to Sections 6.1 and 6.2, the execution of any instrument by
a Securityholder or his or her agent or proxy may be proved in the following
manner:

      (a) The fact and date of the execution by any Holder of any instrument may
be proved by the certificate of any notary public or other officer of any
jurisdiction authorized to take acknowledgments of deeds or administer oaths
that the person executing such instruments acknowledged to him or her the
execution thereof, or by an affidavit of a witness to such execution sworn to
before any such notary or other such officer. Where such execution is by or on
behalf of any legal entity other than an individual, such certificate or
affidavit shall also constitute sufficient proof of the authority of the person
executing the same.

      (b) The fact of the holding by any Holder of an Unregistered Security of
any series, and the identifying number of such Security and the date of his or
her holding the same, may be proved by the production of such Security or by a
certificate executed by any trust company, bank, banker or recognized securities
dealer wherever situated satisfactory to the Trustee, if such certificate shall
be deemed by the Trustee to be satisfactory. Each such certificate shall be
dated and shall state that on the date thereof a Security of such series bearing
a specified identifying number was deposited with or exhibited to such trust
company, bank, banker or recognized securities dealer by the person named in
such certificate. Any such certificate may be issued in respect of one or more
Unregistered Securities of one or more series specified therein. The holding by
the person named in any such certificate of any Unregistered Securities of any
series specified therein shall be presumed to continue for a period of one year
from the date of such

                                       43
<PAGE>

certificate unless at the time of any determination of such holding (i) another
certificate bearing a later date issued in respect of the same Securities shall
be produced, (ii) the Securities of such series specified in such certificate
shall be produced by some other person, or (iii) the Securities of such series
specified in such certificate shall have ceased to be Outstanding. Subject to
Sections 6.1 and 6.2, the fact and date of the execution of any such instrument
and the amount and numbers of Securities of any series held by the person so
executing such instrument and the amount and numbers of any Security or
Securities for such series may also be proven in accordance with such reasonable
rules and regulations as may be prescribed by the Trustee for such series or in
any other manner which the Trustee for such series may deem sufficient.

      (c) In the case of Registered Securities, the ownership of such Securities
shall be proved by the Security register or by a certificate of the Security
registrar.

      The Issuer may set a record date for purposes of determining the identity
of Holders of Registered Securities of any series entitled to vote or consent to
any action referred to in Section 7.1, which record date may be set at any time
or from time to time by notice to the Trustee, for any date or dates (in the
case of any adjournment or reconsideration) not more than 60 days nor less than
five days prior to the proposed date of such vote or consent, and thereafter,
notwithstanding any other provisions hereof, with respect to Registered
Securities of any series, only Holders of Registered Securities of such series
of record on such record date shall be entitled to so vote or give such consent
or revoke such vote or consent.

      Section 7.3 Holders to Be Treated as Owners. The Issuer, the Trustee and
any agent of the Issuer or the Trustee may deem and treat the Person in whose
name any Security shall be registered upon the Security register for such series
as the absolute owner of such Security (whether or not such Security shall be
overdue and notwithstanding any notation of ownership or other writing thereon)
for the purpose of receiving payment of or on account of the principal of and,
subject to the provisions of this Indenture, interest on such Security and for
all other purposes; and neither the Issuer nor the Trustee nor any agent of the
Issuer or the Trustee shall be affected by any notice to the contrary. The
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Holder of any Unregistered Security and the Holder of any Coupon as the absolute
owner of such Unregistered Security or Coupon (whether or not such Unregistered
Security or Coupon shall be overdue) for the purpose of receiving payment
thereof or on account thereof and for all other purposes and neither the Issuer,
the Trustee, nor any agent of the Issuer or the Trustee shall be affected by any
notice to the contrary. All such payments so made to any such Person, or upon
his or her order, shall be valid, and, to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for moneys payable upon any
such Unregistered Security or Coupon.

      Section 7.4 Securities Owned by Issuer Deemed Not Outstanding. In
determining whether the Holders of the requisite aggregate principal amount of
Outstanding Securities of any or all series have concurred in any direction,
consent or waiver under this Indenture, Securities which are owned by the Issuer
or any other obligor on the Securities with respect to which such determination
is being made or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Issuer or any other
obligor on the Securities with respect to which such determination is being made
shall be disregarded and deemed not to be Outstanding for the purpose of any
such determination, except that for the purpose of

                                       44
<PAGE>

determining whether the Trustee shall be protected in relying on any such
direction, consent or waiver only Securities which a Responsible Officer of the
Trustee actually knows are so owned shall be so disregarded. Securities so owned
which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee's right so to
act with respect to such Securities and that the pledgee is not the Issuer or
any other obligor upon the Securities or any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with the
Issuer or any other obligor on the Securities. In case of a dispute as to such
right, the advice of counsel shall be full protection in respect of any decision
made by the Trustee in accordance with such advice. Upon request of the Trustee,
the Issuer shall furnish to the Trustee promptly an Officer's Certificate
listing and identifying all Securities, if any, known by the Issuer to be owned
or held by or for the account of any of the above-described Persons; and,
subject to Sections 6.1 and 6.2, the Trustee shall be entitled to accept such
Officer's Certificate as conclusive evidence of the facts therein set forth and
of the fact that all Securities not listed therein are Outstanding for the
purpose of any such determination.

      Section 7.5 Right of Revocation of Action Taken. At any time prior to (but
not after) the evidencing to the Trustee, as provided in Section 7.1, of the
taking of any action by the Holders of the percentage in aggregate principal
amount of the Securities of any or all series, as the case may be, specified in
this Indenture in connection with such action, any Holder of a Security the
serial number of which is shown by the evidence to be included among the serial
numbers of the Securities the Holders of which have consented to such action
may, by filing written notice at the Corporate Trust Office and upon proof of
holding as provided in this Article, revoke such action so far as concerns such
Security. Except as aforesaid any such action taken by the Holder of any
Security shall be conclusive and binding upon such Holder and upon all future
Holders and owners of such Security and of any Securities issued in exchange or
substitution therefor or on registration of transfer thereof, irrespective of
whether or not any notation in regard thereto is made upon any such Security.
Any action taken by the Holders of the percentage in aggregate principal amount
of the Securities of any or all series, as the case may be, specified in this
Indenture in connection with such action shall be conclusively binding upon the
Issuer, the Trustee and the Holders of all the Securities affected by such
action.

                                   ARTICLE 8

                             SUPPLEMENTAL INDENTURES

      Section 8.1 Supplemental Indentures Without Consent of Securityholders.

      (a) In addition to any supplemental indenture otherwise authorized by this
Indenture, the Issuer, when authorized by a resolution of its Board of Directors
(which resolution may provide general terms or parameters for such action and
may provide that the specific terms of such action may be determined in
accordance with or pursuant to an Issuer Order), and the Trustee may from time
to time and at any time enter into an indenture or indentures supplemental
hereto, which comply with the Trust Indenture Act of 1939, as then in effect,
without the consent of the Holders, for one or more of the following purposes:

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<PAGE>

      (i) to convey, transfer, assign, mortgage or pledge to the Trustee as
security for the Securities of one or more series any property or assets;

      (ii) to evidence the succession of another Person to the Issuer, or
successive successions, and the assumption by the successor Person of the
covenants, agreements and obligations of the Issuer pursuant to Article 9;

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

      (iv) to cure any ambiguity or to correct or supplement any provision
contained herein or in any supplemental indenture which may be defective or
inconsistent with any other provision contained herein or in any supplemental
indenture, or to make any other provisions as the Issuer may deem necessary or
desirable, provided that no such action shall adversely affect the interests of
the Holders of the Securities or Coupons in any material manner;

      (v) to establish the forms or terms of Securities of any series or of the
Coupons appertaining to such Securities as permitted by Sections 2.1 and 2.3;
and

      (vi) 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) The Trustee is hereby authorized to join with the Issuer in the
execution of any such supplemental indenture, to make any further appropriate
agreements and stipulations which may be therein contained and to accept the
conveyance, transfer, assignment, mortgage or pledge of any property thereunder,
but the Trustee shall not be obligated to enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.

      (c) Any supplemental indenture authorized by the provisions of this
Section may be executed without the consent of the Holders of any of the
Securities at the time outstanding, notwithstanding any of the provisions of
Section 8.2.

      Section 8.2 Supplemental Indentures With Consent of Securityholders.

                                       46
<PAGE>

      (a) With the consent (evidenced as provided in Article 7) of the Holders
of not less than a majority in aggregate principal amount of the Securities at
the time Outstanding of all series affected by such supplemental indenture
(voting as one class), the Issuer, when authorized by a resolution of its Board
of Directors (which resolution may provide general terms or parameters for such
action and may provide that the specific terms of such action may be determined
in accordance with or pursuant to an Issuer Order), and the Trustee may, from
time to time and at any time, enter into an indenture or indentures supplemental
hereto, which comply with the Trust Indenture Act of 1939, as then in effect,
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders of the
Securities of each such series or of the Coupons appertaining to such
Securities; provided, that no such supplemental indenture shall extend the final
maturity of any then issued Security, or reduce the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon, or reduce any
amount payable on redemption thereof or change the time at which any Security
may be redeemed, or make the principal thereof (including any amount in respect
of original issue discount), or interest thereon payable in any coin or currency
other than that provided in such Securities and any Coupons thereon or in
accordance with the terms thereof, or reduce the amount of the principal of a
then issued Original Issue Discount Security that would be due and payable upon
an acceleration of the maturity thereof pursuant to Section 5.1 or the amount
thereof provable in bankruptcy pursuant to Section 5.2, or make any changes in
the ranking or priority of any Security that would adversely affect the holders
of such Security, or impair or affect the right of any Securityholder to
institute suit for the payment thereof or, if such Securities provide therefor,
any right of repayment at the option of the Securityholder, in each case without
the consent of the Holder of each Security so affected, or reduce the percentage
in principal amount of then issued Securities of any series, the consent of the
Holders of which is required for any such supplemental indenture, without the
consent of the Holders of each Security so affected.

      (b) 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 Holders of Securities of such series, or of Coupons appertaining
to such Securities, with respect to such covenant or provision, shall be deemed
not to affect the rights under this Indenture of the Holders of Securities of
any other series or of the Coupons appertaining to such Securities.

      (c) Upon the request of the Issuer, accompanied by a copy of a resolution
of the Board of Directors (which resolution may provide general terms or
parameters for such action and may provide that the specific terms of such
action may be determined in accordance with or pursuant to an Issuer Order)
certified by the secretary or an assistant secretary of the Issuer authorizing
the execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of the Holders of the Securities as aforesaid
and other documents, if any, required by Section 7.1, the Trustee shall join
with the Issuer in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee's own rights, duties or immunities
under this Indenture or otherwise, in which case the Trustee may in its
discretion, but shall not be obligated to, enter into such supplemental
indenture.

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<PAGE>

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

      (e) Promptly after the execution by the Issuer and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall give notice thereof (i) if any Registered Securities of a series affected
thereby are then Outstanding, to the Holders thereof by mailing a notice thereof
by first-class mail to such Holders at their addresses as they shall appear on
the Security register, (ii) if any Unregistered Securities of a series affected
thereby are then Outstanding, to the Holders thereof who have filed their names
and addresses with the Trustee pursuant to Section 313 (c)(2) of the Trust
Indenture Act of 1939, by mailing a notice thereof by first-class mail to such
Holders at such addresses as were so furnished to the Trustee and (iii) if any
Unregistered Securities of a series affected thereby are then Outstanding, to
all Holders thereof, by publication of a notice thereof at least once in an
Authorized Newspaper in the Borough of Manhattan, The City of New York, and at
least once in an Authorized Newspaper in London, and in each case such notice
shall set forth in general terms the substance of such supplemental indenture.
Any failure of the Issuer to give such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

      Section 8.3 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and be deemed to be modified and amended in accordance therewith and the
respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Issuer and the Holders of Securities of
each series affected thereby shall thereafter be determined, exercised and
enforced hereunder subject in all respects to such modifications and amendments,
and all the terms and conditions of any such supplemental indenture shall be and
be deemed to be part of the terms and conditions of this Indenture for any and
all purposes.

      Section 8.4 Documents to Be Given to Trustee. The Trustee, subject to the
provisions of Sections 6.1 and 6.2, shall be entitled to receive, and shall be
fully protected in relying upon, an Officer's Certificate and an Opinion of
Counsel as conclusive evidence that any supplemental indenture executed pursuant
to this Article 8 complies with the applicable provisions of this Indenture.

      Section 8.5 Notation on Securities in Respect of Supplemental Indentures.
Securities of any series authenticated and delivered after the execution of any
supplemental indenture pursuant to the provisions of this Article may bear a
notation in form approved by the Trustee for such series as to any matter
provided for by such supplemental indenture or as to any action taken by
Securityholders. If the Issuer or the Trustee shall so determine, new Securities
of any series so modified as to conform, in the opinion of the Trustee and the
Board of Directors, to any modification of this Indenture contained in any such
supplemental indenture may be prepared by the Issuer, authenticated by the
Trustee and delivered in exchange for the Securities of such series then
Outstanding.

      Section 8.6 Conformity with Trust Indenture Act of 1939. Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act of 1939 as then in effect.

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<PAGE>

                                   ARTICLE 9

                   CONSOLIDATION, MERGER, AMALGAMATION OR SALE

      Section 9.1 Issuer May Consolidate, Etc., Only on Certain Terms. The
Issuer shall not consolidate with or merge or amalgamate into another Person, or
sell or otherwise transfer, other than for cash, all or substantially all its
assets to another Person, in each case unless:

      (a) either the Issuer is the continuing Person, or the successor Person
(if other than the Issuer) expressly assumes by supplemental indenture the
obligations and covenants evidenced by this Indenture and the Securities (in
which case, the Issuer will be discharged therefrom);

      (b) immediately thereafter, the Issuer or the successor Person (if other
than the Issuer) would not be in default in the performance of any covenant or
condition contained herein; and

      (c) a specified Officer's Certificate and an Opinion of Counsel are
delivered to the Trustee, each (i) stating that such consolidation, merger,
amalgamation, sale or other transfer, as the case may be, and any supplemental
indenture pertaining thereto, comply with Articles 8 and 9, respectively, and
(ii) otherwise complying with Section 11.5 herein.

      Section 9.2 Successor Substituted for the Issuer. Upon any consolidation
of the Issuer with, or merger or amalgamation of the Issuer into, any other
Person or any sale or other transfer of the properties and assets of the Issuer
substantially as an entirety in accordance with Section 9.1, the successor
Person formed by such consolidation or into which the Issuer is merged or
amalgamated or to which such sale or other transfer is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Issuer
under this Indenture with the same effect as if such successor Person had been
named as the Issuer herein, and thereafter, the predecessor Person shall be
relieved of all obligations and covenants under this Indenture and the
Securities.

                                   ARTICLE 10

            SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

      Section 10.1 Termination of Issuer's Obligations Under the Indenture.

      (a) This Indenture shall upon an Issuer Order cease to be of further
effect with respect to Securities of or within any series and any Coupons
appertaining thereto (except as to any surviving rights of registration of
transfer or exchange of such Securities and replacement of such Securities which
may have been lost, stolen or mutilated as herein expressly provided for) and
the Trustee, at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to such
Securities and any Coupons appertaining thereto when

      (i) either

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<PAGE>

            (A) all such Securities previously authenticated and delivered and
      all Coupons appertaining thereto (other than (1) such Coupons appertaining
      to Unregistered Securities surrendered in exchange for Registered
      Securities and maturing after such exchange, surrender of which is not
      required or has been waived as provided in Section 2.8, (2) such
      Securities and Coupons which have been destroyed, lost or stolen and which
      have been replaced or paid as provided in Section 2.9, (3) such Coupons
      appertaining to Unregistered Securities called for redemption and maturing
      after the date fixed for redemption thereof, surrender of which has been
      waived as provided in Section 12.3 and (4) such Securities and Coupons for
      whose payment money has theretofore been deposited in trust or segregated
      and held in trust by the Issuer and thereafter repaid to the Issuer or
      discharged from such trust as provided in Section 3.3) have been delivered
      to the Trustee for cancellation; or

            (B) all Securities of such series and, in the case of (X) or (Y)
      below, all Coupons appertaining thereto not theretofore delivered to the
      Trustee for cancellation (X) have become due and payable, or (Y) will
      become due and payable within one year, or (Z) if redeemable at the option
      of the Issuer, 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 Issuer,
      and the Issuer, in the case of (X), (Y) or (Z) above, has irrevocably
      deposited or caused to be deposited with the Trustee as trust funds in
      trust for the purpose an amount in the currency or currencies or currency
      unit or units in which the Securities of such series are payable,
      sufficient to pay and discharge the entire indebtedness on such Securities
      and such Coupons not theretofore delivered to the Trustee for
      cancellation, for principal, premium, if any, and interest, with respect
      thereto, to the date of such deposit (in the case of Securities which have
      become due and payable) or maturity date or redemption date, as the case
      may be;

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

      (iii) the Issuer has delivered to the Trustee an Officer's Certificate and
an Opinion of Counsel, each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture as to
such series have been complied with.

      (b) Notwithstanding the satisfaction and discharge of this Indenture, the
obligation of the Issuer to the Trustee and any predecessor Trustee under
Section 6.6, the obligations of the Issuer to any Authenticating Agent under
Section 6.14 and, if money shall have been deposited with the Trustee pursuant
to this Section, the obligations of the Trustee under Section 10.2 and the last
paragraph of Section 3.3 shall survive.

      Section 10.2 Application of Trust Funds. Subject to the provisions of the
last paragraph of Section 3.3, all money deposited with the Trustee pursuant to
Section 10.1 shall be held in trust and applied by it, in accordance with the
provisions of the Securities, the Coupons and this Indenture, to the payment,
either directly or through any paying agent (including the Issuer acting as its
own paying agent) as the Trustee may determine, to the Persons entitled thereto
of the principal, premium, if any and any interest for whose payment such money
has been

                                       50
<PAGE>

deposited with or received by the Trustee, but such money need not be segregated
from other funds except to the extent required by law.

      Section 10.3 Applicability of Defeasance Provisions; Issuer's Option to
Effect Legal Defeasance or Covenant Defeasance. If pursuant to Section 2.3
provision is made for either or both of (a) legal defeasance of the Securities
of or within a series under Section 10.4 or (b) covenant defeasance of the
Securities of or within a series under Section 10.5, then the provisions of such
Section or Sections, as the case may be, together with the provisions of
Sections 10.6 through 10.9 inclusive, with such modifications thereto as may be
specified pursuant to Section 2.3 with respect to any Securities, shall be
applicable to such Securities and any Coupons appertaining thereto, and the
Issuer may at its option by or pursuant to Board Resolution, at any time, with
respect to such Securities and any Coupons appertaining thereto, elect to have
Section 10.4 (if applicable) or Section 10.5 (if applicable) be applied to such
Outstanding Securities and any Coupons appertaining thereto upon compliance with
the conditions set forth below in this Article.

      Section 10.4 Legal Defeasance. Upon the Issuer's exercise of the option
specified in Section 10.3 applicable to this Section with respect to the
Securities of or within a series, the Issuer shall be deemed to have been
discharged from its obligations with respect to such Securities and any Coupons
appertaining thereto on and after the date the conditions set forth in Section
10.6 are satisfied (hereinafter "LEGAL DEFEASANCE"). For this purpose, such
legal defeasance means that the Issuer shall be deemed to have paid and
discharged the entire indebtedness represented by such Securities and any
Coupons appertaining thereto which shall thereafter be deemed to be
"Outstanding" only for the purposes of Section 10.7 and the other Sections of
this Indenture referred to in clause (b) of this Section, and to have satisfied
all its other obligations under such Securities and any Coupons appertaining
thereto and this Indenture insofar as such Securities and any Coupons
appertaining thereto are concerned (and the Trustee, at the expense of the
Issuer, shall on an Issuer Order execute proper instruments acknowledging the
same), except the following which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of such Securities and any
Coupons appertaining thereto to receive, solely from the trust funds described
in Section 10.6(a) and as more fully set forth in such Section, payments in
respect of the principal of, premium, if any, and interest, if any, on such
Securities or any Coupons appertaining thereto when such payments are due; (b)
the Issuer's obligations with respect to such Securities under Sections 2.8,
2.9, 3.2 and 3.3 and with respect to the payment of additional amounts, if any,
payable with respect to such Securities as specified pursuant to Section 2.3;
(c) the rights, powers, trusts, duties and immunities of the Trustee hereunder
and (d) this Article 10. Subject to compliance with this Article 10, the Issuer
may exercise its option under this Section notwithstanding the prior exercise of
its option under Section 10.5 with respect to such Securities and any Coupons
appertaining thereto. Following a legal defeasance, payment of such Securities
may not be accelerated because of an Event of Default.

      Section 10.5 Covenant Defeasance. Upon the Issuer's exercise of the option
specified in Section 10.3 applicable to this Section with respect to any
Securities of or within a series, the Issuer shall be released from its
obligations under Section 9.1 and 3.5 and, if specified pursuant to Section 2.3,
its obligations under any other covenant or Event of Default with respect to
such Securities and any Coupons appertaining thereto on and after the date the
conditions set forth in

                                       51
<PAGE>

Section 10.6 are satisfied (hereinafter, "COVENANT DEFEASANCE"), and such
Securities and any Coupons appertaining thereto shall thereafter be deemed to be
not "Outstanding" for the purposes of any direction, waiver, consent or
declaration or Act of Holders (and the consequences of any thereof) in
connection with Sections 9.1 and 3.5 or such other covenant or Event of Default,
but shall continue to be deemed "Outstanding" for all other purposes hereunder.
For this purpose, such covenant defeasance means that, with respect to such
Securities and any Coupons appertaining thereto, the Issuer 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 such other covenant or Event of Default,
whether directly or indirectly, by reason of any reference elsewhere herein to
any such Section or such other covenant or Event of Default or by reason of
reference in any such Section or such other covenant or Event of Default to any
other provision herein or in any other document and such omission to comply
shall not constitute a default or an Event of Default under Section 5.1(d) or
(h) or otherwise, as the case may be, but, except as specified above, the
remainder of this Indenture and such Securities and any Coupons appertaining
thereto shall be unaffected thereby.

      Section 10.6 Conditions to Legal Defeasance or Covenant Defeasance. The
following shall be the conditions to application of Section 10.4 or Section 10.5
to any Securities of or within a series and any Coupons appertaining thereto:

      (a) The Issuer shall have deposited or caused to be deposited irrevocably
with the Trustee (or another Trustee satisfying the requirements of Section 6.9
who shall agree to comply with, and shall be entitled to the benefits of, the
provisions of Sections 10.3 through 10.9 inclusive and the last paragraph of
Section 3.3 applicable to the Trustee, for purposes of such Sections also a
"Trustee") as trust funds in trust for the purpose of making the payments
referred to in clauses (X) and (Y) of this Section 10.6(a), specifically pledged
as security for, and dedicated solely to, the benefit of the Holders of such
Securities and any Coupons appertaining thereto, with instructions to the
Trustee as to the application thereof, (i) money in an amount (in such currency,
currencies or currency unit or units in which such Securities and any Coupons
appertaining thereto are then specified as payable at maturity), (ii) U.S.
Government Obligations which through the payment of interest and principal in
respect thereof in accordance with their terms will provide, not later than one
day before the due date of any payment referred to in clause (X) or (Y) of this
Section 10.6(a), money in an amount or (iii) a combination thereof in an amount
sufficient, in the opinion of a nationally recognized firm of independent
certified public accountants (or if such firms no longer routinely deliver such
opinions, the chief financial officer of the Issuer) expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee to pay and discharge, (X) the principal of,
premium, if any, and interest, if any, on Securities and any Coupons
appertaining thereto on the maturity of such principal or installment of
principal or interest and (Y) any mandatory sinking fund payments applicable to
such Securities on the day on which such payments are due and payable in
accordance with the terms of this Indenture and such Securities and any Coupons
appertaining thereto. Before such a deposit the Issuer may make arrangements
satisfactory to the Trustee for the redemption of Securities at a future date or
dates in accordance with Article 12 which shall be given effect in applying the
foregoing.

      (b) Such defeasance or covenant defeasance shall not result in a breach or
violation of, or constitute a default or Event of Default under, this Indenture
or result in a breach or

                                       52
<PAGE>

violation of, or constitute a default under, any other material agreement or
instrument to which the Issuer is a party or by which it is bound.

      (c) In the case of an election under Section 10.4, the Issuer shall have
delivered to the Trustee an Officer's Certificate and an Opinion of Counsel to
the effect that (i) the Issuer has received from, or there has been published
by, the Internal Revenue Service a ruling, or (ii) since the date of execution
of this Indenture, there has been a change in the applicable Federal income tax
law, in either case to the effect that, and based thereon such opinion shall
confirm that, the Holders of such Securities and any Coupons appertaining
thereto will not recognize income, gain or loss for Federal income tax purposes
as a result of such legal defeasance and will be subject to Federal income tax
on the same amount and in the same manner and at the same times, as would have
been the case if such deposit and legal defeasance had not occurred.

      (d) In the case of an election under Section 10.5, the Issuer shall have
delivered to the Trustee an Opinion of Counsel to the effect that the Holders of
such Securities and any Coupons appertaining thereto 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.

      (e) The Issuer shall have delivered to the Trustee an Officer's
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the legal defeasance under Section 10.4 or the covenant defeasance
under Section 10.5 (as the case may be), including those contained in this
Section 10.6, have been complied with.

      (f) This Issuer shall have delivered to the Trustee an Officer's
Certificate to the effect that neither such Securities nor any other Securities
of the same series, if then listed on any securities exchange, will be delisted
as a result of such deposit.

      (g) No event which is, or after notice or lapse of time or both would
become, an Event of Default with respect to such Securities or any other
Securities shall have occurred and be continuing at the time of such deposit.

      (h) Such defeasance or covenant defeasance shall not result in the trust
arising from such deposit constituting an investment company within the meaning
of the Investment Company Act of 1940 unless such trust shall be registered
under such Act or exempt from registration thereunder.

      (i) Such defeasance or covenant defeasance shall be effected in compliance
with any additional or substitute terms, conditions or limitations which may be
imposed on the Issuer in connection therewith as contemplated by Section 2.3.

      Section 10.7 Deposited Money and U.S. Government Obligations to be Held in
Trust. Subject to the provisions of the last paragraph of Section 3.3, all money
and U.S. Government Obligations (or other property as may be provided pursuant
to Section 2.3) (including the proceeds thereof) deposited with the Trustee
pursuant to Section 10.6 in respect of any Securities of any series and any
Coupons appertaining

                                       53
<PAGE>

thereto shall be held in trust and applied by the Trustee, in accordance with
the provisions of such Securities and any Coupons appertaining thereto and this
Indenture, to the payment, either directly or through any paying agent
(including the Issuer acting as its own paying agent) as the Trustee may
determine, to the Holders of such Securities and any Coupons appertaining
thereto of all sums due and to become due thereon in respect of principal,
premium, if any, and interest, if any, but such money need not be segregated
from other funds except to the extent required by law.

      Section 10.8 Repayment to Issuer. The Trustee (any paying agent) shall
promptly pay to the Issuer upon Issuer Order any excess money or securities held
by them at any time.

      Section 10.9 Indemnity For U.S. Government Obligations. The Issuer shall
pay, and shall indemnify the Trustee against, any tax, fee or other charge
imposed on or assessed against U.S. Government Obligations deposited pursuant to
this Article or the principal and interest and any other amount received on such
U.S. Government Obligations.

      Section 10.10 Reimbursement. If the Trustee or the paying agent is unable
to apply any money in accordance with this Article with respect to any
Securities by reason of any order or judgment of any court or government
authority enjoining, restraining or otherwise prohibiting such application, then
the obligations under this Indenture and such Securities from which the Issuer
has been discharged or released pursuant to Section 10.4 or 10.5 shall be
revived and reinstated as though no deposit had occurred pursuant to this
Article with respect to such Securities, until such time as the Trustee or
paying agent is permitted to apply all money held in trust pursuant to Section
10.7 with respect to such Securities in accordance with this Article; provided,
however, that if the Issuer makes any payment of principal of or any premium or
interest on any such Security following such reinstatement of its obligations,
the Issuer shall be subrogated to the rights (if any) of the Holders of such
Securities to receive such payment from the money so held in trust.

