Document:

EXHIBIT 4.2

                        AMERICAN COMMERCE SOLUTIONS, INC.
       NON-EMPLOYEE DIRECTORS AND CONSULTANTS RETAINER STOCK PLAN FOR THE
                                    YEAR 2003

     1.   INTRODUCTION.  This  Plan  shall be known  as the  "American  Commerce
Solutions,  Inc. Non-Employee  Directors and Consultants Retainer Stock Plan for
the Year 2003",  and is  hereinafter  referred to as the "Plan." The purposes of
this  Plan  are  to  enable  American  Commerce  Solutions,   Inc.,  a  Delaware
corporation  (the  "Company"),  to promote the  interests of the Company and its
stockholders by attracting and retaining  non-employee Directors and Consultants
capable of furthering  the future  success of the Company and by aligning  their
economic  interests  more closely with those of the Company's  stockholders,  by
paying  their  retainer  or fees in the form of shares of the  Company's  common
stock, par value $0.002 per share (the "Common Stock").

     2.   DEFINITIONS.  The  following  terms shall have the  meanings set forth
below:

     "Board" means the Board of Directors of the Company.

     "Change of Control" has the meaning set forth in Paragraph 12(d) hereof.

     "Code" means the Internal  Revenue Code of 1986, as amended,  and the rules
and regulations  thereunder.  References to any provision of the Code or rule or
regulation  thereunder  shall be deemed to  include  any  amended  or  successor
provision, rule or regulation.

     "Committee"  means the committee that  administers this Plan, as more fully
defined in Paragraph 13 hereof.

     "Common Stock" has the meaning set forth in Paragraph 1 hereof.

     "Company" has the meaning set forth in Paragraph 1 hereof.

     "Deferral Election" has the meaning set forth in Paragraph 6 hereof.

     "Deferred  Stock  Account"  means a bookkeeping  account  maintained by the
Company for a Participant  representing the Participant's interest in the shares
credited to such Deferred Stock Account pursuant to Paragraph 7 hereof.

     "Delivery Date" has the meaning set forth in Paragraph 6 hereof.

     "Director" means an individual who is a member of the Board of Directors of
the Company.

     "Dividend  Equivalent" for a given dividend or other  distribution  means a
number of shares of the  Common  Stock  having a Fair  Market  Value,  as of the
record date for such dividend or distribution, equal to the amount of cash, plus
the Fair  Market  Value on the date of  distribution  of any  property,  that is
distributed  with  respect to one share of the  Common  Stock  pursuant  to such
dividend  or  distribution;  such  Fair  Market  Value to be  determined  by the
Committee in good faith.

     "Effective Date" has the meaning set forth in Paragraph 3 hereof.

     "Exchange Act" has the meaning set forth in Paragraph 13(b) hereof.

     "Fair Market Value" means the mean between the highest and lowest  reported
sales prices of the Common Stock on the New York Stock  Exchange  Composite Tape
or, if not listed on such exchange, on any other national securities exchange on
which the Common  Stock is listed or on The Nasdaq Stock  Market,  or, if not so
listed on any other  national  securities  exchange or The Nasdaq Stock  Market,
then the  average  of the bid price of the  Common  Stock  during  the last five

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trading days on the OTC Bulletin  Board  immediately  preceding the last trading
day  prior to the date with  respect  to which  the Fair  Market  Value is to be
determined.  If the  Common  Stock is not then  publicly  traded,  then the Fair
Market  Value of the Common  Stock  shall be the book value of the  Company  per
share as determined on the last day of March,  June,  September,  or December in
any year  closest  to the date  when the  determination  is to be made.  For the
purpose of determining book value  hereunder,  book value shall be determined by
adding as of the  applicable  date called for herein the capital,  surplus,  and
undivided  profits  of the  Company,  and after  having  deducted  any  reserves
theretofore  established;  the sum of these items shall be divided by the number
of shares of the Common Stock outstanding as of said date, and the quotient thus
obtained shall represent the book value of each share of the Common Stock of the
Company.

     "Participant" has the meaning set forth in Paragraph 4 hereof.

     "Payment  Time"  means  the time  when a Stock  Retainer  is  payable  to a
Participant  pursuant to Paragraph 5 hereof (without regard to the effect of any
Deferral Election).

     "Stock Retainer" has the meaning set forth in Paragraph 5 hereof.

     "Third Anniversary" has the meaning set forth in Paragraph 6 hereof.

     3.   EFFECTIVE  DATE OF THE  PLAN.  This  Plan  was  adopted  by the  Board
effective May 27, 2003 (the "Effective Date").

     4.   ELIGIBILITY.  Each  individual  who is a Director or Consultant on the
Effective  Date and  each  individual  who  becomes  a  Director  or  Consultant
thereafter   during  the  term  of  this  Plan,  shall  be  a  participant  (the
"Participant")  in this Plan, in each case during such period as such individual
remains a Director or Consultant and is not an employee of the Company or any of
its  subsidiaries.  Each credit of shares of the Common  Stock  pursuant to this
Plan shall be evidenced by a written agreement duly executed and delivered by or
on behalf of the Company and a Participant,  if such an agreement is required by
the Company to assure compliance with all applicable laws and regulations.

     5.   GRANTS OF SHARES.  Commencing  on the  Effective  Date,  the amount of
compensation for service to directors or consultants  shall be payable in shares
of the Common Stock (the "Stock  Retainer")  pursuant to this Plan at the deemed
issuance price of $0.04 per Share.

     6.   DEFERRAL OPTION.  From and after the Effective Date, a Participant may
make an election (a "Deferral Election") on an annual basis to defer delivery of
the Stock Retainer specifying which one of the following ways the Stock Retainer
is to be delivered (a) on the date which is three years after the Effective Date
for which it was originally payable (the "Third  Anniversary"),  (b) on the date
upon which the Participant  ceases to be a Director or Consultant for any reason
(the "Departure  Date") or (c) in five equal annual  installments  commencing on
the Departure  Date (the "Third  Anniversary"  and  "Departure  Date" each being
referred to herein as a "Delivery Date"). Such Deferral Election shall remain in
effect for each  Subsequent  Year unless  changed,  provided  that, any Deferral
Election  with  respect to a  particular  Year may not be changed  less than six
months prior to the beginning of such Year, and provided,  further, that no more
than one Deferral Election or change thereof may be made in any Year.

     Any Deferral Election and any change or revocation thereof shall be made by
delivering  written  notice  thereof to the  Committee  no later than six months
prior to the beginning of the Year in which it is to be effected; provided that,
with respect to the Year beginning on the Effective Date, any Deferral  Election
or  revocation  thereof must be delivered no later than the close of business on
the 30th day after the Effective Date.

     7.   DEFERRED STOCK  ACCOUNTS.  The Company shall maintain a Deferred Stock
Account  for each  Participant  who makes a Deferral  Election to which shall be
credited,  as of the applicable Payment Time, the number of shares of the Common
Stock  payable  pursuant to the Stock  Retainer to which the  Deferral  Election
relates.  So long as any amounts in such  Deferred  Stock  Account have not been
delivered to the  Participant  under  Paragraph 8 hereof,  each  Deferred  Stock
Account  shall be credited as of the payment date for any dividend paid or other

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distribution  made with respect to the Common Stock,  with a number of shares of
the Common  Stock equal to (a) the number of shares of the Common Stock shown in
such Deferred Stock Account on the record date for such dividend or distribution
multiplied by (b) the Dividend Equivalent for such dividend or distribution.

     8.   DELIVERY OF SHARES.

     (a) The  shares  of the  Common  Stock in a  Participant's  Deferred  Stock
Account  with respect to any Stock  Retainer  for which a Deferral  Election has
been made (together with dividends  attributable to such shares credited to such
Deferred Stock  Account) shall be delivered in accordance  with this Paragraph 8
as soon as practicable  after the applicable  Delivery Date. Except with respect
to a Deferral  Election  pursuant to Paragraph 6(c) hereof,  or other  agreement
between the parties,  such shares shall be delivered at one time; provided that,
if the number of shares so delivered  includes a fractional  share,  such number
shall be rounded to the nearest whole number of shares.  If the  Participant has
in effect a Deferral  Election  pursuant to  Paragraph  6(c)  hereof,  then such
shares  shall be  delivered in five equal  annual  installments  (together  with
dividends  attributable to such shares credited to such Deferred Stock Account),
with the first such installment  being delivered on the first anniversary of the
Delivery  Date;  provided  that,  if in order  to  equalize  such  installments,
fractional  shares  would  have to be  delivered,  such  installments  shall  be
adjusted by rounding to the nearest  whole  share.  If any such shares are to be
delivered  after the Participant  has died or become legally  incompetent,  they
shall be delivered to the  Participant's  estate or legal guardian,  as the case
may be, in accordance with the foregoing; provided that, if the Participant dies
with a Deferral  Election  pursuant  to  Paragraph  6(c)  hereof in effect,  the
Committee shall deliver all remaining  undelivered  shares to the  Participant's
estate immediately.  References to a Participant in this Plan shall be deemed to
refer to the Participant's estate or legal guardian, where appropriate.

     (b) The Company may, but shall not be required to,  create a grantor  trust
or utilize an existing  grantor trust (in either case,  "Trust") to assist it in
accumulating  the shares of the Common Stock  needed to fulfill its  obligations
under this Paragraph 8. However,  Participants shall have no beneficial or other
interest in the Trust and the assets  thereof,  and their rights under this Plan
shall be as general  creditors of the Company,  unaffected  by the  existence or
nonexistence  of the  Trust,  except  that  deliveries  of  Stock  Retainers  to
Participants  from the  Trust  shall,  to the  extent  thereof,  be  treated  as
satisfying the Company's obligations under this Paragraph 8.

     9.   SHARE  CERTIFICATES;  VOTING AND OTHER RIGHTS.  The  certificates  for
shares delivered to a Participant  pursuant to Paragraph 8 above shall be issued
in the name of the Participant, and from and after the date of such issuance the
Participant shall be entitled to all rights of a stockholder with respect to the
Common Stock for all such shares issued in his name, including the right to vote
the  shares,   and  the  Participant  shall  receive  all  dividends  and  other
distributions paid or made with respect thereto.

     10.  GENERAL RESTRICTIONS.

          (a)  Notwithstanding  any other  provision of this Plan or  agreements
made pursuant thereto, the Company shall not be required to issue or deliver any
certificate or certificates for shares of the Common Stock under this Plan prior
to fulfillment of all of the following conditions:

               (i)  Listing or approval  for  listing  upon  official  notice of
issuance  of such  shares on the New York Stock  Exchange,  Inc.,  or such other
securities exchange as may at the time be a market for the Common Stock;

               (ii) Any registration or other qualification of such shares under
any state or federal law or regulation, or the maintaining in effect of any such
registration or other  qualification  which the Committee shall, upon the advice
of counsel, deem necessary or advisable; and

               (iii) Obtaining any other consent,  approval,  or permit from any
state or federal  governmental agency which the Committee shall, after receiving
the advice of counsel, determine to be necessary or advisable.

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          (b)  Nothing  contained  in this Plan shall  prevent the Company  from
adopting other or additional compensation arrangements for the Participants.

     11.  SHARES AVAILABLE. Subject to Paragraph 12 below, the maximum number of
shares of the Common Stock which may in the aggregate be paid as Stock Retainers
pursuant to this Plan is 5,000,000.  Shares of the Common Stock  issueable under
this Plan may be taken from  treasury  shares of the Company or purchased on the
open market.

     12.  ADJUSTMENTS; CHANGE OF CONTROL.

          (a)  In the event that  there is, at any time  after the Board  adopts
this  Plan,  any  change in  corporate  capitalization,  such as a stock  split,
combination  of shares,  exchange  of shares,  warrants  or rights  offering  to
purchase   the  Common   Stock  at  a  price  below  its  Fair   Market   Value,
reclassification,  or recapitalization,  or a corporate transaction, such as any
merger,  consolidation,  separation,  including a spin-off,  stock dividend,  or
other  extraordinary  distribution  of stock or  property  of the  Company,  any
reorganization  (whether or not such reorganization  comes within the definition
of such term in Section 368 of the Code) or any partial or complete  liquidation
of the Company (each of the foregoing a "Transaction"),  in each case other than
any such Transaction  which  constitutes a Change of Control (as defined below),
(i) the Deferred  Stock  Accounts  shall be credited with the amount and kind of
shares or other  property  which  would  have been  received  by a holder of the
number of shares of the Common  Stock held in such  Deferred  Stock  Account had
such shares of the Common Stock been outstanding as of the  effectiveness of any
such  Transaction,  (ii) the number and kind of shares or other property subject
to  this  Plan  shall  likewise  be   appropriately   adjusted  to  reflect  the
effectiveness   of  any  such   Transaction,   and  (iii)  the  Committee  shall
appropriately  adjust any other  relevant  provisions  of this Plan and any such
modification by the Committee shall be binding and conclusive on all persons.

          (b)  If the shares of the Common Stock  credited to the Deferred Stock
Accounts  are  converted  pursuant  to  Paragraph  12(a)  into  another  form of
property,  references  in this Plan to the Common  Stock shall be deemed,  where
appropriate,  to  refer  to  such  other  form  of  property,  with  such  other
modifications as may be required for this Plan to operate in accordance with its
purposes.  Without  limiting the  generality  of the  foregoing,  references  to
delivery of certificates for shares of the Common Stock shall be deemed to refer
to delivery of cash and the incidents of ownership of any other property held in
the Deferred Stock Accounts.

          (c)  In lieu of the adjustment contemplated by Paragraph 12(a), in the
event of a Change  of  Control,  the  following  shall  occur on the date of the
Change of Control (i) the shares of the Common Stock held in each  Participant's
Deferred  Stock Account shall be deemed to be issued and  outstanding  as of the
Change of Control;  (ii) the Company shall forthwith deliver to each Participant
who has a Deferred  Stock  Account all of the shares of the Common  Stock or any
other property held in such Participant's Deferred Stock Account; and (iii) this
Plan shall be terminated.

          (d)  For  purposes of this Plan,  Change of Control  shall mean any of
the following events:

               (i)  The acquisition by any  individual,  entity or group (within
the meaning of Section  13(d)(3) or 14(d)(2) of the  Securities  Exchange Act of
1934,  as amended (the  "Exchange  Act")) (a "Person") of  beneficial  ownership
(within  the meaning of Rule 13d-3  promulgated  under the  Exchange  Act) of 20
percent or more of either (1) the then outstanding shares of the Common Stock of
the Company (the "Outstanding Company Common Stock"), or (2) the combined voting
power of then  outstanding  voting  securities  of the Company  entitled to vote
generally  in  the  election  of  directors  (the  "Outstanding  Company  Voting
Securities");  provided,  however,  that the  following  acquisitions  shall not
constitute  a Change of Control (A) any  acquisition  directly  from the Company
(excluding an  acquisition  by virtue of the exercise of a conversion  privilege
unless the security  being so converted  was itself  acquired  directly from the
Company),  (B)  any  acquisition  by the  Company,  (C) any  acquisition  by any
employee  benefit plan (or related trust) sponsored or maintained by the Company
or any  corporation  controlled  by the  Company or (D) any  acquisition  by any
corporation pursuant to a reorganization, merger or consolidation, if, following
such  reorganization,  merger or  consolidation,  the  conditions  described  in
clauses  (A),  (B) and  (C) of  paragraph  (iii)  of this  Paragraph  12(d)  are
satisfied; or

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               (ii) Individuals who, as of the date hereof, constitute the Board
of the Company (as of the date hereof,  "Incumbent  Board") cease for any reason
to  constitute  at least a majority of the Board;  provided,  however,  that any
individual becoming a director subsequent to the date hereof whose election,  or
nomination for election by the Company's stockholders, was approved by a vote of
at least a majority of the directors then  comprising the Incumbent  Board shall
be considered as though such  individual  were a member of the Incumbent  Board,
but excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of either an actual or threatened election contest (as
such  terms are used in Rule  14a-11 of  Regulation  14A  promulgated  under the
Exchange Act) or other actual or threatened  solicitation of proxies or consents
by or on behalf of a Person other than the Board; or

               (iii) Approval  by  the   stockholders   of  the   Company  of  a
reorganization,   merger,  binding  share  exchange  or  consolidation,  unless,
following such reorganization,  merger,  binding share exchange or consolidation
(1) more than 60 percent of,  respectively,  then  outstanding  shares of common
stock of the corporation  resulting from such  reorganization,  merger,  binding
share  exchange  or  consolidation   and  the  combined  voting  power  of  then
outstanding voting securities of such corporation  entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners,  respectively,  of the Outstanding  Company Common Stock and Outstanding
Company Voting  Securities  immediately  prior to such  reorganization,  merger,
binding share exchange or consolidation in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger, binding share
exchange  or  consolidation,   of  the  Outstanding  Company  Common  Stock  and
Outstanding  Company  Voting  Securities,  as the  case  may be,  (2) no  Person
(excluding  the  Company,  any employee  benefit plan (or related  trust) of the
Company or such corporation resulting from such reorganization,  merger, binding
share exchange or consolidation and any Person beneficially owning,  immediately
prior to such reorganization,  merger,  binding share exchange or consolidation,
directly or  indirectly,  20 percent or more of the  Outstanding  Company Common
Stock or Outstanding Company Voting Securities, as the case may be) beneficially
owns,  directly  or  indirectly,  20  percent  or more  of,  respectively,  then
outstanding  shares  of  common  stock of the  corporation  resulting  from such
reorganization,  merger, binding share exchange or consolidation or the combined
voting power of then outstanding voting securities of such corporation  entitled
to vote  generally in the election of directors,  and (3) at least a majority of
the members of the board of directors  of the  corporation  resulting  from such
reorganization,  merger, binding share exchange or consolidation were members of
the  Incumbent  Board  at the time of the  execution  of the  initial  agreement
providing  for  such   reorganization,   merger,   binding  share   exchange  or
consolidation; or

               (iv) Approval  by  the  stockholders  of  the  Company  of  (1) a
complete  liquidation or  dissolution  of the Company,  or (2) the sale or other
disposition of all or substantially all of the assets of the Company, other than
to  a  corporation,   with  respect  to  which  following  such  sale  or  other
disposition, (A) more than 60 percent of, respectively,  then outstanding shares
of  common  stock of such  corporation  and the  combined  voting  power of then
outstanding voting securities of such corporation  entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners,  respectively,  of the Outstanding  Company Common Stock and Outstanding
Company Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership,  immediately prior to such
sale  or  other  disposition,  of  the  Outstanding  Company  Common  Stock  and
Outstanding  Company  Voting  Securities,  as the  case  may be,  (B) no  Person
(excluding  the Company and any employee  benefit plan (or related trust) of the
Company or such  corporation  and any Person  beneficially  owning,  immediately
prior to such sale or other disposition,  directly or indirectly,  20 percent or
more of the  Outstanding  Company  Common Stock or  Outstanding  Company  Voting
Securities,  as the case may be) beneficially owns,  directly or indirectly,  20
percent or more of,  respectively,  then  outstanding  shares of common stock of
such  corporation  and the  combined  voting  power of then  outstanding  voting
securities  of such  corporation  entitled to vote  generally in the election of
directors,  and (3) at least a majority of the members of the board of directors
of such  corporation  were  members  of the  Incumbent  Board at the time of the
execution  of the initial  agreement or action of the Board  providing  for such
sale or other disposition of assets of the Company.

     13.  ADMINISTRATION; AMENDMENT AND TERMINATION.

          (a)  This Plan shall be administered by a committee  consisting of two
members who shall be the current  directors  of the Company or senior  executive
officers or other directors who are not Participants as may be designated by the
Chief Executive  Officer (the  "Committee"),  which shall have full authority to
construe and  interpret  this Plan,  to  establish,  amend and rescind rules and

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regulations  relating  to this Plan,  and to take all such  actions and make all
such  determinations  in connection  with this Plan as it may deem  necessary or
desirable.

          (b)  The Board may from  time to time  make  such  amendments  to this
Plan,  including to preserve or come within any exemption from  liability  under
Section  16(b)  of the  Exchange  Act,  as it may  deem  proper  and in the best
interest of the Company without further approval of the Company's  stockholders,
provided  that,  to  the  extent  required  under  Delaware  law  or to  qualify
transactions  under this Plan for exemption under Rule 16b-3  promulgated  under
the Exchange  Act, no amendment  to this Plan shall be adopted  without  further
approval of the Company's  stockholders and, provided,  further,  that if and to
the extent  required for this Plan to comply with Rule 16b-3  promulgated  under
the Exchange  Act, no amendment to this Plan shall be made more than once in any
six month period that would change the amount,  price or timing of the grants of
the Common Stock  hereunder  other than to comport with changes in the Code, the
Employee  Retirement Income Security Act of 1974, as amended, or the regulations
thereunder.  The  Board  may  terminate  this  Plan  at any  time by a vote of a
majority of the members thereof.

     14.  MISCELLANEOUS.

          (a)  Nothing in this Plan shall be deemed to create any  obligation on
the part of the Board to nominate any Director for  reelection  by the Company's
stockholders or to limit the rights of the stockholders to remove any Director.