                                   ARTICLE 11

                            MISCELLANEOUS PROVISIONS

      Section 11.1 Incorporators, Shareholders, Officers and Directors of Issuer
Exempt from Individual Liability. No recourse under or upon any obligation,
covenant or agreement contained in this Indenture, or in any Security, or
because of any indebtedness evidenced thereby, shall be had against any
incorporator, as such or against any past, present or future shareholder,
officer or director, as such, of the Issuer or of any successor, either directly
or through the Issuer or any successor, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any legal
or equitable proceeding or otherwise, all such liability being expressly waived
and released by the acceptance of the Securities and the Coupons appertaining
thereto by the Holders thereof and as part of the consideration for the issue of
the Securities and the Coupons appertaining thereto.

      Section 11.2 Provisions of Indenture for the Sole Benefit of Parties and
Holders of Securities and Coupons. Nothing in this Indenture, in the Securities
or in the Coupons appertaining thereto, expressed or implied, shall give or be
construed to give to any Person, other than the parties hereto and their
successors and the Holders of the Securities or Coupons, if any, any legal or
equitable right, remedy or claim under this Indenture or under any covenant or

                                      54
<PAGE>

provision herein contained, all such covenants and provisions being for the sole
benefit of the parties hereto and their successors and of the Holders of the
Securities or Coupons, if any.

      Section 11.3 Successors and Assigns of Issuer Bound by Indenture. All the
covenants, stipulations, promises and agreements in this Indenture contained by
or in behalf of the Issuer shall bind its successors and assigns, whether so
expressed or not.

      Section 11.4 Notices and Demands on Issuer, Trustee and Holders of
Securities and Coupons. Any notice or demand which by any provision of this
Indenture is required or permitted to be given or served by the Trustee or by
the Holders of Securities or Coupons to or on the Issuer shall be in writing
(which may be by facsimile) and may be given or served by being deposited
postage prepaid, first-class mail (except as otherwise specifically provided
herein) addressed (until another address of the Issuer is filed by the Issuer
with the Trustee) to Max Re Capital Ltd., Max Re House, 2 Front Street,
Hamilton, HM11, Bermuda, Attn: General Counsel. Any notice, direction, request
or demand by the Issuer or any Holder of Securities or Coupons to or upon the
Trustee shall be deemed to have been sufficiently given or served by being
deposited postage prepaid, first-class mail (except as otherwise specifically
provided herein) addressed (until another address of the Trustee is filed by the
Trustee with the Issuer) to [______________________________].

      Where this Indenture provides for notice to Holders of Registered
Securities, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each Holder entitled thereto, at his or her last address as it appears in the
Security register. In any case where notice to such 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 or irregularities in regular mail
service, it shall be impracticable to mail notice to the Issuer when such notice
is required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be reasonably satisfactory to the Trustee
shall be deemed to be a sufficient giving of such notice.

      Section 11.5 Officer's Certificates and Opinions of Counsel; Statements to
Be Contained Therein. Upon any application or demand by the Issuer to the
Trustee to take any action under any of the provisions of this Indenture, the
Issuer shall furnish to the Trustee an Officer's Certificate stating that all
conditions precedent provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent have been complied with,
except that in the case of any such application or demand as to which the
furnishing of such documents is specifically required by any provision of this
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

                                       55
<PAGE>

      Each certificate or opinion provided for in this Indenture and delivered
to the Trustee with respect to compliance with a condition or covenant provided
for in this Indenture shall include (a) a statement that the person making such
certificate or opinion has read such covenant or condition, (b) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based, (c) a statement that, in the opinion of such person, he or she has made
such examination or investigation as is necessary to enable him or her to
express an informed opinion as to whether or not such covenant or condition has
been complied with and (d) a statement as to whether or not, in the opinion of
such person, such condition or covenant has been complied with.

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

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

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

      Section 11.6 Payments Due on Saturdays, Sundays and Holidays. If the date
of maturity of interest on or principal of the Securities of any series or any
Coupons appertaining thereto or the date fixed for redemption or repayment of
any such Security or Coupon shall not be a Business Day, then payment of
interest or principal need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on the date of
maturity or the date fixed for redemption, and no interest shall accrue for the
period after such date.

      Section 11.7 Conflict of Any Provision of Indenture with Trust Indenture
Act of 1939. If and to the extent that any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by, or with another provision (an
"INCORPORATED PROVISION") included in this Indenture by operation of, Sections
310 to 318, inclusive, of the Trust Indenture Act of 1939, such imposed duties
or incorporated provision shall control.

                                       56

<PAGE>

      Section 11.8 New York Law to Govern; Waiver of Jury Trial. This
Indenture and each Security and Coupon shall be deemed to be a contract under
the laws of the State of New York, and for all purposes shall be construed in
accordance with the laws of such State, except as may otherwise be required by
mandatory provisions of law.

      EACH OF THE ISSUER AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES
OR THE TRANSACTION CONTEMPLATED HEREBY.

      Section 11.9 Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

      Section 11.10 Effect of Headings. The Article and Section headings herein
and the Table of Contents are for convenience only and shall not affect the
construction hereof.

      Section 11.11 Securities in a Foreign Currency or in ECU. Unless otherwise
specified in an Officer's Certificate delivered pursuant to Section 2.3 of this
Indenture with respect to a particular series of Securities, whenever for
purposes of this Indenture any action may be taken by the Holders of a specified
percentage in aggregate principal amount of Securities of all series or all
series affected by a particular action at the time Outstanding and, at such
time, there are Outstanding Securities of any series which are denominated in a
coin or currency other than Dollars (including ECUs), then the principal amount
of Securities of such series which shall be deemed to be Outstanding for the
purpose of taking such action shall be that amount of Dollars that could be
obtained for such amount at the Market Exchange Rate. For purposes of this
Section 11.11, the "MARKET EXCHANGE RATE" shall mean the noon Dollar buying rate
in New York City for cable transfers of that currency as published by the
Federal Reserve Bank of New York; provided, however, in the case of ECUs, Market
Exchange Rate shall mean the rate of exchange determined by the Commission of
the European Communities (or any successor thereto) as published in the Official
Journal of the European Communities (such publication or any successor
publication, the "JOURNAL"). If such Market Exchange Rate is not available for
any reason with respect to such currency, the Trustee shall use, in its sole
discretion and without liability on its part, such quotation of the Federal
Reserve Bank of New York or, in the case of ECUs, the rate of exchange as
published in the Journal, as of the most recent available date, or quotations
or, in the case of ECUs, rates of exchange from one or more major banks in The
City of New York or in the country of issue of the currency in question, which
for purposes of the ECU shall be Brussels, Belgium, or such other quotations or,
in the case of ECU, rates of exchange as the Trustee shall deem appropriate. The
provisions of this paragraph shall apply in determining the equivalent principal
amount in respect of Securities of a series denominated in a currency other than
Dollars in connection with any action taken by Holders of Securities pursuant to
the terms of this Indenture including without limitation any determination
contemplated in Section 5.1(g).

      All decisions and determinations of the Trustee regarding the Market
Exchange Rate or any alternative determination provided for in the preceding
paragraph shall be in its sole

                                       57

<PAGE>

discretion and shall, in the absence of manifest error, be conclusive to the
extent permitted by law for all purposes and irrevocably binding upon the Issuer
and all Holders.

      Section 11.12 Judgment Currency. The Issuer agrees, to the fullest extent
that it may effectively do so under applicable law, that (a) if for the purpose
of obtaining judgment in any court it is necessary to convert the sum due in
respect of the principal of or interest on the Securities of any series (the
"REQUIRED CURRENCY") into a currency in which a judgment will be rendered (the
"JUDGMENT CURRENCY"), the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City
of New York the Required Currency with the Judgment Currency on the day on which
final unappealable judgment is entered, unless such day is not a Business Day,
then, to the extent permitted by applicable law, the rate of exchange used shall
be the rate at which in accordance with normal banking procedures the Trustee
could purchase in The City of New York the Required Currency with the Judgment
Currency on the Business Day preceding the day on which final unappealable
judgment is entered and (b) its obligations under this Indenture to make
payments in the Required Currency (i) shall not be discharged or satisfied by
any tender, or any recovery pursuant to any judgment (whether or not entered in
accordance with subsection (a)), in any currency other than the Required
Currency, except to the extent that such tender or recovery shall result in the
actual receipt, by the payee, of the full amount of the Required Currency
expressed to be payable in respect of such payments, (ii) shall be enforceable
as an alternative or additional cause of action for the purpose of recovering in
the Required Currency the amount, if any, by which such actual receipt shall
fall short of the full amount of the Required Currency so expressed to be
payable and (iii) shall not be affected by judgment being obtained for any other
sum due under this Indenture.

      Section 11.13 Separability Clause. If any provision of this Indenture or
of the Securities, or the application of any such provision to any Person or
circumstance, shall be held to be invalid, illegal or unenforceable, the
remainder of this Indenture or of the Securities, or the application of such
provision to Persons or circumstances other than those as to whom or which it is
invalid, illegal or unenforceable, shall not in any way be affected or impaired
thereby.

                                   ARTICLE 12

                   REDEMPTION OF SECURITIES AND SINKING FUNDS

      Section 12.1 Applicability of Article. The provisions of this Article
shall be applicable to the Securities of any series which are redeemable before
their maturity or to any sinking fund for the retirement of Securities of a
series except as otherwise specified as contemplated by Section 2.3 for
Securities of such series.

      Section 12.2 Notice of Redemption; Partial Redemptions. Notice of
redemption to the Holders of Registered Securities of any series to be redeemed
as a whole or in part at the option of the Issuer shall be given by mailing
notice of such redemption by first class mail, postage prepaid, at least 30 days
and not more than 60 days prior to the date fixed for redemption to such Holders
of Securities of such series at their last addresses as they shall appear upon
the registry books. Notice of redemption to the Holders of Unregistered
Securities to be redeemed as a whole or in part, who have filed their names and
addresses with the Trustee pursuant to Section

                                       58

<PAGE>

313(c)(2) of the Trust Indenture Act of 1939 shall be given at the Issuer's
expense by mailing notice of such redemption, by first class mail, postage
prepaid, at least 30 days and not more than 60 prior to the date fixed for
redemption, to such Holders at such addresses as were so furnished to the
Trustee (and, in the case of any such notice given by the Issuer, the Trustee
shall make such information available to the Issuer for such purpose). Notice of
redemption to all other Holders of Unregistered Securities shall be published in
an Authorized Newspaper in the Borough of Manhattan, The City of New York, and
in an Authorized Newspaper in London, in each case, once in each of three
successive calendar weeks, the first publication to be not less than 30 nor more
than 60 days prior to the date fixed for redemption. Any notice which is mailed
in the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the Holder receives the notice. Failure to give notice by
mail, or any defect in the notice to the Holder of any Security of a series
designated for redemption as a whole or in part, shall not affect the validity
of the proceedings for the redemption of any other Security of such series.

      The notice of redemption to each such Holder shall identify the securities
to be redeemed (including CUSIP numbers), shall specify the principal amount of
each Security of such series held by such Holder to be redeemed, the date fixed
for redemption, the redemption price, the place or places of payment, that
payment will be made upon presentation and surrender of such Securities and, in
the case of Securities with Coupons attached thereto, of all Coupons
appertaining thereto maturing after the date fixed for redemption, that such
redemption is pursuant to the mandatory or optional sinking fund, or both, if
such be the case, that interest accrued to the date fixed for redemption will be
paid as specified in such notice and that on and after said date interest
thereon or on the portions thereof to be redeemed will cease to accrue. In case
any Security of a series is to be redeemed in part only the notice of redemption
shall state the portion of the principal amount thereof to be redeemed and shall
state that on and after the date fixed for redemption, upon surrender of such
Security, a new Security or Securities of such series in principal amount equal
to the unredeemed portion thereof will be issued.

      The notice of redemption of Securities of any series to be redeemed at the
option of the Issuer shall be given by the Issuer or, at the Issuer's request,
by the Trustee in the name and at the expense of the Issuer.

      On or before 10:00 a.m., New York City time, the redemption date specified
in the notice of redemption given as provided in this Section, the Issuer will
deposit with the Trustee or with one or more paying agents (or, if the Issuer is
acting as its own paying agent, set aside, segregate and hold in trust as
provided in Section 3.3) an amount of money sufficient to redeem on the
redemption date all the Securities of such series so called for redemption at
the appropriate redemption price, together with accrued interest to the date
fixed for redemption. The Issuer will deliver to the Trustee at least 75 days
prior to the date fixed for redemption an Officer's Certificate stating the
aggregate principal amount of Securities to be redeemed. In case of a redemption
at the election of the Issuer prior to the expiration of any restriction on such
redemption, the Issuer shall deliver to the Trustee, prior to the giving of any
notice of redemption to Holders pursuant to this Section, an Officer's
Certificate stating that such restriction has been complied with.

      If less than all the Securities of a series are to be redeemed, the
Trustee shall select, in such manner as it shall deem appropriate and fair,
Securities of such Series to be redeemed in

                                       59

<PAGE>

whole or in part. Securities may be redeemed in part in multiples equal to the
minimum authorized denomination for Securities of such series or any multiple
thereof. The Trustee shall promptly notify the Issuer in writing of the
Securities of such series selected for redemption and, in the case of any
Securities of such series 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 of
any series shall relate, in the case of any Security redeemed or to be redeemed
only in part, to the portion of the principal amount of such Security which has
been or is to be redeemed.

      Section 12.3 Payment of Securities Called for Redemption. If notice of
redemption has been given as above provided, the Securities or portions of
Securities specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable redemption price, together
with interest accrued to the date fixed for redemption, and on and after said
date (unless the Issuer shall default in the payment of such Securities at the
redemption price, together with interest accrued to said date) interest on the
Securities or portions of Securities so called for redemption shall cease to
accrue, and the unmatured Coupons, if any, appertaining thereto shall be void,
and, except as provided in Sections 3.3 and 6.5, such Securities shall cease
from and after the date fixed for redemption to be entitled to any benefit or
security under this Indenture, and the Holders thereof shall have no right in
respect of such Securities except the right to receive the redemption price
thereof and unpaid interest to the date fixed for redemption. On presentation
and surrender of such Securities at a place of payment specified in said notice,
together with all Coupons, if any, appertaining thereto maturing after the date
fixed for redemption, said Securities or the specified portions thereof shall be
paid and redeemed by the Issuer at the applicable redemption price, together
with interest accrued thereon to the date fixed for redemption; provided that
payment of interest becoming due on or prior to the date fixed for redemption
shall be payable in the case of Securities with Coupons attached thereto, to the
Holders of the Coupons for such interest upon surrender thereof, and in the case
of Registered Securities, to the Holders of such Registered Securities
registered as such on the relevant record date subject to the terms and
provisions of Sections 2.3 and 2.7 hereof.

      If any Security called for redemption shall not be so paid upon surrender
thereof for redemption, the principal shall, until paid or duly provided for,
bear interest from the date fixed for redemption at the rate of interest or
Yield to Maturity (in the case of an Original Issue Discount Security) borne by
such Security.

      If any Security with Coupons attached thereto is surrendered for
redemption and is not accompanied by all appurtenant Coupons maturing after the
date fixed for redemption, such Security may be redeemed after deducting from
the redemption price any amount equal to the face amount of all such missing
Coupons, or the surrender of such missing Coupon or Coupons may be waived by the
Issuer and the Trustee if there be furnished to them such security or indemnity
as they may require to save each of them and any paying agent harmless. If
thereafter the Holder of such Security shall surrender to the Trustee or any
paying agent any such missing Coupon in respect of which a deduction shall have
been made from the redemption price, such Holder shall be entitled to receive
the amount so deducted; provided, however, that interest represented by Coupons
shall be payable as provided in Section 2.9 and, unless otherwise specified as
contemplated by Section 2.3, only upon presentation and surrender of those
Coupons.

                                       60

<PAGE>

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

      Section 12.4 Exclusion of Certain Securities from Eligibility for
Selection for Redemption. Securities shall be excluded from eligibility for
selection for redemption if they are identified by registration and certificate
number in an Officer's Certificate delivered to the Trustee at least 40 days
prior to the last date on which notice of redemption may be given as being owned
of record and beneficially by, and not pledged or hypothecated by either (a) the
Issuer or (b) an entity specifically identified in such written statement as
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Issuer.

      Section 12.5 Mandatory and Optional Sinking Funds.

      (a) The minimum amount of any sinking fund payment provided for by the
terms of the Securities of any series is herein referred to as a "mandatory
sinking fund payment", and any payment in excess of such minimum amount provided
for by the terms of the Securities of any series is herein referred to as an
"optional sinking fund payment". The date on which a sinking fund payment is to
be made is herein referred to as the "sinking fund payment date".

      (b) In lieu of making all or any part of any mandatory sinking fund
payment with respect to any series of Securities in cash, the Issuer may at its
option (i) deliver to the Trustee Securities of such series theretofore
purchased or otherwise acquired (except upon redemption pursuant to the
mandatory sinking fund) by the Issuer or receive credit for Securities of such
series (not previously so credited) theretofore purchased or otherwise acquired
(except as aforesaid) by the Issuer and delivered to the Trustee for
cancellation pursuant to Section 2.10, (ii) receive credit for optional sinking
fund payments (not previously so credited) made pursuant to this Section, or
(iii) receive credit for Securities of such series (not previously so credited)
redeemed by the Issuer through any optional redemption provision contained in
the terms of such series. Securities so delivered or credited shall be received
or credited by the Trustee at the sinking fund redemption price specified in
such Securities.

      (c) On or before the 60th day next preceding each sinking fund payment
date for any series, the Issuer will deliver to the Trustee an Officer's
Certificate (which need not contain the statements required by Section 11.5) (i)
specifying the portion of the mandatory sinking fund payment to be satisfied by
payment of cash and the portion to be satisfied by credit of Securities of such
series and the basis for such credit, (ii) stating that none of the Securities
of such series has theretofore been so credited, (iii) stating that no defaults
in the payment of interest or Events of Default with respect to such series have
occurred (which have not been waived or cured) and are continuing and (iv)
stating whether or not the Issuer intends to exercise its right to make an
optional sinking fund payment with respect to such series and, if so, specifying
the amount of such optional sinking fund payment which the Issuer intends to pay
on or before the next succeeding sinking fund payment date. Any Securities of
such series to be credited and required to be delivered to the Trustee in order
for the Issuer to be entitled to credit therefor as aforesaid which have not
theretofore been delivered to the Trustee shall be delivered for cancellation
pursuant to Section 2.10 to the Trustee with such Officer's Certificate (or
reasonably promptly

                                       61
<PAGE>

thereafter if acceptable to the Trustee). Such Officer's Certificate shall be
irrevocable and upon its receipt by the Trustee the Issuer shall become
unconditionally obligated to make all the cash payments or payments therein
referred to, if any, on or before the next succeeding sinking fund payment date.
Failure of the Issuer, on or before any such 60th day, to deliver such Officer's
Certificate and Securities specified in this paragraph, if any, shall not
constitute a default but shall constitute, on and as of such date, the
irrevocable election of the Issuer (A) that the mandatory sinking fund payment
for such series due on the next succeeding sinking fund payment date shall be
paid entirely in cash without the option to deliver or credit Securities of such
series in respect thereof and (B) that the Issuer will make no optional sinking
fund payment with respect to such series as provided in this Section.

      (d) If the sinking fund payment or payments (mandatory or optional or
both) to be made in cash on the next succeeding sinking fund payment date plus
any unused balance of any preceding sinking fund payments made in cash shall
exceed $50,000 (or the equivalent thereof in any Foreign Currency or ECU) or a
lesser sum in Dollars (or the equivalent thereof in any Foreign Currency or ECU)
if the Issuer shall so request with respect to the Securities of any particular
series, such cash shall be applied on the next succeeding sinking fund payment
date to the redemption of Securities of such series at the sinking fund
redemption price together with accrued interest to the date fixed for
redemption. If such amount shall be $50,000 (or the equivalent thereof in any
Foreign Currency or ECU) or less and the Issuer makes no such request then it
shall be carried over until a sum in excess of $50,000 (or the equivalent
thereof in any Foreign Currency or ECU) is available. The Trustee shall select,
in the manner provided in Section 12.2, for redemption on such sinking fund
payment date a sufficient principal amount of Securities of such series to
absorb said cash, as nearly as may be, and shall (if requested in writing by the
Issuer) inform the Issuer of the serial numbers of the Securities of such series
(or portions thereof) so selected. Securities shall be excluded from eligibility
for redemption under this Section if they are identified by registration and
certificate number in an Officer's Certificate delivered to the Trustee at least
60 days prior to the sinking fund payment date as being owned of record and
beneficially by, and not pledged or hypothecated by either (i) the Issuer or
(ii) an entity specifically identified in such Officer's Certificate as directly
or indirectly controlling or controlled by or under direct or indirect common
control with the Issuer. The Trustee, in the name and at the expense of the
Issuer (or the Issuer, if it shall so request the Trustee in writing) shall
cause notice of redemption of the Securities of such series to be given in
substantially the manner provided in Section 12.2 (and with the effect provided
in Section 12.3) for the redemption of Securities of such series in part at the
option of the Issuer. The amount of any sinking fund payments not so applied or
allocated to the redemption of Securities of such series shall be added to the
next cash sinking fund payment for such series and, together with such payment,
shall be applied in accordance with the provisions of this Section. Any and all
sinking fund moneys held on the stated maturity date of the Securities of any
particular series (or earlier, if such maturity is accelerated), which are not
held for the payment or redemption of particular Securities of such series shall
be applied, together with other moneys, if necessary, sufficient for the
purpose, to the payment of the principal of, and interest on, the Securities of
such series at maturity.

      (e) On or before each sinking fund payment date, the Issuer shall pay to
the Trustee in cash or shall otherwise provide for the payment of all interest
accrued to the date fixed for redemption on Securities to be redeemed on the
next following sinking fund payment date.

                                       62
<PAGE>

      (f) The Trustee shall not redeem or cause to be redeemed any Securities of
a series with sinking fund moneys or give any notice of redemption of Securities
for such series by operation of the sinking fund during the continuance of a
default in payment of interest on such Securities or of any Event of Default
except that, where the giving of notice of redemption of any Securities shall
theretofore have been made, the Trustee shall redeem or cause to be redeemed
such Securities, provided that it shall have received from the Issuer a sum
sufficient for such redemption. Except as aforesaid, any moneys in the sinking
fund for such series at the time when any such default or Event of Default shall
occur, and any moneys thereafter paid into the sinking fund, shall, during the
continuance of such default or Event of Default, be deemed to have been
collected under Article 5 and held for the payment of all such Securities. In
case such Event of Default shall have been waived as provided in Section 5.10 or
the default cured on or before the sixtieth day preceding the sinking fund
payment date in any year, such moneys shall thereafter be applied on the next
succeeding sinking fund payment date in accordance with this Section to the
redemption of such Securities.

                                       63
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed as of [______________].

                                          MAX RE CAPITAL LTD.

                                          By:___________________________________
                                          Name:_________________________________
                                          Title:________________________________

                                          [_________________________________],
                                          as Trustee

                                          By:___________________________________
                                          Name:_________________________________
                                          Title:________________________________

                                       64<PAGE>

                                                                     Exhibit 4.4

                               MAX RE CAPITAL LTD.

                                       AND

                           [_______________________],
                                     TRUSTEE

                             SUBORDINATED INDENTURE

                            Dated as of [___________]

<PAGE>

                             CROSS REFERENCE SHEET*

      Provisions of Trust Indenture Act of 1939 and Indenture to be dated as of
_______, by and between Max Re Capital Ltd. and [_____________], as Trustee:

<TABLE>
<CAPTION>
     Section of the Act                    Section of Indenture
-----------------------------      -----------------------------------
<S>                                <C>
310(a)(1) and (2)............                             6.9 and 6.10
310(a)(3) and (4)............                             Inapplicable
310(b).......................                             6.8 and 6.10
310(c).......................                             Inapplicable
311(a).......................                                     6.13
311(b).......................                                     6.13
311(c).......................                             Inapplicable
312(a).......................                              4.1 and 4.2
312(b).......................                                      4.2
312(c).......................                                      4.2
313(a).......................                                      4.3
313(b)(1)....................                             Inapplicable
313(b)(2)....................                                      4.3
313(c).......................      4.3, 5.11, 6.10, 6.11, 8.2 and 12.2
313(d).......................                                      4.3
314(a).......................                                      3.4
314(b).......................                             Inapplicable
314(c)(1) and (2)............                                     11.5
314(c)(3)....................                             Inapplicable
314(d).......................                             Inapplicable
314(e).......................                                     11.5
314(f).......................                             Inapplicable
315(a), (c) and (d)..........                                      6.1
315(b).......................                             5.11 and 6.1
315(e).......................                            5.12 and 6.10
316(a)(1)....................                             5.9 and 5.10
316(a)(2)....................                             Not required
316(a) (last sentence).......                                      7.4
316(b).......................                                      5.7
317(a).......................                                      5.2
317(b).......................                                      3.3
318(a).......................                                     11.7
</TABLE>

-----------------
* This Cross Reference Sheet is not part of the Indenture.

<PAGE>

                                TABLE OF CONTENTS
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ARTICLE 1 DEFINITIONS............................................................................................     1

         Section 1.1  Certain Terms Defined......................................................................     1

ARTICLE 2 SECURITIES.............................................................................................     6

         Section 2.1  Forms Generally............................................................................     6
         Section 2.2  Form of Trustee's Certificate of Authentication............................................     7
         Section 2.3  Amount Unlimited; Issuable in Series.......................................................     7
         Section 2.4  Authentication and Delivery of Securities..................................................    11
         Section 2.5  Execution of Securities....................................................................    13
         Section 2.6  Certificate of Authentication..............................................................    14
         Section 2.7  Denomination and Date of Securities; Payments of Interest..................................    14
         Section 2.8  Registration, Transfer and Exchange........................................................    15
         Section 2.9  Mutilated, Defaced, Destroyed, Lost and Stolen Securities..................................    18
         Section 2.10 Cancellation of Securities; Destruction Thereof............................................    19
         Section 2.11 Temporary Securities.......................................................................    19
         Section 2.12 Global Securities..........................................................................    20
         Section 2.13 CUSIP Numbers..............................................................................    20

ARTICLE 3 COVENANTS OF THE ISSUER................................................................................    20

         Section 3.1  Payment of Principal, Premium and Interest.................................................    20
         Section 3.2  Offices for Payments, Etc..................................................................    21
         Section 3.3  Money for Security Payments to be Held in Trust; Unclaimed Money...........................    22
         Section 3.4  Statements of Officers of Issuer as to Default; Notice of Default..........................    23
         Section 3.5  Existence..................................................................................    23
         Section 3.6  Maintenance of Properties..................................................................    23
         Section 3.7  Payment of Taxes and Other Claims..........................................................    24
         Section 3.8  Further Instruments and Acts...............................................................    24
         Section 3.9  Commission Reports.........................................................................    24
         Section 3.10 Calculation of Original Issue Discount.....................................................    24

ARTICLE 4 SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE........................................    24

         Section 4.1  Issuer to Furnish Trustee Information as to Names and Addresses of Securityholders.........    24
         Section 4.2  Preservation of Information; Communications to Holders.....................................    25
         Section 4.3  Reports by the Trustee.....................................................................    25

ARTICLE 5 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT........................................    25

         Section 5.1  Event of Default Defined; Acceleration of Maturity; Waiver of Default......................    25
         Section 5.2  Collection of Indebtedness by Trustee; Trustee May Prove Debt..............................    29
         Section 5.3  Application of Proceeds....................................................................    31
         Section 5.4  Suits for Enforcement......................................................................    31
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         Section 5.5  Restoration of Rights on Abandonment of Proceedings........................................    32
         Section 5.6  Limitations on Suits by Securityholders....................................................    32
         Section 5.7  Unconditional Right of Securityholders to Institute Certain Suits..........................    32
         Section 5.8  Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default....................    33
         Section 5.9  Control by Holders of Securities...........................................................    33
         Section 5.10 Waiver of Past Defaults....................................................................    33
         Section 5.11 Trustee to Give Notice of Default, but May Withhold in Certain Circumstances...............    34
         Section 5.12 Right of Court to Require Filing of Undertaking to Pay Costs...............................    34

ARTICLE 6 CONCERNING THE TRUSTEE.................................................................................    35

         Section 6.1  Duties and Responsibilities of the Trustee; During Default; Prior to Default...............    35
         Section 6.2  Certain Rights of the Trustee..............................................................    36
         Section 6.3  Trustee Not Responsible for Recitals, Disposition of Securities or Application of
                      Proceeds Thereof...........................................................................    38
         Section 6.4  Trustee and Agents May Hold Securities or Coupons; Collections, Etc........................    38
         Section 6.5  Moneys Held by Trustee.....................................................................    38
         Section 6.6  Compensation and Indemnification of Trustee................................................    38
         Section 6.7  Right of Trustee to Rely on Officer's Certificate, Etc.....................................    39
         Section 6.8  Indentures Not Creating Potential Conflicting Interests for the Trustee....................    39
         Section 6.9  Persons Eligible for Appointment as Trustee................................................    39
         Section 6.10 Resignation and Removal; Appointment of Successor Trustee..................................    40
         Section 6.11 Acceptance of Appointment by Successor Trustee.............................................    42
         Section 6.12 Merger, Amalgamation, Conversion, Consolidation or Succession to Business of Trustee.......    42
         Section 6.13 Preferential Collection of Claims Against the Issuer.......................................    43
         Section 6.14 Appointment of Authenticating Agent........................................................    43

ARTICLE 7 CONCERNING THE SECURITYHOLDERS.........................................................................    44

         Section 7.1  Evidence of Action Taken by Securityholders................................................    44
         Section 7.2  Proof of Execution of Instruments and of Holding of Securities.............................    44
         Section 7.3  Holders to Be Treated as Owners............................................................    45
         Section 7.4  Securities Owned by Issuer Deemed Not Outstanding..........................................    45
         Section 7.5  Right of Revocation of Action Taken........................................................    46

ARTICLE 8 SUPPLEMENTAL INDENTURES................................................................................    46

         Section 8.1  Supplemental Indentures Without Consent of Securityholders.................................    46
         Section 8.2  Supplemental Indentures With Consent of Securityholders....................................    47
         Section 8.3  Effect of Supplemental Indenture...........................................................    49
         Section 8.4  Documents to Be Given to Trustee...........................................................    49
         Section 8.5  Notation on Securities in Respect of Supplemental Indentures...............................    49
         Section 8.6  Conformity with Trust Indenture Act of 1939................................................    49
         Section 8.7  Subordination Unimpaired...................................................................    49
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ARTICLE 9 CONSOLIDATION, MERGER, AMALGAMATION OR SALE............................................................    50

         Section 9.1  Issuer May Consolidate, Etc., Only on Certain Terms........................................    50
         Section 9.2  Successor Substituted for the Issuer.......................................................    50

ARTICLE 10 SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS.............................................    50

         Section 10.1 Termination of Issuer's Obligations Under the Indenture....................................    50
         Section 10.2 Application of Trust Funds.................................................................    51
         Section 10.3 Applicability of Defeasance Provisions; Issuer's Option to Effect Legal Defeasance
                      or Covenant Defeasance.....................................................................    52
         Section 10.4 Legal Defeasance...........................................................................    52
         Section 10.5 Covenant Defeasance........................................................................    52
         Section 10.6 Conditions to Legal Defeasance or Covenant Defeasance......................................    53
         Section 10.7 Deposited Money and U.S. Government Obligations to be Held in Trust........................    54
         Section 10.8 Repayment to Issuer........................................................................    55
         Section 10.9 Indemnity For U.S. Government Obligations..................................................    55
         Section 10.10 Reimbursement.............................................................................    55

ARTICLE 11 MISCELLANEOUS PROVISIONS..............................................................................    55

         Section 11.1 Incorporators, Shareholders, Officers and Directors of Issuer Exempt from Individual
                      Liability..................................................................................    55
         Section 11.2 Provisions of Indenture for the Sole Benefit of Parties and Holders of Securities and
                      Coupons....................................................................................    55
         Section 11.3 Successors and Assigns of Issuer Bound by Indenture........................................    56
         Section 11.4 Notices and Demands on Issuer, Trustee and Holders of Securities and Coupons...............    56
         Section 11.5 Officer's Certificates and Opinions of Counsel; Statements to Be Contained Therein.........    56
         Section 11.6 Payments Due on Saturdays, Sundays and Holidays............................................    57
         Section 11.7 Conflict of Any Provision of Indenture with Trust Indenture Act of 1939....................    57
         Section 11.8 New York Law to Govern; Waiver of Jury Trial...............................................    58
         Section 11.9 Counterparts...............................................................................    58
         Section 11.10 Effect of Headings........................................................................    58
         Section 11.11 Securities in a Foreign Currency or in ECU................................................    58
         Section 11.12 Judgment Currency.........................................................................    59
         Section 11.13 Separability Clause.......................................................................    59

ARTICLE 12 REDEMPTION OF SECURITIES AND SINKING FUNDS............................................................    59

         Section 12.1 Applicability of Article...................................................................    59
         Section 12.2 Notice of Redemption; Partial Redemptions..................................................    59
         Section 12.3 Payment of Securities Called for Redemption................................................    61
         Section 12.4 Exclusion of Certain Securities from Eligibility for Selection for Redemption..............    62
         Section 12.5 Mandatory and Optional Sinking Funds.......................................................    64

ARTICLE 13 SUBORDINATION.........................................................................................    64

         Section 13.1 Agreement to Subordinate...................................................................    64
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Section 13.2 Rights of Senior Indebtedness in the Event of Insolvency, Etc., of the Issuer..............    64
Section 13.3 Payment Over of Proceeds Received on Securities............................................    65
Section 13.4 Payments to Holders........................................................................    66
Section 13.5 Holders of Securities Authorize Trustee to Effectuate Subordination of Securities..........    67
Section 13.6 Notice to Trustee..........................................................................    67
Section 13.7 Trustee May Hold Senior Indebtedness.......................................................    67
Section 13.8 Applicability of Article 13 to Paying Agents...............................................    67
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                                       iv
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      INDENTURE, dated as of [______________], by and between MAX RE CAPITAL
LTD., a Bermuda [______________] (the "ISSUER"), and [______________], a
[____________], as trustee (the "TRUSTEE").

                              W I T N E S S E T H :

      WHEREAS, the Issuer has duly authorized the issue from time to time of its
notes, debentures or other evidences of indebtedness to be issued in one or more
series (the "SECURITIES") up to such principal amount or amounts as may from
time to time be authorized in accordance with the terms of this Indenture;

      WHEREAS, the Issuer has duly authorized the execution and delivery of this
Indenture to provide, among other things, for the authentication, delivery and
administration of the Securities; and

      WHEREAS, all things necessary to make this Indenture a valid indenture and
agreement according to its terms have been done;

      NOW, THEREFORE:

      In consideration of the premises and the purchases of the Securities by
the holders thereof, the Issuer and the Trustee mutually covenant and agree for
the equal and proportionate benefit of the respective holders from time to time
of the Securities and of the Coupons, if any, appertaining thereto as follows:

                                   ARTICLE 1

                                  DEFINITIONS

      Section 1.1 Certain Terms Defined. The following terms (except as
otherwise expressly provided or unless the context otherwise clearly requires)
for all purposes of this Indenture and of any indenture supplemental hereto
shall have the respective meanings specified in this Section. All other terms
used in this Indenture that are defined in the Trust Indenture Act of 1939 or
the definitions of which in the Securities Act of 1933 are referred to in the
Trust Indenture Act of 1939, including terms defined therein by reference to the
Securities Act of 1933 (except as herein otherwise expressly provided or unless
the context otherwise requires), shall have the meanings assigned to such terms
in said Trust Indenture Act of 1939 and in said Securities Act as in force at
the date of this Indenture. All accounting terms used herein and not expressly
defined shall have the meanings assigned to such terms in accordance with
generally accepted accounting principles, and the term "GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES" means such accounting principles as are generally
accepted at the time of any computation. The words "HEREIN," "HEREOF" and
"HEREUNDER" and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other subdivision. The terms
defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular.

      "AUTHENTICATING AGENT" shall have the meaning set forth in Section 6.14.

                                       1
<PAGE>

      "AUTHORIZED NEWSPAPER" means a newspaper of general circulation, in the
official language of the country of publication or in the English language
customarily published on each Business Day whether or not published on
Saturdays, Sundays or holidays. Whenever successive publications in an
Authorized Newspaper are required hereunder they may be made (unless otherwise
expressly provided herein) on the same or different days of the week and in the
same or different Authorized Newspapers.

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

      "BOARD RESOLUTION" means a copy of one or more resolutions, certified by
the secretary or an assistant secretary of the Issuer to have been duly adopted
or consented to by the Board of Directors and to be in full force and effect,
and delivered to the Trustee.

      "BUSINESS DAY" means, with respect to any Security, a day that in the city
(or in any of the cities, if more than one) in which amounts are payable, as
specified in the form of such Security, and in The City of New York, is not a
day on which banking institutions are authorized or required by law, executive
order or regulation to close.

      "COMMISSION" means the Securities and Exchange Commission, as from time to
time constituted, created under the Securities Exchange Act of 1934, or if at
any time after the execution and delivery of this Indenture such Commission is
not existing and performing the duties now assigned to it under the Trust
Indenture Act of 1939, then the body performing such duties on such date.

      "CORPORATE TRUST OFFICE" means the principal office of the Trustee at
which, at any time, its corporate trust business shall be administered, which
office at the date hereof is located at
[______________________________________], or such other address as the Trustee
may designate from time to time by notice to the Holders and the Issuer, or the
principal corporate trust office of any successor Trustee (or such other address
as such successor Trustee may designate from time to time by notice to the
Holders and the Issuer).

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

      "COVENANT DEFEASANCE" shall have the meaning set forth in Section 10.5.

      "DEPOSITARY" means, with respect to the Securities of any series issuable
or issued in global form, the Person designated as Depositary by the Issuer
pursuant to Section 2.3 until a successor Depositary shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Depositary" shall mean or include each Person who is then a Depositary
hereunder, and if at any time there is more than one such Person, "Depositary"
as used with respect to the Securities of any such series shall mean the
Depositary with respect to the Registered Securities in global form of that
series.

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

                                       2
<PAGE>

      "ECU" means the European Currency Unit as defined and revised from time to
time by the Council of European Communities.

      "EVENT OF DEFAULT" means any event or condition specified as such in
Section 5.1.

      "FOREIGN CURRENCY" means a currency issued by the government of a country
other than the United States.

      "HOLDER," "HOLDER OF SECURITIES," "SECURITYHOLDER" or other similar terms
mean (a) in the case of any Registered Security, the person in whose name such
Security is registered in the security register kept by the Issuer for that
purpose in accordance with the terms hereof, and (b) in the case of any
Unregistered Security, the bearer of such Security, or any Coupon appertaining
thereto, as the case may be.

      "INDENTURE" means this instrument as originally executed and delivered or,
if amended or supplemented as herein provided, as so amended or supplemented or
both, and shall include the forms and terms of particular series of Securities
established as contemplated hereunder.

      "ISSUER" means Max Re Capital Ltd., a Bermuda [_________], and, subject to
Article 9, its successors and assigns.

      "ISSUER ORDER" means a written statement, request or order of the Issuer
signed in its name by the chairman or vice chairman of the Board of Directors,
the president, any executive, senior or other vice president or the treasurer of
the Issuer.

      "JUDGMENT CURRENCY" shall have the meaning set forth in Section 11.12.

      "LEGAL DEFEASANCE" shall have the meaning set forth in Section 10.4.

      "OFFICER'S CERTIFICATE" means a certificate signed by the chairman or vice
chairman of the Board of Directors, the president or any executive, senior or
other vice president or the treasurer of the Issuer and delivered to the
Trustee. Each such certificate shall comply with Section 314 of the Trust
Indenture Act of 1939 and include the statements provided for in Section 11.5.

      "OPINION OF COUNSEL" means an opinion in writing signed by the general
counsel of the Issuer or by such other legal counsel who may be an employee of
or counsel to the Issuer and who shall be satisfactory to the Trustee. Each such
opinion shall comply with Section 314 of the Trust Indenture Act of 1939 and
include the statements provided for in Section 11.5.

      "ORIGINAL ISSUE DATE" of any Security (or portion thereof) means the
earlier of (1) the date of such Security or (2) the date of any Security (or
portion thereof) for which such Security was issued (directly or indirectly) on
registration of transfer, exchange or substitution.

      "ORIGINAL ISSUE DISCOUNT SECURITY" means any Security that 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 5.1.

                                       3
<PAGE>

      "OUTSTANDING" (except as otherwise provided in Sections 7.4, 10.4 and
10.5), when used with reference to Securities, shall, subject to the provisions
of Sections 7.4, 10.4 and 10.5 mean, as of any particular time, all Securities
authenticated and delivered by the Trustee under this Indenture, except

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

      (2) Securities, or portions thereof, for the payment or redemption of
which moneys or U.S. Government Obligations (as provided for in Section 10.1) in
the necessary amount shall have been deposited in trust with the Trustee or with
any paying agent (other than the Issuer) or shall have been set aside,
segregated and held in trust by the Issuer for the Holders of such Securities
(if the Issuer shall act as its own paying agent), provided that if such
Securities, or portions thereof, are to be redeemed prior to the maturity
thereof, notice of such redemption shall have been given as herein provided, or
provision satisfactory to the Trustee shall have been made for giving such
notice; and

      (3) Securities which shall have been paid or in substitution for which
other Securities shall have been authenticated and delivered pursuant to the
terms of Section 2.9 (except with respect to any such Security as to which proof
satisfactory to the Trustee is presented that such Security is held by a person
in whose hands such Security is a legal, valid and binding obligation of the
Issuer) or Securities not deemed outstanding pursuant to Section 12.2.

      In determining whether the Holders of the requisite principal amount of
Outstanding Securities of any or all series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a declaration
of acceleration of the maturity thereof pursuant to Section 5.1.

      "PERIODIC OFFERING" means an offering of Securities of a series from time
to time, the specific terms of which Securities, including, without limitation,
the rate or rates of interest, if any, thereon, the stated maturity or
maturities thereof and the redemption provisions, if any, with respect thereto,
are to be determined by the Issuer or its agents upon the issuance of such
Securities.

      "PERSON" means a legal person, including any individual, company, limited
liability company, corporation, estate, partnership, limited liability
partnership, joint venture, association, joint shares company, trust,
unincorporated organization or government or any agency or political subdivision
thereof or any other entity of whatever nature.

      "PRINCIPAL" whenever used with reference to the Securities or any Security
or any portion thereof, shall be deemed to include "and premium, if any."

      "RECORD DATE" shall have the meaning set forth in Section 2.7.

      "REGISTERED SECURITY" means any Security registered on the Security
register of the Issuer.

                                       4
<PAGE>

      "REQUIRED CURRENCY" shall have the meaning set forth in Section 11.12.

      "RESPONSIBLE OFFICER" when used with respect to the Trustee means any vice
president, any senior trust officer or any trust officer, any assistant vice
president, any assistant treasurer, or any other officer or assistant officer
associated with the corporate trust department of the Trustee customarily
performing functions similar to those performed by the persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of his or her knowledge of and familiarity with the particular
subject.

      "SENIOR INDEBTEDNESS" means the principal of and premium, if any, and
interest on all indebtedness of the Issuer, whether outstanding on the date of
this Indenture or thereafter created, (a) for money borrowed by the Issuer, (b)
for money borrowed by, or obligations of, others and either assumed or
guaranteed, directly or indirectly, by the Issuer, (c) in respect of letters of
credit and acceptances issued or made by banks, or (d) constituting purchase
money indebtedness, or indebtedness secured by property included in the
property, plant and equipment accounts of the Issuer at the time of the
acquisition of such property by the Issuer, for the payment of which the Issuer
is directly liable, and all deferrals, renewals, extensions and refundings of,
and amendments, modifications and supplements to, any such indebtedness. As used
in the preceding sentence the term "purchase money indebtedness" means
indebtedness evidenced by a note, debenture, bond or other instrument (whether
or not secured by any lien or other security interest) issued or assumed as all
or a part of the consideration for the acquisition of property, whether by
purchase, merger, consolidation or otherwise, unless by its terms such
indebtedness is subordinated in right of payment to other indebtedness of the
Issuer. Notwithstanding anything to the contrary in this Indenture or the
Securities, Senior Indebtedness shall not include (i) any indebtedness of the
Issuer which, by its terms or the terms of the instrument creating or evidencing
it, is subordinate in right of payment to or pari passu with the Securities or
(ii) any indebtedness of the Issuer to a Subsidiary.

      "SECURITY" or "SECURITIES" has the meaning stated in the first recital of
this Indenture, or, as the case may be, Securities that have been authenticated
and delivered under this Indenture.

      "SUBSIDIARY" means any corporation, partnership or other entity of which
at the time of determination the Issuer owns or controls directly or indirectly
more than 50% of the voting power of the shares of Voting Shares.

      "TRUST INDENTURE ACT OF 1939" (except as otherwise provided in Sections
8.1 and 8.2) means the Trust Indenture Act of 1939 as in force at the date as of
which this Indenture was originally executed.

      "TRUSTEE" means the Person identified as "Trustee" in the first paragraph
hereof and, subject to the provisions of Article 6, shall also include any
successor trustee. "Trustee" shall also 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 the Securities of such series.

      "UNREGISTERED SECURITY" means any Security other than a Registered
Security.

                                       5
<PAGE>

      "U.S. GOVERNMENT OBLIGATIONS" means securities which are (1) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (2) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the timely payment of which is unconditionally guaranteed by the full
faith and credit of the United States of America which, in either case, are not
callable or redeemable at the option of the issuer thereof or otherwise subject
to prepayment, and shall also include a depository receipt issued by a New York
Clearing House bank or trust company as custodian with respect to any such U.S.
Government Obligation or a specific payment of interest on or principal of any
such U.S. Government Obligation held by such custodian for the account of the
holder of a depository receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt or from any amount held by the custodian in
respect of the U.S. Government Obligation or the specific payment of interest on
or principal of the U.S. Government Obligation evidenced by such depository
receipt.

      "VOTING SHARES" means shares of any class or classes having general voting
power under ordinary circumstances to elect a majority of the board of
directors, managers or trustees of the corporation in question, provided that,
for the purposes hereof, shares which carry only the right to vote conditionally
on the happening of an event shall not be considered voting shares whether or
not such event shall have happened.

      "YIELD TO MATURITY" means the yield to maturity on a series of securities,
calculated at the time of issuance of such series, or, if applicable, at the
most recent redetermination of interest on such series, and calculated in
accordance with accepted financial practice.

                                   ARTICLE 2

                                   SECURITIES

      Section 2.1 Forms Generally. The Securities of each series and the
Coupons, if any, to be attached thereto shall be substantially in such form (not
inconsistent with this Indenture) as shall be established by or pursuant to one
or more Board Resolutions (as set forth in a Board Resolution or, to the extent
established pursuant to rather than set forth in a Board Resolution, an
Officer's Certificate detailing such establishment) 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 imprinted or otherwise reproduced thereon such legend or
legends or endorsements, not inconsistent with the provisions of this Indenture,
as may be required to comply with any law or with any rules or regulations
pursuant thereto, or with any rules of any securities exchange or to conform to
general usage, all as may be determined by the officers executing such
Securities and Coupons, if any, as evidenced by their execution of such
Securities and Coupons. If temporary Securities of any series are issued as
permitted by Section 2.11, the form thereof also shall be established as
provided in the preceding sentence. If the forms of Securities and Coupons, if
any, of the series are established by, or by action taken pursuant to, a Board
Resolution, a copy of the Board Resolution together with an appropriate record
of any such action taken pursuant thereto, including a copy of the approved form
of Securities or Coupons, if any, shall be certified by the Secretary or an
Assistant Secretary of the Issuer and delivered to the Trustee at or prior to
the

                                       6
<PAGE>

delivery of the Issuer Order contemplated by Section 2.4 for the authentication
and delivery of such Securities.

      The definitive Securities and Coupons, if any, shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers executing such Securities and
Coupons, if any, as evidenced by their execution of such Securities and Coupons,
if any.

      Section 2.2 Form of Trustee's Certificate of Authentication. The Trustee's
certificate of authentication on all Securities shall be in substantially the
following form:

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

      ____________________,
      as Trustee

      By__________________,
      Authorized Signatory"

      If at any time there shall be an Authenticating Agent appointed with
respect to any series of Securities, then the Trustee's Certificate of
Authentication to be borne by the Securities of each such series shall be
substantially as follows:

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

      ____________________,
      as Authenticating Agent

      By__________________,
      Authorized Signatory"

      Section 2.3 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. All Securities issued
hereunder and any Coupons and the payment of principal of and interest on any
Securities and of any Coupons shall be subordinated in right of payment, to the
extent and in the manner set forth in Article 13, to all Senior Indebtedness.
There shall be established in or pursuant to one or more Board Resolutions (and
to the extent established pursuant to rather than set forth in a Board
Resolution, in an Officer's Certificate detailing such establishment) or
established in one or more indentures supplemental hereto, prior to the initial
issuance of Securities of any series, the following information with respect to
the Securities of such series, to the extent applicable:

      (a) the designation of the Securities of the series, which shall
distinguish the Securities of the series from the Securities of all other
series;

      (b) the aggregate principal amount of such Securities to be issued;

                                       7
<PAGE>

      (c) any limit upon the aggregate principal amount of Securities of such
series that may be authenticated and delivered under this Indenture (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of the series pursuant to Section
2.8, 2.9, 2.11, 8.5 or 12.3);

      (d) the price or prices at which such Securities will be issued;

      (e) the date or dates on which the principal of such Securities is
payable;

      (f) the rate or rates of interest, if any, which may be fixed or variable,
at which such Securities will bear interest, or the method of determining such
rate or rates, if any;

      (g) the date or dates from which any interest will accrue or the method by
which such date or dates will be determined;

      (h) in the case of Original Issue Discount Securities, the rate of
accretion of principal, which may be fixed or variable, or the method of
determining such rate, and the date or dates from which principal will accrete
or the method by which such date or dates will be determined;

      (i) whether the amount of payments of principal of (and premium, if any)
or interest on such Securities may be determined with reference to any index,
formula or other method, such as one or more currencies, commodities, equity
indices or other indices, and the manner of determining the amount of such
payments;

      (j) the dates on which interest on such Securities shall be payable and
the regular record date for determining holders who are entitled to the interest
payable on any interest payment date or the method by which such date or dates
will be determined;

      (k) the right, if any, to extend the interest payment periods and the
duration of any such deferral period, including the maximum consecutive period
during which interest payment periods may be extended;

      (l) the currency or currencies in which such Securities will be
denominated and in which principal, any premium and any interest will or may be
payable or a description of any units based on or relating to a currency or
currencies in which such Securities will be denominated;

      (m) the place or places where the principal of (and premium, if any) and
interest on such Securities will be payable, where such Securities may be
surrendered for registration of transfer, exchange or conversion, as applicable,
and where notices and demands may be delivered to or upon the Issuer;

      (n) if the Issuer shall possess the option to do so, the periods within
which and the prices at which the Issuer may redeem such Securities, in whole or
in part, pursuant to optional redemption provisions, and the other terms and
conditions of any such provisions;

      (o) the Issuer's obligations, if any, to redeem, repay or purchase such
Securities prior to the maturity date, to set aside funds or other assets or
make periodic payments to a sinking

                                       8
<PAGE>

fund or provide security for any redemption or purchase through an analogous
provision or at the option of holders of such Securities, and the period or
periods within which and the price or prices at which the Issuer will redeem,
repay or purchase such Securities, in whole or in part, or set aside such
assets, make such payments or provide such security pursuant to such
obligations, and the other terms and conditions of such obligations;

      (p) if other than denominations of $1,000 and any integral multiple
thereof in the case of Registered Securities, or $1,000 and $5,000 in the case
of Unregistered Securities, the denominations in which such Securities shall be
issuable;

      (q) the portion, or methods of determining the portion, of the principal
amount of such Securities which the Issuer must pay upon the acceleration of the
maturity of such Securities in connection with an Event of Default, if other
than the full principal amount;

      (r) provisions, if any, granting special rights to holders of such
Securities upon the occurrence of specified events;

      (s) any deletions from, modifications of or additions to the Events of
Default or the covenants with respect to such series of Securities, and whether
or not such Events of Default or covenants are consistent with those contained
in this Indenture;

      (t) any limitation on the Issuer's ability to incur debt, grant liens,
redeem stock, pay dividends, sell assets or other restrictions;

      (u) the application, if any, of the terms of this Indenture relating to
legal defeasance and covenant defeasance to such Securities;

      (v) the terms, if any, upon which the holders may convert or exchange (or
upon which the Issuer may require the holders to convert or exchange) such
Securities into or for common stock, preferred stock or other securities or
property (or upon which such Securities shall automatically convert or be
exchanged into or for such other securities or property);

      (w) any change in the right of the Trustee or the requisite holders of
such Securities to declare the principal amount thereof due and payable because
of an Event of Default;

      (x) to whom any interest on any such Security shall be payable, if other
than the Person in whose name the Security is registered, on the record date for
such interest, and the extent to which, or the manner in which, any interest
payable on a temporary global Security will be paid if other than in the manner
provided in this Indenture;

      (y) if the principal of or any premium or interest on such Securities is
to be payable in one or more currencies or currency units other than as stated,
the currency, currencies or currency units in which it shall be paid and the
periods within and terms and conditions upon which such election is to be made
and the amounts payable (or the manner in which such amount shall be
determined);

                                       9
<PAGE>

      (z) the collateral, if any, securing such Securities, and the guarantors,
if any, who will guarantee such Securities, or the methods of determining such
collateral, if any, and such guarantors, if any;

      (aa) if the principal amount payable at the stated maturity of any such
Securities will not be determinable as of any one or more dates prior to the
stated maturity, the amount which shall be deemed to be the principal amount of
such Securities as of any such date for any purpose, including the principal
amount thereof which shall be due and payable upon any maturity other than the
stated maturity or which shall be deemed to be outstanding as of any date prior
to the stated maturity (or, in any such case, the manner in which such amount
deemed to be the principal amount shall be determined);

      (bb) whether any of such Securities will be issued in global form and, if
so, the terms and conditions upon which global Securities may be exchanged for
certificated Securities;

      (cc) the depositary for global or certificated Securities;

      (dd) whether such Securities will be issued in registered form, in bearer
form or in both registered and bearer form;

      (ee) any restrictions or special procedures applicable to (i) the place of
payment of the principal, any premium and any interest on Unregistered
Securities, (ii) the exchange of Unregistered Securities for Registered
Securities, (iii) the offer, sale or delivery of Unregistered Securities or (iv)
the payment of interest on such Securities;

      (ff) certain U.S. federal income tax consequences and special
considerations applicable to such Securities;

      (gg) any Bermuda tax consequences applicable to such Securities, including
any Securities denominated and made payable, as described in the prospectus
supplements, in Foreign Currencies, or units based on or related to Foreign
Currencies;

      (hh) any proposed listing of such Securities on a securities exchange;

      (ii) whether and under what circumstances the Issuer will pay additional
amounts on such Securities held by a Person who is not a U.S. person in respect
of any tax, assessment or governmental charge withheld or deducted and, if so,
whether the Issuer will have the option to redeem such Securities rather than
pay such additional amounts;

      (jj) if such Securities are to be issuable in definitive form (whether
upon original issue or upon exchange of a temporary Security) only upon receipt
of certain certificates or other documents or satisfaction of other conditions,
the form and terms of such certificates, documents or conditions;

      (kk) the date as of which such Securities shall be dated if other than the
date of original issuance thereof;

                                       10
<PAGE>

      (ll) the names of any trustee, depositary, authenticating or paying agent,
transfer agent, registrar or other agent with respect to such Securities;

      (mm) whether the subordination provisions contained in this Indenture or
different subordination provisions will apply to such Securities; and

      (nn) any other specific terms of such Securities, including any other
terms which may be required by or advisable under applicable laws or
regulations.