          (b)  The  Company  shall  have  the  right  to  require,  prior to the
issuance or delivery  of any shares of the Common  Stock  pursuant to this Plan,
that a  Participant  make  arrangements  satisfactory  to the  Committee for the
withholding  of any taxes  required  by law to be withheld  with  respect to the
issuance or delivery  of such  shares,  including,  without  limitation,  by the
withholding  of shares  that  would  otherwise  be so issued  or  delivered,  by
withholding from any other payment due to the Participant,  or by a cash payment
to the Company by the Participant.

     14.1 GOVERNING  LAW.  The Plan and all actions  taken  thereunder  shall be
governed by and construed in accordance with the laws of the State of Delaware.

     14.2 INFORMATION TO SHAREHOLDERS.  The Company shall furnish to each of its
stockholders financial statements of the Company at least annually.

     IN WITNESS  WHEREOF,  this Plan has been  executed  effective as of May 27,
2003.

                                        AMERICAN COMMERCE SOLUTIONS, INC.

                                        By /s/ Daniel L. Hefner
                                           -------------------------------------
                                           Daniel L. Hefner, President

                                       6Exhibit 4.01

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

                                    INDENTURE

                                     between

                           TERRA CAPITAL GROUP, INC.,
                              A NEVADA CORPORATION

                                       and

                                [----------------]
                                   as Trustee

                          Dated as of _______ __, 2003

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

     Reconciliation  and tie between  Trust  Indenture Act of 1939 and Indenture
dated as of _______ __, 2003.

        TRUST INDENTURE ACT SECTION             INDENTURE SECTION

                  Section 310(a)(1)             6.07
                             (a)(2)             6.07
                                (b)             6.07, 6.08
                     Section 312(c)             7.01
                     Section 313(a)             7.02
                                (c)             7.02
                     Section 314(a)             7.03
                             (a)(4)             10.09
                             (c)(1)             1.02
                             (c)(2)             1.02
                                (e)             1.02
                     Section 315(b)             6.01
     Section 316(a) (last sentence)             1.01 ("Outstanding")
                          (a)(1)(A)             5.02, 5.12
                          (a)(1)(B)             5.13
                                (b)             5.08
                  Section 317(a)(1)             5.03
                             (a)(2)             5.04
                     Section 318(a)             1.11
                                (c)             1.11

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

     Attention  should also be directed to Section 318(c) of the 1939 Act, which
provides  that the  provisions  of Sections 310 to and including 317 of the 1939
Act  are a  part  of  and  govern  every  qualified  indenture,  whether  or not
physically contained therein.

                                   ----------
<PAGE>
                                TABLE OF CONTENTS

                                                                            Page
                                    ARTICLE I
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.01.   Definitions....................................................1

Section 1.02.   Compliance Certificates and Opinions..........................15

Section 1.03.   Form of Documents Delivered to Trustee........................15

Section 1.04.   Acts of Holders...............................................16

Section 1.05.   Notices, Etc., To Trustee and Company.........................17

Section 1.06.   Notice to Holders; Waiver.....................................17

Section 1.07.   Counterparts; Facsimile; Effect of Headings and
                Table of Contents.............................................18

Section 1.08.   Successors and Assigns........................................18

Section 1.09.   Severability Clause...........................................18

Section 1.10.   Benefits of Indenture.........................................18

Section 1.11.   Governing Law.................................................18

Section 1.12.   Legal Holidays................................................18

Section 1.13.   Immunity of Stockholders, Directors, Officers and
                Agents of the Company.........................................19

Section 1.14.   Conflict with Trust Indenture Act.............................19

                                   ARTICLE II
                                SECURITIES FORMS

Section 2.01.   Forms of Securities...........................................19

Section 2.02.   Form of Trustee's Certificate of Authentication...............20

Section 2.03.   Securities Issuable in Global Form............................20

                                   ARTICLE III
                                 THE SECURITIES

Section 3.01.   Amount Unlimited; Issuable in Series..........................21

Section 3.02.   Denominations.................................................24

Section 3.03.   Execution, Authentication, Delivery and Dating................24

Section 3.04.   Temporary Securities..........................................26

Section 3.05.   Registration, Registration of Transfer and Exchange...........27

Section 3.06.   Mutilated, Destroyed, Lost and Stolen Securities..............29

Section 3.07.   Payment of Interest; Interest Rights Reserved.................30

Section 3.08.   Persons Deemed Owners.........................................31

Section 3.09.   Cancellation..................................................32
<PAGE>
Section 3.10.   Computation of Interest.......................................32

Section 3.11.   Deposit of Securities Proceeds................................32

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

Section 4.01.   Satisfaction and Discharge of Indenture.......................33

Section 4.02.   Application of Trust Funds....................................34

                                    ARTICLE V
                           EVENTS OF DEFAULT; REMEDIES

Section 5.01.   Events of Default.............................................34

Section 5.02.   Acceleration of Maturity; Rescission and Annulment............36

Section 5.03.   Collection of Indebtedness and Suits for Enforcement
                by Trustee....................................................36

Section 5.04.   Trustee May File Proofs of Claim..............................37

Section 5.05.   Trustee May Enforce Claims Without Possession
                of Securities.................................................38

Section 5.06.   Application of Money Collected................................38

Section 5.07.   Limitation on Suits...........................................38

Section 5.08.   Unconditional Rights of Holders to Receive Principal,
                Premium, if any, Interest and Additional Amounts..............39

Section 5.09.   Restoration of Rights and Remedies............................39

Section 5.10.   Rights and Remedies Cumulative................................39

Section 5.11.   Delay or Omission not Waiver..................................40

Section 5.12.   Control by Holders of Securities..............................40

Section 5.13.   Waiver of Past Defaults.......................................40

Section 5.14.   Waiver of Usury, Stay or Extension Laws.......................40

Section 5.15.   Undertaking for Costs.........................................41

                                   ARTICLE VI
                                   THE TRUSTEE

Section 6.01.   Notice of Defaults............................................41

Section 6.02.   Certain Rights of Trustee.....................................41

Section 6.03.   Not Responsible for Recitals or Issuance of Securities........43

Section 6.04.   May Hold Securities...........................................43

Section 6.05.   Money Held in Trust...........................................43

Section 6.06.   Compensation and Reimbursement................................43

Section 6.07.   Corporate Trustee Required; Eligibility; Conflicting
                Interests.....................................................44

Section 6.08.   Resignation and Removal; Appointment of Successor.............44

                                       ii
<PAGE>
Section 6.09.   Acceptance of Appointment by Successor........................46

Section 6.10.   Merger, Conversion, Consolidation or Succession to
                Business......................................................46

Section 6.11.   Appointment of Authenticating Agent...........................47

Section 6.12.   Additional Duties of Trustee..................................48

                                   ARTICLE VII
           HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY; ACCOUNTS

Section 7.01.   Disclosure of Names and Addresses of Holders..................49

Section 7.02.   Reports by Trustee............................................50

Section 7.03.   Reports by Company............................................50

Section 7.04.   Company to Furnish Trustee Names and Addresses of Holders.....50

Section 7.05.   Accounts; Payments on Securities..............................51

                                  ARTICLE VIII
                CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE

Section 8.01.   Consolidations and Mergers of Company and Sales, Leases
                and Conveyances Permitted Subject to Certain Conditions.......56

Section 8.02.   Rights and Duties of Successor Corporation....................56

Section 8.03.   Officers' Certificate and Opinion of Counsel..................57

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

Section 9.01.   Supplemental Indentures Without Consent of Holders............57

Section 9.02.   Supplemental Indentures with Consent of Holders...............58

Section 9.03.   Execution of Supplemental Indentures..........................59

Section 9.04.   Effect of Supplemental Indenture..............................59

Section 9.05.   Conformity with Trust Indenture Act...........................59

Section 9.06.   Reference in Securities to Supplemental Indentures............60

Section 9.07    Trustee to Act on Instructions................................60

                                    ARTICLE X
                    COVENANTS; REPRESENTATIONS AND WARRANTIES

Section 10.01.  Payment of Principal, Premium, if any, Interest and
                Additional Amounts............................................60

Section 10.02.  Maintenance of Office or Agency...............................60

Section 10.03.  Money for Securities Payments to be Held in Trust.............61

Section 10.04.  Existence.....................................................62

Section 10.05.  Maintenance of Properties.....................................62

                                      iii
<PAGE>
Section 10.06.  Insurance.....................................................62

Section 10.07.  Payment of Taxes and Other Claims.............................62

Section 10.08.  Provision of Financial Information............................63

Section 10.09.  Statement as to Compliance....................................63

Section 10.10.  Additional Amounts............................................63

Section 10.11.  Waiver of Certain Covenants...................................64

Section 10.12.  Representations and Warranties of the Company.................64

Section 10.13.  Repurchases of Mortgage Loans and Real Property...............65

                                   ARTICLE XI
                            REDEMPTION OF SECURITIES

Section 11.01.  Applicability of Article......................................66

Section 11.02.  Election to Redeem; Notice to Trustee.........................66

Section 11.03.  Selection by Trustee of Securities to be Redeemed.............66

Section 11.04.  Notice of Redemption..........................................67

Section 11.05.  Deposit of Redemption Price...................................68

Section 11.06.  Securities Payable on Redemption Date.........................68

Section 11.07.  Securities Redeemed in Part...................................68

                                   ARTICLE XII
                                  SINKING FUNDS

Section 12.01.  Applicability of Article......................................69

Section 12.02.  Satisfaction of Sinking Fund Payments with Securities.........69

Section 12.03.  Redemption of Securities for Sinking Fund.....................69

                                  ARTICLE XIII
                       REPAYMENT AT THE OPTION OF HOLDERS

Section 13.01.  Applicability of Article......................................70

Section 13.02.  Repayment of Securities.......................................70

Section 13.03.  Exercise of Option............................................70

Section 13.04.  When Securities Presented for Repayment Become Due
                and Payable...................................................71

Section 13.05.  Securities Repaid in Part.....................................71

                                   ARTICLE XIV
                       DEFEASANCE AND COVENANT DEFEASANCE

Section 14.01.  Applicability of Article; Company's Option to Effect
                Defeasance or Covenant Defeasance.............................72

Section 14.02.  Defeasance and Discharge......................................72

                                       iv
<PAGE>
Section 14.03.  Covenant Defeasance...........................................72

Section 14.04.  Conditions to Defeasance or Covenant Defeasance...............73

Section 14.05.  Deposited Money and Government Obligations to be
                Held in Trust; Other Miscellaneous Provisions.................74

                                   ARTICLE XV
                        MEETINGS OF HOLDERS OF SECURITIES

Section 15.01.  Purposes for Which Meetings May be Called.....................75

Section 15.02.  Call, Notice and Place of Meetings............................75

Section 15.03.  Persons Entitled to Vote At Meetings..........................76

Section 15.04.  Quorum; Action................................................76

Section 15.05.  Determination of Voting Rights, Conduct and
                Adjournment of Meetings.......................................77

Section 15.06.  Counting Votes and Recording Action of Meetings...............78

                                   ARTICLE XVI
                                    SECURITY

Section 16.01.  Grant of Security; Acknowledgment.............................78

Section 16.02.  Pledge to Secure Obligations..................................80

Section 16.03.  Collateral Transfers and Other Liens..........................81

Section 16.04.  Sale of Collateral............................................81

Section 16.05.  Responsibilities of Company...................................82

Section 16.06.  Continuing Security Interest..................................84

Section 16.07.  Further Assurances............................................84

EXHIBIT A FORM OF REDEEMABLE OR NONREDEEMABLE SECURITY

EXHIBIT B-1 Mortgage Loan ACQUISITION CERTIFICATE

EXHIBIT B-2 REAL PROPERTY ACQUISITION CERTIFICATE

EXHIBIT C SALE OF COLLATERAL AND RELEASE OF LIEN CERTIFICATE

                                       v
<PAGE>
     THIS INDENTURE  dated as of _______ __, 2003,  between TERRA CAPITAL GROUP,
INC.,  a Nevada  corporation  (the  "Company")  having its  principal  office at
____________________,   and  [NAME  OF  TRUSTEE],  a  ____________,  as  Trustee
hereunder   (the    "Trustee"),    having   a   Corporate    Trust   Office   at
_________________________.

                             RECITALS OF THE COMPANY

     The Company  deems it  necessary  to issue from time to time for its lawful
purposes debt securities  (hereinafter  called the "Securities")  evidencing its
indebtedness  and  has  duly  authorized  the  execution  and  delivery  of this
Indenture to provide for the issuance from time to time of the  Securities to be
issued in one or more series as provided in this Indenture.

     The Company will engage in the business of originating loans to real estate
developers for the  acquisition  and  development of real estate and to purchase
land as "land  bankers"  for  subsequent  resale to real estate  developers  who
intend  to  develop  real  estate  for  the  potential  future  construction  of
commercial, single-family residential and multi-family residential properties.

     This Indenture is subject to the  provisions of the Trust  Indenture Act of
1939,  as amended  (the  "TIA"),  that are deemed to be  incorporated  into this
Indenture and shall, to the extent applicable, be governed by such provisions.

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

     NOW, THEREFORE THIS INDENTURE WITNESSETH:

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

                                   ARTICLE I

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     SECTION 1.01.  DEFINITIONS.  For all purposes of this Indenture,  except as
otherwise expressly provided unless the context otherwise requires:

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

          (b) all other terms used herein  which are defined in the TIA,  either
     directly or by reference therein have the meanings assigned to them therein
     and the terms "cash transaction" and  "self-liquidating  paper," as used in
     TIA  Section 311 shall have the  meanings  assigned to them in the rules of
     the Commission adopted under the TIA;

          (c) all  accounting  terms  not  otherwise  defined  herein  have  the
     meanings assigned to them in accordance with GAAP; and
<PAGE>
          (d) 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.

     "ACCOUNTS"  shall  mean the  Funding  Account  and the  Securities  Payment
Account.

     "ACT" when used with  respect to any Holder,  has the meaning  specified in
Section 1.04.

     "ADDITIONAL  AMOUNTS" means any additional  amounts which are required by a
Security or by or pursuant to a Board Resolution,  under circumstances specified
therein,  to be paid by the  Company  in respect  of  certain  taxes  imposed on
certain Holders and which are owing to such Holders.

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

     ["ASSIGNMENT OF LEASES" means, with respect to any Mortgaged Property,  any
assignment of leases, rents, security deposits and profits or similar instrument
executed by the Mortgagor,  assigning to the mortgagee all of the income,  rents
and profits derived from the ownership, operation, leasing or disposition of all
or a portion of such  Mortgaged  Property,  in the form which was duly executed,
acknowledged and delivered,  as amended,  modified,  renewed or extended through
the date hereof and from time to time hereafter.]

     "AUTHENTICATING  AGENT"  means any  authenticating  agent  appointed by the
Trustee pursuant to Section 6.11 to act on behalf of the Trustee to authenticate
Securities.

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

     "BANKRUPTCY LAW" has the meaning specified in Section 5.01.

     "BOARD OF  DIRECTORS"  means the board of directors of the Company,  or any
committee of that board duly authorized to act hereunder.

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

                                       2
<PAGE>
     "BROKER/DEALER" means any Person as may be designated as such in writing by
the Company to the Trustee from time to time.

     "BUSINESS  DAY" when used with respect to any Place of Payment or any other
particular  location referred to in this Indenture or in the Securities,  means,
unless  otherwise  specified with respect to any Securities  pursuant to Section
3.01,  any day,  other  than a Saturday  or  Sunday,  that is not a day on which
banking  institutions  in that  Place of  Payment  or  particular  location  are
authorized or required by law, regulation or executive order to close.

     "CLEARING  AGENCY" means an organization  registered as a "clearing agency"
pursuant to Section 17A of the Exchange  Act and serving as clearing  agency for
Global Securities.

     "CLEARING AGENCY PARTICIPANT" means a broker, dealer, bank, other financial
institution or other Person for whom from time to time a Clearing Agency effects
book-entry  transfers  and pledges of  securities  deposited  with the  Clearing
Agency.

     "CLEARING CORPORATION" means a "clearing corporation" as defined in Section
8-102(3) of the Uniform Commercial Code.

     "COLLATERAL" shall have the meaning set forth in Section 16.01(c).

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

     "COMMON DEPOSITARY" shall have the meaning set forth in Section 3.04.

     "COMMON  STOCK"  means,  with respect to any Person,  all shares of capital
stock issued by such Person other than any Preferred Stock.

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

     "COMPANY REQUEST" and "COMPANY ORDER" mean, respectively, a written request
or order  signed in the name of the Company by its  Chairman  of the Board,  the
President,  any  Executive  Vice  President,  any Senior Vice  President or Vice
President  and by its  Treasurer,  an Assistant  Treasurer,  the Secretary or an
Assistant Secretary, and delivered to the Trustee.

     "CORPORATE  TRUST OFFICE" means the office of the Trustee at which,  at any
particular time, its corporate trust business shall be principally administered,
which office at the date hereof is located at the address specified in the first
paragraph of this Indenture.

     "CORPORATION" includes corporations,  associations,  companies and business
trusts.

     "CUSTODIAN" has the meaning specified in Section 5.01.

                                       3
<PAGE>
     "DEFAULTED INTEREST" has the meaning specified in Section 3.07.

     "DEPOSITARY" means, unless otherwise specified in a supplemental  indenture
or a Board Resolution  adopted  pursuant to Section 3.01 hereof,  the Depository
Trust Company, or any successor  Depositary  hereafter named. The nominee of the
initial  Depositary  for purposes of registering  the Securities  that are to be
Global Securities, is Cede & Co. The Depositary shall at all times be a Clearing
Corporation and a Clearing Agency.

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

     "DTC" means The Depository Trust Company.

     "ELIGIBLE  MORTGAGE  LOANS" means, as of the date that it is pledged to the
Trustee pursuant to this Indenture, any Mortgage Loan that:

          (a) is  valid,  binding,  and  enforceable  against  the  borrower  in
     accordance  with its terms except that (i) such  enforcement may be subject
     to bankruptcy, insolvency, reorganization, moratorium or other similar laws
     (whether  statutory,  regulatory or decisional)  now or hereafter in effect
     relating to  creditors'  rights  generally  and (ii) the remedy of specific
     performance  and  injunctive  and other  forms of  equitable  relief may be
     subject to certain  equitable  defenses and to the  discretion of the court
     before which any proceeding  therefor may be brought,  whether a proceeding
     at law or in equity;

          (b) is not subject to any dispute, offset, counterclaim or defense;

          (c) is denominated and payable in U.S. dollars in the United States;

          (d) with regard to which each of the  representations  and  warranties
     set forth in Section 10.12 is true and correct;

          (e) will be subject  to a first  priority  perfected  lien held by the
     Trustee pursuant to this Indenture upon its acquisition with funds from the
     Funding  Account  and the  filing  of any  applicable  financing  statement
     pursuant to the UCC;

          (f) the  borrower  with  respect to such  Mortgage  Loan has  received
     written notice that payments with respect thereto are to be sent [solely to
     a Lock Box Account;][directly to the Trustee] and

          (g) is set forth in a  certificate  delivered  to the  Trustee  by the
     Company in the form attached as Exhibit B hereto.

     "EVENT OF DEFAULT" has the meaning specified in Article V.

     "FISCAL YEAR" means the fiscal year of the Company, which begins on January
1, and ends on December 31 of such calendar year.

                                       4
<PAGE>
     "FUNDING ACCOUNT" means the account  established and maintained pursuant to
Section  7.05(a),  including  any  subaccounts  created by the  Trustee  therein
pursuant to this Indenture.

     "GAAP" means generally accepted  accounting  principles,  as in effect from
time to time, as used in the United States applied on a consistent basis.

     "GLOBAL SECURITY" means a security  evidencing all or a part of a series of
Securities  issued  to and  registered  in the name of the  Depository  for such
series, or its nominee,  in accordance with Section 3.05, and bearing the legend
prescribed in Section 2.03.

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

     "HOLDER" means, in the case of a Registered  Security,  the Person in whose
name a Security is registered in the Security Register.

     "INDENTURE"  means this  instrument as originally  executed or as it may be
supplemented or amended from time to time by one or more indentures supplemental
hereto  entered into pursuant to the  applicable  provisions  hereof,  and shall
include the terms of particular series of Securities established as contemplated
by Section 3.01; provided, however, that, if at any time more than one Person is
acting as Trustee under this instrument, "Indenture" shall mean, with respect to
any one or more series of  Securities  for which such  Person is  Trustee,  this
instrument as originally  executed or as it may be  supplemented or amended from
time to time by one or more indentures supplemental hereto entered into pursuant
to the  applicable  provisions  hereof and shall  include  the terms of the,  or
those,  particular  series of  Securities  for  which  such  Person  is  Trustee
established  as  contemplated  by  Section  3.01,  exclusive,  however,  of  any
provisions or terms which relate solely to other series of Securities  for which
such  Person is  Trustee,  regardless  of when  such  terms or  provisions  were
adopted,  and  exclusive of any  provisions  or terms adopted by means of one or
more indentures supplemental hereto executed and delivered after such Person had
become such Trustee but to which such Person, as such Trustee, was not a party.

     "INDEXED  SECURITY"  means a Security  the terms of which  provide that the
principal amount thereof payable at Stated Maturity may be more or less than the
principal face amount thereof at original issuance.

                                       5
<PAGE>
     "INTEREST"  when used with respect to an Original Issue  Discount  Security
which by its terms bears interest only after  Maturity,  means interest  payable
after Maturity, and, when used with respect to a Security which provides for the
payment  of  Additional  Amounts  pursuant  to  Section  10.10,   includes  such
Additional Amounts.