      All Securities of any one series and Coupons, if any, appertaining
thereto, shall be substantially identical, except in the case of Registered
Securities as to denomination and except as may otherwise be provided by or
pursuant to the Board Resolution or Officer's Certificate referred to above or
as set forth in any such indenture supplemental hereto. All Securities of any
one series need not be issued at the same time and may pursuant to the Board
Resolution or Officer's Certificate be issued from time to time, consistent with
the terms of this Indenture, if so provided by or pursuant to such Board
Resolution, such Officer's Certificate or in any such indenture supplemental
hereto.

      Section 2.4 Authentication and Delivery of Securities.

      (a) The Issuer may deliver Securities of any series having attached
thereto appropriate Coupons, if any, executed by the Issuer to the Trustee for
authentication together with the applicable documents referred to below in this
Section, and the Trustee shall thereupon authenticate and deliver such
Securities to or upon the order of the Issuer (contained in the Issuer Order
referred to below in this Section) or pursuant to such procedures acceptable to
the Trustee and to such recipients as may be specified from time to time by an
Issuer Order. The maturity date, original issue date, interest rate and any
other terms of the Securities of such series and Coupons, if any, appertaining
thereto shall be determined by or pursuant to such Issuer Order and procedures.
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, unless and until such documents have been superseded or revoked:

            (i) an Issuer Order requesting such authentication and setting forth
      delivery instructions if the Securities and Coupons, if any, are not to be
      delivered to the Issuer, provided that, with respect to Securities of a
      series subject to a Periodic Offering, (A) such Issuer Order may be
      delivered by the Issuer to the Trustee prior to the delivery to the
      Trustee of such Securities for authentication and delivery, (B) the
      Trustee shall authenticate and deliver Securities of such series for
      original issue from time to time, in an aggregate principal amount not
      exceeding the aggregate principal amount established for such series,
      pursuant to an Issuer Order or pursuant to procedures acceptable to the
      Trustee as may be specified from time to time by an Issuer Order and (C)
      the maturity date or dates, original issue date or dates, interest rate or
      rates and any other terms of Securities of such series shall be determined
      by an Issuer Order or pursuant to such procedures;

                                       11
<PAGE>

            (ii) any Board Resolution, Officer's Certificate and/or executed
      supplemental indenture referred to in Sections 2.1 and 2.3 by or pursuant
      to which the forms and terms of the Securities and Coupons, if any, were
      established;

            (iii) an Officer's Certificate setting forth the form or forms and
      terms of the Securities and Coupons, if any, stating that the form or
      forms and terms of the Securities and Coupons, if any, have been
      established pursuant to Sections 2.1 and 2.3 and comply with this
      Indenture, and covering such other matters as the Trustee may reasonably
      request; and

            (iv) at the option of the Issuer, either one or more Opinions of
      Counsel, or a letter addressed to the Trustee permitting it to
      conclusively rely, as to the truth of the statements and the correctness
      of the opinions expressed therein, on one or more Opinions of Counsel,
      substantially to the effect that:

                  (A) the forms of the Securities and Coupons, if any, have been
      duly authorized and established in conformity with the provisions of this
      Indenture;

                  (B) the terms of the Securities have been duly authorized and
      established in conformity with the provisions of this Indenture, and, if
      applicable, certain terms of the Securities have been established pursuant
      to a Board Resolution, an Officer's Certificate or a supplemental
      indenture in accordance with this Indenture, and when such other terms as
      are to be established pursuant to procedures set forth in an Issuer Order
      shall have been established, all such terms will have been duly authorized
      by the Issuer and will have been established in conformity with the
      provisions of this Indenture;

                  (C) when the Securities and Coupons, if any, have been
      executed by the Issuer and authenticated by the Trustee in accordance with
      the provisions of this Indenture and delivered to and duly paid for by the
      purchasers thereof, they will have been duly issued under this Indenture,
      will be entitled to the benefits of this Indenture, and will be valid and
      binding obligations of the Issuer, enforceable in accordance with their
      respective terms except as the enforceability thereof may be limited by
      bankruptcy, insolvency or similar laws affecting creditors' rights
      generally and equitable principles of general applicability; and

                  (D) that all applicable laws and requirements in respect of
      the execution and delivery by the Issuer of such Securities have been
      complied with.

      In rendering such opinions, counsel may qualify such opinions with other
customary or necessary qualifications, assumptions, limitations and exceptions.
Such counsel may rely upon opinions of other counsel (copies of which shall be
delivered to the Trustee), who shall be counsel reasonably satisfactory to the
Trustee. Such counsel may also state that, insofar as such opinion involves
factual matters, he or she has relied, to the extent he or she deems proper,
upon certificates of officers of the Issuer and its subsidiaries and
certificates of public officials.

      (b) The Trustee shall have the right to decline to authenticate and
deliver any Securities under this Section if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken by the Issuer or
if the Trustee in good faith by its board of directors or

                                       12
<PAGE>

board of trustees, executive committee, or a trust committee of directors or
trustees or Responsible Officers shall determine that such action would expose
the Trustee to personal liability to existing Holders or would affect the
Trustee's own rights, duties or immunities under the Securities, this Indenture
or otherwise.

      (c) If the Issuer shall establish pursuant to Section 2.3 that the
Securities of a series are to be issued in whole or in part in global form, then
the Issuer shall execute and the Trustee shall, in accordance with this Section
and the Issuer Order with respect to such series, authenticate and deliver one
or more Securities in global form that (i) shall represent and shall be
denominated in an amount equal to the aggregate principal amount of all of the
Securities of such series issued and not yet canceled, (ii) if such Securities
are Registered Securities, shall be registered in the name of the Depositary for
such Security or Securities in global form or the nominee of such Depositary,
(iii) if such Securities are Registered Securities, shall be delivered by the
Trustee to such Depositary or pursuant to such Depositary's instructions and
(iv) shall bear a legend substantially to the following effect:

      "Unless and until it is exchanged in whole or in part for Securities in
      definitive form, this Security may not be transferred except as a whole by
      the Depositary to the nominee of the Depositary or by a nominee of the
      Depositary to the Depositary or another nominee of the Depositary or by
      the Depositary or any such nominee to a successor Depositary or a nominee
      of such successor Depositary."

      The Trustee shall have no responsibility for any action taken or not taken
by the Depositary.

      (d) Each Depositary designated pursuant to Section 2.3 must, at the time
of its designation and at all times while it serves as Depositary, be a clearing
agency registered under the Securities Exchange Act of 1934 and any other
applicable statute or regulation.

      Section 2.5 Execution of Securities. The Securities and, if applicable,
each Coupon appertaining thereto shall be signed on behalf of the Issuer by the
chairman or vice chairman of its Board of Directors or its president or any
executive, senior or other vice president or its treasurer, but need not be
attested. Such signatures may be the manual or facsimile signatures of the
present or any future such officers. Typographical and other minor errors or
defects in any such signature shall not affect the validity or enforceability of
any Security that has been duly authenticated and delivered by the Trustee.

      In case any officer of the Issuer who shall have signed any of the
Securities or Coupons, if any, shall cease to be such officer before the
Security or Coupon so signed (or the Security to which the Coupon so signed
appertains) shall be authenticated and delivered by the Trustee or disposed of
by the Issuer, such Security or Coupon nevertheless may be authenticated and
delivered or disposed of as though the person who signed such Security or Coupon
had not ceased to be such officer of the Issuer; and any Security or Coupon may
be signed on behalf of the Issuer by such persons as, at the actual date of the
execution of such Security or Coupon, shall be the proper officers of the
Issuer, although at the date of the execution and delivery of this Indenture any
such person was not such an officer.

                                       13
<PAGE>

      Section 2.6 Certificate of Authentication. Only such Securities as shall
bear thereon a certificate of authentication substantially in the form herein
before recited, executed by the Trustee by the manual signature of one of its
authorized signatories, shall be entitled to the benefits of this Indenture or
be valid or obligatory for any purpose. No Coupon shall be entitled to the
benefits of this Indenture or shall be valid and obligatory for any purpose
until the certificate of authentication on the Security to which such Coupon
appertains shall have been duly executed by the Trustee. The execution of such
certificate by the Trustee upon any Security executed by the Issuer shall be
conclusive evidence that the Security so authenticated has been duly
authenticated and delivered hereunder and that the Holder is entitled to the
benefits of this Indenture.

      Section 2.7 Denomination and Date of Securities; Payments of Interest. The
Securities of each series shall be issuable as Registered Securities or
Unregistered Securities in denominations established as contemplated by Section
2.3 or, with respect to the Registered Securities of any series, if not so
established, in denominations of $1,000 and any integral multiple thereof. If
denominations of Unregistered Securities of any series are not so established,
such Securities shall be issuable in denominations of $1,000 and $5,000. The
Securities of each series shall be numbered, lettered or otherwise distinguished
in such manner or in accordance with such plan as the officers of the Issuer
executing the same may determine with the approval of the Trustee, as evidenced
by the execution and authentication thereof.

      Each Registered Security shall be dated the date of its authentication.
Each Unregistered Security shall be dated as provided in the resolution or
resolutions of the Board of Directors of the Issuer referred to in Section 2.3.
The Securities of each series shall bear interest, if any, from the date, and
such interest shall be payable on the dates, established as contemplated by
Section 2.3.

      The person in whose name any Registered Security of any series is
registered at the close of business on any record date applicable to a
particular series with respect to any interest payment date for such series
shall be entitled to receive the interest, if any, payable on such interest
payment date notwithstanding any transfer or exchange of such Registered
Security subsequent to the record date and prior to such interest payment date,
except if and to the extent the Issuer shall default in the payment of the
interest due on such interest payment date for such series, in which case such
defaulted interest shall be paid to the persons in whose names Outstanding
Registered Securities for such series are registered at the close of business on
a subsequent record date (which shall be not less than five Business Days prior
to the date of payment of such defaulted interest) established by notice given
by mail by or on behalf of the Issuer to the Holders of Registered Securities
not less than 15 days preceding such subsequent record date. The term "RECORD
DATE" as used with respect to any interest payment date (except a date for
payment of defaulted interest) for the Securities of any series shall mean the
date specified as such in the terms of the Registered Securities of such series
established as contemplated by Section 2.3, or, if no such date is so
established, if such interest payment date is the first day of a calendar month,
the fifteenth day of the next preceding calendar month or, if such interest
payment date is the fifteenth day of a calendar month, the first day of such
calendar month, whether or not such record date is a Business Day.

                                       14
<PAGE>

      Section 2.8 Registration, Transfer and Exchange.

      (a) The Issuer will keep at each office or agency to be maintained for the
purpose as provided in Section 3.2 for each series of Securities a register or
registers in which, subject to such reasonable regulations as it may prescribe,
it will provide for the registration of Registered Securities of such series and
the registration of transfer of Registered Securities of such series. Such
register shall be in written form in the English language. At all reasonable
times such register or registers shall be open for inspection by the Trustee.

      (b) Subject to the prior written consent of the Bermuda Monetary
Authority, where applicable, upon due presentation for registration of transfer
of any Registered Security of any series at any such office or agency to be
maintained for the purpose as provided in Section 3.2, the Issuer shall execute
and the Trustee shall authenticate and deliver in the name of the transferee or
transferees a new Registered Security or Registered Securities of the same
series, maturity date, interest rate and original issue date in authorized
denominations for a like aggregate principal amount.

      Unregistered Securities (except for any temporary Unregistered Securities
in global form) and Coupons (except for Coupons attached to any temporary
Unregistered Securities in global form) shall be transferable by delivery.

      (c) (i) At the option of the Holder thereof, Registered Securities of any
series (other than a Registered Security in global form, except as set forth
below) may be exchanged for a Registered Security or Registered Securities of
such series having authorized denominations and an equal aggregate principal
amount, upon surrender of such Registered Securities to be exchanged at the
agency of the Issuer that shall be maintained for such purpose in accordance
with Section 3.2 and upon payment, if the Issuer shall so require, of the
charges hereinafter provided. Whenever any Registered Securities are so
surrendered for exchange, the Issuer shall execute, and the Trustee shall
authenticate and deliver, the Registered Securities which the Holder making the
exchange is entitled to receive.

      (ii) Unless otherwise specified as contemplated by Section 2.3, at the
option of the Holder, Unregistered Securities of such series may be exchanged
for Registered Securities (if the Securities of such series are issuable in
registered form) or Unregistered Securities (if Unregistered Securities of such
series are issuable in more than one denomination and such exchanges are
permitted by such series) of the same series, of any authorized denominations
and of like tenor and aggregate principal amount, upon surrender of the
Securities to be exchanged at the agency of the Issuer that shall be maintained
for such purpose in accordance with Section 3.2, with all unmatured Coupons and
all matured Coupons in default thereto appertaining. If the Holder of an
Unregistered Security is unable to produce any such unmatured Coupon or Coupons
or matured Coupon or Coupons in default, such exchange may be effected if the
Unregistered Securities are accompanied by payment in funds acceptable to the
Issuer and the Trustee in an amount equal to the face amount of such missing
Coupon or Coupons, or the surrender of such missing Coupon or Coupons may be
waived by the Issuer and the Trustee if there be furnished to them such security
or indemnity as they may require to save each of them and any paying agent
harmless. If thereafter the Holder of such Security shall surrender to any
paying agent any such missing Coupon in respect of which such a payment shall
have been made, such Holder shall be

                                       15
<PAGE>

entitled to receive the amount of such payment as provided in Section 3.2.
Notwithstanding the foregoing, in case any Unregistered Security of any series
is surrendered at any such office or agency in exchange for a Registered
Security of the same series after the close of business at such office or agency
on (A) any record date and before the opening of business at such office or
agency on the relevant interest payment date, or (B) any special record date for
payment of defaulted interest and before the opening of business at such office
or agency on the related date for payment of defaulted interest, such
Unregistered Security shall be surrendered without the Coupon relating to such
interest or defaulted interest payment date or proposed date of payment, as the
case may be (or, if such Coupon is so surrendered with such Unregistered
Security, such Coupon shall be returned to the person so surrendering the
Unregistered Security), and interest or defaulted interest, as the case may be,
will not be payable on such date or proposed date for payment, as the case may
be, in respect of the Registered Security issued in exchange for such
Unregistered Security, but will be payable only to the Holder of such Coupon,
when due in accordance with the provisions of this Indenture.

      (iii) Registered Securities of any series may not be exchanged for
Unregistered Securities of such series unless (A) otherwise specified pursuant
to Section 2.3 and (B) the Issuer has delivered to the Trustee an Opinion of
Counsel that (1) the Issuer has received from the Internal Revenue Service a
ruling or (2) since the date hereof, there has been a change in the applicable
Federal income tax law, in either case to the effect that the inclusion of terms
permitting Registered Securities to be exchanged for Unregistered Securities
would result in no adverse Federal income tax effect to the Issuer or to any
Holder. Whenever any Securities are so surrendered for exchange, the Issuer
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder making the exchange is entitled to receive. All Securities and
Coupons surrendered upon any exchange or transfer provided for in this Indenture
shall be canceled promptly and disposed of by the Trustee in accordance with its
procedures for the disposition of cancelled securities in effect as of the date
of such cancellation and the Trustee will deliver a certificate of disposition
thereof to the Issuer.

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

            The Issuer may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any exchange
or registration of transfer of Securities. No service charge shall be made for
any such transaction.

            The Issuer shall not be required to exchange or register a transfer
of (i) any Securities of any series for a period of 15 days next preceding the
first mailing of notice of redemption of Securities of such series to be
redeemed or (ii) any Securities selected, called or being called for redemption,
in whole or in part, except, in the case of any Security to be redeemed in part,
the portion thereof not so to be redeemed.

      (e) Notwithstanding any other provision of this Section 2.8, unless and
until it is exchanged in whole or in part for Securities in definitive
registered form, a Registered Security

                                       16
<PAGE>

in global form representing all or a portion of the Securities of a series may
not be transferred except as a whole by the Depositary for such series to a
nominee of such Depositary or by a nominee of such Depositary to such Depositary
or another nominee of such Depositary or by such Depositary or any such nominee
to a successor Depositary for such series or a nominee of such successor
Depositary.

            If at any time the Depositary for any Registered Securities of a
series represented by one or more Registered Securities in global form notifies
the Issuer that it is unwilling or unable to continue as Depositary for such
Registered Securities or if at any time the Depositary for such Registered
Securities shall no longer be eligible under Section 2.4, the Issuer shall
appoint a successor Depositary eligible under Section 2.4 with respect to such
Registered Securities. If a successor Depositary eligible under Section 2.4 for
such Registered Securities is not appointed by the Issuer within 90 days after
the Issuer receives such notice or becomes aware of such ineligibility, the
Issuer's election pursuant to Section 2.3 that such Registered Securities be
represented by one or more Registered Securities in global form shall no longer
be effective and the Issuer will execute, and the Trustee, upon receipt of an
Officer's Certificate for the authentication and delivery of definitive
Securities of such series, will authenticate and deliver, Securities of such
series in definitive registered form without Coupons, in any authorized
denominations, in an aggregate principal amount equal to the principal amount of
the Registered Security or Securities in global form representing such
Registered Securities in exchange for such Registered Security or Securities in
global form.

            The Issuer may at any time and in its sole discretion determine that
the Registered Securities of any series issued in the form of one or more
Registered Securities in global form shall no longer be represented by a
Registered Security or Securities in global form. In such event the Issuer will
execute, and the Trustee, upon receipt of an Officer's Certificate for the
authentication and delivery of definitive Securities of such series, will
authenticate and deliver, Securities of such series in definitive registered
form without Coupons, in any authorized denominations, in an aggregate principal
amount equal to the principal amount of the Registered Security or Securities in
global form representing such Registered Securities, in exchange for such
Registered Security or Securities in global form.

            If specified by the Issuer pursuant to Section 2.3 with respect to
Securities represented by a Registered Security in global form, the Depositary
for such Registered Security in global form may surrender such Registered
Security in global form in exchange in whole or in part for Registered
Securities of the same series in definitive form on such terms as are acceptable
to the Issuer and such Depositary. Thereupon, the Issuer shall execute, and the
Trustee shall authenticate and deliver, without service charge,

            (i) to the Person specified by such Depositary a new Registered
      Security or Securities of the same series, of any authorized denominations
      as requested by such Person, in an aggregate principal amount equal to and
      in exchange for such Person's beneficial interest in the Registered
      Security in global form; and

            (ii) to such Depositary a new Registered Security in global form in
      a denomination equal to the difference, if any, between the principal
      amount of the

                                       17
<PAGE>

      surrendered Registered Security in global form and the aggregate principal
      amount of Registered Securities authenticated and delivered pursuant to
      clause (i) above.

            Upon the exchange of a Registered Security in global form for
Registered Securities in definitive form without Coupons, in authorized
denominations, such Registered Security in global form shall be canceled by the
Trustee or an agent of the Issuer or the Trustee. Registered Securities in
definitive form issued in exchange for a Registered Security in global form
pursuant to this Section 2.8 shall be registered in such names and in such
authorized denominations as the Depositary for such Registered Security in
global form, pursuant to instructions from its direct or indirect participants
or otherwise, shall instruct the Trustee or an agent of the Issuer or the
Trustee. The Trustee or such agent shall deliver such Securities to or as
directed by the Persons in whose names such Securities are so registered.

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

      (g) Notwithstanding anything herein or in the terms of any series of
Securities to the contrary, none of the Issuer, the Trustee or any agent of the
Issuer or the Trustee (any of which, other than the Issuer, may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, on an Officer's Certificate and an Opinion of Counsel) shall
be required to exchange any Unregistered Security for a Registered Security if
such exchange would result in adverse income tax consequences to the Issuer.

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

      Section 2.9 Mutilated, Defaced, Destroyed, Lost and Stolen Securities. In
case any Security or any Coupon appertaining to any Security shall become
mutilated, defaced or be destroyed, lost or stolen, the Issuer in its discretion
may execute, and upon the written request of any officer of the Issuer, the
Trustee shall authenticate and deliver a new Security of the same series,
maturity date, interest rate and original issue date, bearing a number or other
distinguishing symbol not contemporaneously outstanding, in exchange and
substitution for the mutilated or defaced Security, or in lieu of and in
substitution for the Security so destroyed, lost or stolen with Coupons
corresponding to the Coupons appertaining to the Securities so mutilated,
defaced, destroyed, lost or stolen, or in exchange or substitution for the
Security to which such mutilated, defaced, destroyed, lost or stolen Coupon
appertained, with Coupons appertaining thereto corresponding to the Coupons so
mutilated, defaced, destroyed, lost or stolen. In every case the applicant for a
substitute Security or Coupon shall furnish to the Issuer and to the Trustee and
any agent of the Issuer or the Trustee such security or indemnity as may be
required by them to indemnify and defend and to save each of them harmless and,
in every case of

                                       18
<PAGE>

destruction, loss or theft, evidence to their satisfaction of the destruction,
loss or theft of such Security or Coupon and of the ownership thereof and in the
case of mutilation or defacement shall surrender the Security and related
Coupons to the Trustee or such agent.

            Upon the issuance of any substitute Security or Coupon, the Issuer
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) of its agent connected
therewith. In case any Security or Coupon which has matured or is about to
mature or has been called for redemption in full shall become mutilated or
defaced or be destroyed, lost or stolen, the Issuer may instead of issuing a
substitute Security, pay or authorize the payment of the same or the relevant
Coupon (without surrender thereof except in the case of a mutilated or defaced
Security or Coupon), if the applicant for such payment shall furnish to the
Issuer and to the Trustee and any agent of the Issuer or the Trustee such
security or indemnity as any of them may require to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Issuer and the Trustee and any agent of the Issuer or the Trustee
evidence to their satisfaction of the destruction, loss or theft of such
Security or Coupon and of the ownership thereof.

            Every substitute Security or Coupon of any series issued pursuant to
the provisions of this Section by virtue of the fact that any such Security or
Coupon is destroyed, lost or stolen shall constitute an additional contractual
obligation of the Issuer, whether or not the destroyed, lost or stolen Security
or Coupon shall be at any time enforceable by anyone and shall be entitled to
all the benefits of (but shall be subject to all the limitations of rights set
forth in) this Indenture equally and proportionately with any and all other
Securities or Coupons of such series duly authenticated and delivered hereunder.
All Securities and Coupons shall be held and owned upon the express condition
that, to the extent permitted by law, the foregoing provisions are exclusive
with respect to the replacement or payment of mutilated, defaced or destroyed,
lost or stolen Securities and Coupons and shall preclude any and all other
rights or remedies notwithstanding any law or statute existing or hereafter
enacted to the contrary with respect to the replacement or payment of negotiable
instruments or other securities without their surrender.

      Section 2.10 Cancellation of Securities; Destruction Thereof. All
Securities and Coupons surrendered for payment, redemption, registration of
transfer or exchange, or for credit against any payment in respect of a sinking
or analogous fund, if surrendered to the Issuer or any agent of the Issuer or
the Trustee or any agent of the Trustee, shall be delivered to the Trustee or
its agent for cancellation or, if surrendered to the Trustee, shall be canceled
by it; and no Securities or Coupons shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Indenture. The Trustee or
its agent shall dispose of canceled Securities and Coupons held by it in
accordance with its procedures for the disposition of cancelled securities in
effect as of the date of such cancellation. If the Issuer or its agent shall
acquire any of the Securities or Coupons, such acquisition shall not operate as
a redemption or satisfaction of the indebtedness represented by such Securities
or Coupons unless and until the same are delivered to the Trustee or its agent
for cancellation.

      Section 2.11 Temporary Securities. Pending the preparation of definitive
Securities for any series, the Issuer may execute and the Trustee shall
authenticate and deliver temporary Securities for such series (printed,
lithographed, typewritten or otherwise reproduced, in each

                                       19
<PAGE>

case in form satisfactory to the Trustee). Temporary Securities of any series
shall be issuable as Registered Securities without Coupons, or as Unregistered
Securities with or without Coupons attached thereto, of any authorized
denomination, and substantially in the form of the definitive Securities of such
series but with such omissions, insertions and variations as may be appropriate
for temporary Securities, all as may be determined by the Issuer with the
concurrence of the Trustee as evidenced by the execution and authentication
thereof. Temporary Securities may contain such references to any provisions of
this Indenture as may be appropriate. Every temporary Security shall be executed
by the Issuer and be authenticated by the Trustee upon the same conditions and
in substantially the same manner, and with like effect, as the definitive
Securities. Without unreasonable delay the Issuer shall execute and shall
furnish definitive Securities of such series and thereupon temporary Registered
Securities of such series may be surrendered in exchange therefor without charge
at each office or agency to be maintained by the Issuer for that purpose
pursuant to Section 3.2 and, in the case of Unregistered Securities, at any
agency maintained by the Issuer for such purpose as specified pursuant to
Section 3.2, and the Trustee shall authenticate and deliver in exchange for such
temporary Securities of such series an equal aggregate principal amount of
definitive Securities of the same series having authorized denominations and, in
the case of Unregistered Securities, having attached thereto any appropriate
Coupons. Until so exchanged, the temporary Securities of any series shall be
entitled to the same benefits under this Indenture as definitive Securities of
such series, unless otherwise established pursuant to Section 2.3. The
provisions of this Section are subject to any restrictions or limitations on the
issue and delivery of temporary Unregistered Securities of any series that may
be established pursuant to Section 2.3 (including any provision that
Unregistered Securities of such series initially be issued in the form of a
single Unregistered Security in global form to be delivered to a Depositary or
agency located outside the United States and the procedures pursuant to which
Unregistered Securities in definitive or global form of such series would be
issued in exchange for such temporary Unregistered Security in global form).

      Section 2.12 Global Securities. Neither the Trustee nor any Agent shall
have any responsibility for any actions taken or not taken by the Depositary.

      Section 2.13 CUSIP Numbers. The Issuer in issuing the Securities may use
"CUSIP" numbers (if then generally in use), and, if so used by the Issuer, the
Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to
Holders; provided that any such notice may state that no representation is made
as to the correctness of such numbers either as printed on the Securities or as
contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such numbers.
The Issuer will promptly notify the Trustee of any change in the "CUSIP"
numbers.

                                   ARTICLE 3

                             COVENANTS OF THE ISSUER

      Section 3.1 Payment of Principal, Premium and Interest. The Issuer
covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay or cause to be paid the principal of, and premium, if
any, and interest on, each of the Securities of such series (together with any
additional amounts payable pursuant to the terms of such Securities) at the

                                       20
<PAGE>

place or places, at the respective times and in the manner provided in such
Securities and in the Coupons, if any, appertaining thereto and in this
Indenture. The interest on Securities with Coupons attached (together with any
additional amounts payable pursuant to the terms of such Securities) shall be
payable only upon presentation and surrender of the several Coupons for such
interest installments as are evidenced thereby as they severally mature. If any
temporary Unregistered Security provides that interest thereon may be paid while
such Security is in temporary form, the interest on any such temporary
Unregistered Security (together with any additional amounts payable pursuant to
the terms of such Security) shall be paid, as to the installments of interest
evidenced by Coupons attached thereto, if any, only upon presentation and
surrender thereof, and, as to the other installments of interest, if any, only
upon presentation of such Securities for notation thereon of the payment of such
interest, in each case subject to any restrictions that may be established
pursuant to Section 2.3. The interest on Registered Securities (together with
any additional amounts payable pursuant to the terms of such Securities) shall
be payable only to or upon the written order of the Holders thereof and, at the
option of the Issuer, may be paid by wire transfer or by mailing checks for such
interest payable to or upon the written order of such Holders at their last
addresses as they appear on the registry books of the Issuer.

      Section 3.2 Offices for Payments, Etc. So long as any Securities are
issued as Registered Securities, the Issuer will maintain in the Borough of
Manhattan, The City of New York, an office or agency where the Registered
Securities of each series may be presented for payment, where the Securities of
each series may be presented for exchange as is provided in this Indenture and,
if applicable, pursuant to Section 2.3 and where the Registered Securities of
each series may be presented for registration of transfer as in this Indenture
provided.

            So long as any Securities are issued as Unregistered Securities, the
Issuer will maintain one or more offices or agencies in a city or cities located
outside the United States (including any city in which such an agency is
required to be maintained under the rules of any shares exchange on which the
Securities of such series are listed) where the Unregistered Securities, if any,
of each series and Coupons, if any, appertaining thereto may be presented for
payment. No payment on any Unregistered Security or Coupon will be made upon
presentation of such Unregistered Security or Coupon at an agency of the Issuer
within the United States nor will any payment be made by transfer to an account
in, or by mail to an address in, the United States unless pursuant to applicable
United States laws and regulations then in effect such payment can be made
without adverse tax consequences to the Issuer. Notwithstanding the foregoing,
payments in Dollars of Unregistered Securities of any series and Coupons
appertaining thereto which are payable in Dollars may be made at an agency of
the Issuer maintained in the Borough of Manhattan, The City of New York if such
payment in Dollars at each agency maintained by the Issuer outside the United
States for payment on such Unregistered Securities is illegal or effectively
precluded by exchange controls or other similar restrictions.

            The Issuer will maintain in the Borough of Manhattan, The City of
New York, an office or agency where notices and demands to or upon the Issuer in
respect of the Securities of any series, the Coupons appertaining thereto or
this Indenture may be served.

                                       21
<PAGE>

            The Issuer will give to the Trustee written notice of the location
of each such office or agency and of any change of location thereof. In case the
Issuer shall fail to maintain any agency required by this Section, or shall fail
to give such notice of the location or of any change in the location of any of
the above agencies, presentations and demands may be made and notices may be
served at the Corporate Trust Office of the Trustee.

            The Issuer may from time to time designate one or more additional
offices or agencies where the Securities of a series and any Coupons
appertaining thereto may be presented for payment, where the Securities of that
series may be presented for exchange as provided in this Indenture and pursuant
to Section 2.3 and where the Registered Securities of that series may be
presented for registration of transfer as in this Indenture provided, and the
Issuer may from time to time rescind any such designation, as the Issuer may
deem desirable or expedient; provided, however, that no such designation or
rescission shall in any manner relieve the Issuer of its obligation to maintain
the agencies provided for in this Section. The Issuer will give to the Trustee
prompt written notice of any such designation or rescission thereof.

      Section 3.3 Money for Security Payments to be Held in Trust; Unclaimed
Money. If the Issuer shall at any time act as its own paying agent, it will, on
or before each due date of the principal of and premium, if any, or interest on
any of the Securities, segregate and hold in trust for the benefit of the
Holders entitled thereto a sum sufficient to pay the principal (and premium, if
any) or interest so becoming due until such sums shall be paid to such Holders
or otherwise disposed of as herein provided and will promptly notify the Trustee
of its action or failure so to act.

            Whenever the Issuer shall have one or more paying agents, it will,
on or prior to each due date of the principal of and premium, if any, or
interest on any Securities, deposit with the paying agent or paying agents a sum
sufficient to pay the principal, premium, if any, or interest so becoming due,
such sum to be held in trust for the benefit of the Holders entitled to such
principal, premium, if any, or interest, and, unless such paying agent is the
Trustee, the Issuer will promptly notify the Trustee of its action or failure so
to act.

            The Issuer will cause each paying agent other than the Trustee to
execute and deliver to the Trustee an instrument in which such paying agent
shall agree with the Trustee, subject to the provisions of this Section, that
such paying agent will:

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

      (b) give the Trustee notice of any default by the Holders (or any other
obligor upon the Securities) in the making of any payment of principal and
premium, if any, or interest; and

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

            The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Issuer Order direct any paying agent to pay, to the Trustee all sums held in
trust by the Issuer or such paying agent, such sums to

                                       22
<PAGE>

be held by the Trustee upon the same trusts as those upon which such sums were
held by the Issuer 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 Issuer in trust for the payment of the principal of and premium, if
any, or interest on any Security and remaining unclaimed for two years after
such principal and premium, if any, or interest has become due and payable shall
be paid to the Issuer on Issuer Order, or, if then held by the Issuer, shall be
discharged from such trust; and the Holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Issuer for payment thereof, and
all liability of the Trustee or such paying agent with respect to such trust
money, and all liability of the Issuer as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such paying agent, before being
required to make any such repayment, shall at the expense of the Issuer cause to
be published at least once, in an Authorized Newspaper in the Borough of
Manhattan, The City of New York, and at least once in an Authorized Newspaper in
London, 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 Issuer.

      Section 3.4 Statements of Officers of Issuer as to Default; Notice of
Default.

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

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

      Section 3.5 Existence. Subject to Article 9, the Issuer will do or cause
to be done all things necessary to preserve and keep in full force and effect
its existence, rights (charter and statutory) and franchises and those of each
of its Subsidiaries; provided, however, that the Issuer shall not be required to
preserve any such right or franchise if its Board of Directors shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Issuer or the business of any Subsidiary and that the loss
thereof is not disadvantageous in any material respect to the Holders.

      Section 3.6 Maintenance of Properties. The Issuer 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 Issuer may be necessary so that the business
carried on in connection therewith may be properly and advantageously conducted
at all times; provided,

                                       23
<PAGE>

however, that nothing in this Section shall prevent the Issuer from
discontinuing the operation or maintenance of any such properties if such
discontinuance is, in the judgment of the Issuer, desirable in the conduct of
its business or the business of any Subsidiary and not disadvantageous in any
material respect to the Holders.

      Section 3.7 Payment of Taxes and Other Claims. The Issuer shall pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, (a) all taxes, assessments and governmental charges (including
withholding taxes and any penalties, interest and additions to taxes) levied or
imposed upon the Issuer or any Subsidiary or upon the income, profits or
property of the Issuer or any Subsidiary, and (b) all material lawful claims for
labor, materials and supplies which, if unpaid, might by law become a lien upon
the property of the Issuer or any Subsidiary; provided, however, that the Issuer
shall not be required to pay or discharge or cause to be paid or discharged any
such tax, assessment, charge or claim whose amount, applicability or validity is
being contested in good faith by appropriate proceedings and for which disputed
amounts adequate reserves have been made.

      Section 3.8 Further Instruments and Acts. Upon request of the Trustee, the
Issuer will execute and deliver such further instruments and perform such
further acts as may be reasonably necessary or proper to carry out more
effectively the purposes of this Indenture.

      Section 3.9 Commission Reports. The Issuer shall file with the Trustee,
within 15 days after it files such annual and quarterly reports, information,
documents and other reports with the Commission, copies of its annual report and
of the information, documents and other reports (or copies of such portions of
any of the foregoing as the Commission may by rules and regulations prescribe)
which the Issuer is required to file with the Commission pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934. Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee's receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Issuer's compliance with any of its covenants hereunder.
The Trustee shall be under no obligation to analyze or make any credit decisions
with respect to reports or other information received by it pursuant to this
section, but shall hold such reports and other information solely for the
benefit of, and review by, the security holders.

      Section 3.10 Calculation of Original Issue Discount. The Issuer shall file
with the Trustee promptly at the end of each calendar year (a) a written notice
specifying the amount of original issue discount (including daily rates and
accrual periods), if any, accrued on Outstanding Securities as of the end of
such year and (b) such other specific information relating to such original
issue discount as may then be relevant under the Internal Revenue Code of 1986,
as amended from time to time.

                                   ARTICLE 4

         SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

      Section 4.1 Issuer to Furnish Trustee Information as to Names and
Addresses of Securityholders. If and so long as the Trustee shall not be the
Security registrar for the Securities

                                       24
<PAGE>

of any series, the Issuer and any other obligor on the Securities will furnish
or cause to be furnished to the Trustee a list in such form as the Trustee may
reasonably require of the names and addresses of the Holders of the Registered
Securities of such series pursuant to Section 312 of the Trust Indenture Act of
1939 (a) semi-annually not more than 5 days after each record date for the
payment of interest on such Registered Securities, as hereinabove specified, as
of such record date and on dates to be determined pursuant to Section 2.3 for
non-interest bearing Registered Securities in each year, and (b) at such other
times as the Trustee may request in writing, within thirty days after receipt by
the Issuer of any such request as of a date not more than 15 days prior to the
time such information is furnished.

      Section 4.2 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 4.1 and the names and
addresses of Holders received by the Trustee in its capacity as Security
Registrar or paying agent. The Trustee may destroy any list furnished to it as
provided in Section 4.1 upon receipt of a new list so furnished.

      (b) The rights of 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 of 1939.

      (c) Every Holder of Securities, by receiving and holding the same, agrees
with the Issuer and the Trustee that neither the Issuer nor the Trustee nor any
agent of any of them shall be held accountable by reason of the disclosure of
any such information as to the names and addresses of the Holders in accordance
with Sections 4.1 and 4.2, regardless of the source from which such information
was derived, and that the Trustee shall not be held accountable by reason of
mailing any material pursuant to a request made under Section 4.2.

      Section 4.3 Reports by the Trustee. Any Trustee's report required under
Section 313(a) of the Trust Indenture Act of 1939 shall be transmitted within 60
days after April 15 in each year beginning with the first such date after the
issuance of Securities under this Indenture, as provided in Section 313(c) of
the Trust Indenture Act of 1939, so long as any Securities are Outstanding
hereunder, and shall be dated as of April 15, if required by and in compliance
with Section 313(a) of the Trust Indenture Act of 1939.

      A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with each shares exchange, if any, upon which
the Securities are listed, with the Commission and with the Issuer. The Issuer
will promptly notify the Trustee when the Securities are listed on any shares
exchange and of any delisting thereof.

                                   ARTICLE 5

         REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

      Section 5.1 Event of Default Defined; Acceleration of Maturity; Waiver of
Default. "EVENT OF DEFAULT" with respect to Securities of any series wherever
used herein, means each one of the following events which shall have occurred
and be continuing (whatever the reason for

                                       25

<PAGE>

such Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body) unless it is either inapplicable to a particular series or it is
specifically deleted or modified in an indenture supplemental hereto, if any,
under which such series of Securities is issued:

      (a) default in the payment of any installment of interest upon any of the
Securities of such series as and when the same shall become due and payable, and
continuance of such default for a period of 30 days and the interest payment
date has not been properly extended or deferred; provided, however, that if the
Issuer is permitted by the terms of the Securities of the applicable series to
defer the payment in question, the date on which such payment is due and payable
shall be the date on which the Issuer is required to make payment following such
deferral, if such deferral has been elected pursuant to the terms of the
Securities of that series; or

      (b) default in the payment of all or any part of the principal of, or
premium, if any, on any of the Securities of such series as and when the same
shall become due and payable either at maturity, upon any redemption, by
declaration or otherwise; provided, however, that if the Issuer is permitted by
the terms of the Securities of the applicable series to defer the payment in
question, the date on which such payment is due and payable shall be the date on
which the Issuer is required to make payment following such deferral, if such
deferral has been elected pursuant to the terms of the Securities of that
series; or

      (c) default in the payment of any sinking fund installment as and when the
same shall become due and payable by the terms of the Securities of such series;
or

      (d) default in the observance or performance of any covenant or agreement
on the part of the Issuer in the Securities of such series (other than a
covenant or agreement, a default in the observance or performance of which is
specifically dealt with elsewhere in this Section) (other than a covenant or
agreement included in this Indenture solely for the benefit of a series of
Securities other than such series) and continuation of such default for a period
of 90 days after the date on which written notice specifying such failure,
stating that such notice is a "Notice of Default" hereunder and demanding that
the Issuer remedy the same, shall have been given by registered or certified
mail, return receipt requested, to the Issuer by the Trustee, or to the Issuer
and the Trustee by the holders of at least 25% in aggregate principal amount of
the Outstanding Securities of all series affected thereby; or

      (e) a decree or order by a court having jurisdiction in the premises shall
have been entered adjudging the Issuer as bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization of the Issuer under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, and such decree or order shall have continued undischarged and unstayed
for a period of 120 days; or a decree or order of a court having jurisdiction in
the premises for the appointment of a receiver or liquidator or trustee or
assignee in bankruptcy or insolvency of the Issuer or of its property, or for
the winding up or liquidation of its affairs, shall have been entered, and such
decree or order shall have remained in force and unstayed for a period of 120
days; or

                                       26

<PAGE>

      (f) the Issuer shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
consent to the entry of an order for relief in an involuntary case under any
such law, or consent to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
the Issuer or for any substantial part of its property, or make any general
assignment for the benefit of creditors or shall admit in writing its inability
to pay its debts generally as they become due; or

      (g) default (i) in any scheduled payment of principal of any indebtedness
of the Issuer (other than with respect to such series of the Securities and
other than non-recourse indebtedness), having an aggregate principal amount
outstanding of at least $50,000,000, when due and payable after giving effect to
any applicable grace period or (ii) in the performance of any other term or
provision of any indebtedness of the Issuer (other than with respect to such
series of the Securities and other than non-recourse indebtedness) having an
aggregate principal amount outstanding of at least $50,000,000 which results in
such indebtedness becoming or being declared due and payable prior to the date
on which it would otherwise become due and payable, and such acceleration shall
not have been cured, waived, rescinded or annulled, or such indebtedness shall
not have been discharged, within a period of 30 days after notice has been given
by registered or certified mail, return receipt requested, to the Issuer by the
Trustee or to the Issuer and the Trustee by the Holders of at least 25% in
aggregate principal amount of the Outstanding Securities (treated as one class)
which notice shall state that it is a "Notice of Default" hereunder; or

      (h) any other Event of Default provided in the supplemental indenture
under which such series of Securities is issued or in the form of Security for
such series;

provided that if any such default or acceleration referred to in clause (g)
above shall cease or be cured, waived, rescinded or annulled, then the Event of
Default hereunder by reason thereof shall be deemed likewise to have been
thereupon cured.

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

                                       27

<PAGE>

Securityholders), may declare the entire principal (or, if any Securities are
Original Issue Discount Securities, such portion of the principal as may be
specified in the terms thereof) of all the Securities then Outstanding, and
interest accrued thereon, if any, to be due and payable immediately, and upon
any such declaration the same shall become immediately due and payable. If an
Event of Default specified in clause (e) or (f) occurs, all unpaid principal
(or, if any Securities are Original Issue Discount Securities, such portion of
the principal as may be specified in the terms thereof) of all the Securities
then Outstanding, and interest accrued thereon, if any, shall be due and payable
immediately, without any declaration or other act on the part of the Trustee or
any Securityholder.

            The foregoing provisions, however, are subject to the condition that
if, at any time after the principal (or, if the Securities are Original Issue
Discount Securities, such portion of the principal as may be specified in the
terms thereof) of the Securities of any series (or of all the Securities, as the
case may be) shall have been so declared due and payable, and before any
judgment or decree for the payment of the moneys due shall have been obtained or
entered as hereinafter provided, the Issuer shall pay or shall deposit with the
Trustee a sum sufficient to pay all matured installments of interest upon all
the Securities of such series (or of all the Securities, as the case may be) and
the principal of any and all Securities of each such series (or of all the
Securities, as the case may be) which shall have become due otherwise than by
acceleration (with interest upon such principal and, to the extent that payment
of such interest is enforceable under applicable law, on overdue installments of
interest, at the same rate as the rate of interest or Yield to Maturity (in the
case of Original Issue Discount Securities) specified in the Securities of each
such series (or at the respective rates of interest or Yields to Maturity of all
the Securities, as the case may be) to the date of such payment or deposit) and
such amount as shall be sufficient to cover reasonable compensation to the
Trustee and each predecessor Trustee, its agents, attorneys and counsel, and all
other expenses and liabilities incurred, and all advances made, by the Trustee
and each predecessor Trustee except as a result of negligence, bad faith or
willful misconduct, and if any and all Events of Default under the Indenture,
other than the non-payment of the principal of Securities which shall have
become due by such acceleration, shall have been cured, waived or otherwise
remedied as provided herein, then and in every such case the Holders of a
majority in aggregate principal amount of all the Securities of each such
series, or of all the Securities, in each case voting as a single class, then
Outstanding, by written notice to the Issuer and to the Trustee, may waive all
defaults with respect to each such series (or with respect to all the
Securities, as the case may be) and rescind and annul such declaration and its
consequences, but no such waiver or rescission and annulment shall extend to or
shall affect any subsequent default or shall impair any right consequent
thereon.

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

                                       28

<PAGE>

      Section 5.2 Collection of Indebtedness by Trustee; Trustee May Prove Debt.

      (a) The Issuer covenants that (i) in case default shall be made in the
payment of any installment of interest on any of the Securities of any series
when such interest shall have become due and payable, and such default shall
have continued for a period of 30 days or (ii) in case default shall be made in
the payment of all or any part of the principal of any of the Securities of any
series when the same shall have become due and payable, whether upon maturity of
the Securities of such series or upon any redemption or by declaration or
otherwise, then upon demand of the Trustee, the Issuer will pay to the Trustee
for the benefit of the Holders of the Securities of such series the whole amount
that then shall have become due and payable on all Securities of such series,
and such Coupons, for principal or interest, as the case may be (with interest
to the date of such payment upon the overdue principal and, to the extent that
payment of such interest is enforceable under applicable law, on overdue
installments of interest at the same rate as the rate of interest or Yield to
Maturity (in the case of Original Issue Discount Securities) specified in the
Securities of such series); and in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, including
reasonable compensation to the Trustee and each predecessor Trustee, their
respective agents, attorneys and counsel, and any expenses and liabilities
incurred, and all advances made, by the Trustee and each predecessor Trustee
except as a result of its negligence, bad faith or willful misconduct.

            Until such demand is made by the Trustee, the Issuer may pay the
principal of and interest on the Securities of any series to the registered
holders, whether or not the Securities of such series be overdue.

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

      (c) In case there shall be pending proceedings relative to the Issuer or
any other obligor upon the Securities under Title 11 of the United States Code
or any other applicable Federal or state bankruptcy, insolvency or other similar
law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor, or in case
of any other comparable judicial proceedings relative to the Issuer or other
obligor upon the Securities, or to the creditors or property of the Issuer or
such other obligor, the Trustee, irrespective of whether the principal of the
Securities shall then be due and payable as therein expressed or by declaration
or otherwise and irrespective of whether the Trustee shall have made any demand
pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such proceedings or otherwise:

            (i) to file and prove a claim or claims for the whole amount of
      principal and interest (or, if the Securities of any series are Original
      Issue Discount Securities, such portion of the principal amount as may be
      specified in the terms of such series) owing

                                       29

<PAGE>

      and unpaid in respect of the Securities of any series, and to file such
      other papers or documents as may be necessary or advisable in order to
      have the claims of the Trustee (including any claim for reasonable
      compensation to the Trustee and each predecessor Trustee, and their
      respective agents, attorneys and counsel, and for reimbursement of all
      expenses and liabilities incurred, and all advances made, by the Trustee
      and each predecessor Trustee, except as a result of negligence, bad faith
      or willful misconduct) and of the Securityholders allowed in any judicial
      proceedings relative to the Issuer or other obligor upon the Securities,
      or to the creditors or property of the Issuer or such other obligor;

            (ii) unless prohibited by applicable law and regulations, to vote on
      behalf of the holders of the Securities of any series in any election of a
      trustee or a standby trustee in arrangement, reorganization, liquidation
      or other bankruptcy or insolvency proceedings or person performing similar
      functions in comparable proceedings; and

            (iii) to collect and receive any moneys or other property payable or
      deliverable on any such claims, and to distribute all amounts received
      with respect to the claims of the Securityholders and of the Trustee on
      their behalf; and any trustee, receiver, or liquidator, custodian or other
      similar official is hereby authorized by each of the Securityholders to
      make payments to the Trustee, and, in the event that the Trustee shall
      consent to the making of payments directly to the Securityholders, to pay
      to the Trustee such amounts as shall be sufficient to cover reasonable
      compensation to the Trustee, each predecessor Trustee and their respective
      agents, attorneys and counsel, and all other expenses and liabilities
      incurred, and all advances made, by the Trustee and each predecessor
      Trustee except as a result of negligence, bad faith or willful misconduct.

            Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities of any series or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Securityholder in any such proceeding except, as aforesaid, to vote for the
election of a trustee in bankruptcy or similar person.

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

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

                                       30

<PAGE>

any Holders of such Securities or Coupons appertaining to such Securities
parties to any such proceedings.

      Section 5.3 Application of Proceeds. Any moneys collected by the Trustee
pursuant to this Article in respect of any series shall, subject to the
subordination provisions hereof, be applied in the following order at the date
or dates fixed by the Trustee and, in case of the distribution of such moneys on
account of principal or interest, upon presentation of the several Securities
and Coupons appertaining to such Securities in respect of which moneys have been
collected and stamping (or otherwise noting) thereon the payment, or issuing
Securities of such series in reduced principal amounts in exchange for the
presented Securities of like series if only partially paid, or upon surrender
thereof if fully paid:

            FIRST: To the payment of costs and expenses applicable to such
series in respect of which moneys have been collected, including reasonable
compensation to the Trustee and each predecessor Trustee and their respective
agents and attorneys and of all expenses and liabilities incurred, and all
advances made, by the Trustee and each predecessor Trustee except as a result of
negligence, bad faith or willful misconduct;

            SECOND: In case the principal of the Securities of such series in
respect of which moneys have been collected shall not have become and be then
due and payable, to the payment of interest on the Securities of such series in
default in the order of the maturity of the installments of such interest, with
interest (to the extent that such interest has been collected by the Trustee)
upon the overdue installments of interest at the same rate as the rate of
interest or Yield to Maturity (in the case of Original Issue Discount
Securities) specified in such Securities, such payments to be made ratably to
the Persons entitled thereto, without discrimination or preference;

            THIRD: In case the principal of the Securities of such series in
respect of which moneys have been collected shall have become and shall be then
due and payable, to the payment of the whole amount then owing and unpaid upon
all the Securities of such series for principal and interest, with interest upon
the overdue principal, and (to the extent that such interest has been collected
by the Trustee) upon overdue installments of interest at the same rate as the
rate of interest or Yield to Maturity (in the case of Original Issue Discount
Securities) specified in the Securities of such series; and in case such moneys
shall be insufficient to pay in full the whole amount so due and unpaid upon the
Securities of such series, then to the payment of such principal and interest or
Yield to Maturity, without preference or priority of principal over interest or
Yield to Maturity, or of interest or Yield to Maturity over principal, or of any
installment of interest over any other installment of interest, or of any
Security of such series over any other Security of such series, ratably to the
aggregate of such principal and accrued and unpaid interest or Yield to
Maturity; and

            FOURTH: To the payment of the remainder, if any, to the Issuer or
any other Person lawfully entitled thereto.

      Section 5.4 Suits for Enforcement. In case an Event of Default has
occurred, has not been waived and is continuing, the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as the Trustee

                                       31

<PAGE>

shall deem most effectual to protect and enforce any of such rights, either at
law or in equity or in bankruptcy or otherwise, whether for the specific
enforcement of any covenant or agreement contained in this Indenture or in aid
of the exercise of any power granted in this Indenture or to enforce any other
legal or equitable right vested in the Trustee by this Indenture or by law.

      Section 5.5 Restoration of Rights on Abandonment of Proceedings. In case
the Trustee shall have proceeded to enforce any right under this Indenture and
such proceedings shall have been discontinued or abandoned for any reason, or
shall have been determined adversely to the Trustee, then and in every such case
the Issuer and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the
Issuer, the Trustee and the Securityholders shall continue as though no such
proceedings had been taken.

      Section 5.6 Limitations on Suits by Securityholders. No Holder of any
Security of any series or of any Coupon appertaining thereto shall have any
right by virtue or by availing of any provision of this Indenture to institute
any action or proceeding at law or in equity or in bankruptcy or otherwise upon
or under or with respect to this Indenture, or for the appointment of a trustee,
receiver, liquidator, custodian or other similar official or for any other
remedy hereunder, unless such Holder previously shall have given to the Trustee
written notice of default and of the continuance thereof, as hereinbefore
provided, and unless also the Holders of not less than 25% in aggregate
principal amount of the Securities of each affected series then Outstanding
(treated as a single class) shall have made written request upon the Trustee to
institute such action or proceedings in its own name as trustee hereunder and
shall have offered to the Trustee indemnity reasonably satisfactory to it
against the costs, expenses and liabilities to be incurred therein or thereby
and the Trustee for 60 days after its receipt of such notice, request and offer
of indemnity shall have failed to institute any such action or proceeding and no
direction inconsistent with such written request shall have been given to the
Trustee pursuant to Section 5.9; it being understood and intended, and being
expressly covenanted by the taker and Holder of every Security or Coupon with
every other taker and Holder and the Trustee, that no one or more Holders of
Securities of any series or Coupons appertaining to such Securities shall have
any right in any manner whatever by virtue or by availing of any provision of
this Indenture to affect, disturb or prejudice the rights of any other such
Holder of Securities or Coupons appertaining to such Securities, or to obtain or
seek to obtain priority over or preference to any other such Holder or to
enforce any right under this Indenture, except in the manner herein provided and
for the equal, ratable and common benefit of all Holders of Securities of the
applicable series and Coupons appertaining to such Securities. For the
protection and enforcement of the provisions of this Section, each and every
Securityholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

      Section 5.7 Unconditional Right of Securityholders to Institute Certain
Suits. Notwithstanding any other provision in this Indenture and any provision
of any Security, the right of any Holder of any Security or Coupon to receive
payment of the principal of and interest on such Security or Coupon on or after
the respective due dates expressed in such Security or Coupon, or to institute
suit for the enforcement of any such payment on or after such respective dates,
shall not be impaired or affected without the consent of such Holder.

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<PAGE>

      Section 5.8 Powers and Remedies Cumulative; Delay or Omission Not Waiver
of Default. Except as provided in Section 5.6, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders of Securities or
Coupons is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

            No delay or omission of the Trustee or of any Holder of Securities
or Coupons to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power or
shall be construed to be a waiver of any such Event of Default or an
acquiescence therein; and, subject to Section 5.6, every power and remedy given
by this Indenture or by law to the Trustee or to the Holders of Securities or
Coupons may be exercised from time to time, and as often as shall be deemed
expedient, by the Trustee or by the Holders of Securities or Coupons.

      Section 5.9 Control by Holders of Securities. The Holders of a majority in
aggregate principal amount of the Securities of each series affected (with all
such series voting as a single class) at the time Outstanding shall have the
right to direct the time, method, and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee with respect to the Securities of such series by this Indenture;
provided that such direction shall not be otherwise than in accordance with law
and the provisions of this Indenture; provided further that (subject to the
provisions of Section 6.1) the Trustee shall have the right to decline to follow
any such direction if the Trustee, being advised by counsel, shall determine
that the action or proceeding so directed may not lawfully be taken or if the
Trustee in good faith by its board of directors, the executive committee, or a
trust committee of directors or Responsible Officers of the Trustee shall
determine that the action or proceedings so directed would involve the Trustee
in personal liability or if the Trustee in good faith shall so determine that
the actions or forbearances specified in or pursuant to such direction would be
unduly prejudicial to the interests of Holders of the Securities of all series
so affected not joining in the giving of said direction, it being understood
that (subject to Section 6.1) the Trustee shall have no duty to ascertain
whether or not such actions or forbearances are unduly prejudicial to such
Holders.