     "INTEREST  PAYMENT DATE" when used with respect to any Security,  means the
Stated  Maturity of an installment of interest on such Security or the scheduled
interest payment date with respect thereto.

     "LOAN DOCUMENTS" shall mean the Mortgage Note, the loan agreement,  if any,
executed by the Company and the Mortgagor, the related Security Agreement or all
security documentation executed in connection therewith, including all financing
statements,   personal  guarantees,  bills  of  sale  and  powers  of  attorney,
certificates  and any and all other  instruments  now or hereafter  executed and
delivered by a Mortgagor in connection  with a Mortgage Loan, as any of such may
be amended or supplemented from time to time.

     ["LOCK BOX ACCOUNT"  means an account  established by the Company on behalf
of the Trustee,  with a bank chartered by the United States or any state therein
for the purpose of  collecting  the proceeds of Mortgage  Loans or Real Property
for the benefit of the Trustee as set forth in the  applicable  Mortgage or Real
Property  Documents  and as to which a copy of the  written  executed  agreement
pursuant  to which the  account has been  established  has been  provided to the
Trustee.]

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

     "MORTGAGE" means a mortgage,  deed of trust or other instrument  securing a
Mortgage Note and creating a lien on the related Mortgaged Property.

     ["MORTGAGE  FILE"  means,  subject  to  Section  16.05,   collectively  the
following documents:

          (1) the original Mortgage Note,  [endorsed by the most recent endorsee
     prior to the Trustee or, if none, by the originator,  without recourse,  in
     blank or to the order of the  Trustee in the  following  form:  "Pay to the
     order of [The Trustee],  as trustee for the registered holders of [Identify
     Series of Notes], without recourse";

          (2) the original or a copy of the  Mortgage  and, if  applicable,  the
     originals  or  copies  of any  intervening  assignments  thereof  showing a
     complete  chain of assignment  from the  originator of the Mortgage Loan to
     the most recent assignee of record thereof prior to the Trustee, if any, in
     each case with  evidence of recording  indicated  thereon,  or, if any such
     original  Mortgage or assignment  has not been returned from the applicable
     public recording  office,  a copy thereof  certified by the Company to be a
     true and complete copy of the original thereof submitted or, in the case of
     assignments to the Company, to be submitted for recording;

                                       6
<PAGE>
          (3) an  original  or  copy  of the  assignment  of  the  Mortgage,  in
     recordable  form,  executed by the most recent  assignee of record  thereof
     prior to the Trustee,  or if none by the originator,  either in blank or in
     favor of the Trustee (in such capacity) in the form provided in (1) above;

          [(4) an  original or a copy of any  related  Assignment  of Leases (if
     such item is a document separate from the Mortgage) and, if applicable, the
     originals  or  copies  of any  intervening  assignments  thereof  showing a
     complete  chain of assignment  from the  originator of the Mortgage Loan to
     the most recent assignee of record thereof prior to the Trustee, if any, in
     each case with evidence of recording thereon;]

          [(5) an original  assignment  of any related  Assignment of Leases (if
     such item is a document  separate from the Mortgage),  in recordable  form,
     executed  by the  most  recent  assignee  of  record  thereof  prior to the
     Trustee, or, if none, by the originator, either in blank or in favor of the
     Trustee  (in  such  capacity)  in the form  provided  in (1)  above,  which
     assignment  may be  included  as part of the  corresponding  assignment  of
     Mortgage, referred to in clause (3) above;]

          (6) an original or a copy of any related  Security  Agreement (if such
     item is a document  separate from the  Mortgage)  and, if  applicable,  the
     originals  or  copies  of any  intervening  assignments  thereof  showing a
     complete  chain of assignment  from the  originator of the Mortgage Loan to
     the most recent assignee of record thereof prior to the Trustee, if any;

          (7) an original  assignment of any related Security Agreement (if such
     item is a document separate from the Mortgage)  executed by the most recent
     assignee  of  record  thereof  prior to the  Trustee  or,  if none,  by the
     originator,  either in blank or in favor of the Trustee (in such  capacity)
     in the form provided in (1) above, which assignment may be included as part
     of the  corresponding  assignment  of  Mortgage  referred  to in clause (3)
     above;

          (8)    originals    or    copies    of    all    loan     agreements[,
     cross-collateralization    and   cross-default   agreements]   or   related
     agreements, if any, and all assumption, modification, written assurance and
     substitution   agreements,   with  evidence  of  recording  thereon,  where
     appropriate,  in those  instances  where  the  terms or  provisions  of the
     Mortgage, Mortgage Note or any related security document have been modified
     or the Mortgage Loan has been assumed;

          [(9) the original or a copy of the lender's  title  insurance  policy,
     together  with all  endorsements  or riders (or copies  thereof)  that were
     issued with or  subsequent  to the  issuance of such  policy,  insuring the
     priority of the Mortgage as a first lien on the Mortgaged Property or, with
     respect to each Mortgage Loan as to which a title insurance  policy has not
     yet been issued,  (or, if a title insurance  policy has not yet been issued
     in respect of the Mortgage Loan, a policy meeting the foregoing description
     is  evidenced  by a  commitment  for  title  insurance  "marked-up"  (or by
     "pro-forma"  otherwise  agreed to by the title  company ) as of the closing
     date of the Mortgage Loan);]

                                       7
<PAGE>
          (10) the original or a copy of any guaranty of the  obligations of the
     Mortgagor  under  the  Mortgage  Loan  which was in the  possession  of the
     Company  at the time the  Mortgage  Files  were  delivered  to the  Trustee
     together with (A) if applicable,  the original or copies of any intervening
     assignments of such guaranty  showing a complete  chain of assignment  from
     the  originator  of the Mortgage Loan to the most recent  assignee  thereof
     prior  to the  Trustee,  if any,  and (B) an  original  assignment  of such
     guaranty  executed by the most recent assignee thereof prior to the Trustee
     or, if none, by the originator;

          (11) (A) filed or certified copies of any UCC financing statements and
     continuation  statements which were filed in order to perfect (and maintain
     the perfection of) any security  interest held by the Company as originator
     of the Mortgage  Loan (and each assignee of record prior to the Trustee) in
     and to the  personalty of the Mortgagor at the Mortgaged  Property (in each
     case with evidence of filing  thereon) and which were in the  possession of
     the Company (or its agent) at the time the Mortgage Files were delivered to
     the Trustee and (B) if any such  security  interest  is  perfected  and the
     earlier UCC financing  statements and  continuation  statements were in the
     possession of the Company,  a UCC financing  statement executed by the most
     recent  assignee  of  record  prior to the  Trustee  or,  if  none,  by the
     originator,  evidencing the transfer of such security  interest,  either in
     blank or in favor of the Trustee in the form provided in (1) above;

          (12) the original or a copy of the power of attorney (with evidence of
     recording  thereon,  if  appropriate)  granted  by  the  Mortgagor  if  the
     Mortgage,  Mortgage Note or other document or instrument  referred to above
     was not signed by the Mortgagor;

          (13)  if  the  Mortgagor  has a  leasehold  interest  in  the  related
     Mortgaged Property, the related ground lease or a copy thereof, if any;

          (14)  the  original  or a copy of any  lockbox  agreement  or  deposit
     account or similar agreement;

          (15) the  original  or a copy of any  letter  of credit  securing  the
     Mortgage Loan;

          [(16) a copy of the interest  rate cap or similar  agreement,  if any,
     pledged as additional security for such Mortgage Loan;]

          [(17)  a  copy  of  any  mezzanine  loan  documents  and  any  related
     intercreditor  agreement relating to the Mortgaged Property, the collateral
     for the Mortgage Loan or involving the Mortgagor or any affiliate  thereof;
     and]

          (18) any  additional  documents  required to be added to the  Mortgage
     File pursuant to this Agreement;

     provided  that  whenever  the  term  "Mortgage  File"  is used to  refer to
documents  actually  received by the Trustee or a custodian  appointed  thereby,
such term shall not be deemed to include such documents and instruments required
to be included therein unless they are actually so received.]

                                       8
<PAGE>
     "MORTGAGE  LOAN"  means  a  loan  made  by the  Company,  as  lender,  to a
Mortgagor,  as  borrower,  that is evidenced  by the related  Mortgage  Note and
Mortgage,  which is pledged to the Company  pursuant to a Security  Agreement as
Collateral for the obligations of the Mortgagor  under the Loan  Documents,  and
which pledge is assigned to the Trustee for the benefit of the Holders to secure
the obligations of the Company under this Indenture,  including  mortgage loans:
(a)  acquired  or funded by the Company  from  amounts on deposit in the Funding
Account  or  otherwise  accounted  for  in  the  Funding  Account  or  otherwise
constituting  a part of the  Collateral;  and (b)  substituted  or exchanged for
Mortgage Loans  pursuant to Section  10.13,  but in either case does not include
Mortgage Loans released from the lien of this Indenture.

     "MORTGAGED  PROPERTY"  means the real property,  improvements,  if any, and
other collateral encumbered by a Mortgage.

     "MORTGAGE   NOTE"  means  the  original   executed  note   evidencing   the
indebtedness  of a Mortgagor  under a Mortgage  Loan,  together  with any rider,
addendum or amendment thereto.

     "MORTGAGOR" means the obligor with respect to an Mortgage Note.

     "NET  COLLECTIBLE  AMOUNT"  means,  with respect to a Mortgage Loan or Real
Property,  the net amount that is expected to be collected on a mortgage loan or
real  property,  which  shall  be  calculated  by  the  [Company]  based  on the
information  gathered from the Company in accordance  with the  applicable  Loan
Documents or Real Property  Documents,  as the case may be, and the  [Company's]
customary methods.

     "OBLIGATIONS" has the meaning set forth in Section 16.02.

     "OFFICERS'  CERTIFICATE"  means a certificate signed by the Chairman of the
Board of Directors, the President, any Executive Vice President, any Senior Vice
President or Vice President and by the Treasurer,  an Assistant  Treasurer,  the
Secretary  or an  Assistant  Secretary  of the  Company,  and  delivered  to the
Trustee.

     "OPINION OF COUNSEL" means a written opinion of counsel, who may be counsel
for the Company or who may be an  employee  of or other  counsel for the Company
and who shall be satisfactory to the Trustee.

     "ORIGINAL ISSUE DISCOUNT SECURITY" means any Security which provides for an
amount  less than the  principal  amount  thereof to be due and  payable  upon a
declaration of acceleration of the Maturity thereof pursuant to Section 5.02.

     "OUTSTANDING"  means (i) when used with  respect to  Securities,  as of the
date of determination, all Securities therefor authenticated and delivered under
this Indenture, except:

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

          (b) Securities,  or portions thereof,  for whose payment or redemption
     (including  repayment at the option of the Holder)  money in the  necessary
     amount has been theretofore  deposited with the Trustee or any Paying Agent
     (other than the Company) in trust or set aside and  segregated  in trust by

                                       9
<PAGE>
     the  Company  (if the  Company  shall act as its own Paying  Agent) for the
     Holders of such Securities; provided, however, that, if such Securities are
     to be redeemed,  notice of such  redemption has been duly given pursuant to
     this Indenture or provision  therefor  satisfactory to the Trustee has been
     made;

          (c)  Securities,  except to the extent  provided in Sections 14.02 and
     14.03,  with  respect to which the Company has effected  defeasance  and/or
     covenant defeasance as provided in Article XIV;

          (d)  Securities  which have been paid  pursuant to Section  3.06 or in
     exchange for or in lieu of which other  Securities have been  authenticated
     and delivered pursuant to this Indenture, other than any such Securities in
     respect of which  there  shall have been  presented  to the  Trustee  proof
     satisfactory  to it that such  Securities are held by a bona fide purchaser
     in whose hands such Securities are valid obligations of the Company; and

          (e) Securities converted into Common Stock or Preferred Stock pursuant
     to or in  accordance  with this  Indenture if the terms of such  Securities
     provide for convertibility pursuant to Section 3.01;

provided,  however,  that in  determining  whether the Holders of the  requisite
principal amount of the Outstanding  Securities have given any request,  demand,
authorization,  direction, notice, consent or waiver hereunder or are present at
a meeting of  Holders  for quorum  purposes,  and for the  purpose of making the
calculation required by TIA Section 313, (i) the principal amount of an Original
Issue  Discount  Security  that may be counted in making such  determination  or
calculation and that shall be deemed to be Outstanding for such purpose shall be
equal to the  amount of  principal  thereof  that  would be (or shall  have been
declared  to be) due and  payable,  at the  time of such  determination,  upon a
declaration of  acceleration of the maturity  thereof  pursuant to Section 5.02,
(ii) the principal  amount of any Indexed Security that may be counted in making
such  determination or calculation and that shall be deemed outstanding for such
purpose shall be equal to the principal face amount of such Indexed  Security at
original  issuance,  unless  otherwise  provided  with respect to such  Security
pursuant to Section 3.01,  and (iii)  Securities  owned by the Company or of any
other  obligor upon the  Securities  or any  Affiliate of the Company or of such
other  obligor shall be  disregarded  and deemed not to be  Outstanding,  except
that,  in  determining  whether the Trustee  shall be  protected  in making such
calculation  or  in  relying  upon  any  such  request,  demand,  authorization,
direction, notice, consent or waiver, only Securities which the Trustee knows to
be so owned shall be so disregarded. Securities owned as provided in clause (iv)
above which have been  pledged in good faith may be regarded as  Outstanding  if
the pledgee  establishes to the  satisfaction of the Trustee the pledgee's right
so to act with  respect  to such  Securities  and that  the  pledgee  is not the
Company or any other obligor upon the Securities or any Affiliate of the Company
or of such  other  obligor;  and  (ii)  when  used  with  respect  to any  other
Obligation,  as  of  any  date  of  determination,  the  unpaid  amount  of  the
Obligation.

     "PAYING  AGENT"  means any  Person  authorized  by the  Company  to pay the
principal of (and  premium,  if any) or interest on any  Securities on behalf of
the  Company,  which  Person  shall not  include  the  Company or any  Affiliate
thereof.

                                       10
<PAGE>
     "PERMITTED INVESTMENTS" means any of the following:

          (a) direct obligations of the United States of America;

          (b)  obligations,  the  payment of the  principal  of and  interest on
     which,  in the opinion of the  Attorney  General of the United  States,  is
     unconditionally guaranteed by the United States;

          [(c) interest-bearing time or demand deposits, certificates of deposit
     or other similar banking arrangements,  investment  agreements,  repurchase
     agreements,  or guaranteed investment contracts,  with a maturity of twelve
     (12)  months  or less  with  any  bank,  trust  company,  national  banking
     association or other depository institution, including those of the Trustee
     (and,  with respect to,  investment  agreements  or  guaranteed  investment
     contracts,  any  corporation),  provided  that,  at the time of  deposit or
     purchase such depository  institution  has commercial  paper which is rated
     ["A-1" by S&P, "P-1" by Moody's or "F-1" by Fitch];

          (d) interest-bearing time or demand deposits,  certificates of deposit
     or other similar banking arrangements,  investment  agreements,  repurchase
     agreements,  or guaranteed investment contracts,  with a maturity of twenty
     four (24) months or less, but more than twelve (12) months,  with any bank,
     trust  company,   national   banking   association   or  other   depository
     institution, including those of the Trustee and any of its affiliates (and,
     with respect to investment  agreements or guaranteed  investment contracts,
     any  corporation),  provided  that, at the time of deposit or purchase such
     depository  institution  has senior debt rated ["A" or higher by S&P, "P-1"
     or higher by Moody's or "A" or higher by Fitch],  and, if commercial  paper
     is  outstanding,  commercial  paper which is rated ["A-1" by S&P,  "P-1" by
     Moody's or "F-1" by Fitch];

          (e) interest-bearing time or demand deposits,  certificates of deposit
     or other similar banking arrangements,  investment  agreements,  repurchase
     agreements,  or guaranteed  investment  contracts,  with a maturity of more
     than twenty four (24) months with any bank, trust company, national banking
     association or other depository institution, including those of the Trustee
     and any of its affiliates (and, with respect to , investment  agreements or
     guaranteed  investment contracts,  any corporation),  provided that, at the
     time of deposit or purchase  such  depository  institution  has senior debt
     rated ["AA" or higher by S&P,  "Aa2" or higher by Moody's or "AA" or higher
     by Fitch] and, if commercial  paper is outstanding,  commercial paper which
     is rated ["A-1" by S&P, "Aa2" by Moody's or "F-1" by Fitch];

          (f)  commercial  paper,  including  that of the Trustee and any of its
     affiliates,  which is rated no less than ["A-1" by S&P, "P-1" by Moody's or
     "F-1" by Fitch],  and which matures not more than two hundred seventy (270)
     days after the date of purchase;

          (g) bonds, debentures, notes or other evidences of indebtedness issued
     or guaranteed by any of the following agencies:  Federal Farm Credit Banks,
     Federal Home Loan  Mortgage  Corporation;  Governmental  National  Mortgage
     Association;  Export-Import  Bank of the United  States;  Federal  National
     Mortgage  Association;  Student Loan  Marketing  Association;  Farmers Home

                                       11
<PAGE>
     Administration;  Federal Home Loan Banks; or any agency or  instrumentality
     of the United States of America which shall be established for the purposes
     of acquiring the obligations of any of the foregoing or otherwise providing
     financing therefor; or

          (h) a money market  mutual fund  investing  solely in the above listed
     assets.

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

     "PLACE OF PAYMENT"  when used with respect to the  Securities  of or within
any series,  means the place or places where the principal of (and  premium,  if
any) and interest on such Securities are payable as specified as contemplated by
Sections 3.01 and 10.02.

     "PREDECESSOR  SECURITY" of any  particular  Security  means every  previous
Security  evidencing all or a portion of the same debt as that evidenced by such
particular  Security;  and,  for the purposes of this  definition,  any Security
authenticated  and delivered  under Section 3.06 in exchange for or in lieu of a
mutilated,  destroyed,  lost or stolen  Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

     "PREFERRED STOCK" means, with respect to any Person,  all capital stock, if
any,  issued by such Person that are entitled to a preference  or priority  over
any other capital  stock issued by such Person with respect to any  distribution
of  such  Person's  assets,  whether  by  dividend  or  upon  any  voluntary  or
involuntary liquidation, dissolution or winding up.

     "REAL  PROPERTY"  means the real property  acquired by the Company with the
proceeds  from the sale of the  Securities  and which is  intended to be sold to
real estate developers and others.

     "REAL PROPERTY  DOCUMENTS" means,  with respect to Real Property,  the loan
agreement,  if  any,  and  the  purchase  agreement,  if  any,  relating  to the
acquisition of the Real Property by the Company,  the sale documents relating to
any  proposed  sale of all or a portion of the Real  Property  by the Company to
other Persons, including all financing statements, personal guarantees, bills of
sale and  powers of  attorney,  certificates  and any other  instruments  now or
hereinafter  executed  and  delivered  by a purchaser  or proposed  purchaser in
connection with the Real Property, as any of such may be amended or supplemented
from time to time.

     "REAL PROPERTY FILE" means, collectively, the following documents:

                         [List documents to be obtained]

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

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

                                       12
<PAGE>
     "REGISTERED  SECURITY"  shall mean any Security  which is registered in the
Security Register.

     "REGULAR RECORD DATE" for the interest payable on any Interest Payment Date
on the  Registered  Securities of or within any series means the date  specified
for that purpose as contemplated by Section 3.01, whether or not a Business Day.

     "REPAYMENT DATE" means, when used with respect to any Security to be repaid
at the option of the Holder, the date fixed for such repayment by or pursuant to
this Indenture.

     "RESPONSIBLE  OFFICER"  when used with  respect to the  Trustee,  means the
chairman  or vice  chairman  of the board of  directors,  the  chairman  or vice
chairman of the executive  committee of the board of directors,  the  president,
any vice  president  (whether or not  designated  by a number or a word or words
added before or after the title "vice president"),  the secretary, any assistant
secretary,  the treasurer,  any assistant treasurer,  the cashier, any assistant
cashier,  any trust officer or assistant  trust  officer,  the controller or any
other officer of the Trustee customarily  performing  functions similar to those
performed by any of the  above-designated  officers and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter is
referred because of such officer's knowledge and familiarity with the particular
subject.

     "REVENUE" or  "REVENUES"  means all  recoveries  of  principal,  dividends,
interest,  payments,  proceeds,  charges and other income or amounts received by
the  Trustee  or the  Company  from  or on  account  of  any  of the  Collateral
(excluding amounts described in Section 7.05(a)(ii)(B)).

     "SECURITIES  PAYMENT ACCOUNT" means the account  established and maintained
pursuant to Section  7.05(c),  including any subaccounts  created by the Trustee
therein pursuant to this Indenture.

     "SECURITY"  has the meaning  stated in the first recital of this  Indenture
and,  more  particularly,  means any Security or  Securities  authenticated  and
delivered under this Indenture; provided, however, that, if at any time there is
more than one Person acting as Trustee under this Indenture,  "Securities"  with
respect  to the  Indenture  as to which such  Person is  Trustee  shall have the
meaning   stated  in  the  first  recital  of  this  Indenture  and  shall  more
particularly  mean Securities  authenticated and delivered under this Indenture,
exclusive,  however,  of Securities of any series as to which such Person is not
Trustee.