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

      Section 5.10 Waiver of Past Defaults. Prior to the acceleration of the
maturity of any Securities as provided in Section 5.1, the Holders of a majority
in aggregate principal amount of the Securities of all series at the time
Outstanding with respect to which an Event of Default shall have occurred and be
continuing (voting as a single class) may on behalf of the Holders of all such
Securities waive any past default or Event of Default described in Section 5.1
and its consequences, except a default in respect of a covenant or provision
hereof which cannot be modified or amended without the consent of the Holder of
each Security affected. In the case of any such waiver, the Issuer, the Trustee
and the Holders of all such Securities shall be restored to

                                       33

<PAGE>

their former positions and rights hereunder, respectively; but no such waiver
shall extend to any subsequent or other default or impair any right consequent
thereon.

            Upon any such waiver, such default shall cease to exist and be
deemed to have been cured and not to have occurred, and any Event of Default
arising therefrom shall be deemed to have been cured, and not to have occurred
for every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.

      Section 5.11 Trustee to Give Notice of Default, but May Withhold in
Certain Circumstances. The Trustee shall, within ninety days after the
occurrence of a default with respect to the Securities of any series, give
notice of all defaults with respect to that series actually known to a
Responsible Officer of the Trustee (a) if any Unregistered Securities of that
series are then Outstanding, to the Holders thereof, by publication at least
once in an Authorized Newspaper in the Borough of Manhattan, The City of New
York and at least once in an Authorized Newspaper in London and (b) to all
Holders of Securities of such series in the manner and to the extent provided in
Section 313(c) of the Trust Indenture Act of 1939, unless in each case such
defaults shall have been cured before the mailing or publication of such notice
(the term "defaults" for the purpose of this Section being hereby defined to
mean any event or condition which is, or with notice or lapse of time or both
would become, an Event of Default); provided that, except in the case of default
in the payment of the principal of or interest on any of the Securities of such
series, or in the payment of any sinking fund installment on such series, the
Trustee shall be protected in withholding such notice if and so long as the
board of directors, the executive committee, or a trust committee of directors,
trustees or Responsible Officers of the Trustee in good faith determines that
the withholding of such notice is in the interests of the Securityholders of
such series.

      Section 5.12 Right of Court to Require Filing of Undertaking to Pay Costs.
All parties to this Indenture agree, and each Holder of any Security or Coupon
by his or her acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action
taken, suffered or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys'
fees and expenses, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder or group of
Securityholders of any series holding in the aggregate more than 10% in
aggregate principal amount of the Securities of such series, or, in the case of
any suit relating to or arising under clause (d) or (h) of Section 5.1 (if the
suit relates to Securities of more than one but less than all series), 10% in
aggregate principal amount of Securities then Outstanding and affected thereby,
or in the case of any suit relating to or arising under clause (d) or (h) (if
the suit under clause (d) or (h) relates to all the Securities then
Outstanding), (e), (f) or (g) of Section 5.1, 10% in aggregate principal amount
of all Securities then Outstanding, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of or
interest on any Security on or after the due date expressed in such Security or
any date fixed for redemption.

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<PAGE>

                                   ARTICLE 6

                             CONCERNING THE TRUSTEE

      Section 6.1 Duties and Responsibilities of the Trustee; During Default;
Prior to Default.

      (a) With respect to the Holders of any series of Securities issued
hereunder, the Trustee, prior to the occurrence of an Event of Default with
respect to the Securities of a particular series and after the curing or waiving
of all Events of Default which may have occurred with respect to such series,
undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture. In case an Event of Default with respect to the
Securities of a series has occurred (which has not been cured or waived), the
Trustee shall exercise with respect to such series of Securities such of the
rights and powers vested in it by this Indenture, and use the same degree of
care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of his or her own affairs.

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

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

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

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

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

            (iii) the Trustee shall not be liable with respect to any action
      taken or omitted to be taken by it in good faith in accordance with the
      direction of the Holders pursuant to Section 5.9 relating to the time,
      method and place of conducting any proceeding for any

                                       35

<PAGE>

      remedy available to the Trustee, or exercising any trust or power
      conferred upon the Trustee, under this Indenture; and

            (iv) the Trustee shall not be required to take notice, and shall not
      be deemed to have notice, of any default or Event of Default hereunder,
      except Events of Default described in paragraphs (a), (b) and (c) of
      Section 5.1 hereof, unless a Responsible Officer of the Trustee shall be
      notified specifically of the default or Event of Default on a written
      instrument or document delivered to it at its notice address by the Issuer
      or by the Holders of at least 10% of the aggregate principal amount of
      Securities then outstanding. In the absence of delivery of notice
      satisfying those requirements, the Trustee may assume conclusively that
      there is no default or Event of Default, except as noted.

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

            The provisions of this Section 6.1 are in furtherance of and subject
to Section 315 of the Trust Indenture Act of 1939.

      Section 6.2 Certain Rights of the Trustee. In furtherance of and subject
to the Trust Indenture Act of 1939, and subject to Section 6.1:

      (a) the Trustee may conclusively rely, as to the truth of the statements
and the correctness of the opinions expressed therein, and shall be protected in
acting or refraining from acting upon any resolution, Officer's Certificate or
any other certificate, statement, instrument, opinion, report, notice, request,
consent, order, bond, debenture, note, coupon, security or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;

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

      (c) the Trustee may consult with legal counsel of its choice or other
experts, and the advice of such experts within the scope of such expert's area
of expertise or opinion of counsel with respect to legal matters shall be full
and complete authorization and protection in respect of any action taken,
suffered or omitted to be taken by it hereunder in good faith and in accordance
with such advice or opinion;

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

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<PAGE>

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

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

      (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 such agent or attorney appointed with due care by
it hereunder;

      (h) the Trustee shall not be liable for any action taken, suffered, or
omitted to be taken by it in good faith in accordance with the direction of the
holders pursuant to Section 5.9 relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon it by this Indenture;

      (i) the rights, privileges, protections, immunities and benefits given to
the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and each agent, custodian and other Person employed to act hereunder;

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

      (k) 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 Issuer, at a time reasonably determined by
the Issuer, personally or by agent or attorney at the

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<PAGE>

sole cost of the Issuer and shall incur no liability or additional liability of
any kind by reason of such inquiry or investigation; and

      (l) 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 such agent or attorney appointed with due care by
it hereunder.

      Section 6.3 Trustee Not Responsible for Recitals, Disposition of
Securities or Application of Proceeds Thereof. The recitals contained herein and
in the Securities, except the Trustee's certificates of authentication, shall be
taken as the statements of the Issuer, and the Trustee assumes no responsibility
for the correctness of the same. The Trustee makes no representation as to the
validity or sufficiency of this Indenture or of any Securities or Coupons. The
Trustee shall not be accountable for the use or application by the Issuer of any
of the Securities or of the proceeds thereof.

      Section 6.4 Trustee and Agents May Hold Securities or Coupons;
Collections, Etc. The Trustee or any agent of the Issuer or the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Securities
or Coupons with the same rights it would have if it were not the Trustee or such
agent and may otherwise deal with the Issuer and receive, collect, hold and
retain collections from the Issuer with the same rights it would have if it were
not the Trustee or such agent.

      Section 6.5 Moneys Held by Trustee. Subject to the provisions of Section
3.3 hereof, all moneys received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were received,
but need not be segregated from other funds except to the extent required by
mandatory provisions of law. Neither the Trustee nor any agent of the Issuer or
the Trustee shall be under any liability for interest on any moneys received by
it hereunder.

      Section 6.6 Compensation and Indemnification of Trustee. The Issuer
covenants and agrees to pay to the Trustee from time to time, and the Trustee
shall be entitled to, such compensation as shall be agreed in writing between
the Issuer and the Trustee from time to time (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust)
and the Issuer covenants and agrees to pay or reimburse the Trustee and each
predecessor Trustee upon its request for all reasonable expenses, disbursements
and advances incurred or made by or on behalf of it in accordance with any of
the provisions of this Indenture (including the reasonable compensation and the
expenses and disbursements of its counsel and of all agents and other persons
not regularly in its employ) except any such expense, disbursement or advance as
may arise from its negligence, bad faith or willful misconduct. The Issuer also
covenants to indemnify the Trustee, each predecessor Trustee and their
respective directors, officers, employees, and agents (the "INDEMNITEES") for,
and to hold the indemnitees harmless against, any and all loss, liability,
claim, damage, penalty, fine or expense, including taxes and reasonable
out-of-pocket expenses, reasonable incidental expenses and reasonable legal fees
and expenses incurred without negligence, bad faith or willful misconduct on the
indemnitees' part, arising out of or in connection with the acceptance or
administration of this Indenture or the trusts hereunder and the indemnitees'
duties hereunder, including the costs and expenses of

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<PAGE>

defending themselves against or investigating any claim, whether asserted by the
Issuer or any Holder or any other Person, or liability in connection with the
exercise or performance of the indemnitees' duties or obligations hereunder. The
obligations of the Issuer under this Section to compensate and indemnify the
indemnitees and to pay or reimburse the indemnitees for expenses, disbursements
and advances shall constitute additional indebtedness hereunder and shall
survive the satisfaction and discharge of this Indenture and the resignation or
removal of the Trustee in accordance with Section 6.10 herein. Such additional
indebtedness shall be a senior claim to that of the Securities upon all property
and funds held or collected by the Trustee as such, except funds held in trust
for the benefit of the Holders of particular Securities or Coupons, and the
Securities are hereby subordinated to such senior claim.

      When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 5.1(e) or (f), the expenses (including the
reasonable charges and expenses of its counsel) and the compensation for the
services are intended to constitute expenses of administration under any
applicable Federal or state bankruptcy, insolvency or other similar law.

      Section 6.7 Right of Trustee to Rely on Officer's Certificate, Etc.
Subject to Sections 6.1 and 6.2, whenever in the administration of the trusts of
this Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or suffering or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence, bad faith or willful
misconduct on the part of the Trustee, be deemed to be conclusively proved and
established by an Officer's Certificate delivered to the Trustee, and such
certificate, in the absence of negligence, bad faith or willful misconduct on
the part of the Trustee, shall be full warrant to the Trustee for any action
taken, suffered or omitted by it under the provisions of this Indenture upon the
faith thereof.

      Section 6.8 Indentures Not Creating Potential Conflicting Interests for
the Trustee. The following indentures are hereby specifically described for the
purposes of Section 310(b)(1) of the Trust Indenture Act of 1939: this Indenture
with respect to the Securities of any series.

      Section 6.9 Persons Eligible for Appointment as Trustee. The Trustee for
each series of Securities hereunder shall at all times be a corporation or
banking association organized and doing business under the laws of the United
States of America or of any State or the District of Columbia having a combined
capital and surplus of at least $50,000,000, and which is authorized under such
laws to exercise corporate trust powers and is subject to supervision or
examination by Federal, State or District of Columbia authority. Such
corporation or banking association shall have a place of business or an
affiliate with a place of business in the Borough of Manhattan, The City of New
York if there be such a corporation or association in such location willing to
act upon reasonable and customary terms and conditions. If such corporation or
association publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, the Trustee shall resign immediately in the manner
and with the effect specified in Section 6.10.

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<PAGE>

            The provisions of this Section 6.9 are in furtherance of and subject
to Section 310(a) of the Trust Indenture Act of 1939.

      Section 6.10 Resignation and Removal; Appointment of Successor Trustee.

      (a) The Trustee, or any trustee or trustees hereafter appointed, may at
any time resign with respect to one or more or all series of Securities by
giving written notice of resignation to the Issuer and (i) if any Unregistered
Securities of a series affected are then Outstanding, by giving notice of such
resignation to the Holders thereof, by publication, at the Issuer's expense, at
least once in an Authorized Newspaper in the Borough of Manhattan, The City of
New York, and at least once in an Authorized Newspaper in London, (ii) if any
Unregistered Securities of a series affected are then Outstanding, by mailing
notice of such resignation to the Holders thereof who have filed their names and
addresses with the Trustee pursuant to Section 313(c)(2) of the Trust Indenture
Act of 1939 at such addresses as were so furnished to the Trustee and (iii) by
mailing notice of such resignation to the Holders of then Outstanding Registered
Securities of each series affected at their addresses as they shall appear on
the registry books. Upon receiving such notice of resignation, the Issuer shall
promptly appoint a successor Trustee or Trustees with respect to the applicable
series by written instrument in duplicate, executed by authority of the Board of
Directors, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor Trustee or Trustees. If no successor
Trustee shall have been so appointed with respect to any series and have
accepted appointment within 30 days after the mailing of such notice of
resignation, the resigning Trustee may, at the Issuer's expense, petition any
court of competent jurisdiction for the appointment of a successor Trustee, or
any Securityholder who has been a bona fide Holder of a Security or Securities
of the applicable series for at least six months may, subject to the provisions
of Section 5.12, on behalf of himself or herself and all others similarly
situated, petition any such court for the appointment of a successor Trustee.
Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor Trustee.

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

            (i) the Trustee shall fail to comply with the provisions of Section
      310(b) of the Trust Indenture Act of 1939 with respect to any series of
      Securities after written request therefor by the Issuer or by any
      Securityholder who has been a bona fide Holder of a Security or Securities
      of such series for at least six months; or

            (ii) the Trustee shall cease to be eligible in accordance with the
      provisions of Section 6.9 and Section 310(a) of the Trust Indenture Act of
      1939 and shall fail to resign after written request therefor by the Issuer
      or by any Securityholder; or

            (iii) the Trustee shall become incapable of acting with respect to
      any series of Securities, or shall be adjudged bankrupt or insolvent, or a
      receiver or liquidator of the Trustee or of its property shall be
      appointed, or any public officer shall take charge or control of the
      Trustee or of its property or affairs for the purpose of rehabilitation,
      conservation or liquidation;

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<PAGE>

then, in any such case, the Issuer may remove the Trustee with respect to the
applicable series of Securities and appoint a successor Trustee for such series
by written instrument, in duplicate, executed by order of the Board of Directors
of the Issuer, one copy of which instrument shall be delivered to the Trustee so
removed and one copy to the successor Trustee, or, subject to the provisions of
Section 315(e) of the Trust Indenture Act of 1939, any Securityholder who has
been a bona fide Holder of a Security or Securities of such series for at least
six months may on behalf of himself or herself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee with respect to such series.
Such court may thereupon, after such notice, if any, as it may deem proper,
remove the Trustee and appoint a successor Trustee.

      (c) The Holders of a majority in aggregate principal amount of the
Securities of each series at the time Outstanding may at any time remove the
Trustee with respect to Securities of such series and appoint a successor
Trustee with respect to the Securities of such series by delivering to the
Trustee so removed, to the successor Trustee so appointed and to the Issuer the
evidence provided for in Section 7.1 of the action in that regard taken by such
Securityholders.

      (d) Any resignation or removal of the Trustee with respect to any series
and any appointment of a successor Trustee with respect to such series pursuant
to any of the provisions of this Section 6.10 shall become effective upon
acceptance of appointment by the successor Trustee as provided in Section 6.11.

      Section 6.11 Acceptance of Appointment by Successor Trustee. Any successor
Trustee appointed as provided in Section 6.10 shall execute and deliver to the
Issuer and to its predecessor Trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor Trustee
with respect to all or any applicable series shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all rights, powers, duties and obligations with respect to such
series of its predecessor hereunder, with like effect as if originally named as
Trustee for such series hereunder; but, nevertheless, on the written request of
the Issuer or of the successor Trustee, upon payment of its charges then unpaid,
the Trustee ceasing to act shall, subject to Section 3.3, pay over to the
successor Trustee all moneys at the time held by it hereunder and shall execute
and deliver an instrument transferring to such successor trustee all such
rights, powers, duties and obligations. Upon request of any such successor
Trustee, the Issuer shall execute any and all instruments in writing for more
fully and certainly vesting in and confirming to such successor Trustee all such
rights and powers. Any Trustee ceasing to act shall, nevertheless, retain a
prior claim upon all property or funds held or collected by such Trustee to
secure any amounts then due it pursuant to the provisions of Section 6.6.

            If a successor Trustee is appointed with respect to the Securities
of one or more (but not all) series, the Issuer, the predecessor Trustee and
each successor Trustee with respect to the Securities of any applicable series
shall execute and deliver an indenture supplemental hereto which shall contain
such provisions as shall be deemed necessary or desirable to confirm that all
the rights, powers, trusts and duties of the predecessor Trustee with respect to
the Securities of any series as to which the predecessor Trustee is not retiring
shall continue to be vested in the predecessor Trustee, and shall add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one

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<PAGE>

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 under separate
indentures.

            No successor Trustee with respect to any series of Securities shall
accept appointment as provided in this Section 6.11 unless at the time of such
acceptance such successor Trustee shall be qualified under Section 310(b) of the
Trust Indenture Act of 1939 and eligible under the provisions of Section 6.9.

            Upon acceptance of appointment by any successor Trustee as provided
in this Section 6.11, the Issuer shall give notice thereof (a) if any
Unregistered Securities of a series affected are then Outstanding, to the
Holders thereof, by publication of such notice at least once in an Authorized
Newspaper in the Borough of Manhattan, The City of New York, and at least once
in an Authorized Newspaper in London, (b) if any Unregistered Securities of a
series affected are then Outstanding, to the Holders thereof who have filed
their names and addresses with the Trustee pursuant to Section 313(c)(2) of the
Trust Indenture Act of 1939, by mailing such notice to such Holders at such
addresses as were so furnished to the Trustee (and the Trustee shall make such
information available to the Issuer for such purpose) and (c) if any Registered
Securities of a series affected are then Outstanding, to the Holders thereof, by
mailing such notice to such Holders at their addresses as they shall appear on
the registry books. If the acceptance of appointment is substantially
contemporaneous with the resignation, then the notice called for by the
preceding sentence may be combined with the notice called for by Section 6.10.
If the Issuer fails to give such notice within ten days after acceptance of
appointment by the successor Trustee, the successor Trustee shall cause such
notice to be given at the expense of the Issuer.

      Section 6.12 Merger, Amalgamation, Conversion, Consolidation or Succession
to Business of Trustee. Any corporation into which the Trustee may be merged or
amalgamated or converted or with which it may be consolidated, or any
corporation resulting from any merger, amalgamation, 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 that such corporation shall be
qualified under Section 310(b) of the Trust Indenture Act of 1939 and eligible
under the provisions of Section 6.9, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.

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

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<PAGE>

Trustee shall apply only to its successor or successors by merger, amalgamation,
conversion or consolidation.

      Section 6.13 Preferential Collection of Claims Against the Issuer. The
Trustee shall comply with Section 311(a) of the Trust Indenture Act of 1939,
excluding any creditor relationship listed in Section 311(b) of the Trust
Indenture Act of 1939. A Trustee who has resigned or been removed shall be
subject to Section 311(a) of the Trust Indenture Act of 1939 to the extent
indicated therein.

      Section 6.14 Appointment of Authenticating Agent. As long as any
Securities of a series remain Outstanding, the Trustee may, by an instrument in
writing, appoint with the approval of the Issuer an authenticating agent (the
"AUTHENTICATING AGENT") which shall be authorized to act on behalf of the
Trustee to authenticate Securities, including Securities issued upon exchange,
registration of transfer, partial redemption or pursuant to Section 2.9.
Securities of each such series authenticated by such Authenticating Agent shall
be entitled to the benefits of this Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee. Whenever reference is made
in this Indenture to the authentication and delivery of Securities of any series
by the Trustee or to 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 for such series and a Certificate of Authentication
executed on behalf of the Trustee by such Authenticating Agent. Such
Authenticating Agent shall at all times be a corporation organized and doing
business under the laws of the United States of America or of any State,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $50,000,000 (determined as provided in Section
6.9 with respect to the Trustee) and subject to supervision or examination by
Federal or State authority.

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

            Upon receiving such a notice of resignation or upon such a
termination, or in case at any time any Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section 6.14 with respect to
one or more series of Securities, the Trustee shall upon receipt of an Issuer
Order appoint a successor Authenticating Agent and the Issuer shall provide
notice of such appointment to all Holders of Securities of such series in the
manner and to the extent provided in Section 11.4. Any successor Authenticating
Agent upon acceptance of its appointment hereunder shall become vested with all
rights, powers, duties and responsibilities of its predecessor hereunder, with
like effect as if originally named as Authenticating Agent. The Issuer agrees to
pay to the Authenticating Agent for such series from time to time reasonable
compensation. The Authenticating Agent for the Securities of any series shall
have no responsibility or liability for any action taken by it as such at the
direction of the Trustee.

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<PAGE>

            Sections 6.2, 6.3, 6.4, 6.6 and 7.3 shall be applicable to any
Authenticating Agent.

                                   ARTICLE 7

                         CONCERNING THE SECURITYHOLDERS

      Section 7.1 Evidence of Action Taken by Securityholders. Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by a specified percentage in
principal amount of the Securityholders of any or all series may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed
by such specified percentage of Securityholders in person or by 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. Proof of execution of any instrument or of a writing appointing
any such agent shall be sufficient for any purpose of this Indenture and
(subject to Sections 6.1 and 6.2) conclusive in favor of the Trustee and the
Issuer, if made in the manner provided in this Article.

      Section 7.2 Proof of Execution of Instruments and of Holding of
Securities. Subject to Sections 6.1 and 6.2, the execution of any instrument by
a Securityholder or his or her agent or proxy may be proved in the following
manner:

      (a) The fact and date of the execution by any Holder of any instrument may
be proved by the certificate of any notary public or other officer of any
jurisdiction authorized to take acknowledgments of deeds or administer oaths
that the person executing such instruments acknowledged to him or her the
execution thereof, or by an affidavit of a witness to such execution sworn to
before any such notary or other such officer. Where such execution is by or on
behalf of any legal entity other than an individual, such certificate or
affidavit shall also constitute sufficient proof of the authority of the person
executing the same.

      (b) The fact of the holding by any Holder of an Unregistered Security of
any series, and the identifying number of such Security and the date of his or
her holding the same, may be proved by the production of such Security or by a
certificate executed by any trust company, bank, banker or recognized securities
dealer wherever situated satisfactory to the Trustee, if such certificate shall
be deemed by the Trustee to be satisfactory. Each such certificate shall be
dated and shall state that on the date thereof a Security of such series bearing
a specified identifying number was deposited with or exhibited to such trust
company, bank, banker or recognized securities dealer by the person named in
such certificate. Any such certificate may be issued in respect of one or more
Unregistered Securities of one or more series specified therein. The holding by
the person named in any such certificate of any Unregistered Securities of any
series specified therein shall be presumed to continue for a period of one year
from the date of such certificate unless at the time of any determination of
such holding (i) another certificate bearing a later date issued in respect of
the same Securities shall be produced, (ii) the Securities of such series
specified in such certificate shall be produced by some other person, or (iii)
the Securities of such series specified in such certificate shall have ceased to
be Outstanding. Subject to Sections 6.1 and 6.2, the fact and date of the
execution of any such instrument and the amount and numbers of Securities of any
series held by the person so executing such instrument and the amount and
numbers of any Security or Securities for such series may also be proven in

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<PAGE>

accordance with such reasonable rules and regulations as may be prescribed by
the Trustee for such series or in any other manner which the Trustee for such
series may deem sufficient.

      (c) In the case of Registered Securities, the ownership of such Securities
shall be proved by the Security register or by a certificate of the Security
registrar.

            The Issuer may set a record date for purposes of determining the
identity of Holders of Registered Securities of any series entitled to vote or
consent to any action referred to in Section 7.1, which record date may be set
at any time or from time to time by notice to the Trustee, for any date or dates
(in the case of any adjournment or reconsideration) not more than 60 days nor
less than five days prior to the proposed date of such vote or consent, and
thereafter, notwithstanding any other provisions hereof, with respect to
Registered Securities of any series, only Holders of Registered Securities of
such series of record on such record date shall be entitled to so vote or give
such consent or revoke such vote or consent.

      Section 7.3 Holders to Be Treated as Owners. The Issuer, the Trustee and
any agent of the Issuer or the Trustee may deem and treat the Person in whose
name any Security shall be registered upon the Security register for such series
as the absolute owner of such Security (whether or not such Security shall be
overdue and notwithstanding any notation of ownership or other writing thereon)
for the purpose of receiving payment of or on account of the principal of and,
subject to the provisions of this Indenture, interest on such Security and for
all other purposes; and neither the Issuer nor the Trustee nor any agent of the
Issuer or the Trustee shall be affected by any notice to the contrary. The
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Holder of any Unregistered Security and the Holder of any Coupon as the absolute
owner of such Unregistered Security or Coupon (whether or not such Unregistered
Security or Coupon shall be overdue) for the purpose of receiving payment
thereof or on account thereof and for all other purposes and neither the Issuer,
the Trustee, nor any agent of the Issuer or the Trustee shall be affected by any
notice to the contrary. All such payments so made to any such Person, or upon
his or her order, shall be valid, and, to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for moneys payable upon any
such Unregistered Security or Coupon.

      Section 7.4 Securities Owned by Issuer Deemed Not Outstanding. In
determining whether the Holders of the requisite aggregate principal amount of
Outstanding Securities of any or all series have concurred in any direction,
consent or waiver under this Indenture, Securities which are owned by the Issuer
or any other obligor on the Securities with respect to which such determination
is being made or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Issuer or any other
obligor on the Securities with respect to which such determination is being made
shall be disregarded and deemed not to be Outstanding for the purpose of any
such determination, except that for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver
only Securities which a Responsible Officer of the Trustee actually knows are so
owned shall be so disregarded. Securities so owned which have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to such
Securities and that the pledgee is not the Issuer or any other obligor upon the
Securities or any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Issuer or any other obligor on
the Securities. In

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<PAGE>

case of a dispute as to such right, the advice of counsel shall be full
protection in respect of any decision made by the Trustee in accordance with
such advice. Upon request of the Trustee, the Issuer shall furnish to the
Trustee promptly an Officer's Certificate listing and identifying all
Securities, if any, known by the Issuer to be owned or held by or for the
account of any of the above-described Persons; and, subject to Sections 6.1 and
6.2, the Trustee shall be entitled to accept such Officer's Certificate as
conclusive evidence of the facts therein set forth and of the fact that all
Securities not listed therein are Outstanding for the purpose of any such
determination.

      Section 7.5 Right of Revocation of Action Taken. At any time prior to (but
not after) the evidencing to the Trustee, as provided in Section 7.1, of the
taking of any action by the Holders of the percentage in aggregate principal
amount of the Securities of any or all series, as the case may be, specified in
this Indenture in connection with such action, any Holder of a Security the
serial number of which is shown by the evidence to be included among the serial
numbers of the Securities the Holders of which have consented to such action
may, by filing written notice at the Corporate Trust Office and upon proof of
holding as provided in this Article, revoke such action so far as concerns such
Security. Except as aforesaid any such action taken by the Holder of any
Security shall be conclusive and binding upon such Holder and upon all future
Holders and owners of such Security and of any Securities issued in exchange or
substitution therefor or on registration of transfer thereof, irrespective of
whether or not any notation in regard thereto is made upon any such Security.
Any action taken by the Holders of the percentage in aggregate principal amount
of the Securities of any or all series, as the case may be, specified in this
Indenture in connection with such action shall be conclusively binding upon the
Issuer, the Trustee and the Holders of all the Securities affected by such
action.

                                   ARTICLE 8

                             SUPPLEMENTAL INDENTURES

      Section 8.1 Supplemental Indentures Without Consent of Securityholders.