     "SECURITY  AGREEMENT":  With  respect to any  Mortgage  Loan,  any security
agreement or equivalent instrument, whether contained in the related Mortgage or
executed separately, creating in favor of the holder of such Mortgage a security
interest in the personal  property  constituting  security for repayment of such
Mortgage Loan.

     "SECURITY  REGISTER" and "SECURITY  REGISTRAR" have the respective meanings
specified in Section 3.05.

     "SIGNIFICANT  SUBSIDIARY"  means  any  Subsidiary  which is a  "significant
subsidiary"  (as defined in Article I, Rule 1-02 of Regulation  S-X  promulgated
under the Securities Act of 1933, as amended) of the Company.

                                       13
<PAGE>
     "SPECIAL  RECORD  DATE" for the  payment of any  Defaulted  Interest on the
Registered  Securities of or within any series means a date fixed by the Company
pursuant to Section 3.07.

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

     "SUBSIDIARY" means a corporation a majority of the outstanding voting stock
of which is owned,  directly  or  indirectly,  by the  Company or by one or more
other Subsidiaries of the Company. For the purposes of this definition,  "voting
stock" means stock having voting power for the election of directors, whether at
all times or only so long as no senior  class of stock has such voting  power by
reason of any contingency.

     "TRANSACTION DOCUMENTS" means, with respect to each series, the Securities,
this Indenture, the Lock Box Agreements, if any, the Loan Documents, if any, the
Real Property Documents,  if any, and any other documents executed in connection
therewith.

     "TRUST  INDENTURE  ACT" or "TIA" means the Trust  Indenture Act of 1939, as
amended,  and as in force at the date as of which this  Indenture  was executed,
except as provided in Section 9.05.

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

     "UCC" means, with respect to each separate item of Collateral,  the Uniform
Commercial  Code  of the  State  the  law of  which  governs  the  creation  and
perfection of the Trustee's  security interest in such item of Collateral or the
Company's security interest in such item of Collateral, as the case may be.

     "UNITED  STATES"  means,  unless  otherwise  specified  with respect to any
Securities pursuant to Section 3.01, the United States of America (including the
states and the District of Columbia), its territories, its possessions and other
areas subject to its jurisdiction.

     "YIELD TO MATURITY"  means the yield to  maturity,  computed at the time of
issuance of a Security (or, if applicable, at the most recent redetermination of
interest on such Security) and as set forth in such Security in accordance  with
generally accepted United States bond yield computation principles.

     SECTION 1.02. COMPLIANCE CERTIFICATES AND OPINIONS. Upon any application or
request by the Company to the Trustee to take any action under any  provision of
this  Indenture,   the  Company  shall  furnish  to  the  Trustee  an  Officers'
Certificate stating that all conditions precedent,  if any, provided for in this
Indenture relating to the proposed action have been complied with and an Opinion
of  Counsel  to the  effect  that,  in the  opinion  of such  counsel,  all such
conditions  precedent,  if any, have been complied with, except that in the case

                                       14
<PAGE>
of any such  application or request as to which the furnishing of such documents
is  specifically  required by any provision of this  Indenture  relating to such
particular  application or request, no additional certificate or opinion need be
furnished.

     Every certificate or opinion with respect to compliance with a condition or
covenant  provided  for in  this  Indenture  (including  certificates  delivered
pursuant to Section 10.09) shall include:

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

          (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 each such  individual,  he has
     made such  examination  or  investigation  as is necessary to enable him to
     express an informed opinion as to whether or not such condition or covenant
     has been complied with; and

          (d) a statement as to whether, in the opinion of each such individual,
     such condition or covenant has been complied with.

     SECTION  1.03.  FORM OF DOCUMENTS  DELIVERED TO TRUSTEE.  In any case where
several  matters are required to be  certified  by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified by,
or covered by the opinion of, only one such Person, or that they be so certified
or  covered by only one  document,  but one such  Person may  certify or give an
opinion  as to some  matters  and one or more  other  such  Persons  as to other
matters,  and any such Person may certify or give an opinion as to such  matters
in one or several documents.

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

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

     SECTION  1.04.  ACTS  OF  HOLDERS.  Any  request,  demand,   authorization,
direction, notice, consent, waiver or other action provided by this Indenture to
be given or taken by Holders of the Outstanding  Securities of all series or one
or more series,  as the case may be, may be embodied in and  evidenced by one or
more instruments of substantially similar tenor signed by such Holders in person
or by agents duly  appointed in writing.  Except as herein  otherwise  expressly
provided, such action shall become effective when such instrument or instruments
or record or both are delivered to the Trustee and, where it is hereby expressly

                                       15
<PAGE>
required,  to the Company.  Such  instrument or instruments  and any such record
(and the action  embodied  therein and evidenced  thereby) are herein  sometimes
referred to as the "Act" of the Holders  signing such  instrument or instruments
or so voting at any such meeting.  Proof of execution of any such  instrument or
of a writing  appointing  any such  agent,  or of the holding by any Person of a
Security,  shall be sufficient  for any purpose of this Indenture and conclusive
in favor of the  Trustee  and the  Company  and any agent of the  Trustee or the
Company,  if made in the manner provided in this Section 1.04. The record of any
meeting of  Holders of  Securities  shall be proved in the  manner  provided  in
Section 15.06.

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

     The  ownership  of  Registered  Securities  shall be proved by the Security
Register.  As to any matter  relating to beneficial  ownership  interests in any
Global Security,  the appropriate  depositary's records shall be dispositive for
purposes of this Indenture.

     If the Company shall solicit from the Holders of Registered  Securities any
request, demand, authorization, direction, notice, consent, waiver or other Act,
the Company  may, at its option,  in or pursuant to a Board  Resolution,  fix in
advance a record  date for the  determination  of Holders  entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other Act,
but the Company shall have no obligation to do so.  Notwithstanding  TIA Section
316(c),  such record date shall be the record date  specified  in or pursuant to
such Board  Resolution,  which shall be a date not earlier than the date 30 days
prior to the first solicitation of Holders generally in connection therewith and
not later than the date such solicitation is completed. If such a record date is
fixed, such request, demand,  authorization,  direction, notice, consent, waiver
or other Act may be given before or after such record date, but only the Holders
of record at the close of  business  on such  record  date shall be deemed to be
Holders  for the  purposes  of  determining  whether  Holders  of the  requisite
proportion of Outstanding  Securities  have authorized or agreed or consented to
such request, demand, authorization, direction, notice, consent, waiver or other
Act, and for that  purpose the  Outstanding  Securities  shall be computed as of
such record date; provided,  however,  that no such authorization,  agreement or
consent by the Holders on such record date shall be deemed  effective  unless it
shall become  effective  pursuant to the  provisions of this Indenture not later
then eleven months after the record date.

     Any request, demand,  authorization,  direction, notice, consent, waiver or
other Act of the Holder of any Security  shall bind every  future  Holder of the
same Security and the Holder of every Security  issued upon the  registration of
transfer  thereof  or in  exchange  therefor  or in lieu  thereof  in respect of
anything  done,  omitted or suffered  to be done by the  Trustee,  any  Security

                                       16
<PAGE>
Registrar, any Paying Agent, any Authenticating Agent or the Company in reliance
thereon, whether or not notation of such action is made upon such Security.

     SECTION 1.05. NOTICES,  ETC., TO TRUSTEE AND COMPANY. Any request,  demand,
authorization,  direction,  notice,  consent,  waiver or Act of Holders or other
document  provided or  permitted  by this  Indenture  to be made upon,  given or
furnished to, or filed with:

          (a) the  Trustee by any Holder or by the Company  shall be  sufficient
     for every purpose hereunder if made,  given,  furnished or filed in writing
     to or with  the  Trustee  at the  address  of its  Corporate  Trust  Office
     specified in the first  paragraph of this Indenture,  Attention:  Corporate
     Trust Department;

          (b) the  Company by the Trustee or by any Holder  shall be  sufficient
     for every purpose hereunder (unless otherwise herein expressly provided) if
     in  writing  and  mailed,  first-class  postage  prepaid,  to  the  Company
     addressed  to it at the address of its  principal  office  specified in the
     first  paragraph  of this  Indenture  or at any  other  address  previously
     furnished  in  writing  to the  Trustee by the  Company,  Attention:  Chief
     Financial Officer (with a copy to the Company's general counsel); or

          (c) either the  Trustee or the  Company,  by the other  party shall be
     sufficient for every purpose hereunder if given by facsimile  transmission,
     receipt  confirmed by telephone  followed by an original copy  delivered by
     guaranteed  overnight  courier;  if to  the  Trustee  at  facsimile  number
     ____________; and if to the Company at facsimile number (480) ________.

     SECTION 1.06. NOTICE TO HOLDERS;  WAIVER. Where this Indenture provides for
notice of any event to Holders of  Registered  Securities  by the Company or the
Trustee,  such notice  shall be  sufficiently  given  (unless  otherwise  herein
expressly  provided) if in writing and mailed,  first-class  postage prepaid, to
each such Holder  affected  by such  event,  at his address as it appears in the
Security  Register,  not later than the latest  date,  and not earlier  than the
earliest  date, if any,  prescribed  for the giving of such notice.  In any case
where notice to Holders of Registered  Securities 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 of  Registered  Securities.  Any notice mailed to a Holder in the
manner herein  prescribed shall be conclusively  deemed to have been received by
such Holder, whether or not such Holder actually receives such notice.

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

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

     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.

                                       17
<PAGE>
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.

     SECTION  1.07.  COUNTERPARTS;  FACSIMILE;  EFFECT OF HEADINGS  AND TABLE OF
CONTENTS. This Indenture may be executed in any number of counterparts,  each of
which when executed shall be deemed to be an original, but all such counterparts
shall  together  constitute  but one  and the  same  Indenture.  Delivery  of an
executed  counterpart  of this  Indenture  by  facsimile  shall  be  equally  as
effective as delivery of an original executed counterpart of this Indenture. Any
party  delivering an executed  counterpart of this Indenture by facsimile  shall
also deliver an original executed  counterpart of this Indenture but the failure
to deliver  an  original  executed  counterpart  shall not affect the  validity,
enforceability  and binding  effect of this  Indenture.  The Article and Section
headings herein and the Table of Contents are for convenience only and shall not
affect the construction hereof.

     SECTION 1.08.  SUCCESSORS AND ASSIGNS. All covenants and agreements in this
Indenture  by the Company  shall bind its  successors  and  assigns,  whether so
expressed or not.

     SECTION 1.09.  SEVERABILITY CLAUSE. In case any provision in this Indenture
or in any Security  shall be invalid,  illegal or  unenforceable,  the validity,
legality and enforceability of the remaining  provisions shall not in any way be
affected or impaired thereby.

     SECTION 1.10.  BENEFITS OF INDENTURE.  Nothing in this  Indenture or in the
Securities, express or implied, shall give to any Person, other than the parties
hereto, any Security Registrar,  any Paying Agent, any Authenticating  Agent and
their successors hereunder and the Holders any benefit or any legal or equitable
right, remedy or claim under this Indenture.

     SECTION 1.11.  GOVERNING LAW. This  Indenture and the  Securities  shall be
governed  by and  construed  in  accordance  with the law of the State of Nevada
applicable to agreements  made and to be performed  therein.  This  Indenture is
subject  to the  provisions  of the TIA  that  are  required  to be part of this
Indenture and shall, to the extent applicable, be governed by such provisions.

     SECTION 1.12. LEGAL HOLIDAYS.  In any case where any Interest Payment Date,
Redemption Date,  Repayment Date, Stated Maturity or Maturity of any Security or
the last date on which a Holder has the right to convert or  exchange a Security
shall not be a Business Day at any Place of Payment,  then  (notwithstanding any
other  provision of this Indenture or any Security other than a provision in the
Securities of any series which  specifically  states that such  provision  shall
apply  in lieu  hereof),  payment  of  interest  or any  Additional  Amounts  or
principal (and premium,  if any) or conversion or exchange of such security need
not be made at such  Place of Payment on such  date,  but  (except as  otherwise
provided in the  supplemental  indenture  with respect to such  Security) may be
made on the next succeeding  Business Day at such Place of Payment with the same
force and  effect as if made on the  Interest  Payment  Date,  Redemption  Date,
Repayment  Date or at the Stated  Maturity or  Maturity,  or on such last day of
conversion or exchange,  provided that no interest shall accrue on the amount so
payable for the period from and after such  Interest  Payment  Date,  Redemption
Date, Repayment Date, sinking fund payment date, Stated Maturity or Maturity, as
the case may be.

                                       18
<PAGE>
     SECTION 1.13. IMMUNITY OF STOCKHOLDERS,  DIRECTORS,  OFFICERS AND AGENTS OF
THE COMPANY.  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 past, present or future stockholder,
employee,  officer or  director,  as such,  of the Company or of any  successor,
either directly or through the Company 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 by the Holders
and as part of the consideration for the issue of the Securities.

     SECTION 1.14.  CONFLICT WITH TRUST  INDENTURE ACT. If any provision  hereof
limits,  qualifies or conflicts with another  provision hereof which is required
or deemed to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required  provision shall control.  If any provision of this
Indenture modifies or excludes any provision of the Trust Indenture Act that may
be so modified or  excluded,  the latter  provision  shall be deemed to apply to
this Indenture as so modified or to be excluded, as the case may be.

                                   ARTICLE II

                                SECURITIES FORMS

     SECTION 2.01. FORMS OF SECURITIES. The Registered Securities of each series
shall be  substantially in the form of Exhibit A hereto or in such other form as
shall be established in one or more indentures  supplemental  hereto or approved
from time to time by or pursuant  to a Board  Resolution  adopted in  accordance
with  Section  3.01,   shall  have  such  appropriate   insertions,   omissions,
substitutions  and  other  variations  as are  required  or  permitted  by  this
Indenture  or any  indenture  supplemental  hereto,  and may have such  letters,
numbers or other marks of  identification  or  designation  and such  legends or
endorsements  placed thereon as the Company may deem  appropriate and as are not
inconsistent  with the  provisions of this  Indenture,  or as may be required to
comply with any law or with any rule or regulation made pursuant thereto or with
any rule or  regulation  of any stock  exchange on which the  Securities  may be
listed, or to conform to usage.

     Subject  to Section  3.04,  the  definitive  Securities  shall be  printed,
lithographed or engraved,  or produced by any combination of these methods, on a
steel engraved border or steel engraved  borders or  mechanically  reproduced on
safety paper or may be produced in any other  manner,  all as  determined by the
officers  of the  Company  executing  such  Securities,  as  evidenced  by their
execution of such Securities.

     SECTION 2.02. FORM OF TRUSTEE'S  CERTIFICATE OF AUTHENTICATION.  Subject to
Section  6.11,  the  Trustee's   certificate  of  authentication   shall  be  in
substantially the following form:

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

                                        ___________________, as Trustee

                                       19
<PAGE>
                                        By________________________________
                                          Authorized Signatory

     SECTION  2.03.  SECURITIES  ISSUABLE IN GLOBAL FORM.  If  Securities  of or
within a series are issuable in the form of one or more Global Securities, then,
notwithstanding  clause (h) of Section 3.01 and the  provisions of Section 3.02,
any such  Global  Security  or  Securities  may  provide  that it or they  shall
represent the aggregate amount of all Outstanding  Securities of such series (or
such  lesser  amount as is  permitted  by the terms  thereof)  from time to time
endorsed  thereon and may also provide that the aggregate  amount of Outstanding
Securities of such series represented thereby may from time to time be increased
or decreased to reflect  exchanges.  Any  endorsement of any Global  Security to
reflect the amount, or any increase or decrease in the amount, or changes in the
rights of Holders thereof, of Outstanding  Securities  represented thereby shall
be made by the  Trustee in such  manner or by such Person or Persons as shall be
specified  therein  or in the  Company  Order  to be  delivered  to the  Trustee
pursuant to Section 3.03 or 3.04. Subject to the provisions of Section 3.03 and,
if applicable,  Section 3.04, the Trustee shall deliver and redeliver any Global
Security in permanent global form in the manner and upon  instructions  given by
the Person or Persons specified therein or in the applicable Company Order. If a
Company Order pursuant to Section 3.03 or 3.04 has been, or  simultaneously  is,
delivered,  any  instructions  by the Company  with  respect to  endorsement  or
delivery or  redelivery  of a Global  Security  shall be in writing but need not
comply with Section 1.02 and need not be accompanied by an Opinion of Counsel.

     The  provisions  of the last  sentence  of Section  3.03 shall apply to any
Security  represented by a Global Security if such Security was never issued and
sold by the Company and the Company  delivers to the Trustee the Global Security
together with written  instructions (which need not comply with Section 1.02 and
need not be  accompanied  by an Opinion of Counsel) with regard to the reduction
in the principal  amount of Securities  represented  thereby,  together with the
written statement contemplated by the last sentence of Section 3.03.

     Notwithstanding  the provisions of Section 3.07, unless otherwise specified
as  contemplated  by Section  3.01,  payment of principal of and any premium and
interest on any Global Security shall be made to the Person or Persons specified
therein.

     Notwithstanding  the  provisions  of Section 3.08 and except as provided in
the preceding  paragraph,  the Company, the Trustee and any agent of the Company
and  the  Trustee  shall  treat  as the  Holder  of  such  principal  amount  of
Outstanding Securities represented by a permanent Global Security in the case of
a permanent  Global  Security in registered  form,  the Holder of such permanent
Global Security in registered form.

     Any Global  Security  authenticated  and delivered  hereunder  shall bear a
legend in substantially the following form:

     This Security is a Global Security within the meaning set forth in the
     Indenture  hereinafter  referred to and is registered in the name of a
     Depositary or a nominee of a Depositary. This Security is exchangeable
     for  Securities  registered  in the  name of a person  other  than the
     Depositary or its nominee only in the limited circumstances  described
     in the Indenture,  and may not be transferred except as a whole by the

                                       20
<PAGE>
     Depository  to a nominee  of the  Depositary  or by a  nominee  of the
     Depositary to the  Depositary or another  nominee of the Depositary or
     by the  Depositary  or its  nominee to a successor  Depositary  or its
     nominee.

                                  ARTICLE III

                                 THE SECURITIES

     SECTION 3.01. AMOUNT UNLIMITED; ISSUABLE IN SERIES. The aggregate principal
amount of  Securities  which  may be  authenticated  and  delivered  under  this
Indenture is unlimited.

     The  Securities  may be  issued  in one or  more  series.  There  shall  be
established in one or more Board Resolutions or pursuant to authority granted by
one or more Board  Resolutions  and,  subject to Section  3.03,  set forth in an
Officers'  Certificate,  or established in one or more  indentures  supplemental
hereto, prior to the issuance of Securities of any series:

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

          (b) any limit upon the aggregate principal amount of the Securities of
     the series that may be  authenticated  and delivered  under this  Indenture
     (except for Securities  authenticated  and delivered upon  registration  of
     transfer  of, or in exchange  for, or in lieu of, other  Securities  of the
     series pursuant to Section 3.04, 3.05, 3.06, 9.06, 11.07 or 13.05);

          (c) the date or dates,  or the method by which such date or dates will
     be determined, on which the principal of the Securities of the series shall
     be payable;

          (d) the rate or rates at which the Securities of the series shall bear
     interest,  if any,  or the  method  by which  such  rate or rates  shall be
     determined,  the date or dates from which such interest shall accrue or the
     method  by which  such  date or dates  shall be  determined,  the  Interest
     Payment Dates on which such interest will be payable and the Regular Record
     Date, if any, for the interest  payable on any  Registered  Security on any
     Interest  Payment  Date,  or  the  method  by  which  such  date  shall  be
     determined,  and the basis upon which interest shall be calculated if other
     than that of a 360-day year of twelve 30-day months;

          (e) the place or places where the principal of (and premium,  if any),
     interest,  if any, on, and Additional  Amounts,  if any, payable in respect
     of, Securities of the series shall be payable, any Securities of the series
     may be surrendered  for  registration  of transfer,  exchange or conversion
     (each to the  extent  applicable)  and  notices  or  demands to or upon the
     Company in respect of the  Securities of the series and this  Indenture may
     be served;

          (f) the period or periods within which,  the price or prices at which,
     the currency or currencies, currency unit or units or composite currency or
     currencies in which,  and other terms and conditions upon which  Securities
     of the series may be  redeemed,  in whole or in part,  at the option of the
     Company, if the Company is to have the option;

                                       21
<PAGE>
          (g) the  obligation,  if any,  of the  Company  to  redeem,  repay  or
     purchase Securities of the series pursuant to any sinking fund or analogous
     provision or at the option of a Holder  thereof,  and the period or periods
     within  which or the date or dates on which,  the price or prices at which,
     the currency or currencies, currency unit or units or composite currency or
     currencies in which,  and other terms and conditions upon which  Securities
     of the series shall be redeemed,  repaid or purchased, in whole or in part,
     pursuant to such obligation;

          (h) if other than denominations of $5,000 and any integral multiple of
     $1,000 in excess thereof,  the denominations in which any Securities of the
     series shall be issuable;

          (i) if other than the Trustee, the identity of each Security Registrar
     and/or Paying Agent;

          (j) the price  (expressed  as a  percentage  of the  principal  amount
     thereof or otherwise) at which the  Securities of the series will be issued
     and,  if other  than the  principal  amount  thereof,  the  portion  of the
     principal  amount of  Securities  of the series that shall be payable  upon
     declaration of  acceleration  of the Maturity  thereof  pursuant to Section
     5.02 or, if applicable,  the portion of the principal  amount of Securities
     of the series that is convertible in accordance with the provisions of this
     Indenture, or the method by which such portion shall be determined;

          (k) [Reserved];

          (l) whether the amount of payments of  principal of (and  premium,  if
     any) or interest, if any, on the Securities of the series may be determined
     with reference to an index,  formula or other method (which index,  formula
     or method  may be based,  without  limitation,  on one or more  currencies,
     currency units, composite currencies,  commodities, equity indices or other
     indices), and the manner in which such amounts shall be determined;

          (m)  whether the  principal  of (and  premium,  if any) or interest or
     Additional  Amounts,  if any,  on the  Securities  of the  series are to be
     payable,  at the election of the Company or a Holder thereof, in a currency
     or currencies,  currency unit or units or composite  currency or currencies
     other than that in which such  Securities  are  denominated or stated to be
     payable,  the period or periods within which,  and the terms and conditions
     upon  which,  such  election  may be made,  and the time and manner of, and
     identity of the exchange rate agent with  responsibility  for,  determining
     the  exchange  rate between the currency or  currencies,  currency  unit or
     units or composite  currency or  currencies  in which such  Securities  are
     denominated  or  stated  to be  payable  and the  currency  or  currencies,
     currency  unit or units or composite  currency or  currencies in which such
     Securities are to be so payable;

          (n)  provisions,  if any,  granting  special  rights to the Holders of
     Securities  of the  series  upon the  occurrence  of such  events as may be
     specified and the provisions,  if any, relating to the subordination of the
     Securities of the series to other obligations of the Company;

                                       22
<PAGE>
          (o) any deletions from, modifications of or additions to the Events of
     Default or  covenants  of the Company  with  respect to  Securities  of the
     series,  whether or not such Events of Default or covenants are  consistent
     with the Events of Default or covenants set forth herein, and any change in
     the right of any  trustee or any of the  Holders to declare  the  principal
     amount of any such Securities due and payable;

          (p) whether any Securities of the series are to be issuable  initially
     in temporary global form and whether any Securities of the series are to be
     issuable in permanent global form and, if so, whether  beneficial owners of
     interests in any such permanent Global Security may exchange such interests
     for Securities of such series and of like tenor of any authorized  form and
     denomination  and the  circumstances  under  which any such  exchanges  may
     occur,  if other  than in the manner  provided  in Section  3.05,  and,  if
     Registered  Securities  of  the  series  are  to be  issuable  as a  Global
     Security, the identity of the depositary for such series;

          (q) the date as of which any temporary  Global  Security  representing
     Outstanding  Securities of the series shall be dated if other than the date
     of original issuance of the first Security of the series to be issued;

          (r) the Person to whom any interest on any Registered  Security of the
     series  shall be  payable,  if other  than the  person  in whose  name that
     Security (or one or more Predecessor Securities) is registered at the close
     of business on the Regular Record Date for such interest, and the extent to
     which, or the manner in which,  any interest  payable on a temporary Global
     Security  on an  Interest  Payment  Date will be paid if other  than in the
     manner provided in Section 3.04;

          (s) the  applicability,  if any, of Sections 14.02 and/or 14.03 to the
     Securities of the series and any provisions in modification of, in addition
     to or in lieu of any of the provisions of Article XIV;

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

          (u) if the Securities of the series are to be issued upon the exercise
     of  warrants,  the  time,  manner  and  place  for  such  Securities  to be
     authenticated and delivered;

          (v)  whether  and  under  what  circumstances  the  Company  will  pay
     Additional  Amounts as  contemplated  by Section 10.10 on the Securities of
     the series to any Holder who is not a United States Person  (including  any
     modification  to the  definition  of such  term)  in  respect  of any  tax,
     assessment or governmental charge and, if so, whether the Company will have
     the  option to  redeem  such  Securities  rather  than pay such  Additional
     Amounts (and the terms of any such option);

          (w) the obligation, if any, of the Company to permit the conversion of
     the Securities of such series into the Company's  Common Stock or Preferred
     Stock,  as the case may be,  and the terms and  conditions  upon which such
     conversion shall be effected  (including,  without limitation,  the initial

                                       23
<PAGE>
     conversion  price or rate,  the  conversion  period,  any adjustment of the
     applicable   conversion  price  and  any   requirements   relative  to  the
     reservation  of such shares for  purposes  of  conversion)  and  applicable
     limitations  on the  ownership  or  transferability  of the Common Stock or
     Preferred Stock into which such Securities are convertible;

          (x) the provisions,  if any, relating to any security provided for the
     Securities of the series; and

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

     All Securities of any one series shall be substantially  identical  except,
in the case of  Registered  Securities,  as to  denomination  and  except as may
otherwise  be  provided  in or  pursuant  to such Board  Resolution  (subject to
Section  3.03)  and set  forth  in such  Officers'  Certificate  or in any  such
indenture  supplemental  hereto.  All  Securities  of any one series need not be
issued  at the same  time  and,  unless  otherwise  provided,  a  series  may be
reopened,  without the  consent of the  Holders,  for  issuances  of  additional
Securities of such series.

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

     SECTION  3.02.  DENOMINATIONS.  The  Securities  of each  series  shall  be
issuable in such  denominations as shall be specified as contemplated by Section
3.01.  With respect to Securities of any series  denominated in Dollars,  in the
absence of any such provisions with respect to the Securities of any series, the
Securities of such series,  other than  Securities  issued in global form (which
may be of any  denomination),  shall be issuable in  denominations of $5,000 and
any integral multiple of $1,000 in excess thereof.

     SECTION  3.03.   EXECUTION,   AUTHENTICATION,   DELIVERY  AND  DATING.  The
Securities  shall be executed  on behalf of the  Company by its  Chairman of the
Board,  its President or one of its Executive or Senior Vice  Presidents,  under
its corporate seal reproduced  thereon,  and attested by its Secretary or one of
its  Assistant  Secretaries.  The  signature  of any of  these  officers  on the
Securities  may be manual or facsimile  signatures  of the present or any future
such  authorized  officer and may be imprinted or  otherwise  reproduced  on the
Securities.

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

     At any time and from time to time after the  execution and delivery of this
Indenture,  the  Company may deliver  Securities  of any series  executed by the
Company to the Trustee for authentication, together with a Company Order for the

                                       24
<PAGE>
authentication  and delivery of such  Securities,  and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities.

     If all the Securities of any series are not to be issued at one time and if
the Board Resolution or supplemental indenture establishing such series shall so
permit,  such Company Order may set forth  procedures  acceptable to the Trustee
for the issuance of such  Securities  and  determining  the terms of  particular
Securities of such series, such as interest rate or formula, maturity date, date
of issuance and date from which interest shall accrue.  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 TIA Section  315(a)  through  315(d))  shall be fully  protected  in
relying upon:

          (a) an Opinion of Counsel stating that:

               (i) the form or forms of such Securities have been established in
          conformity with the provisions of this Indenture;

               (ii) the  terms  of such  Securities  have  been  established  in
          conformity with the provisions of this Indenture;

               (iii) such Securities,  when completed by appropriate  insertions
          and  executed  and  delivered  by  the  Company  to  the  Trustee  for
          authentication  in accordance with this Indenture,  authenticated  and
          delivered by the Trustee in accordance  with this Indenture and issued
          by the Company in the manner and subject to any  conditions  specified
          in such Opinion of Counsel,  will constitute legal,  valid and binding
          obligations  of the  Company,  enforceable  in  accordance  with their
          terms,  subject  to  applicable  bankruptcy,   insolvency,  fraudulent
          transfer,   reorganization   and  other   similar   laws  of   general
          applicability  relating to or affecting the  enforcement of creditors'
          rights generally and to general equitable principles; and

          (b) an Officers'  Certificate  stating that all  conditions  precedent
     provided for in this  Indenture  relating to the issuance of the Securities
     have been  complied  with and  that,  to the best of the  knowledge  of the
     signers of such certificate, no Event of Default with respect to any of the
     Securities shall have occurred and be continuing.

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

     Notwithstanding  the  provisions  of  Section  3.01  and of  the  preceding
paragraph, if all the Securities of any series are not to be issued at one time,
it shall not be necessary to deliver an Officers' Certificate otherwise required
pursuant  to  Section  3.01 or a Company  Order,  or an Opinion of Counsel or an
Officers'  Certificate otherwise required pursuant to the preceding paragraph at
the time of issuance of each  Security of such series,  but such order,  opinion
and certificates, with appropriate modifications to cover such future issuances,
shall be  delivered  at or before the time of issuance of the first  Security of
such series.

                                       25
<PAGE>
     Each Registered  Security shall be dated the date of its  authentication as
contemplated by Section 3.01.

     No Security  shall be entitled to any benefit  under this  Indenture  or be
valid or  obligatory  for any purpose  unless there  appears on such  Security a
certificate of authentication substantially in the form provided for herein duly
executed by the Trustee by manual signature of an authorized signatory, and such
certificate  upon  any  Security  shall  be  conclusive  evidence,  and the only
evidence, that such security has been duly authenticated and delivered hereunder
and  is  entitled  to  the  benefits  of  this  Indenture.  Notwithstanding  the
foregoing,  if any  Security  (including  a Global  Security)  shall  have  been
authenticated and delivered  hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for  cancellation  as
provided  in Section  3.09  together  with a written  statement  (which need not
comply with Section 1.02 and need not be  accompanied  by an Opinion of Counsel)
stating that such  Security  has never been issued and sold by the Company,  for
all purposes of this  Indenture such Security shall be deemed never to have been
authenticated  and  delivered  hereunder  and  shall  never be  entitled  to the
benefits of this Indenture.

     SECTION 3.04. TEMPORARY  SECURITIES.  Pending the preparation of definitive
Securities  of any series,  the Company may execute,  and upon Company Order the
Trustee shall authenticate and deliver,  temporary Securities which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of
which they are issued, in registered form, and with such appropriate insertions,
omissions,  substitutions  and other  variations as the officers  executing such
Securities may determine,  as conclusively  evidenced by their execution of such
Securities.  In the case of Securities of any series, such temporary  Securities
may be in global form.

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

     SECTION 3.05.  REGISTRATION,  REGISTRATION  OF TRANSFER AND  EXCHANGE.  The
Company shall cause to be kept at the  Corporate  Trust Office of the Trustee or
in any office or agency of the Company in a Place of Payment a register for each
series of  Securities  (the  registers  maintained in such office or in any such
office or agency of the  Company in a Place of Payment  being  herein  sometimes
referred to collectively as the "Security  Register") in which,  subject to such
reasonable  regulations as it may  prescribe,  the Company shall provide for the
registration of Securities and of transfers of Securities. The Security Register
shall be in written  form or any other  form  capable  of being  converted  into
written  form within a reasonable  time.  The Trustee,  at its  Corporate  Trust

                                       26
<PAGE>
Office, is hereby initially  appointed  "Security  Registrar" for the purpose of
registering  Securities and transfers of Securities on such Security Register as
herein provided.  If the Trustee shall cease to be Security Registrar,  it shall
have the right to examine the Security Register at all reasonable times.

     Subject  to the  provisions  of  this  Section  3.05,  upon  surrender  for
registration of transfer of any Registered  Security of any series at any office
or agency of the  Company in a Place of Payment  for that  series,  the  Company
shall execute,  and the Trustee shall  authenticate and deliver,  in the name of
the designated transferee or transferees, one or more new Securities of the same
series,  of any  authorized  denominations  and of a  like  aggregate  principal
amount,  bearing a number  not  contemporaneously  outstanding,  and  containing
identical terms and provisions.

     Subject  to the  provisions  of this  Section  3.05,  at the  option of the
Holder,  Securities of any series may be exchanged  for other  Securities of the
same series,  of any  authorized  denomination  or  denominations  and of a like
aggregate  principal  amount,  containing  identical terms and provisions,  upon
surrender  of the  Securities  to be  exchanged  at any such  office or  agency.
Whenever any such Securities are so surrendered for exchange,  the Company shall
execute,  and the Trustee shall  authenticate and deliver,  the Securities which
the Holder making the exchange is entitled to receive.

     Except  as  otherwise  specified  as  contemplated  by  Section  3.01,  any
permanent  Global  Security  shall  be  exchangeable  only as  provided  in this
paragraph.  If the  depositary for any permanent  Global  Security is DTC, then,
unless the terms of such Global Security  expressly  permit such Global Security
to be exchanged in whole or in part for definitive Securities, a Global Security
may be transferred,  in whole but not in part, only to a nominee of DTC, or by a
nominee  of DTC to DTC,  or to a  successor  to DTC  for  such  Global  Security
selected or approved by the Company or to a nominee of such successor to DTC. If
at any time DTC  notifies the Company that it is unwilling or unable to continue
as depositary for the applicable Global Security or Securities or if at any time
DTC  ceases  to be a  Clearing  Agency,  if so  required  by  applicable  law or
regulation,  the Company  shall appoint a successor  depositary  with respect to
such Global  Security or  Securities.  If (a) a  successor  depositary  for such
Global  Security or Securities  is not  appointed by the Company  within 90 days
after the Company  receives such notice or becomes aware of such  unwillingness,
inability  or  ineligibility,  (b) an  Event  of  Default  has  occurred  and is
continuing and the beneficial owners representing a majority in principal amount
of the applicable  series of Securities  represented by such Global  Security or
Securities  advise DTC to cease acting as depositary for such Global Security or
Securities or (c) the Company,  in its sole  discretion,  determines at any time
that all Outstanding  Securities (but not less than all) of any series issued or
issuable  in the  form of one or more  Global  Securities  shall  no  longer  be
represented  by such Global  Security  or  Securities,  then the  Company  shall

                                       27
<PAGE>
execute, and the Trustee shall authenticate and deliver,  definitive  Securities
of like  series,  rank,  tenor  and  terms in  definitive  form in an  aggregate
principal  amount  equal to the  principal  amount of such  Global  Security  or
Securities.  If any  beneficial  owner  of an  interest  in a  permanent  Global
Security is otherwise  entitled to exchange such interest for Securities of such
series and of like tenor and  principal  amount of another  authorized  form and
denomination, as specified as contemplated by Section 3.01 and provided that any
applicable  notice  provided in the permanent  Global  Security  shall have been
given,  then  without  unnecessary  delay but in any  event  not later  than the
earliest  date on which such  interest may be so  exchanged,  the Company  shall
execute, and the Trustee shall authenticate and deliver,  definitive  Securities
in aggregate  principal  amount equal to the principal amount of such beneficial
owner's  interest in such permanent  Global  Security.  On or after the earliest
date on which such interests may be so exchanged, such permanent Global Security
shall be  surrendered  for exchange by DTC or such other  depositary as shall be
specified  in the Company  Order with  respect  thereto to the  Trustee,  as the
Company's agent for such purpose; provided,  however, that no such exchanges may
occur  during a period  beginning  at the opening of business 15 days before any
selection of  Securities  to be redeemed  and ending on the relevant  Redemption
Date if the Security for which exchange is requested may be among those selected
for redemption.  If a Registered  Security is issued in exchange for any portion
of a  permanent  Global  Security  after the close of  business at the office or
agency where such exchange  occurs on (i) any Regular Record Date and before the
opening of business at such office or agency on the  relevant  Interest  Payment
Date or (ii) any Special  Record Date and the opening of business at such office
or agency on the  related  proposed  date for  payment  of  Defaulted  Interest,
interest or Defaulted Interest,  as the case may be, will not be payable on such
Interest  Payment  Date or  proposed  date for  payment,  as the case may be, in
respect  of such  Registered  Security,  but will be  payable  on such  Interest
Payment  Date or  proposed  date for  payment,  as the case may be,  only to the
Person to whom  interest  in respect of such  portion of such  permanent  Global
Security is payable in accordance with the provisions of this Indenture.

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

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

     No  service  charge  shall  be made for any  registration  of  transfer  or
exchange of Securities,  but the Company may require payment of a sum sufficient
to cover any tax or other governmental  charge that may be imposed in connection
with any  registration  of  transfer  or  exchange  of  Securities,  other  than
exchanges  pursuant to Section  3.04,  9.06,  11.07 or 13.05 not  involving  any
transfer.

     The Company or the  Trustee,  as  applicable,  shall not be required to (a)
issue, register the transfer of or exchange any Security if such Security may be
among those selected for redemption  during a period beginning at the opening of
business 15 days before date of mailing of the relevant notice of redemption and
ending at the  close of  business  on the date of the  mailing  of the  relevant
notice of  redemption  or, if such  Securities  are also  issuable as Registered
Securities  and there is no  publication,  the date of mailing  of the  relevant
notice of redemption, or (b) register the transfer of or exchange any Registered
Security so selected for redemption in whole or in part,  except, in the case of
any Registered  Security to be redeemed in part,  the portion  thereof not to be
redeemed;   provided,   however,   that  such   Registered   Security  shall  be
simultaneously surrendered for redemption or (d) issue, register the transfer of

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<PAGE>
or exchange any Security which has been  surrendered for repayment at the option
of the Holder, except the portion, if any, of such Security not to be so repaid.

     SECTION 3.06.  MUTILATED,  DESTROYED,  LOST AND STOLEN  SECURITIES.  If any
mutilated Security is surrendered to the Trustee or the Company,  together with,
in proper cases, such security or indemnity as may be required by the Company or
the  Trustee to save each of them or any agent of either of them  harmless,  the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new  Security of the same  series and  principal  amount,  containing
identical  terms  and  provisions  and  bearing a number  not  contemporaneously
outstanding, appertaining to the surrendered Security.

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

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

     Upon the issuance of any new Security  under this Section 3.06, the Company
may  require  the  payment  of a sum  sufficient  to  cover  any  tax  or  other
governmental  charge  that may be  imposed  in  relation  thereto  and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

     Every new  Security of any series  issued  pursuant to this Section 3.06 in
lieu of any destroyed,  lost or stolen  Security,  shall  constitute an original
additional contractual obligation of the Company,  whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately  with
any and all other Securities of that series duly issued hereunder.

     The  provisions of this Section 3.06 are  exclusive and shall  preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.

     SECTION 3.07.  PAYMENT OF INTEREST;  INTEREST  RIGHTS  RESERVED.  Except as
otherwise  specified  with respect to a series of Securities in accordance  with
the  provisions of Section  3.01,  interest on any  Registered  Security that is
payable,  and is punctually  paid or duly provided for, on any Interest  Payment
Date  shall be paid to the Person in whose  name that  Security  (or one or more
Predecessor  Securities)  is  registered at the close of business on the Regular
Record Date for such interest at the office or agency of the Company  maintained
for such  purpose  pursuant  to  Section  10.02;  provided,  however,  that each
installment of interest on any Registered  Security may at the Company's  option
be paid by (a) mailing a check for such interest, payable to or upon the written

                                       29
<PAGE>
order of the Person entitled thereto pursuant to Section 3.08, to the address of
such Person as it appears on the  Security  Register or (b) wire  transfer to an
account maintained by the payee located inside the United States.

     Unless otherwise  provided as contemplated by Section 3.01, every permanent
Global  Security  will provide that  interest,  if any,  payable on any Interest
Payment Date will be paid to DTC with respect to that portion of such  permanent
Global Security held for its account by Cede & Co, for the purpose of permitting
such party to credit the  interest  received by it in respect of such  permanent
Global Security to the accounts of the beneficial owners thereof.

     Except as otherwise  specified  with respect to a series of  Securities  in
accordance  with the  provisions of Section 3.01, any interest on any Registered
Security  of any series  that is  payable,  but is not  punctually  paid or duly
provided for, on any Interest Payment Date (herein called "Defaulted  Interest")
shall  forthwith  cease to be payable to the  registered  Holder  thereof on the
relevant  Regular  Record  Date by virtue of having been such  Holder,  and such
Defaulted Interest may be paid by the Company, at its election,  in each case as
provided in clause (a) or (b) below:

          (a) The Company may elect to make payment of any Defaulted Interest to
     the  Persons  in whose  names  the  Securities  of such  series  (or  their
     respective Predecessor  Securities) are registered at the close of business
     on a Special Record Date for the payment of such Defaulted Interest,  which
     shall be fixed in the  following  manner.  The  Company  shall  notify  the
     Trustee in writing of the amount of Defaulted  Interest proposed to be paid
     on each  Registered  Security of such  series and the date of the  proposed
     payment (which shall not be less than 20 days after such notice is received
     by the  Trustee),  and at the same time the Company  shall deposit with the
     Trustee an amount of money in the currency or currencies,  currency unit or
     units or composite  currency or currencies in which the  Securities of such
     series are payable (except as otherwise  specified pursuant to Section 3.01
     for the Securities of such series) equal to the aggregate  amount  proposed
     to be paid in respect of such Defaulted Interest or shall make arrangements
     satisfactory to the Trustee for such deposit on or prior to the date of the
     proposed  payment,  such money when  deposited  to be held in trust for the
     benefit of the  Persons  entitled  to such  Defaulted  Interest  as in this
     clause provided.  Thereupon the Trustee shall fix a Special Record Date for
     the payment of such Defaulted Interest which shall be not more than 15 days
     and not less than 10 days prior to the date of the proposed payment and not
     less than 10 days  after the  receipt  by the  Trustee of the notice of the
     proposed  payment.  The Trustee shall  promptly  notify the Company of such
     Special  Record Date and,  in the name and at the  expense of the  Company,
     shall cause notice of the proposed  payment of such Defaulted  Interest and
     the Special Record Date therefor to be mailed, first-class postage prepaid,
     to each Holder of Securities of such series at his address as it appears in
     the Security  Register  not less than 10 days prior to such Special  Record
     Date. The Trustee may, in its discretion, in the name and at the expense of
     the  Company,  cause a similar  notice to be  published at least once in an
     Authorized  Newspaper in each Place of Payment, but such publications shall
     not be a condition  precedent to the  establishment  of such Special Record

                                       30
<PAGE>
     Date.  Notice of the proposed  payment of such  Defaulted  Interest and the
     Special  Record  Date  therefor  having  been  mailed  as  aforesaid,  such
     Defaulted  Interest  shall  be paid  to the  Persons  in  whose  names  the
     Securities of such series (or their respective Predecessor  Securities) are
     registered  at the close of business on such Special  Record Date and shall
     no longer be payable pursuant to the following clause (b).