      (a) In addition to any supplemental indenture otherwise authorized by this
Indenture, the Issuer, when authorized by a resolution of its Board of Directors
(which resolution may provide general terms or parameters for such action and
may provide that the specific terms of such action may be determined in
accordance with or pursuant to an Issuer Order), and the Trustee may from time
to time and at any time enter into an indenture or indentures supplemental
hereto which comply with the Trust Indenture Act of 1939, as then in effect,
without the consent of the Holders, for one or more of the following purposes:

            (i) to convey, transfer, assign, mortgage or pledge to the Trustee
      as security for the Securities of one or more series any property or
      assets;

            (ii) to evidence the succession of another Person to the Issuer, or
      successive successions, and the assumption by the successor Person of the
      covenants, agreements and obligations of the Issuer pursuant to Article 9;

                                       46

<PAGE>

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

            (iv) to cure any ambiguity or to correct or supplement any provision
      contained herein or in any supplemental indenture which may be defective
      or inconsistent with any other provision contained herein or in any
      supplemental indenture, or to make any other provisions as the Issuer may
      deem necessary or desirable, provided that no such action shall adversely
      affect the interests of the Holders of the Securities or Coupons in any
      material manner;

            (v) to establish the forms or terms of Securities of any series or
      of the Coupons appertaining to such Securities as permitted by Sections
      2.1 and 2.3; and

            (vi) 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) The Trustee is hereby authorized to join with the Issuer in the
execution of any such supplemental indenture, to make any further appropriate
agreements and stipulations which may be therein contained and to accept the
conveyance, transfer, assignment, mortgage or pledge of any property thereunder,
but the Trustee shall not be obligated to enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.

      (c) Any supplemental indenture authorized by the provisions of this
Section may be executed without the consent of the Holders of any of the
Securities at the time outstanding, notwithstanding any of the provisions of
Section 8.2.

      Section 8.2 Supplemental Indentures With Consent of Securityholders.

      (a) With the consent (evidenced as provided in Article 7) of the Holders
of not less than a majority in aggregate principal amount of the Securities at
the time Outstanding of all series affected by such supplemental indenture
(voting as one class), the Issuer, when authorized by a resolution of its Board
of Directors (which resolution may provide general terms or

                                       47

<PAGE>

parameters for such action and may provide that the specific terms of such
action may be determined in accordance with or pursuant to an Issuer Order), and
the Trustee may, from time to time and at any time, enter into an indenture or
indentures supplemental hereto, which comply with the Trust Indenture Act of
1939, as then in effect, for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of any
supplemental indenture or of modifying in any manner the rights of the Holders
of the Securities of each such series or of the Coupons appertaining to such
Securities; provided, that no such supplemental indenture shall extend the final
maturity of any then issued Security, or reduce the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon, or reduce any
amount payable on redemption thereof or change the time at which any Security
may be redeemed, or make the principal thereof (including any amount in respect
of original issue discount), or interest thereon payable in any coin or currency
other than that provided in such Securities and any Coupons thereon or in
accordance with the terms thereof, or reduce the amount of the principal of a
then issued Original Issue Discount Security that would be due and payable upon
an acceleration of the maturity thereof pursuant to Section 5.1 or the amount
thereof provable in bankruptcy pursuant to Section 5.2, or make any changes in
the ranking or priority of any Security that would adversely affect the holders
of such Security, or impair or affect the right of any Securityholder to
institute suit for the payment thereof or, if such Securities provide therefor,
any right of repayment at the option of the Securityholder, in each case without
the consent of the Holder of each Security so affected, or reduce the percentage
in principal amount of then issued Securities of any series, the consent of the
Holders of which is required for any such supplemental indenture, without the
consent of the Holders of each Security so affected.

      (b) 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 Holders of Securities of such series, or of Coupons appertaining
to such Securities, with respect to such covenant or provision, shall be deemed
not to affect the rights under this Indenture of the Holders of Securities of
any other series or of the Coupons appertaining to such Securities.

      (c) Upon the request of the Issuer, accompanied by a copy of a resolution
of the Board of Directors (which resolution may provide general terms or
parameters for such action and may provide that the specific terms of such
action may be determined in accordance with or pursuant to an Issuer Order)
certified by the secretary or an assistant secretary of the Issuer authorizing
the execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of the Holders of the Securities as aforesaid
and other documents, if any, required by Section 7.1, the Trustee shall join
with the Issuer in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee's own rights, duties or immunities
under this Indenture or otherwise, in which case the Trustee may in its
discretion, but shall not be obligated to, enter into such supplemental
indenture.

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

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<PAGE>

      (e) Promptly after the execution by the Issuer and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall give notice thereof (i) if any Registered Securities of a series affected
thereby are then Outstanding, to the Holders thereof, by mailing a notice
thereof by first-class mail to such Holders at their addresses as they shall
appear on the Security register, (ii) if any Unregistered Securities of a series
affected thereby are then Outstanding, to the Holders thereof who have filed
their names and addresses with the Trustee pursuant to Section 313(c)(2) of the
Trust Indenture Act of 1939, by mailing a notice thereof by first-class mail to
such Holders at such addresses as were so furnished to the Trustee and (iii) if
any Unregistered Securities of a series affected thereby are then Outstanding,
to all Holders thereof, by publication of a notice thereof at least once in an
Authorized Newspaper in the Borough of Manhattan, The City of New York, and at
least once in an Authorized Newspaper in London and, in each case, such notice
shall set forth in general terms the substance of such supplemental indenture.
Any failure of the Issuer to give such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

      Section 8.3 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and be deemed to be modified and amended in accordance therewith and the
respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Issuer and the Holders of Securities of
each series affected thereby shall thereafter be determined, exercised and
enforced hereunder subject in all respects to such modifications and amendments,
and all the terms and conditions of any such supplemental indenture shall be and
be deemed to be part of the terms and conditions of this Indenture for any and
all purposes.

      Section 8.4 Documents to Be Given to Trustee. The Trustee, subject to the
provisions of Sections 6.1 and 6.2, shall be entitled to receive, and shall be
fully protected in relying upon, an Officer's Certificate and an Opinion of
Counsel as conclusive evidence that any supplemental indenture executed pursuant
to this Article 8 complies with the applicable provisions of this Indenture.

      Section 8.5 Notation on Securities in Respect of Supplemental Indentures.
Securities of any series authenticated and delivered after the execution of any
supplemental indenture pursuant to the provisions of this Article may bear a
notation in form approved by the Trustee for such series as to any matter
provided for by such supplemental indenture or as to any action taken by
Securityholders. If the Issuer or the Trustee shall so determine, new Securities
of any series so modified as to conform, in the opinion of the Trustee and the
Board of Directors, to any modification of this Indenture contained in any such
supplemental indenture may be prepared by the Issuer, authenticated by the
Trustee and delivered in exchange for the Securities of such series then
Outstanding.

      Section 8.6 Conformity with Trust Indenture Act of 1939. Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act of 1939 as then in effect.

      Section 8.7 Subordination Unimpaired. This Indenture may not be amended to
alter the subordination of any of the Outstanding Securities without the written
consent of each holder of Senior Indebtedness then outstanding that would be
adversely affected thereby.

                                       49

<PAGE>

                                   ARTICLE 9

                   CONSOLIDATION, MERGER, AMALGAMATION OR SALE

      Section 9.1 Issuer May Consolidate, Etc., Only on Certain Terms. The
Issuer shall not consolidate with or merge or amalgamate into another Person, or
sell or otherwise transfer, other than for cash, all or substantially all its
assets to another Person, in each case unless:

      (a) either the Issuer is the continuing Person, or the successor Person
(if other than the Issuer) expressly assumes by supplemental indenture the
obligations and covenants evidenced by this Indenture and the Securities (in
which case, the Issuer will be discharged therefrom);

      (b) immediately thereafter, the Issuer or the successor Person (if other
than the Issuer) would not be in default in the performance of any covenant or
condition contained herein; and

      (c) a specified Officer's Certificate and an Opinion of Counsel are
delivered to the Trustee, each (i) stating that such consolidation, merger,
amalgamation, sale or other transfer, as the case may be, and any supplemental
indenture pertaining thereto, comply with Articles 8 and 9, respectively, and
(ii) otherwise complying with Section 11.5 herein.

      Section 9.2 Successor Substituted for the Issuer. Upon any consolidation
of the Issuer with, or merger or amalgamation of the Issuer into, any other
Person or any sale or other transfer of the properties and assets of the Issuer
substantially as an entirety in accordance with Section 9.1, the successor
Person formed by such consolidation or into which the Issuer is merged or
amalgamated or to which such sale or other transfer is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Issuer
under this Indenture with the same effect as if such successor Person had been
named as the Issuer herein, and thereafter, the predecessor Person shall be
relieved of all obligations and covenants under this Indenture and the
Securities.

                                   ARTICLE 10

            SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

      Section 10.1 Termination of Issuer's Obligations Under the Indenture.

      (a) This Indenture shall upon an Issuer Order cease to be of further
effect with respect to Securities of or within any series and any Coupons
appertaining thereto (except as to any surviving rights of registration of
transfer or exchange of such Securities and replacement of such Securities which
may have been lost, stolen or mutilated as herein expressly provided for) and
the Trustee, at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to such
Securities and any Coupons appertaining thereto when

            (i) either

                                       50

<PAGE>

                  (A) all such Securities previously authenticated and delivered
      and all Coupons appertaining thereto (other than (1) such Coupons
      appertaining to Unregistered Securities surrendered in exchange for
      Registered Securities and maturing after such exchange, surrender of which
      is not required or has been waived as provided in Section 2.8, (2) such
      Securities and Coupons which have been destroyed, lost or stolen and which
      have been replaced or paid as provided in Section 2.9, (3) such Coupons
      appertaining to Unregistered Securities called for redemption and maturing
      after the date fixed for redemption thereof, surrender of which has been
      waived as provided in Section 12.3 and (4) such Securities and Coupons for
      whose payment money has theretofore been deposited in trust or segregated
      and held in trust by the Issuer and thereafter repaid to the Issuer or
      discharged from such trust as provided in Section 3.3) have been delivered
      to the Trustee for cancellation; or

                  (B) all Securities of such series and, in the case of (X) or
      (Y) below, all Coupons appertaining thereto not theretofore delivered to
      the Trustee for cancellation (X) have become due and payable, or (Y) will
      become due and payable within one year, or (Z) if redeemable at the option
      of the Issuer, 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 Issuer,
      and the Issuer, in the case of (X), (Y) or (Z) above, has irrevocably
      deposited or caused to be deposited with the Trustee as trust funds in
      trust for the purpose an amount in the currency or currencies or currency
      unit or units in which the Securities of such series are payable,
      sufficient to pay and discharge the entire indebtedness on such Securities
      and such Coupons not theretofore delivered to the Trustee for
      cancellation, for principal, premium, if any, and interest, with respect
      thereto, to the date of such deposit (in the case of Securities which have
      become due and payable) or maturity date or redemption date, as the case
      may be;

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

            (iii) the Issuer has delivered to the Trustee an Officer's
      Certificate and an Opinion of Counsel, each stating that all conditions
      precedent herein provided for relating to the satisfaction and discharge
      of this Indenture as to such series have been complied with.

      (b) Notwithstanding the satisfaction and discharge of this Indenture, the
obligation of the Issuer to the Trustee and any predecessor Trustee under
Section 6.6, the obligations of the Issuer to any Authenticating Agent under
Section 6.14 and, if money shall have been deposited with the Trustee pursuant
to this Section, the obligations of the Trustee under Section 10.2 and the last
paragraph of Section 3.3 shall survive.

      Section 10.2 Application of Trust Funds. Subject to the provisions of the
last paragraph of Section 3.3, all money deposited with the Trustee pursuant to
Section 10.1 shall be held in trust and applied by it, in accordance with the
provisions of the Securities, the Coupons and this Indenture, to the payment,
either directly or through any paying agent (including the Issuer acting as its
own paying agent) as the Trustee may determine, to the Persons entitled thereto
of the principal, premium, if any and any interest for whose payment such money
has been

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<PAGE>

deposited with or received by the Trustee, but such money need not be segregated
from other funds except to the extent required by law.

      Section 10.3 Applicability of Defeasance Provisions; Issuer's Option to
Effect Legal Defeasance or Covenant Defeasance. If pursuant to Section 2.3
provision is made for either or both of (a) legal defeasance of the Securities
of or within a series under Section 10.4 or (b) covenant defeasance of the
Securities of or within a series under Section 10.5, then the provisions of such
Section or Sections, as the case may be, together with the provisions of
Sections 10.6 through 10.9 inclusive, with such modifications thereto as may be
specified pursuant to Section 2.3 with respect to any Securities, shall be
applicable to such Securities and any Coupons appertaining thereto, and the
Issuer may at its option by or pursuant to Board Resolution, at any time, with
respect to such Securities and any Coupons appertaining thereto, elect to have
Section 10.4 (if applicable) or Section 10.5 (if applicable) be applied to such
Outstanding Securities and any Coupons appertaining thereto upon compliance with
the conditions set forth below in this Article.

      Section 10.4 Legal Defeasance. Upon the Issuer's exercise of the option
specified in Section 10.3 applicable to this Section with respect to the
Securities of or within a series, the Issuer shall be deemed to have been
discharged from its obligations with respect to such Securities and any Coupons
appertaining thereto on and after the date the conditions set forth in Section
10.6 are satisfied (hereinafter "LEGAL DEFEASANCE"). For this purpose, such
legal defeasance means that the Issuer shall be deemed to have paid and
discharged the entire indebtedness represented by such Securities and any
Coupons appertaining thereto which shall thereafter be deemed to be
"Outstanding" only for the purposes of Section 10.7 and the other Sections of
this Indenture referred to in clause (b) of this Section, and to have satisfied
all its other obligations under such Securities and any Coupons appertaining
thereto and this Indenture insofar as such Securities and any Coupons
appertaining thereto are concerned (and the Trustee, at the expense of the
Issuer, shall on an Issuer Order execute proper instruments acknowledging the
same), except the following which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of such Securities and any
Coupons appertaining thereto to receive, solely from the trust funds described
in Section 10.6(a) and as more fully set forth in such Section, payments in
respect of the principal of, premium, if any, and interest, if any, on such
Securities or any Coupons appertaining thereto when such payments are due; (b)
the Issuer's obligations with respect to such Securities under Sections 2.8,
2.9, 3.2 and 3.3 and with respect to the payment of additional amounts, if any,
payable with respect to such Securities as specified pursuant to Section 2.3;
(c) the rights, powers, trusts, duties and immunities of the Trustee hereunder
and (d) this Article 10. Subject to compliance with this Article 10, the Issuer
may exercise its option under this Section notwithstanding the prior exercise of
its option under Section 10.5 with respect to such Securities and any Coupons
appertaining thereto. Following a legal defeasance, payment of such Securities
may not be accelerated because of an Event of Default.

      Section 10.5 Covenant Defeasance. Upon the Issuer's exercise of the option
specified in Section 10.3 applicable to this Section with respect to any
Securities of or within a series, the Issuer shall be released from its
obligations under Section 9.1 and 3.5 and, if specified pursuant to Section 2.3,
its obligations under any other covenant or Event of Default with respect to
such Securities and any Coupons appertaining thereto on and after the date the
conditions set forth in

                                       52

<PAGE>

Section 10.6 are satisfied (hereinafter, "COVENANT DEFEASANCE"), and such
Securities and any Coupons appertaining thereto shall thereafter be deemed to be
not "Outstanding" for the purposes of any direction, waiver, consent or
declaration or Act of Holders (and the consequences of any thereof) in
connection with Sections 9.1 and 3.5 or such other covenant or Event of Default,
but shall continue to be deemed "Outstanding" for all other purposes hereunder.
For this purpose, such covenant defeasance means that, with respect to such
Securities and any Coupons appertaining thereto, the Issuer 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 such other covenant or Event of Default,
whether directly or indirectly, by reason of any reference elsewhere herein to
any such Section or such other covenant or Event of Default or by reason of
reference in any such Section or such other covenant or Event of Default to any
other provision herein or in any other document and such omission to comply
shall not constitute a default or an Event of Default under Section 5.1(d) or
(h) or otherwise, as the case may be, but, except as specified above, the
remainder of this Indenture and such Securities and any Coupons appertaining
thereto shall be unaffected thereby.

      Section 10.6 Conditions to Legal Defeasance or Covenant Defeasance. The
following shall be the conditions to application of Section 10.4 or Section 10.5
to any Securities of or within a series and any Coupons appertaining thereto:

      (a) The Issuer shall have deposited or caused to be deposited irrevocably
with the Trustee (or another Trustee satisfying the requirements of Section 6.9
who shall agree to comply with, and shall be entitled to the benefits of, the
provisions of Sections 10.3 through 10.9 inclusive and the last paragraph of
Section 3.3 applicable to the Trustee, for purposes of such Sections also a
"Trustee") as trust funds in trust for the purpose of making the payments
referred to in clauses (X) and (Y) of this Section 10.6(a), specifically pledged
as security for, and dedicated solely to, the benefit of the Holders of such
Securities and any Coupons appertaining thereto, with instructions to the
Trustee as to the application thereof, (i) money in an amount (in such currency,
currencies or currency unit or units in which such Securities and any Coupons
appertaining thereto are then specified as payable at maturity), (ii) U.S.
Government Obligations which through the payment of interest and principal in
respect thereof in accordance with their terms will provide, not later than one
day before the due date of any payment referred to in clause (X) or (Y) of this
Section 10.6(a), money in an amount or (iii) a combination thereof in an amount
sufficient, in the opinion of a nationally recognized firm of independent
certified public accountants (or if such firms no longer routinely deliver such
opinions, the chief financial officer of the Issuer) expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee to pay and discharge, (X) the principal of,
premium, if any, and interest, if any, on Securities and any Coupons
appertaining thereto on the maturity of such principal or installment of
principal or interest and (Y) any mandatory sinking fund payments applicable to
such Securities on the day on which such payments are due and payable in
accordance with the terms of this Indenture and such Securities and any Coupons
appertaining thereto. Before such a deposit the Issuer may make arrangements
satisfactory to the Trustee for the redemption of Securities at a future date or
dates in accordance with Article 12 which shall be given effect in applying the
foregoing.

      (b) Such defeasance or covenant defeasance shall not result in a breach or
violation of, or constitute a default or Event of Default under, this Indenture
or result in a breach or

                                       53

<PAGE>

violation of, or constitute a default under, any other
material agreement or instrument to which the Issuer is a party or by which it
is bound.

      (c) In the case of an election under Section 10.4, the Issuer shall have
delivered to the Trustee an Officer's Certificate and an Opinion of Counsel to
the effect that (i) the Issuer has received from, or there has been published
by, the Internal Revenue Service a ruling, or (ii) since the date of execution
of this Indenture, there has been a change in the applicable Federal income tax
law, in either case to the effect that, and based thereon such opinion shall
confirm that, the Holders of such Securities and any Coupons appertaining
thereto will not recognize income, gain or loss for Federal income tax purposes
as a result of such legal defeasance and will be subject to Federal income tax
on the same amount and in the same manner and at the same times, as would have
been the case if such deposit and legal defeasance had not occurred.

      (d) In the case of an election under Section 10.5, the Issuer shall have
delivered to the Trustee an Opinion of Counsel to the effect that the Holders of
such Securities and any Coupons appertaining thereto 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.

      (e) The Issuer shall have delivered to the Trustee an Officer's
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the legal defeasance under Section 10.4 or the covenant defeasance
under Section 10.5 (as the case may be), including those contained in this
Section 10.6, have been complied with.

      (f) This Issuer shall have delivered to the Trustee an Officer's
Certificate to the effect that neither such Securities nor any other Securities
of the same series, if then listed on any securities exchange, will be delisted
as a result of such deposit.

      (g) No event which is, or after notice or lapse of time or both would
become, an Event of Default with respect to such Securities or any other
Securities shall have occurred and be continuing at the time of such deposit.

      (h) Such defeasance or covenant defeasance shall not result in the trust
arising from such deposit constituting an investment company within the meaning
of the Investment Company Act of 1940 unless such trust shall be registered
under such Act or exempt from registration thereunder.

      (i) Such defeasance or covenant defeasance shall be effected in compliance
with any additional or substitute terms, conditions or limitations which may be
imposed on the Issuer in connection therewith as contemplated by Section 2.3.

      Section 10.7 Deposited Money and U.S. Government Obligations to be Held in
Trust. Subject to the provisions of the last paragraph of Section 3.3, all money
and U.S. Government Obligations (or other property as may be provided pursuant
to Section 2.3) (including the proceeds thereof) deposited with the Trustee
pursuant to Section 10.6 in respect of any Securities of any series and any
Coupons appertaining

                                       54

<PAGE>

thereto shall be held in trust and applied by the Trustee, in accordance with
the provisions of such Securities and any Coupons appertaining thereto and this
Indenture, to the payment, either directly or through any paying agent
(including the Issuer acting as its own paying agent) as the Trustee may
determine, to the Holders of such Securities and any Coupons appertaining
thereto of all sums due and to become due thereon in respect of principal,
premium, if any, and interest, if any, but such money need not be segregated
from other funds except to the extent required by law.

      Section 10.8 Repayment to Issuer. The Trustee (any paying agent) shall
promptly pay to the Issuer upon Issuer Order any excess money or securities held
by them at any time.

      Section 10.9 Indemnity For U.S. Government Obligations. The Issuer shall
pay, and shall indemnify the Trustee against, any tax, fee or other charge
imposed on or assessed against U.S. Government Obligations deposited pursuant to
this Article or the principal and interest and any other amount received on such
U.S. Government Obligations.

      Section 10.10 Reimbursement. If the Trustee or the paying agent is unable
to apply any money in accordance with this Article with respect to any
Securities by reason of any order or judgment of any court or government
authority enjoining, restraining or otherwise prohibiting such application, then
the obligations under this Indenture and such Securities from which the Issuer
has been discharged or released pursuant to Section 10.4 or 10.5 shall be
revived and reinstated as though no deposit had occurred pursuant to this
Article with respect to such Securities, until such time as the Trustee or
paying agent is permitted to apply all money held in trust pursuant to Section
10.7 with respect to such Securities in accordance with this Article; provided,
however, that if the Issuer makes any payment of principal of or any premium or
interest on any such Security following such reinstatement of its obligations,
the Issuer shall be subrogated to the rights (if any) of the Holders of such
Securities to receive such payment from the money so held in trust.

                                   ARTICLE 11

                            MISCELLANEOUS PROVISIONS

      Section 11.1 Incorporators, Shareholders, Officers and Directors of Issuer
Exempt from Individual Liability. No recourse under or upon any obligation,
covenant or agreement contained in this Indenture, or in any Security, or
because of any indebtedness evidenced thereby, shall be had against any
incorporator, as such or against any past, present or future shareholder,
officer or director, as such, of the Issuer or of any successor, either directly
or through the Issuer or any successor, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any legal
or equitable proceeding or otherwise, all such liability being expressly waived
and released by the acceptance of the Securities and the Coupons appertaining
thereto by the Holders thereof and as part of the consideration for the issue of
the Securities and the Coupons appertaining thereto.

      Section 11.2 Provisions of Indenture for the Sole Benefit of Parties and
Holders of Securities and Coupons. Nothing in this Indenture, in the Securities
or in the Coupons appertaining thereto, expressed or implied, shall give or be
construed to give to any Person, other than the parties hereto and their
successors and the holders of Senior Indebtedness and the Holders of the
Securities or Coupons, if any, any legal or equitable right, remedy or claim
under

                                       55

<PAGE>

this Indenture or under any covenant or provision herein contained, all such
covenants and provisions being for the sole benefit of the parties hereto and
their successors, the holders of the Senior Indebtedness and of the Holders of
the Securities or Coupons, if any.

      Section 11.3 Successors and Assigns of Issuer Bound by Indenture. All the
covenants, stipulations, promises and agreements in this Indenture contained by
or in behalf of the Issuer shall bind its successors and assigns, whether so
expressed or not.

      Section 11.4 Notices and Demands on Issuer, Trustee and Holders of
Securities and Coupons. Any notice or demand which by any provision of this
Indenture is required or permitted to be given or served by the Trustee or by
the Holders of Securities or Coupons to or on the Issuer shall be in writing
(which may be by facsimile) and may be given or served by being deposited
postage prepaid, first-class mail (except as otherwise specifically provided
herein) addressed (until another address of the Issuer is filed by the Issuer
with the Trustee) to Max Re Capital Ltd., Max Re House, 2 Front Street,
Hamilton, HM 11, Bermuda, Attn: General Counsel. Any notice, direction, request
or demand by the Issuer or any Holder of Securities or Coupons to or upon the
Trustee shall be deemed to have been sufficiently given or served by being
deposited postage prepaid, first-class mail (except as otherwise specifically
provided herein) addressed (until another address of the Trustee is filed by the
Trustee with the Issuer) to [____________________________].

            Where this Indenture provides for notice to Holders of Registered
Securities, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each Holder entitled thereto, at his or her last address as it appears in the
Security register. In any case where notice to such 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 or irregularities in regular
mail service, it shall be impracticable to mail notice to the Issuer when such
notice is required to be given pursuant to any provision of this Indenture, then
any manner of giving such notice as shall be reasonably satisfactory to the
Trustee shall be deemed to be a sufficient giving of such notice.

      Section 11.5 Officer's Certificates and Opinions of Counsel; Statements to
Be Contained Therein. Upon any application or demand by the Issuer to the
Trustee to take any action under any of the provisions of this Indenture, the
Issuer shall furnish to the Trustee an Officer's Certificate stating that all
conditions precedent provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent have been complied with,
except that in the case of any such application or demand as to which the
furnishing of such documents is specifically required by any provision of this
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

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<PAGE>

            Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture shall include (a) a statement that the person
making such certificate or opinion has read such covenant or condition, (b) a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based, (c) a statement that, in the opinion of such person, he or she has
made such examination or investigation as is necessary to enable him or her to
express an informed opinion as to whether or not such covenant or condition has
been complied with and (d) a statement as to whether or not, in the opinion of
such person, such condition or covenant has been complied with.

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

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

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

      Section 11.6 Payments Due on Saturdays, Sundays and Holidays. If the date
of maturity of interest on or principal of the Securities of any series or any
Coupons appertaining thereto or the date fixed for redemption or repayment of
any such Security or Coupon shall not be a Business Day, then payment of
interest or principal need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on the date of
maturity or the date fixed for redemption, and no interest shall accrue for the
period after such date.

      Section 11.7 Conflict of Any Provision of Indenture with Trust Indenture
Act of 1939. If and to the extent that any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by, or with another provision (an
"INCORPORATED PROVISION") included in this Indenture by operation of, Sections
310 to 318, inclusive, of the Trust Indenture Act of 1939, such imposed duties
or incorporated provision shall control.

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      Section 11.8 New York Law to Govern; Waiver of Jury Trial. This Indenture
and each Security and Coupon shall be deemed to be a contract under the laws of
the State of New York, and for all purposes shall be construed in accordance
with the laws of such State, except as may otherwise be required by mandatory
provisions of law.

      EACH OF THE ISSUER AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES
OR THE TRANSACTION CONTEMPLATED HEREBY.

      Section 11.9 Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

      Section 11.10 Effect of Headings. The Article and Section headings herein
and the Table of Contents are for convenience only and shall not affect the
construction hereof.

      Section 11.11 Securities in a Foreign Currency or in ECU. Unless otherwise
specified in an Officer's Certificate delivered pursuant to Section 2.3 of this
Indenture with respect to a particular series of Securities, whenever for
purposes of this Indenture any action may be taken by the Holders of a specified
percentage in aggregate principal amount of Securities of all series or all
series affected by a particular action at the time Outstanding and, at such
time, there are Outstanding Securities of any series which are denominated in a
coin or currency other than Dollars (including ECUs), then the principal amount
of Securities of such series which shall be deemed to be Outstanding for the
purpose of taking such action shall be that amount of Dollars that could be
obtained for such amount at the Market Exchange Rate. For purposes of this
Section 11.11, the "MARKET EXCHANGE RATE" shall mean the noon Dollar buying rate
in New York City for cable transfers of that currency as published by the
Federal Reserve Bank of New York; provided, however, in the case of ECUs, Market
Exchange Rate shall mean the rate of exchange determined by the Commission of
the European Communities (or any successor thereto) as published in the Official
Journal of the European Communities (such publication or any successor
publication, the "JOURNAL"). If such Market Exchange Rate is not available for
any reason with respect to such currency, the Trustee shall use, in its sole
discretion and without liability on its part, such quotation of the Federal
Reserve Bank of New York or, in the case of ECUs, the rate of exchange as
published in the Journal, as of the most recent available date, or quotations
or, in the case of ECUs, rates of exchange from one or more major banks in The
City of New York or in the country of issue of the currency in question, which
for purposes of the ECU shall be Brussels, Belgium, or such other quotations or,
in the case of ECU, rates of exchange as the Trustee shall deem appropriate. The
provisions of this paragraph shall apply in determining the equivalent principal
amount in respect of Securities of a series denominated in a currency other than
Dollars in connection with any action taken by Holders of Securities pursuant to
the terms of this Indenture including without limitation any determination
contemplated in Section 5.1(g).