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

     Subject to the foregoing  provisions of this Section 3.07 and Section 3.05,
each Security delivered under this Indenture upon registration of transfer of or
in  exchange  for or in lieu of any other  Security  shall  carry the  rights to
interest  accrued and unpaid,  and to accrue,  which were  carried by such other
Security.

     SECTION  3.08.  PERSONS  DEEMED  OWNERS.  Prior  to  due  presentment  of a
Registered Security for registration of transfer,  the Company,  the Trustee and
any agent of the  Company or the Trustee may treat the Person in whose name such
Registered  Security is registered as the owner of such Security for the purpose
of  receiving  payment of principal of (and  premium,  if any),  and (subject to
Sections 3.05 and 3.07) interest on, such Registered  Security and for all other
purposes  whatsoever,  whether or not such Registered  Security be overdue,  and
neither  the  Company,  the  Trustee nor any agent of the Company or the Trustee
shall be affected by notice to the  contrary.  All such  payments so made to any
such Person, or upon such Person's order,  shall be valid, and, to the extent of
the sum or sums so paid,  effectual to satisfy and  discharge  the liability for
money payable upon any such Security.

     No Holder of any  beneficial  interest in any Global  Security  held on its
behalf by a depositary  shall have any rights under this  Indenture with respect
to such Global Security and such depositary shall be treated by the Company, the
Trustee, and any agent of the Company or the Trustee as the owner of such Global
Security for all purposes  whatsoever.  None of the  Company,  the Trustee,  any
Paying Agent or the Security Registrar will have any responsibility or liability
for any  aspect of the  records  relating  to or  payments  made on  account  of
beneficial  ownership  interests  of  a  Global  Security  or  for  maintaining,
supervising  or  reviewing  any records  relating to such  beneficial  ownership
interests.

     Notwithstanding the foregoing, with respect to any Global Security, nothing
herein shall  prevent the Company,  the Trustee,  or any agent of the Company or
the Trustee,  from giving  effect to any written  certification,  proxy or other
authorization  furnished by any  depositary,  as a Holder,  with respect to such
Global  Security or impair,  as between such depositary and owners of beneficial
interests  in  such  Global  Security,  the  operation  of  customary  practices
governing  the  exercise of the rights of such  depositary  (or its  nominee) as
Holder of such Global Security.

     SECTION  3.09.  CANCELLATION.   All  Securities  surrendered  for  payment,
redemption,  repayment at the option of the Holder,  registration of transfer or
exchange or conversion or for credit against any sinking fund payment shall,  if
surrendered  to any Person other than the Trustee,  be delivered to the Trustee,
and any such Securities and Securities  surrendered  directly to the Trustee for

                                       31
<PAGE>
any such purpose shall be promptly  cancelled by it. The Company may at any time
deliver to the Trustee for cancellation any Securities previously  authenticated
and  delivered  hereunder  which the  Company  may have  acquired  in any manner
whatsoever,  and may deliver to the Trustee (or to any other Person for delivery
to  the  Trustee)  for  cancellation  any  Securities  previously  authenticated
hereunder  which the  Company  has not issued and sold,  and all  Securities  so
delivered  shall be promptly  cancelled by the Trustee.  If the Company shall so
acquire any of the Securities,  however, such acquisition shall not operate as a
redemption or  satisfaction of the  indebtedness  represented by such Securities
unless and until the same are  surrendered to the Trustee for  cancellation.  No
Securities  shall be  authenticated in lieu of or in exchange for any Securities
cancelled as provided in this  Section  3.09,  except as expressly  permitted by
this Indenture.  Cancelled  Securities held by the Trustee shall be destroyed by
the Trustee and the Trustee shall deliver a certificate  of such  destruction to
the Company, unless the Trustee is otherwise directed by a Company Order.

     SECTION 3.10.  COMPUTATION  OF INTEREST.  Except as otherwise  specified as
contemplated by Section 3.01 with respect to Securities of any series,  interest
on the  Securities  of each  series  shall be computed on the basis of a 360-day
year consisting of twelve 30-day months.

     SECTION 3.11. DEPOSIT OF SECURITIES PROCEEDS. Except as otherwise specified
with respect to a series of  Securities  in  accordance  with the  provisions of
Section  3.01,  with  respect to the gross  proceeds  from the  initial  sale of
Securities,  the Company agrees to cause each  Broker/Dealer  or other brokerage
firm for which  the  Broker/Dealer  acts as agent  selling  for such  beneficial
interest to forward to the Company the gross  proceeds  promptly upon receipt by
the  Broker/Dealer  or other brokerage firm. The Company shall remit or cause to
be remitted  the gross  proceeds  from the initial  sale of  Securities  by wire
transfer to the Trustee for deposit into the Funding  Account not later than the
Business Day  following  the date such  proceeds are received by the Company and
constitute cleared funds in the Company's accounts.  In connection with the wire
transfer  to the  Trustee,  the Company  shall  provide to the Trustee a written
statement  setting  forth with respect to each class of Security for which gross
proceeds are being wired to the Trustee: (i) the name of the Person that will be
the Holder and their Clearing Agency Participant number, if applicable, and (ii)
the class,  principal balance,  interest rate, date of issuance,  Maturity,  and
amount of gross  proceeds  received by class by the Company  with respect to the
Security.  Upon receipt of such gross  proceeds,  the Trustee shall deposit such
proceeds into the Funding Account.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

     SECTION 4.01. SATISFACTION AND DISCHARGE OF INDENTURE. This Indenture shall
upon Company Request cease to be of further effect with respect to any series of
Securities  specified in such Company Request (except as to any surviving rights
of  registration  of transfer or exchange of  Securities  of such series  herein
expressly provided for and any right to receive Additional  Amounts, as provided
in Section 10.10), and the Trustee,  upon receipt of a Company Order, and at the
expense  of the  Company,  shall  execute  instruments  in  form  and  substance

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<PAGE>
satisfactory  to the  Trustee  and the Company  acknowledging  satisfaction  and
discharge of this Indenture as to such series when

          (a) either:

               (i) all Securities of such series  theretofore  authenticated and
          delivered (other than (A) Securities  which have been destroyed,  lost
          or stolen and which have been  replaced or paid as provided in Section
          3.06, and (B) Securities for whose payment money has theretofore  been
          deposited in trust or segregated  and held in trust by the Company and
          thereafter  repaid to the Company or  discharged  from such trust,  as
          provided  in Section  10.03)  have been  delivered  to the Trustee for
          cancellation; or

               (ii) all Securities of such series not  theretofore  delivered to
          the Trustee for cancellation:

                    (A) have become due and payable;

                    (B) will  become due and  payable at their  Stated  Maturity
               within one year; or

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

          and the Company, in the case of (A), (B) or (C) above, has irrevocably
     deposited  or caused to be  deposited  with the  Trustee as trust  funds in
     trust for such  purpose an amount in the currency or  currencies,  currency
     unit or units or composite  currency or currencies in which the  Securities
     of such series are  payable,  sufficient  to pay and  discharge  the entire
     indebtedness on such  Securities,  for principal (and premium,  if any) and
     interest,  and any Additional Amounts with respect thereto,  to the date of
     such deposit (in the case of Securities  which have become due and payable)
     or to the Stated Maturity or Redemption Date, as the case may be;

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

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

     Notwithstanding  the  satisfaction  and  discharge of this  Indenture,  the
obligations  of the  Company to the Trustee and any  predecessor  Trustee  under
Section 6.06, the obligations of the Company to any  Authenticating  Agent under
Section  6.11  and,  if money  shall  have been  deposited  with and held by the
Trustee  pursuant to clause (ii) of this Section 4.01,  the  obligations  of the
Trustee  under  Section  4.02 and the last  paragraph  of  Section  10.03  shall
survive.

                                       33
<PAGE>
     SECTION 4.02.  APPLICATION OF TRUST FUNDS. Subject to the provisions of the
last paragraph of Section 10.03,  all money deposited with the Trustee  pursuant
to Section 4.01 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly
or  through  any Paying  Agent as the  Trustee  may  determine,  to the  Persons
entitled  thereto of the principal  (and  premium,  if any) and any interest and
Additional  Amounts  for whose  payment  such money has been  deposited  with or
received by the Trustee,  but such money need not be segregated from other funds
except to the extent required by law.

                                   ARTICLE V

                           EVENTS OF DEFAULT; REMEDIES

     SECTION 5.01. EVENTS OF DEFAULT.  "Event of Default,"  wherever used herein
with  respect  to any  particular  series  of  Securities,  means any one of the
following  events  (whatever the reason for such Event of Default and whether or
not 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):

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

          (b) default in the payment of the  principal of (or  premium,  if any,
     on) any  Security  of that  series  when it becomes  due and payable at its
     Maturity;

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

          (d) default in the performance, or breach, of any covenant or warranty
     of the Company set forth in this  Indenture with respect to any Security of
     that series (other than a covenant or warranty a default in the performance
     of  which  or the  breach  of  which  is  elsewhere  in this  Section  5.01
     specifically  dealt with),  and continuance of such default or breach for a
     period of 60 days after there has been given,  by  registered  or certified
     mail,  to the  Company by the  Trustee or to the Company and the Trustee by
     the  Holders  of at  least  51% in  principal  amount  of  the  Outstanding
     Securities  of that  series a written  notice  specifying  such  default or
     breach and  requiring  it to be remedied  and stating that such notice is a
     "Notice of Default" hereunder;

          (e)  default  under any bond,  debenture,  note or other  evidence  of
     indebtedness  for money borrowed by the Company or any of its  Subsidiaries
     (including  obligations  under  leases  required to be  capitalized  on the
     balance sheet of the lessee under GAAP), in an aggregate  principal  amount
     in excess of $5  million or under any  mortgage,  indenture  or  instrument
     under  which  there  may be  issued or by which  there  may be  secured  or
     evidenced any  indebtedness for money borrowed by the Company or any of its
     Subsidiaries  (including such leases) in an aggregate  principal  amount in
     excess  of $5  million  whether  such  indebtedness  now  exists  or  shall
     hereafter  be  created,   which   default   shall  have  resulted  in  such

                                       34
<PAGE>
     indebtedness  becoming or being  declared due and payable prior to the date
     on which it would otherwise have become due and payable or such obligations
     being  accelerated,  without  such  acceleration  having been  rescinded or
     annulled; or

          (f) the Company or any  Significant  Subsidiary  pursuant to or within
     the meaning of any Bankruptcy Law:

               (i) commences a voluntary case;

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

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

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

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

               (i)  is  for  relief  against  the  Company  or  any  Significant
          Subsidiary in an involuntary case;

               (ii)  appoints a  Custodian  of the  Company  or any  Significant
          Subsidiary  or  for  all  or  substantially  all of  either  of  their
          property; or

               (iii) orders the  liquidation  of the Company or any  Significant
          Subsidiary and the order or decree remains  unstayed and in effect for
          90 days; or

          (h) any other Event of Default  provided with respect to Securities of
     that series.

     As used in this Section  5.01,  the term  "Bankruptcy  Law" means Title 11,
U.S. Code or any similar  federal or state law for the relief of debtors and the
term  "Custodian"  means any receiver,  trustee,  assignee,  liquidator or other
similar official under any Bankruptcy Law.

     SECTION 5.02.  ACCELERATION  OF MATURITY;  RESCISSION AND ANNULMENT.  If an
Event  of  Default  with  respect  to  Securities  of any  series  at  the  time
Outstanding occurs and is continuing, then and in every such case the Trustee or
the  Holders  of not  less  than  51% in  principal  amount  of the  Outstanding
Securities of that series may declare the principal amount (or, if Securities of
that series are Original Issue Discount Securities or Indexed  Securities,  such
portion of the  principal as may be  specified in the terms  thereof) of all the
Securities  of that  series to be due and  payable  immediately,  by a notice in
writing to the Company  (and to the Trustee if given by the  Holders),  and upon
any such  declaration  such principal or specified  portion thereof shall become
immediately due and payable.

     At any time  after  such a  declaration  of  acceleration  with  respect to
Securities  of any  series  has been made and  before a  judgment  or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this

                                       35
<PAGE>
Article V  provided,  the  Holders  of a  majority  in  principal  amount of the
Outstanding  Securities of that series, by written notice to the Company and the
Trustee,  may  rescind  and  annul  such  declaration  of  acceleration  and its
consequences if:

          (a)  the  Company  has  paid  or  deposited  with  the  Trustee  a sum
     sufficient to pay in the currency,  currency unit or composite  currency in
     which the  Securities  of such  series are  payable  (except  as  otherwise
     specified pursuant to Section 3.01 for the Securities of such series):

               (i) all overdue  installments  of interest on and any  Additional
          Amounts  payable  in  respect of all  Outstanding  Securities  of that
          series;

               (ii) the principal of (and premium,  if any, on) any  Outstanding
          Securities of that series which have become due otherwise than by such
          declaration of acceleration  and interest thereon at the rate or rates
          borne by or provided for in such Securities;

               (iii) to the  extent  that  payment of such  interest  is lawful,
          interest  upon overdue  installments  of interest  and any  Additional
          Amounts  at the  rate  or  rates  borne  by or  provided  for in  such
          Securities;

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

          (b) all Events of Default with respect to  Securities  of that series,
     other than the  nonpayment  of the  principal  of (or  premium,  if any) or
     interest on  Securities of that series which have become due solely by such
     declaration  of  acceleration,  have been  cured or waived as  provided  in
     Section 5.13.

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

     SECTION  5.03.  COLLECTION OF  INDEBTEDNESS  AND SUITS FOR  ENFORCEMENT  BY
TRUSTEE.  If any Event of Default  described in Section  5.01 of this  Indenture
shall occur and be continuing with respect to any series,  the Trustee shall, at
the direction of the Holders of not less than a majority in principal  amount of
the  Outstanding  Securities  of that series in addition to taking those actions
set forth elsewhere in this Article V, do one or more of the following:

          (a)  institute  proceedings  for the  collection  of all amounts  then
     payable on the Notes or under this  Indenture,  whether by  declaration  or
     otherwise,  enforce any judgment obtained,  and collect from the Company of
     moneys adjudged due;

          (b) sell the Collateral or any portion  thereof or rights or interests
     therein at one or more public or private  sales called and conducted in any
     manner permitted by law;

          (c)  institute  proceedings  from  time to time  for the  complete  or
     partial foreclosure of this Indenture with respect to the Collateral;

                                       36
<PAGE>
          (d)  exercise  any  remedies  of a secured  party  under  the  Uniform
     Commercial  Code and take any  other  appropriate  action  to  protect  and
     enforce  the  rights  and  remedies  of  the  Trustee  or  the  Noteholders
     hereunder; or

          (e)  appoint a Person to take any of the  actions  described  above on
     behalf of the Company or the Trustee.

     Notwithstanding the foregoing,  the Trustee shall be under no obligation to
take any  action  described  above  unless so  directed  by the  Holders  of the
Outstanding Securities.

     SECTION 5.04.  TRUSTEE MAY FILE PROOFS OF CLAIM. In case of the pendency of
any   receivership,   insolvency,   liquidation,   bankruptcy,   reorganization,
arrangement,  adjustment,  composition or other judicial  proceeding relative to
the Company or any other  obligor  upon the  Securities  or the  property of the
Company or of such other obligor or their creditors,  the Trustee  (irrespective
of whether the  principal of the  Securities of any series shall then be due and
payable as therein  expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand on the Company for the payment of
overdue  principal,  premium,  if  any,  or  interest)  shall  be  entitled  and
empowered, by intervention in such proceeding or otherwise:

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

          (b) to collect  and  receive  any money or other  property  payable or
     deliverable  on any  such  claims  and to  distribute  the  same;  and  any
     custodian, receiver, assignee, trustee, liquidator,  sequestrator (or other
     similar  official) in any such judicial  proceeding is hereby authorized by
     each  Holder of  Securities  of such  series to make such  payments  to the
     Trustee,  and if the Trustee  shall  consent to the making of such payments
     directly to the Holders, to pay to the Trustee any amount due to it for the
     reasonable  compensation,  expenses,  disbursements  and  advances  of  the
     Trustee and any  predecessor  Trustee,  their agents and  counsel,  and any
     other  amounts due the Trustee or any  predecessor  Trustee  under  Section
     6.06.

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

     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,  and it shall not be necessary to make any Holders of
the Securities parties to any such proceedings.

                                       37
<PAGE>
     SECTION 5.05.  TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES.
All rights of action and claims under this  Indenture  or any of the  Securities
may be prosecuted  and enforced by the Trustee  without the possession of any of
the Securities or the production thereof in any proceeding relating thereto, and
any such  proceeding  instituted by the Trustee shall be brought in its own name
as trustee of an express  trust,  and any  recovery  of  judgment  shall,  after
provision   for  the   payment  of  the   reasonable   compensation,   expenses,
disbursements and advances of the Trustee and its agents and counsel, be for the
ratable  benefit  of the  Holders  of the  Securities  in  respect of which such
judgment has been recovered.

     SECTION 5.06.  APPLICATION OF MONEY  COLLECTED.  Any money collected by the
Trustee  pursuant to this Article V shall be applied in the following  order, at
the date or dates fixed by the Trustee and, in case of the  distribution of such
money  on  account  of  principal  (or  premium,  if  any) or  interest  and any
Additional  Amounts,  upon  presentation  of the  Securities,  and the  notation
thereon of the  payment if only  partially  paid and upon  surrender  thereof if
fully paid:

          FIRST,  to  the  payment  of all  amounts  due  the  Trustee  and  any
     predecessor Trustee under Section 6.06;

          SECOND,  to the  payment of the  amounts  then due and unpaid upon the
     Securities  for the principal  (and  premium,  if any) and interest and any
     Additional Amounts payable, in respect of which or for the benefit of which
     such money has been collected,  ratably,  without preference or priority of
     any kind,  according  to the  aggregate  amounts  due and  payable  on such
     Securities  for principal  (and premium,  if any),  interest and Additional
     Amounts, respectively; and

          THIRD, to the payment of the remainder, if any, to the Company.

     SECTION 5.07.  LIMITATION ON SUITS. No Holder of any Security of any series
shall have any right to institute any  proceeding,  judicial or otherwise,  with
respect to this Indenture,  or for the appointment of a receiver or trustee,  or
for any other remedy hereunder, unless:

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

          (b) the  Holders  of not less  than  51% in  principal  amount  of the
     Outstanding  Securities  of that series shall have made written  request to
     the Trustee to institute proceedings in respect of such Event of Default in
     its own name as Trustee hereunder;

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

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

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

                                       38
<PAGE>
it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such
Holders.

     SECTION  5.08.  UNCONDITIONAL  RIGHTS  OF  HOLDERS  TO  RECEIVE  PRINCIPAL,
PREMIUM,  IF ANY,  INTEREST AND ADDITIONAL  AMOUNTS.  Notwithstanding  any other
provision in this  Indenture,  the Holder of any Security  shall have the right,
which is absolute and unconditional, to receive payment of the principal of (and
premium,  if any) and (subject to Sections  3.05 and 3.07)  interest on, and any
Additional  Amounts in respect of, such  Security  on the  respective  due dates
expressed in such Security  (or, in the case of  redemption,  on the  Redemption
Date) and to institute suit for the  enforcement  of any such payment,  and such
rights shall not be impaired without the consent of such Holder.

     SECTION 5.09.  RESTORATION  OF RIGHTS AND  REMEDIES.  If the Trustee or any
Holder of a Security  has  instituted  any  proceeding  to enforce  any right or
remedy  under  this  Indenture  and such  proceeding  has been  discontinued  or
abandoned for any reason, or has been determined  adversely to the Trustee or to
such  Holder,  then and in every such case,  the  Company,  the  Trustee and the
Holders of Securities shall, subject to any determination in such proceeding, be
restored  severally and  respectively  to their former  positions  hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.

     SECTION 5.10. RIGHTS AND REMEDIES CUMULATIVE.  Except as otherwise provided
with respect to the  replacement  or payment of  mutilated,  destroyed,  lost or
stolen  Securities  in the last  paragraph of Section  3.06,  no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders of Securities
is intended to be  exclusive  of any other right or remedy,  and every right and
remedy shall,  to the extent  permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or  otherwise.  The  assertion or employment of any right or remedy
hereunder,  or  otherwise,   shall  not  prevent  the  concurrent  assertion  or
employment of any other appropriate right or remedy.

     SECTION  5.11.  DELAY OR OMISSION  NOT WAIVER.  No delay or omission of the
Trustee  or of any  Holder  of any  Security  to  exercise  any  right or remedy
accruing  upon any Event of  Default  shall  impair  any such right or remedy or
constitute  a waiver of any such Event of Default  or an  acquiescence  therein.
Every  right and remedy  given by this  Article V or by law to the Trustee or to
the Holders may be  exercised  from time to time,  and as often as may be deemed
expedient, by the Trustee or by the Holders of Securities.

     SECTION  5.12.  CONTROL BY HOLDERS OF  SECURITIES.  The Holders of not less
than a majority in principal amount of the Outstanding  Securities of any series
shall have the right to direct  the time,  method  and place of  conducting  any
proceeding  for any remedy  available to the Trustee or exercising  any trust or
power  conferred on the Trustee with respect to the  Securities  of such series,
provided that:

                                       39
<PAGE>
          (a) such  direction  shall not be in conflict  with any rule of law or
     with this Indenture;

          (b) the Trustee may take any other action deemed proper by the Trustee
     which is not inconsistent with such direction; and

          (c) the Trustee  need not take any action  which  might  involve it in
     personal liability or be unduly prejudicial to the Holders of Securities of
     such series not joining therein.

     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 by Holders.

     SECTION  5.13.  WAIVER OF PAST  DEFAULTS.  The  Holders  of not less than a
majority in principal amount of the Outstanding  Securities of any series may on
behalf  of the  Holders  of all the  Securities  of such  series  waive any past
default  hereunder  with respect to such series and its  consequences,  except a
default:

          (a) in the  payment  of the  principal  of (or  premium,  if  any)  or
     interest on or  Additional  Amounts  payable in respect of any  Security of
     such series; or

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

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

     SECTION  5.14.  WAIVER  OF  USURY,  STAY OR  EXTENSION  LAWS.  The  Company
covenants  (to the extent  that it may  lawfully  do so) that it will not at any
time  insist  upon,  or plead,  or in any  manner  whatsoever  claim or take the
benefit or advantage of, any usury, stay or extension law wherever enacted,  now
or at any time  hereafter  in  force,  which may  affect  the  covenants  or the
performance  of this  Indenture;  and the  Company  (to the  extent  that it may
lawfully do so) hereby  expressly  waives all benefit or  advantage  of any such
law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

     SECTION 5.15.  UNDERTAKING FOR COSTS.  All parties to this Indenture agree,
and each Holder of any  Security by his  acceptance  thereof  shall be deemed to
have agreed,  that any court may in its discretion  require, in any suit for the
enforcement of any right or remedy under this Indenture,  or in any suit against
the Trustee for any action taken or omitted by it as Trustee,  the filing by any
party  litigant in such suit of any  undertaking  to pay the costs of such suit,
and that such court may in its discretion  assess  reasonable  costs,  including
reasonable  attorneys' fees,  against any party litigant in such suit having due
regard to the merits and good faith of the claims or defenses made by such party

                                       40
<PAGE>
litigant;  but the  provisions  of this Section 5.15 shall not apply to any suit
instituted by the Trustee,  to any suit  instituted  by any Holder,  or group of
Holders,  holding in the  aggregate  more than [10]% in principal  amount of the
Outstanding  Securities of any series,  or to any suit  instituted by any Holder
for the  enforcement of the payment of the principal of (or premium,  if any) or
interest on any Security on or after the respective Stated Maturities  expressed
in such  Security  (or, in the case of  redemption,  on or after the  Redemption
Date).

                                   ARTICLE VI

                                   THE TRUSTEE

     SECTION 6.01.  NOTICE OF DEFAULTS.  Within 90 days after the  occurrence of
any default hereunder with respect to the Securities of any series,  the Trustee
shall transmit in the manner and to the extent  provided in TIA Section  313(c),
notice of such default hereunder known to the Trustee, unless such default shall
have been  cured or waived;  provided,  however,  that,  except in the case of a
default in the payment of the  principal of (or premium,  if any) or interest on
or any Additional Amounts with respect to any Security of such series, or in the
payment of any sinking fund  installment  with respect to the Securities of such
series, the Trustee shall be protected in withholding such notice if and so long
as  Responsible  Officers  of the  Trustee  in good  faith  determine  that  the
withholding  of such notice is in the interest of the Holders of the  Securities
of such series;  and provided  further that in the case of any default or breach
of the character  specified in Section 5.01(d) with respect to the Securities of
such  series,  no such  notice to Holders  shall be given until at least 60 days
after the  occurrence  thereof.  For the purpose of this Section 6.01,  the term
"default"  means  any event  which is, or after  notice or lapse of time or both
would become, an Event of Default with respect to the Securities of such series.

     SECTION 6.02.  CERTAIN RIGHTS OF TRUSTEE.  Subject to the provisions of TIA
Section 315(a) through 315(d):

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

          (b) any request or direction of the Company  mentioned herein shall be
     sufficiently  evidenced by a Company  Request or Company  Order (other than
     delivery of any  Security to the Trustee for  authentication  and  delivery
     pursuant to Section 3.03 which shall be sufficiently  evidenced as provided
     therein) and any  resolution of the Board of Directors may be  sufficiently
     evidenced by a Board Resolution;

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

                                       41
<PAGE>
          (d) the  Trustee may consult  with  counsel and the written  advice of
     such  counsel  or any  Opinion  of  Counsel  shall  be  full  and  complete
     authorization  and  protection in respect of any action taken,  suffered or
     omitted by it hereunder in good faith and in reliance thereon;

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

          (f) the Trustee shall not be bound to make any investigation  into the
     facts  or  matters  stated  in  any  resolution,   certificate,  statement,
     instrument,  opinion, report, notice, request,  direction,  consent, order,
     bond, debenture,  note, coupon 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  Outstanding  Securities  of any series;  provided
     that, if the payment within a reasonable  time to the Trustee of the costs,
     expenses or  liabilities  likely to be incurred by it in the making of such
     investigation is, in the opinion of the Trustee,  not reasonably assured to
     the Trustee by the security  afforded to it by the terms of this Indenture,
     the Trustee may  require  reasonable  indemnity  against  such  expenses or
     liabilities as a condition to proceeding;  the reasonable expenses of every
     such  examination  shall be paid by the Holders or, if paid by the Trustee,
     shall be repaid by the Holders upon demand. The Trustee, in its discretion,
     may make such further inquiry or  investigation  into such facts or matters
     as it may see fit, and, if the Trustee shall determine to make such further
     inquiry  or  investigation,  it shall be  entitled  to  examine  the books,
     records and premises of the Company,  relevant to the facts or matters that
     are the subject of its inquiry, personally or by agent or attorney;

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

          (h) the Trustee shall not be liable for any action taken,  suffered or
     omitted by it in good faith and reasonably  believed by it to be authorized
     or  within  the  discretion,  rights  or  power  conferred  upon it by this
     Indenture.

     The  Trustee  shall  not be  required  to  expend  or risk its own funds or
otherwise incur any financial  liability in the performance of any of its duties
hereunder,  or in the exercise of any of its rights or powers,  if it shall have
reasonable  grounds  for  believing  that  repayment  of such funds or  adequate
indemnity against such risk or liability is not reasonably assured to it.

     Except  during  the  continuance  of  an  Event  of  Default,  the  Trustee
undertakes  to perform  only such duties as are  specifically  set forth in this
Indenture,  and no  implied  covenants  or  obligations  shall be read into this
Indenture against the Trustee.

                                       42
<PAGE>
     SECTION 6.03. NOT RESPONSIBLE  FOR RECITALS OR ISSUANCE OF SECURITIES.  The
recitals   contained  herein  and  in  the  Securities,   except  the  Trustee's
certificate of authentication,  shall be taken as the statements of the Company,
and neither the Trustee nor any Authenticating  Agent assumes any responsibility
for their  correctness.  The Trustee makes no representations as to the validity
or sufficiency of this Indenture or of the  Securities,  except that the Trustee
represents  that it is duly  authorized  to execute and deliver this  Indenture,
authenticate the Securities and perform its obligations  hereunder.  Neither the
Trustee  nor  any  Authenticating  Agent  shall  be  accountable  for the use or
application by the Company of Securities or the proceeds thereof.

     SECTION 6.04. MAY HOLD SECURITIES.  The Trustee, any Paying Agent, Security
Registrar,  Authenticating  Agent  or any  other  agent of the  Company,  in its
individual or any other capacity,  may become the owner or pledgee of Securities
and subject to TIA  Sections  310(b) and 311,  and may  otherwise  deal with the
Company with the same rights it would have if it were not Trustee, Paying Agent,
Security Registrar, Authenticating Agent or such other agent.

     SECTION  6.05.  MONEY  HELD IN TRUST.  Money  held by the  Trustee in trust
hereunder need not be segregated  from other funds except to the extent required
by law.  The  Trustee  shall be under no  liability  for  interest  on any money
received by it hereunder except as otherwise agreed with the Company.

     SECTION 6.06. COMPENSATION AND REIMBURSEMENT. The Company agrees:

          (a) to pay to the  Trustee,  [solely]  from  amounts on deposit in the
     Funding  Account  pursuant  to  Section  7.05(a)(ii),  from  time  to  time
     reasonable  compensation  for all services  rendered by it hereunder (which
     compensation  shall not be limited by any provision of law in regard to the
     compensation of a trustee of an express trust);

          (b) except as  otherwise  expressly  provided  herein,  [solely]  from
     amounts on deposit in the Funding Account pursuant to Section  7.05(a)(ii),
     to  reimburse  each of the Trustee  and any  predecessor  Trustee  upon its
     request for all reasonable expenses, disbursements and advances incurred or
     made by the Trustee in  accordance  with any  provision  of this  Indenture
     (including the  reasonable  compensation  and the  reasonable  expenses and
     disbursements  of  its  agents  and  counsel),  except  any  such  expense,
     disbursement  or advance as may be  attributable  to its  negligence or bad
     faith; and

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

     When the Trustee incurs expenses or renders  services in connection with an
Event of Default  specified in Section 5.01(e) or Section 5.01(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.

                                       43
<PAGE>
     As security for the  performance  of the  obligations  of the Company under
this Section 6.06,  the Trustee shall have a lien prior to the  Securities  upon
all property  and money held or  collected by the Trustee as such,  except money
held in trust for the payment of principal  of (or premium,  if any) or interest
on particular Securities.

     The  provisions of this Section 6.06 shall survive the  termination of this
Indenture.

     SECTION  6.07.   CORPORATE  TRUSTEE  REQUIRED;   ELIGIBILITY;   CONFLICTING
INTERESTS.  There  shall at all  times be a  Trustee  hereunder  which  shall be
eligible to act as Trustee under TIA Section 310(a)(1) and shall have a combined
capital and surplus of at least  $[50,000,000].  If such  corporation  publishes
reports of condition at least annually,  pursuant to law or the  requirements of
federal,  state,  territorial  or District of Columbia  supervising or examining
authority,  then for the purposes of this Section 6.07, the combined capital and
surplus  of such  corporation  shall be deemed to be its  combined  capital  and
surplus as set forth in its most recent report of condition so published.  If at
any  time  the  Trustee  shall  cease  to be  eligible  in  accordance  with the
provisions of this Section 6.07, it shall resign  immediately  in the manner and
with the effect  hereinafter  specified in this Article VI.  Neither the Company
nor any Person  directly or indirectly  controlling  or controlled  by, or under
common control with, the Company shall serve as Trustee.

     SECTION  6.08.  RESIGNATION  AND  REMOVAL;  APPOINTMENT  OF  SUCCESSOR.  No
resignation or removal of the Trustee and no appointment of a successor  Trustee
pursuant to this  Article VI shall  become  effective  until the  acceptance  of
appointment  by  the  successor   Trustee  in  accordance  with  the  applicable
requirements of Section 6.09.

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

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

     If at any time:

          (a) the  Trustee  shall  fail to  comply  with the  provisions  of TIA
     Section  310(b)  after  written  request  therefor by the Company or by any
     Holder of a Security  who has been a bona fide Holder of a Security  for at
     least six months; or

          (b) the  Trustee  shall cease to be eligible  under  Section  6.07 and
     shall fail to resign after  written  request  therefor by the Company or by
     any Holder of a Security  who has been a bona fide Holder of a Security for
     at least six months; or

          (c) the Trustee shall become  incapable of acting or shall be adjudged
     a bankrupt or  insolvent  or a receiver  of the Trustee or of its  property

                                       44
<PAGE>
     shall be  appointed or any public  officer  shall take charge or control of
     the   Trustee  or  of  its   property   or  affairs   for  the  purpose  of
     rehabilitation, conservation or liquidation;

then, in any such case, (i) the Company by or pursuant to a Board Resolution may
remove the Trustee and appoint a successor Trustee with respect to all
Securities or (ii) subject to TIA Section 315(e), any Holder of a Security who
has been a bona fide Holder of a Security for at least six months may, on behalf
of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Securities and
the appointment of a successor Trustee or Trustees.

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

     The Company shall give notice of each  resignation  and each removal of the
Trustee with respect to the  Securities of any series and each  appointment of a
successor  Trustee  with respect to the  Securities  of any series in the manner
provided for notices to the Holders of Securities  in Section 1.06.  Each notice
shall include the name of the successor  Trustee with respect to the  Securities
of such series and the address of its Corporate Trust Office.

     SECTION  6.09.  ACCEPTANCE  OF  APPOINTMENT  BY  SUCCESSOR.  In case of the
appointment  hereunder of a successor  Trustee  with respect to all  Securities,
every such  successor  Trustee  shall  execute,  acknowledge  and deliver to the
Company and to the retiring  Trustee an instrument  accepting such  appointment,
and thereupon the  resignation  or removal of the retiring  Trustee shall become
effective  and  such  successor  Trustee,  without  any  further  act,  deed  or
conveyance,  shall become vested with all the rights,  powers, trusts and duties
of the  retiring  Trustee;  but,  on  request of the  Company  or the  successor
Trustee,  such retiring Trustee shall, upon payment of its charges,  execute and
deliver an instrument  transferring  to such  successor  Trustee all the rights,
powers and trusts of the retiring Trustee,  and shall duly assign,  transfer and
deliver to such  successor  Trustee all property and money held by such retiring
Trustee  hereunder,  subject  nevertheless to its claim, if any, provided for in
Section 6.06.

                                       45
<PAGE>
     In case of the appointment hereunder of a successor Trustee with respect to
the  Securities of one or more (but not all) series,  the Company,  the retiring
Trustee and each successor Trustee with respect to the Securities of one or more
series shall execute and deliver an indenture  supplemental hereto,  pursuant to
Article IX, wherein each  successor  Trustee shall accept such  appointment  and
which (a) shall  contain such  provisions  as shall be necessary or desirable to
transfer and confirm to, and to vest in, each successor  Trustee all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities
of that or those  series  to which the  appointment  of such  successor  Trustee
relates,  (b) if the  retiring  Trustee  is not  retiring  with  respect  to all
Securities,  shall  contain  such  provisions  as shall be deemed  necessary  or
desirable  to  confirm  that all the  rights,  powers,  trusts and duties of the
retiring  Trustee with respect to the  Securities  of that or those series as to
which the retiring  Trustee is not retiring  shall  continue to be vested in the
retiring  Trustee and (c) 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
as  co-Trustees of the same trust and that each such Trustee shall be Trustee of
a trust  or  trusts  hereunder  separate  and  apart  from any  trust or  trusts
hereunder  administered  by any other such  Trustee;  and upon the execution and
delivery  of such  supplemental  indenture  the  resignation  or  removal of the
retiring  Trustee shall become effective to the extent provided therein and each
such  successor  Trustee,  without any further act,  deed or  conveyance,  shall
become  vested with all the rights,  powers,  trusts and duties of the  retiring
Trustee  with  respect to the  Securities  of that or those  series to which the
appointment of such successor Trustee relates; but, on request of the Company or
any successor  Trustee,  such retiring  Trustee shall duly assign,  transfer and
deliver to such  successor  Trustee all property and money held by such retiring
Trustee  hereunder  with  respect to the  Securities  of that or those series to
which the appointment of such successor Trustee relates.

     Upon request of any such successor  Trustee,  the Company shall execute any
and all  instruments  for more fully and certainly  vesting in and confirming to
such successor  Trustee all such rights,  powers and trusts  referred to in this
Section 6.09, as the case may be.

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

     SECTION 6.10. MERGER, CONVERSION,  CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation  into which the Trustee may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, conversion
or  consolidation  to which the  Trustee  shall be a party,  or any  corporation
succeeding to all or  substantially  all of the corporate  trust business of the
Trustee,  shall  be  the  successor  of the  Trustee  hereunder;  provided  such
corporation  shall be otherwise  qualified  and eligible  under this Article VI,
without the  execution  or filing of any paper or any further act on the part of
the parties hereto.  In case any Securities shall have been  authenticated,  but
not  delivered,  by the  Trustee  then  in  office,  any  successor  by  merger,
conversion  or  consolidation  to such  authenticating  Trustee  may adopt  such
authentication  and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself  authenticated such Securities.  In case
any Securities shall not have been  authenticated  by such predecessor  Trustee,
any such successor  Trustee may  authenticate  and deliver such  Securities,  in
either its own name or that of its predecessor Trustee,  with the full force and
effect which this Indenture  provides for the certificate of  authentication  of
the Trustee.

                                       46
<PAGE>
     SECTION 6.11.  APPOINTMENT OF AUTHENTICATING AGENT. At any time when any of
the Securities  remain  Outstanding,  the Trustee may appoint an  Authenticating
Agent or Agents with respect to one or more series of Securities  which shall be
authorized  to act on behalf of the Trustee to  authenticate  Securities of such
series issued upon exchange,  registration of transfer or partial  redemption or
repayment  thereof,  and  Securities so  authenticated  shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes as
if  authenticated  by the  Trustee  hereunder.  Any  such  appointment  shall be
evidenced by an  instrument in writing  signed by a  Responsible  Officer of the
Trustee,  a copy of which instrument shall be promptly furnished to the Company.
Wherever  reference is made in this Indenture to the authentication and delivery
of  Securities by the Trustee or the Trustee's  certificate  of  authentication,
such reference shall be deemed to include  authentication and delivery on behalf
of the Trustee by an  Authenticating  Agent and a certificate of  authentication
executed  on  behalf  of  the   Trustee  by  an   Authenticating   Agent.   Each
Authenticating  Agent shall be  acceptable to the Company and shall at all times
be a bank or trust company or  corporation  organized and doing  business and in
good  standing  under  the  laws of the  United  States  or of any  state or the
District of Columbia authorized under such laws to act as Authenticating  Agent,
having a combined  capital and surplus of not less than  $50,000,000 and subject
to  supervision  or  examination  by  federal  or  state  authorities.  If  such
Authenticating Agent publishes reports of condition at least annually,  pursuant
to law or the requirements of the aforesaid  supervising or examining authority,
then for the purposes of this Section 6.11, the combined  capital and surplus of
such Authenticating Agent shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published. In case at any
time an  Authenticating  Agent shall cease to be eligible in accordance with the
provisions  of  this  Section  6.11,  such  Authenticating  Agent  shall  resign
immediately  in the manner and with the effect  specified in this Section  6.11.
Notwithstanding  the foregoing,  the initial  Authenticating  Agent shall be the
Trustee

     Any  corporation  into  which an  Authenticating  Agent  may be  merged  or
converted or with which it may be  consolidated,  or any  corporation  resulting
from any merger,  conversion or consolidation to which such Authenticating Agent
shall be a party,  or any  corporation  succeeding  to the  corporate  agency or
corporate  trust business of an  Authenticating  Agent,  shall continue to be an
Authenticating  Agent,  provided such  corporation  shall be otherwise  eligible
under this Section 6.11, without the execution or filing of any paper or further
act on the part of the Trustee or the Authenticating Agent.

     An Authenticating Agent for any series of Securities may at any time resign
by giving  written  notice of  resignation to the Trustee for such series and to
the Company.  The Trustee for any series of Securities may at any time terminate
the agency of an Authenticating Agent by giving written notice of termination to
such  Authenticating  Agent and to the Company.  Upon receiving such a notice of
resignation  or  upon  such  a  termination,   or  in  case  at  any  time  such
Authenticating  Agent  shall  cease  to  be  eligible  in  accordance  with  the
provisions  of this  Section  6.11,  the  Trustee  for such series may appoint a
successor  Authenticating  Agent  which shall be  acceptable  to the Company and
shall give notice of such appointment to all Holders of Securities of the series
with  respect  to which such  Authenticating  Agent will serve in the manner set
forth in Section 1.06. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers and duties
of its  predecessor  hereunder,  with like effect as if  originally  named as an

                                       47
<PAGE>
Authenticating  Agent  herein.  No  successor   Authenticating  Agent  shall  be
appointed unless eligible under the provisions of this Section 6.11.

     The Company  agrees to pay to each  Authenticating  Agent from time to time
reasonable compensation,  including reimbursement of its reasonable expenses for
its services under this Section 6.11.