      All decisions and determinations of the Trustee regarding the Market
Exchange Rate or any alternative determination provided for in the preceding
paragraph shall be in its sole

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discretion and shall, in the absence of manifest error, be conclusive to the
extent permitted by law for all purposes and irrevocably binding upon the Issuer
and all Holders.

      Section 11.12 Judgment Currency. The Issuer agrees, to the fullest extent
that it may effectively do so under applicable law, that (a) if for the purpose
of obtaining judgment in any court it is necessary to convert the sum due in
respect of the principal of or interest on the Securities of any series (the
"REQUIRED CURRENCY") into a currency in which a judgment will be rendered (the
"JUDGMENT CURRENCY"), the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City
of New York the Required Currency with the Judgment Currency on the day on which
final unappealable judgment is entered, unless such day is not a Business Day,
then, to the extent permitted by applicable law, the rate of exchange used shall
be the rate at which in accordance with normal banking procedures the Trustee
could purchase in The City of New York the Required Currency with the Judgment
Currency on the Business Day preceding the day on which final unappealable
judgment is entered and (b) its obligations under this Indenture to make
payments in the Required Currency (i) shall not be discharged or satisfied by
any tender, or any recovery pursuant to any judgment (whether or not entered in
accordance with subsection (a)), in any currency other than the Required
Currency, except to the extent that such tender or recovery shall result in the
actual receipt, by the payee, of the full amount of the Required Currency
expressed to be payable in respect of such payments, (ii) shall be enforceable
as an alternative or additional cause of action for the purpose of recovering in
the Required Currency the amount, if any, by which such actual receipt shall
fall short of the full amount of the Required Currency so expressed to be
payable and (iii) shall not be affected by judgment being obtained for any other
sum due under this Indenture.

      Section 11.13 Separability Clause. If any provision of this Indenture or
of the Securities, or the application of any such provision to any Person or
circumstance, shall be held to be invalid, illegal or unenforceable, the
remainder of this Indenture or of the Securities, or the application of such
provision to Persons or circumstances other than those as to whom or which it is
invalid, illegal or unenforceable, shall not in any way be affected or impaired
thereby.

                                   ARTICLE 12

                   REDEMPTION OF SECURITIES AND SINKING FUNDS

      Section 12.1 Applicability of Article. The provisions of this Article
shall be applicable to the Securities of any series which are redeemable before
their maturity or to any sinking fund for the retirement of Securities of a
series except as otherwise specified as contemplated by Section 2.3 for
Securities of such series.

      Section 12.2 Notice of Redemption; Partial Redemptions. Notice of
redemption to the Holders of Registered Securities of any series to be redeemed
as a whole or in part at the option of the Issuer shall be given by mailing
notice of such redemption by first class mail, postage prepaid, at least 30 days
and not more than 60 days prior to the date fixed for redemption to such Holders
of Securities of such series at their last addresses as they shall appear upon
the registry books. Notice of redemption to the Holders of Unregistered
Securities to be redeemed as a whole or in part, who have filed their names and
addresses with the Trustee pursuant to Section

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<PAGE>

313(c)(2) of the Trust Indenture Act of 1939 shall be given at the Issuer's
expense by mailing notice of such redemption, by first class mail, postage
prepaid, at least 30 days and not more than 60 prior to the date fixed for
redemption, to such Holders at such addresses as were so furnished to the
Trustee (and, in the case of any such notice given by the Issuer, the Trustee
shall make such information available to the Issuer for such purpose). Notice of
redemption to all other Holders of Unregistered Securities shall be published in
an Authorized Newspaper in the Borough of Manhattan, The City of New York, and
in an Authorized Newspaper in London, in each case, once in each of three
successive calendar weeks, the first publication to be not less than 30 nor more
than 60 days prior to the date fixed for redemption. Any notice which is mailed
in the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the Holder receives the notice. Failure to give notice by
mail, or any defect in the notice to the Holder of any Security of a series
designated for redemption as a whole or in part, shall not affect the validity
of the proceedings for the redemption of any other Security of such series.

            The notice of redemption to each such Holder shall identify the
securities to be redeemed (including CUSIP numbers), shall specify the principal
amount of each Security of such series held by such Holder to be redeemed, the
date fixed for redemption, the redemption price, the place or places of payment,
that payment will be made upon presentation and surrender of such Securities
and, in the case of Securities with Coupons attached thereto, of all Coupons
appertaining thereto maturing after the date fixed for redemption, that such
redemption is pursuant to the mandatory or optional sinking fund, or both, if
such be the case, that interest accrued to the date fixed for redemption will be
paid as specified in such notice and that on and after said date interest
thereon or on the portions thereof to be redeemed will cease to accrue. In case
any Security of a series is to be redeemed in part only the notice of redemption
shall state the portion of the principal amount thereof to be redeemed and shall
state that on and after the date fixed for redemption, upon surrender of such
Security, a new Security or Securities of such series in principal amount equal
to the unredeemed portion thereof will be issued.

            The notice of redemption of Securities of any series to be redeemed
at the option of the Issuer shall be given by the Issuer or, at the Issuer's
request, by the Trustee in the name and at the expense of the Issuer.

            On or before 10:00 a.m., New York City time, the redemption date
specified in the notice of redemption given as provided in this Section, the
Issuer will deposit with the Trustee or with one or more paying agents (or, if
the Issuer is acting as its own paying agent, set aside, segregate and hold in
trust as provided in Section 3.3) an amount of money sufficient to redeem on the
redemption date all the Securities of such series so called for redemption at
the appropriate redemption price, together with accrued interest to the date
fixed for redemption. The Issuer will deliver to the Trustee at least 75 days
prior to the date fixed for redemption an Officer's Certificate stating the
aggregate principal amount of Securities to be redeemed. In case of a redemption
at the election of the Issuer prior to the expiration of any restriction on such
redemption, the Issuer shall deliver to the Trustee, prior to the giving of any
notice of redemption to Holders pursuant to this Section, an Officer's
Certificate stating that such restriction has been complied with.

            If less than all the Securities of a series are to be redeemed, the
Trustee shall select, in such manner as it shall deem appropriate and fair,
Securities of such Series to be

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redeemed in whole or in part. Securities may be redeemed in part in multiples
equal to the minimum authorized denomination for Securities of such series or
any multiple thereof. The Trustee shall promptly notify the Issuer in writing of
the Securities of such series selected for redemption and, in the case of any
Securities of such series 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 of
any series shall relate, in the case of any Security redeemed or to be redeemed
only in part, to the portion of the principal amount of such Security which has
been or is to be redeemed.

      Section 12.3 Payment of Securities Called for Redemption. If notice of
redemption has been given as above provided, the Securities or portions of
Securities specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable redemption price, together
with interest accrued to the date fixed for redemption, and on and after said
date (unless the Issuer shall default in the payment of such Securities at the
redemption price, together with interest accrued to said date) interest on the
Securities or portions of Securities so called for redemption shall cease to
accrue, and the unmatured Coupons, if any, appertaining thereto shall be void,
and, except as provided in Sections 3.3 and 6.5, such Securities shall cease
from and after the date fixed for redemption to be entitled to any benefit or
security under this Indenture, and the Holders thereof shall have no right in
respect of such Securities except the right to receive the redemption price
thereof and unpaid interest to the date fixed for redemption. On presentation
and surrender of such Securities at a place of payment specified in said notice,
together with all Coupons, if any, appertaining thereto maturing after the date
fixed for redemption, said Securities or the specified portions thereof shall be
paid and redeemed by the Issuer at the applicable redemption price, together
with interest accrued thereon to the date fixed for redemption; provided that
payment of interest becoming due on or prior to the date fixed for redemption
shall be payable in the case of Securities with Coupons attached thereto, to the
Holders of the Coupons for such interest upon surrender thereof, and in the case
of Registered Securities, to the Holders of such Registered Securities
registered as such on the relevant record date subject to the terms and
provisions of Sections 2.3 and 2.7 hereof.

            If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal shall, until paid or duly
provided for, bear interest from the date fixed for redemption at the rate of
interest or Yield to Maturity (in the case of an Original Issue Discount
Security) borne by such Security.

            If any Security with Coupons attached thereto is surrendered for
redemption and is not accompanied by all appurtenant Coupons maturing after the
date fixed for redemption, such Security may be redeemed after deducting from
the redemption price any amount equal to the face amount of all such missing
Coupons, or the surrender of such missing Coupon or Coupons may be waived by the
Issuer and the Trustee if there be furnished to them such security or indemnity
as they may require to save each of them and any paying agent harmless. If
thereafter the Holder of such Security shall surrender to the Trustee or any
paying agent any such missing Coupon in respect of which a deduction shall have
been made from the redemption price, such Holder shall be entitled to receive
the amount so deducted; provided, however, that interest represented by Coupons
shall be payable as provided in Section 2.9 and, unless otherwise specified as
contemplated by Section 2.3, only upon presentation and surrender of those
Coupons.

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

      Section 12.4 Exclusion of Certain Securities from Eligibility for
Selection for Redemption. Securities shall be excluded from eligibility for
selection for redemption if they are identified by registration and certificate
number in an Officer's Certificate delivered to the Trustee at least 40 days
prior to the last date on which notice of redemption may be given as being owned
of record and beneficially by, and not pledged or hypothecated by either (a) the
Issuer or (b) an entity specifically identified in such written statement as
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Issuer.

      Section 12.5 Mandatory and Optional Sinking Funds.

      (a) The minimum amount of any sinking fund payment provided for by the
terms of the Securities of any series is herein referred to as a "mandatory
sinking fund payment", and any payment in excess of such minimum amount provided
for by the terms of the Securities of any series is herein referred to as an
"optional sinking fund payment". The date on which a sinking fund payment is to
be made is herein referred to as the "sinking fund payment date".

      (b) In lieu of making all or any part of any mandatory sinking fund
payment with respect to any series of Securities in cash, the Issuer may at its
option (i) deliver to the Trustee Securities of such series theretofore
purchased or otherwise acquired (except upon redemption pursuant to the
mandatory sinking fund) by the Issuer or receive credit for Securities of such
series (not previously so credited) theretofore purchased or otherwise acquired
(except as aforesaid) by the Issuer and delivered to the Trustee for
cancellation pursuant to Section 2.10, (ii) receive credit for optional sinking
fund payments (not previously so credited) made pursuant to this Section, or
(iii) receive credit for Securities of such series (not previously so credited)
redeemed by the Issuer through any optional redemption provision contained in
the terms of such series. Securities so delivered or credited shall be received
or credited by the Trustee at the sinking fund redemption price specified in
such Securities.

      (c) On or before the 60th day next preceding each sinking fund payment
date for any series, the Issuer will deliver to the Trustee an Officer's
Certificate (which need not contain the statements required by Section 11.5) (i)
specifying the portion of the mandatory sinking fund payment to be satisfied by
payment of cash and the portion to be satisfied by credit of Securities of such
series and the basis for such credit, (ii) stating that none of the Securities
of such series has theretofore been so credited, (iii) stating that no defaults
in the payment of interest or Events of Default with respect to such series have
occurred (which have not been waived or cured) and are continuing and (iv)
stating whether or not the Issuer intends to exercise its right to make an
optional sinking fund payment with respect to such series and, if so, specifying
the amount of such optional sinking fund payment which the Issuer intends to pay
on or before the next succeeding sinking fund payment date. Any Securities of
such series to be credited and required to be delivered to the Trustee in order
for the Issuer to be entitled to credit therefor as aforesaid which have not
theretofore been delivered to the Trustee shall be delivered for cancellation
pursuant to Section 2.10 to the Trustee with such Officer's Certificate (or
reasonably promptly

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<PAGE>
thereafter if acceptable to the Trustee). Such Officer's Certificate shall be
irrevocable and upon its receipt by the Trustee the Issuer shall become
unconditionally obligated to make all the cash payments or payments therein
referred to, if any, on or before the next succeeding sinking fund payment date.
Failure of the Issuer, on or before any such 60th day, to deliver such Officer's
Certificate and Securities specified in this paragraph, if any, shall not
constitute a default but shall constitute, on and as of such date, the
irrevocable election of the Issuer (A) that the mandatory sinking fund payment
for such series due on the next succeeding sinking fund payment date shall be
paid entirely in cash without the option to deliver or credit Securities of such
series in respect thereof and (B) that the Issuer will make no optional sinking
fund payment with respect to such series as provided in this Section.

      (d) If the sinking fund payment or payments (mandatory or optional or
both) to be made in cash on the next succeeding sinking fund payment date plus
any unused balance of any preceding sinking fund payments made in cash shall
exceed $50,000 (or the equivalent thereof in any Foreign Currency or ECU) or a
lesser sum in Dollars (or the equivalent thereof in any Foreign Currency or ECU)
if the Issuer shall so request with respect to the Securities of any particular
series, such cash shall be applied on the next succeeding sinking fund payment
date to the redemption of Securities of such series at the sinking fund
redemption price together with accrued interest to the date fixed for
redemption. If such amount shall be $50,000 (or the equivalent thereof in any
Foreign Currency or ECU) or less and the Issuer makes no such request then it
shall be carried over until a sum in excess of $50,000 (or the equivalent
thereof in any Foreign Currency or ECU) is available. The Trustee shall select,
in the manner provided in Section 12.2, for redemption on such sinking fund
payment date a sufficient principal amount of Securities of such series to
absorb said cash, as nearly as may be, and shall (if requested in writing by the
Issuer) inform the Issuer of the serial numbers of the Securities of such series
(or portions thereof) so selected. Securities shall be excluded from eligibility
for redemption under this Section if they are identified by registration and
certificate number in an Officer's Certificate delivered to the Trustee at least
60 days prior to the sinking fund payment date as being owned of record and
beneficially by, and not pledged or hypothecated by either (i) the Issuer or
(ii) an entity specifically identified in such Officer's Certificate as directly
or indirectly controlling or controlled by or under direct or indirect common
control with the Issuer. The Trustee, in the name and at the expense of the
Issuer (or the Issuer, if it shall so request the Trustee in writing) shall
cause notice of redemption of the Securities of such series to be given in
substantially the manner provided in Section 12.2 (and with the effect provided
in Section 12.3) for the redemption of Securities of such series in part at the
option of the Issuer. The amount of any sinking fund payments not so applied or
allocated to the redemption of Securities of such series shall be added to the
next cash sinking fund payment for such series and, together with such payment,
shall be applied in accordance with the provisions of this Section. Any and all
sinking fund moneys held on the stated maturity date of the Securities of any
particular series (or earlier, if such maturity is accelerated), which are not
held for the payment or redemption of particular Securities of such series shall
be applied, together with other moneys, if necessary, sufficient for the
purpose, to the payment of the principal of, and interest on, the Securities of
such series at maturity.

      (e) On or before each sinking fund payment date, the Issuer shall pay to
the Trustee in cash or shall otherwise provide for the payment of all interest
accrued to the date fixed for redemption on Securities to be redeemed on the
next following sinking fund payment date.

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      (f) The Trustee shall not redeem or cause to be redeemed any Securities of
a series with sinking fund moneys or give any notice of redemption of Securities
for such series by operation of the sinking fund during the continuance of a
default in payment of interest on such Securities or of any Event of Default
except that, where the giving of notice of redemption of any Securities shall
theretofore have been made, the Trustee shall redeem or cause to be redeemed
such Securities, provided that it shall have received from the Issuer a sum
sufficient for such redemption. Except as aforesaid, any moneys in the sinking
fund for such series at the time when any such default or Event of Default shall
occur, and any moneys thereafter paid into the sinking fund, shall, during the
continuance of such default or Event of Default, be deemed to have been
collected under Article 5 and held for the payment of all such Securities. In
case such Event of Default shall have been waived as provided in Section 5.10 or
the default cured on or before the sixtieth day preceding the sinking fund
payment date in any year, such moneys shall thereafter be applied on the next
succeeding sinking fund payment date in accordance with this Section to the
redemption of such Securities.

                                   ARTICLE 13

                                  SUBORDINATION

      Section 13.1 Agreement to Subordinate. The Issuer, for itself, its
successors and assigns, covenants and agrees, and each Holder of a Security or
Coupon, by its acceptance thereof, likewise covenants and agrees, that the
payment of the principal of and interest on, each and all of the Securities and
any Coupons is hereby expressly subordinated, to the extent and in the manner
hereinafter in this Article 13 set forth, in right of payment to the prior
payment in full of all Senior Indebtedness.

      Section 13.2 Rights of Senior Indebtedness in the Event of Insolvency,
Etc., of the Issuer.

      (a) In the event of any insolvency or bankruptcy proceedings, and any
receivership, liquidation, reorganization or other similar proceedings in
connection therewith, relative to the Issuer or to its creditors, as such, or to
its property, and in the event of any proceedings for voluntary liquidation,
dissolution or other winding up of the Issuer, whether or not involving
insolvency or bankruptcy, and in the event of any execution sale, then the
holders of Senior Indebtedness shall be entitled to receive payment in full of
principal thereof and interest due thereon (including, without limitation,
except to the extent, if any, prohibited by mandatory provisions of law,
post-petition interest in any such proceedings) in money or money's worth of all
Senior Indebtedness before the Holders are entitled to receive any payment on
account of the principal of or interest on the indebtedness evidenced by the
Securities or of the Coupons, and to that end the holders of Senior Indebtedness
shall be entitled to receive for application in payment thereof any payment or
distribution of any kind or character, whether in cash or property or
securities, which may be payable or deliverable in connection with any such
proceedings or sale in respect of the principal of or interest on the Securities
or Coupons other than securities of the Issuer as reorganized or readjusted or
securities of the Issuer or any other corporation provided for by a plan of
reorganization or readjustment, in each case the payment of which is
subordinated in right of payment, at least to the extent provided in this
Article 13 with respect to

                                       64
<PAGE>

the Securities or Coupons, to the payment of all Senior Indebtedness, provided
that the rights of the holders of the Senior Indebtedness are not altered by
such reorganization or readjustment;

      (b) In the event and during the continuation of any default in payment of
any Senior Indebtedness or if any event of default, as therein defined, shall
exist under any Senior Indebtedness or any agreement pursuant to which any
Senior Indebtedness is issued, no payment of the principal of or interest on the
Securities or Coupons shall be made and the Issuer covenants that it will, upon
ascertaining any such default or event of default, provide written notice to the
Trustee of such default or event of default;

      (c) In the event that the Securities of any series are declared due and
payable before their expressed maturity because of the occurrence of an Event of
Default (under circumstances when the provisions of subsection (a) of this
Section 13.2 shall not be applicable), the holders of all Senior Indebtedness
shall be entitled to receive payment in full in money or money's worth of such
Senior Indebtedness before such Holders are entitled to receive any payment on
account of the principal of or interest on the Securities or Coupons; and

      (d) No holder of Senior Indebtedness shall be prejudiced in his or her
right to enforce subordination of the Securities or Coupons by any act or
failure to act on the part of the Issuer.

      Section 13.3 Payment Over of Proceeds Received on Securities. In the event
that, notwithstanding the provisions of Section 13.2, any payment or
distribution of assets of the Issuer of any kind or character, whether in cash,
property or securities (other than securities of the Issuer as reorganized or
readjusted or securities of the Issuer or any other corporation provided for by
a plan of reorganization or readjustment the payment of which is subordinated in
right of payment, at least to the extent provided in this Article 13 with
respect to the Securities or Coupons, to the payment of all Senior Indebtedness,
provided that the rights of the holders of the Senior Indebtedness are not
altered by such reorganization or readjustment) shall be received by the Holders
or by the Trustee for their benefit in connection with any proceedings or sale
referred to in subsection (a) of Section 13.2 before all Senior Indebtedness is
paid in full in money or money's worth, such payment or distribution shall be
paid over to the holders of such Senior Indebtedness or their representative or
representatives or to the trustee or trustees under any indenture under which
any instruments evidencing any of such Senior Indebtedness may have been issued,
ratably according to the aggregate amounts remaining unpaid on account of the
Senior Indebtedness held or represented by each, for application to the payment
of all Senior Indebtedness remaining unpaid until all such Senior Indebtedness
shall have been paid in full in money or money's worth, after giving effect to
any concurrent payment or distribution to the holders of such Senior
Indebtedness.

            From and after the payment in full in money or money's worth of all
Senior Indebtedness, the Holders (together with the holders of any other
indebtedness of the Issuer which is subordinated in right of payment to the
payment in full of all Senior Indebtedness, which is not subordinated in right
of payment to the Securities or Coupons and which by its terms grants such right
of subrogation to the holder thereof) shall be subrogated to the rights of the
holders of Senior Indebtedness to receive payments or distributions of assets or
securities of the Issuer applicable to the Senior Indebtedness until the
Securities and any Coupons shall be paid in full, and, for the purposes of such
subrogation, no such payments or distributions to the

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holders of Senior Indebtedness of assets or securities, which otherwise would
have been payable or distributable to Holders, shall, as between the Issuer, its
creditors other than the holders of Senior Indebtedness, and the Holders, be
deemed to be a payment by the Issuer to or on account of the Senior
Indebtedness, it being understood that the provisions of this Article 13 are and
are intended solely for the purpose of defining the relative rights of the
Holders, on the one hand, and the holders of the Senior Indebtedness, on the
other hand, and nothing contained in this Article 13 or elsewhere in this
Indenture or in the Securities or Coupons is intended to or shall impair as
between the Issuer, its creditors other than the holders of Senior Indebtedness,
and the Holders, the obligation of the Issuer, which is unconditional and
absolute, to pay to the Holders the principal of and interest on the Securities
or Coupons as and when the same shall become due and payable in accordance with
their terms, or to affect the relative rights of the Holders and creditors of
the Issuer other than the holders of the Senior Indebtedness, nor shall anything
herein or therein prevent the Trustee or the holder of any Security or Coupon
from exercising all remedies otherwise permitted by applicable law upon default
under this Indenture subject to the rights of the holders of Senior
Indebtedness, under Section 13.2, to receive cash, property or securities of the
Issuer otherwise payable or deliverable to the holders of the Securities or
Coupons.

            Upon any distribution or payment in connection with any proceedings
or sale referred to in subsection (a) of Section 13.2, the Trustee, subject as
between the Trustee and the Holders to the provisions of Sections 6.1 and 6.2
hereof, shall be entitled to rely upon a certificate of the liquidating trustee
or agent or other Person making any distribution or payment to the Trustee for
the purpose of ascertaining the holders of Senior Indebtedness entitled to
participate in such payment or distribution, the amount of such Senior
Indebtedness or the amount payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article 13.
In the event that the Trustee determines, in good faith, that further evidence
is required with respect to the right of any Person as a holder of Senior
Indebtedness to participate in any payment or distribution pursuant to this
Section 13.3, 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, as to the extent to which such Person is entitled to
participate in such payment or distribution, and as to other facts pertinent to
the rights of such Person under this Section 13.3, and if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

            The Trustee, however, shall not be deemed to owe any fiduciary duty
to the holders of Senior Indebtedness, and shall not be liable to any such
holders if it shall in good faith pay over or distribute to Holders or the
Issuer or any other Person moneys or assets to which any holders of Senior
Indebtedness shall be entitled by virtue of Article 13 of this Indenture or
otherwise. With respect to the holders of Senior Indebtedness, the Trustee
undertakes to perform or to observe only such of its covenants or obligations as
are specifically set forth in this Article and no implied covenants or
obligations with respect to holders of Senior Indebtedness shall be read into
this Indenture against the Trustee.

      Section 13.4 Payments to Holders. Nothing contained in this Article 13 or
elsewhere in this Indenture, or in any of the Securities or in any Coupon, shall
prevent at any time, (1) the Issuer from making payments at any time of
principal of or interest on the Securities or Coupons,

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except under the conditions described in Section 13.2 or during the pendency of
any proceedings or sale therein referred to, provided, however, that payments of
principal of or interest on the Securities or Coupons shall only be made by the
Issuer within three business days of the due dates for such payments or (2) the
application by the Trustee of any moneys deposited with it hereunder to the
payment of or on account of the principal of or interest on the Securities or
Coupons, if at the time of such deposit the Trustee did not have written notice
in accordance with Section 13.6 of any event prohibiting the making of such
deposit by the Issuer or if in the event of redemption, the Trustee did not have
such written notice prior to the time that the notice of redemption pursuant to
Section 12.2 was given (which notice of redemption shall in no event be given
more than 60 days prior to the date fixed for redemption).

      Section 13.5 Holders of Securities Authorize Trustee to Effectuate
Subordination of Securities. Each Holder by his or her acceptance of a Security
or Coupon authorizes and directs the Trustee on his or her behalf to take such
action as may be necessary or appropriate to acknowledge or effectuate the
subordination as provided in this Article 13 and appoints the Trustee as
attorney-in-fact for any and all such purposes, including, in the event of any
dissolution, winding up, liquidation or reorganization of the Issuer (whether in
bankruptcy, insolvency or receivership proceedings or upon an assignment for the
benefit of creditors or otherwise) tending towards liquidation of the business
and assets of the Issuer, the immediate filing of a claim for the unpaid balance
of such Holder's Securities or Coupons in the form required in said proceedings
and cause said claim to be approved.

      Section 13.6 Notice to Trustee. Notwithstanding the provisions of this
Article 13 or any other provisions of this Indenture, the Trustee shall not be
charged with the knowledge of the existence of any facts which would prohibit
the making of any payment of moneys to the Trustee, unless and until the Trustee
shall have received written notice thereof from the Issuer or from the holder or
the representative of any class of Senior Indebtedness; provided, however, that
if at least two Business Days prior to the date upon which by the terms hereof
any such monies may become payable for any purpose (including, without
limitation, the payment of either the cash amount payable at maturity or
interest on any Security or Coupon), the Trustee shall not have received with
respect to such moneys the notice provided for in this Section 13.6, then,
anything herein contained to the contrary notwithstanding, the Trustee shall
have full power and authority to receive such moneys and to apply the same to
the purpose for which they were received, and shall not be affected by any
notice to the contrary, which may be received by it on or after such two
Business Days prior to such date.

      Section 13.7 Trustee May Hold Senior Indebtedness. Subject to the
provisions of Article 6, the Trustee shall be entitled to all the rights set
forth in this Article 13 with respect to any Senior Indebtedness which may at
any time be held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in this Indenture shall deprive the Trustee or any
Authenticating Agent of its right as such holder.

      Nothing in this Article shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 6.6.

      Section 13.8 Applicability of Article 13 to Paying Agents. In case at any
time any paying agent other than the Trustee shall be appointed by the Issuer
and be then acting hereunder,

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the term "Trustee" as used in this Article 13 in such case (unless the context
shall otherwise require) be construed as extending to and including such paying
agent within its meaning as fully for all intents and purposes as if such paying
agent were named in this Article 13 in place of the Trustee.

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<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed as of [________________].

                                  MAX RE CAPITAL LTD.

                                  By:______________________________________
                                  Name:____________________________________
                                  Title:_____________________________________

                                  [_____________________],
                                  as Trustee

                                  By:_______________________________________
                                  Name:____________________________________
                                  Title:_____________________________________

                                       69

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