     If an  appointment  with respect to one or more series is made  pursuant to
this Section 6.11, the Securities of such series may have endorsed  thereon,  in
addition  to or in lieu  of the  Trustee's  certificate  of  authentication,  an
alternate certificate of authentication substantially in the following form:

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

                                        ___________________, as Trustee

                                        By _______________________________
                                           Authenticating Agent

                                        By _______________________________
                                           Authorized Signatory

     SECTION 6.12. ADDITIONAL DUTIES OF TRUSTEE. In addition to the other duties
set forth in this Indenture, the Trustee as trustee for the Holders shall:

          (a) RELEASE.  The Trustee shall upon written  request from the Company
     in the form of  Exhibit C hereto  and  subject  to the  provisions  of this
     Indenture,  take all actions reasonably  necessary to effect the release of
     any  Collateral  from  the  lien  of  this  Indenture  or any  supplemental
     indenture or a Board  Resolution  adopted in  accordance  with Section 3.01
     hereof,  to the extent the terms  hereof  permit the sale,  disposition  or
     transfer of such Collateral.

          (b) ACTION UPON EVENT OF DEFAULT.  Upon the occurrence and continuance
     of an Event of Default,  the Trustee shall,  subject to Section 5.03,  take
     any  action  and to  execute  any  instrument  which the  Trustee  may deem
     necessary or advisable  to enforce,  collect and dispose of the  Collateral
     and to enforce the Transaction Documents, including the authority to:

               (i) ask, demand, collect, sue for, recover, compound, receive and
          give  acquaintance  and receipts for money due and to become due under
          or in respect to any of the Collateral;

                                       48
<PAGE>
               (ii) receive,  endorse,  collect any drafts or other instruments,
          documents and chattel  paper,  in connection  with clause (a) above or
          otherwise;

               (iii)  file  any  claims  or take any  action  or  institute  any
          proceedings  which the Trustee may deem necessary or desirable for the
          collection [or  liquidation]  of any of the Collateral or otherwise to
          enforce the right to the  Trustee for the benefit of the Holders  with
          respect to any of the Collateral; and

               (iv) notify the borrower of the Company's  collateral  assignment
          and/or grant of a security interest in the Mortgage Loans and the Real
          Property  to the Trustee for the benefit of the Holders and cause such
          Persons to remit payments directly to the Trustee and its designee.

          The Company hereby acknowledges, consents and agrees that the power of
          attorney  granted  pursuant to this Section 6.12(b) is irrevocable and
          coupled with an interest.

          (c) PAYMENT ON THE SECURITIES.  The Trustee shall pay the interest and
     principal  on the  Securities  when due and payable and,  unless  otherwise
     specified in a supplemental  indenture or Board Resolution adopted pursuant
     to Section 3.01 hereof,  the principal  and any accrued  interest on any of
     (a)  a  redemption,  retirement,  repayment  or  defeasance  of  Securities
     pursuant to Articles XI, XII, XIII or XIV hereof,  in each case,  from cash
     [or other amounts] available in the Securities Payment Account. The Trustee
     has no duty or obligation to pay the Securities from its own funds,  assets
     or corporate capital or to make inquiry  regarding,  or investigate the use
     of amounts,  disbursed  from the  Securities  Payment  Account  pursuant to
     Section 7.05(c)(v).

                                  ARTICLE VII

           HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY; ACCOUNTS

     SECTION 7.01. DISCLOSURE OF NAMES AND ADDRESSES OF HOLDERS. Every Holder of
Securities,  by receiving and holding the same,  agrees with the Company and the
Trustee  that neither the Company nor the Trustee nor any  Authenticating  Agent
nor any Paying Agent nor any Security  Registrar  shall be held  accountable  by
reason of the disclosure of any information as to the names and addresses of the
Holders of  Securities  in  accordance  with TIA Section 312,  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 TIA Section 312(b).

     SECTION 7.02. REPORTS BY TRUSTEE.  Within 60 days after December 31 of each
year  commencing  with the first  calendar year end after the first  issuance of
Securities pursuant to this Indenture, the Trustee shall transmit by mail to all
Holders of Securities as provided in TIA Section  313(c) a brief report dated as
of such date if required by TIA Section 313(a).

     SECTION 7.03. REPORTS BY COMPANY. The Company will:

                                       49
<PAGE>
          (a) file  with the  Trustee,  within  15 days  after  the  Company  is
     required to file the same with the Commission, copies of the annual reports
     and of the  information,  documents  and other  reports  (or copies of such
     portions of any of the foregoing as the Commission may from time to time by
     rules and regulations  prescribe) which the Company may be required to file
     with  the  Commission  pursuant  to  Section  13 or  Section  15(d)  of the
     Securities  Exchange  Act of 1934,  as  amended;  or, if the Company is not
     required to file  information,  documents or reports  pursuant to either of
     such Sections,  then it will file with the Trustee and the  Commission,  in
     accordance with rules and  regulations  prescribed from time to time by the
     Commission,  such of the supplementary and periodic information,  documents
     and reports which may be required  pursuant to Section 13 of the Securities
     Exchange  Act of 1934,  as  amended,  in respect  of a security  listed and
     registered on a national securities exchange as may be prescribed from time
     to time in such rules and regulations;

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

     (c) transmit by mail to the Holders of Securities, within 30 days after the
filing thereof with the Trustee, in the manner and to the extent provided in TIA
Section  313(c),  such  summaries  of any  information,  documents  and  reports
required  to be filed by the  Company  pursuant  to clauses  (a) and (b) of this
Section 7.03 as may be required by rules and regulations prescribed from time to
time by the Commission.

          SECTION  7.04.  COMPANY  TO FURNISH  TRUSTEE  NAMES AND  ADDRESSES  OF
     HOLDERS. The Company will furnish or cause to be furnished to the Trustee:

          (a) semiannually, not later than 15 days after the Regular Record Date
     for interest  for each series of  Securities,  a list,  in such form as the
     Trustee may reasonably  require,  of the names and addresses of the Holders
     of Securities of such series as of such Regular Record Date or, if there is
     no  Regular  Record  Date for  interest  for  such  series  of  Securities,
     semiannually,  upon such dates as are set forth in the Board  Resolution or
     indenture supplemental hereto authorizing such series, and

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

     provided,  however, that, so long as the Trustee is the Security Registrar,
no such list shall be required to be furnished.

     SECTION 7.05. ACCOUNTS;  PAYMENTS ON SECURITIES. The Trustee as trustee for
the  Holders  shall  establish,  maintain  and  administer  for each  series  of
Securities  each of the  Accounts as follows,  unless  otherwise  provided in an
indenture  supplement  or Board  Resolution  adopted  pursuant  to Section  3.01
hereof:

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<PAGE>
          (a) FUNDING ACCOUNT.

               (i) Deposits. The Trustee shall deposit into the Funding Account:

                    (A) Pursuant to Section 3.11, the proceeds from the issuance
               of Securities;

                    (B) The gross proceeds received pursuant to Section 16.04;

                    (C) All  amounts  wired to the  Trustee  pursuant to Section
               7.05(b),  amounts  remitted  by the  Company  pursuant to Section
               7.05(d),  all proceeds  derived from the Collateral and all other
               amounts to be  deposited  therein  upon receipt of a direction in
               writing from the Company;

               (ii)  Withdrawals.  To the  extent  funds  are  available  in the
          Funding  Account,  the Trustee shall withdraw from the Funding Account
          and pay,  remit,  or transfer as and when instructed by the Company in
          writing  (except as to  amounts  under  clauses  (A) and (C) below) or
          otherwise as directed by an order of a court of competent jurisdiction
          the following  amounts in the  following  order of priority (any funds
          not so transferred or paid are to remain in the Funding  Account until
          subsequently applied pursuant to this Section 7.05(a)(ii)):

                    (A) To pay to the  Trustee,  the  amount  of its fee due and
               payable for  performing  services  under this  Indenture  and any
               supplemental  indentures or Board Resolutions adopted pursuant to
               Section 3.01 hereof and expenses incurred in connection therewith
               relating to the Securities as provided in Section 6.06;

                    (B) Any amounts  specifically  identified  by the Company or
               the Servicer in writing (I)  deposited in the Funding  Account by
               the  Company,  or  transferred  to the  Trustee  from a Lock  Box
               Account,  if any,  in error,  or (II)  deposited  in the  Funding
               Account  with  respect  to  property  that  does  not  constitute
               Collateral, Permitted Investments,  proceeds from the issuance of
               the Securities or proceeds thereof;

                    (C) To  transfer  to the  Securities  Payment  Account,  the
               amounts specified in Section 7.05(c)(i);

                    (D) If  specified by the related  supplemental  indenture or
               Board  Resolution   adopted  pursuant  to  Section  3.01  hereof,
               withdraw  sinking fund  redemption  amounts or other specified in
               such  supplemental  indenture or Board  Resolution  to pay to the
               Holders whose Securities are to be redeemed,  retired,  repaid or
               defeased in accordance  with Articles XI, XII, XIII or XIV hereof
               to the Securities Payment Account in a manner as provided in such
               supplemental indenture or Board Resolution;

                    (E) Following each deposit pursuant to Section 7.05(a)(i)(A)
               or each exchange of a Security  pursuant to Section 3.05, to pay,
               as  directed  by  the  Company  in  writing,  to  the  applicable
               Broker/Dealer  or other selling agent any related sales  expenses

                                       51
<PAGE>
               and  commissions  or to the Company to reimburse  the Company for
               its payment of such sales expenses and commissions;

                    (F) As directed in writing by the Company from time to time,
               amounts  for the  purchase  of  Eligible  Mortgage  Loans or Real
               Property,   provided   that  the  Trustee  has  received  a  duly
               authorized  and  executed  certification   substantially  in  the
               applicable form of Exhibit B to this Indenture;

                    (G) To pay to the Company, the amount of the reserve account
               balance of a Mortgagor that the Company  certifies to the Trustee
               in writing that the Company is required to return pursuant to the
               related Loan Documents;

                    (H) To  pay  amounts  to the  Company  pursuant  to  Section
               7.05(h);

                    (I) To transfer  amounts  with respect to a series as may be
               specified  in  the  related   supplemental   indenture  or  Board
               Resolution adopted pursuant to Section 3.01 hereof;

                    (J) Invest  the  remaining  amounts  promptly  in  Permitted
               Investments as provided in Section 7.05(e); and

                    (K)  Withdraw  and pay to the Company  all of the  remaining
               amounts upon termination of this Indenture.

          (b)  FUNDS  FROM LOCK BOX  ACCOUNTS.  The  Company  shall  cause  each
     custodian or trustee of a Lock Box  Account,  if any, to sweep the funds in
     each Lock Box Account  and wire such funds to the Trustee on each  Business
     Day on  which  such  custodian  or  trustee  and the  Trustee  is open  for
     business.

          (c) SECURITIES PAYMENT ACCOUNT. The Trustee shall:

               (i) No later  than  three  Business  Days  prior  to an  Interest
          Payment  Date or Maturity  Date,  calculate  all  amounts  then due in
          accordance  with Section  7.05(d)(ii)  and  withdraw  from the Funding
          Account such amounts  that,  when added to the amounts then on deposit
          in the Securities Payment Account, are sufficient to pay principal and
          interest pursuant to Section 7.05(c)(v) on the next following Interest
          Payment Date or Maturity  Date,  as  applicable,  and deposit all such
          amounts  withdrawn  pursuant to this clause (i)  immediately  into the
          Securities Payment Account;  provided,  however, that the Trustee may,
          but is not obligated to, make  calculations of accrued interest due on
          the next following  Interest Payment Date and withdraw related amounts
          from the Funding Account and deposit them into the Securities  Payment
          Account  more  frequently  during the  calendar  month  preceding  the
          Interest  Payment Date (except that no portion of a principal  payment

                                       52
<PAGE>
          on a Maturity Date may be withdrawn pursuant to this clause (i) before
          three  Business  Days in advance of the Maturity  Date);

               (ii) Deposit amounts received pursuant to Section  7.05(a)(ii)(D)
          above;

               (iii) Deposit amounts received pursuant to Section 7.05(d)(ii);

               (iv) Deposit amounts received pursuant to Section 11.05;

               (v)  From  amounts  then on  deposit  in the  Securities  Payment
          Account,  withdraw  amounts first to pay to the Holders of Outstanding
          Securities  on each  Interest  Payment Date the interest  then due and
          payable on the Securities and second, subject to Section 10.01, to pay
          to the Holders of  Outstanding  Securities  on their  Maturity Date or
          other date set for redemption of Outstanding  Securities all principal
          then due and payable  pursuant to the terms of such  Securities,  this
          Indenture,   and  any  applicable   supplemental  indenture  or  Board
          Resolution adopted pursuant to Section 3.01 hereof;

               (vi) If specified by the related supplemental  indenture or Board
          Resolution  adopted pursuant to Section 3.01 hereof,  withdraw sinking
          fund  redemption  amounts  or  other  specified  in such  supplemental
          indenture or Board  Resolution to pay to the Holders whose  Securities
          are to be redeemed,  retired,  repaid or defeased in  accordance  with
          Articles XI, XII, XIII or XIV hereof;

               (vii)  Invest  the  remaining  funds  in the  Securities  Payment
          Account  promptly  in  Permitted  Investments  as  provided in Section
          7.05(e);

               (viii) If  specified  by the related  supplemental  indenture  or
          Board Resolution adopted pursuant to Section 3.01 hereof, withdraw and
          pay to the Company the amounts  deposited  by the Company that are not
          required to be paid as part of the  Redemption  Price as  described in
          Section 11.05; and

               (ix) Withdraw and pay to the Company all  remaining  amounts upon
          termination of this Indenture.

          (d) THE COMPANY TO REMIT FUNDS; SCHEDULE OF PAYMENTS.

               (i) All Revenues  received by the Company,  if any, in respect of
          the  Collateral  shall be  immediately  remitted  to the  Trustee  for
          deposit into the Funding Account, which Revenues shall at all times be
          segregated from other funds of the Company.

               (ii)  At  the  written  request  of  the  Trustee,  interest  and
          principal  that is due and payable on any Security  shall be deposited
          by the Company into the Securities  Payment  Account to the extent the
          Trustee  determines (after taking into  consideration the withdrawals,
          if any, to be made pursuant to Section 7.05(c)(i) and the deposits, if
          any, made pursuant to Section  7.05(c)(iv)) that amounts on deposit in
          the Securities  Payment Account on the date the payment of interest or

                                       53
<PAGE>
          principal,  or both, is due and payable will not be sufficient to make
          such payment.  Such deposit into the Securities  Payment Account shall
          be made by the  Company  no later than one  Business  Day prior to the
          date such  payment  is due and  payable.  The  Trustee  shall  provide
          written  notice to the Company no later than three (3)  Business  Days
          prior to the date that the payment of interest or principal,  or both,
          is  due  and  payable  stating  the  amount  then  on  deposit  in the
          Securities  Payment Account and the amount of any such  insufficiency.
          In the absence of any manifest error in such statement or objection by
          the  Company no later than one  Business  Day prior to the due date of
          such  payment,  the Trustee's  calculations  shall be deemed final and
          conclusive.

          (e) INVESTMENT OF FUNDS HELD BY TRUSTEE.

               (i) The  Trustee  shall  invest  money held for the credit of any
          Account or  subaccount  held by the Trustee  hereunder  as directed in
          writing (or oral  direction  confirmed in writing) by the Company,  to
          the  fullest  extent   practicable   and   reasonable,   in  Permitted
          Investments. Such direction by the Company shall not conflict with the
          obligation of the Trustee to make timely payments  pursuant to Section
          7.05(c)(v).  In the  absence of any such  direction  and to the extent
          practicable,  the Trustee shall invest amounts held hereunder in those
          Permitted Investments described in clause (i) of the definition of the
          Permitted  Investments.  All  income and  earning on such  investments
          shall be held in the  Account  to which the  Permitted  Investment  is
          related and withdrawn pursuant to the applicable provisions of Section
          7.05. The Trustee and the Company hereby agree that unless an Event of
          Default shall have occurred  hereunder,  the Company shall be entitled
          to, and shall,  provide written direction or oral direction  confirmed
          in writing to the  Trustee  with  respect  to any  discretionary  acts
          required or permitted of the Trustee  under any  Permitted  Investment
          and the Trustee  shall not take such  discretionary  acts without such
          written direction.

               (ii)  The  Permitted  Investments  held by the  Trustee  shall be
          deemed at all times to be part of the related  Account or  subaccounts
          or  combination  thereof,  and the Trustee shall inform the Company of
          the details of all such  investments.  Upon  direction in writing from
          the Company,  the Trustee shall use reasonable  efforts to sell at the
          best  price  obtainable,  or present  for  redemption,  any  Permitted
          Investment whenever it shall be necessary to provide money to meet any
          payment  from the  applicable  Account.  The Trustee  shall advise the
          Company in writing, on or before the tenth (10th) day of each calendar
          month (or (A) if such day is not a Business Day, on the next following
          Business Day or (B) such later date as reasonably  consented to by the
          Company) of all investments held for the credit of each Account in its
          custody under the  provisions  of this  Indenture as of the end of the
          preceding  month and the market value thereof in  accordance  with the
          Trustee's customary bank statements.

               (iii)  Money in any  Account  may be pooled  for the  purpose  of
          making investments.  Notwithstanding the foregoing,  the Trustee shall
          not be responsible or liable for any losses on investments  made by it

                                       54
<PAGE>
          hereunder or for keeping all Accounts held by it fully invested at all
          times,  its only  responsibility  being to comply with the  investment
          instructions of the Company.

          (f) PAYMENT OF INTEREST AND PRINCIPAL.  Pursuant to Section 7.05(c)(v)
     and  (vi),  the  Trustee  shall  pay  interest  and  principal  due  on the
     Securities  from the funds on deposit in the  Securities  Payment  Account.
     Such payments  shall be made on the due dates in accordance  with the terms
     of this  Indenture.  Each  Depository  shall be responsible  for the proper
     calculation  and  payment  of  principal  and  interest  to the  holders of
     beneficial  interests in the related Security and the Trustee shall have no
     responsibility therefor.

          (g) [RESERVED]

          (h) EXCESS FUNDS.  As directed in writing by the Company,  the Trustee
     shall  distribute a portion of the monies on deposit in the Funding Account
     to the  Company  free  of the  lien  of this  Indenture,  provided  that no
     distribution  under this paragraph  shall be made to the Company unless the
     Company  certifies to the Trustee before the distribution  that immediately
     after taking into account any such distribution, the sum of (i) the amounts
     on deposit in the Funding Account (less moneys in the Funding Account which
     the Company is then entitled to receive but which have not yet been removed
     from the  Funding  Account)  and (ii)  then Net  Collectible  Amount of the
     Mortgage  Loans,  the  Real  Property  and the fair  market  value of other
     Collateral is or will be,  immediately after such transfer,  at least equal
     to one hundred  percent  (100%) of the aggregate  principal  amount of then
     Outstanding Obligations plus accrued interest. For purposes of this Section
     7.05(h),  the fair market value of the  Collateral  other than the Mortgage
     Loans or the Real Property  shall be certified in writing to the Trustee by
     the Company.

          (i) RIGHTS TO PAYMENTS.  The rights of the Holders to receive payments
     in respect of their Securities, and all rights and interests of the Holders
     in and to such payments,  shall be as set forth in this Indenture.  Neither
     the Holders of any class of  Securities  nor any party  hereto shall in any
     way  be  responsible  or  liable  to the  Holders  of any  other  class  of
     Securities in respect of amounts  properly  previously  distributed  on the
     Securities.

          (j) WIRING  DEADLINES.  Any  amounts  which the Company  requests  the
     Trustee to wire pursuant to this Indenture shall be wired by the Trustee as
     directed  by the  Company on the day the  executed  certification  or other
     request in form and substance as required by this  Indenture is received by
     the Trustee if such certification or request is received before [11:00 a.m.
     Mountain Time], and if not so received, on the next following Business Day.

                                  ARTICLE VIII

                CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE

     SECTION 8.01.  CONSOLIDATIONS AND MERGERS OF COMPANY AND SALES,  LEASES AND
CONVEYANCES PERMITTED SUBJECT TO CERTAIN CONDITIONS. The Company may consolidate
with,  or sell,  lease or convey all or  substantially  all of its assets to, or
merge with or into any other  entity,  provided that in any such case (a) either

                                       55
<PAGE>
the Company shall be the continuing  entity,  or the successor  entity (if other
than the Company) formed by or resulting from any such  consolidation  or merger
or which shall have  received  the  transfer  of such assets  shall be an entity
organized  and existing  under the laws of the United  States or a state thereof
and such successor entity shall expressly assume the due and punctual payment of
the  principal  of  (and  premium,  if  any)  and any  interest  (including  all
Additional  Amounts,  if any,  payable  pursuant to Section 10.10) on all of the
Securities,  according to their tenor, and the due and punctual  performance and
observance  of all of the  covenants  and  conditions  of this  Indenture  to be
performed by the Company by supplemental  indenture,  complying with Article IX,
satisfactory  to the  Trustee,  executed  and  delivered  to the Trustee by such
entity and (b) immediately  after giving effect to such transaction and treating
any  indebtedness  which  becomes an obligation of such  successor  entity,  the
Company or any  Subsidiary  as a result  thereof as having been incurred by such
successor  entity,   the  Company  or  such  Subsidiary  at  the  time  of  such
transaction,  no Event of Default, and no event which, after notice or the lapse
of time, or both,  would become an Event of Default,  shall have occurred and be
continuing.

     SECTION 8.02.  RIGHTS AND DUTIES OF SUCCESSOR  CORPORATION.  In case of any
such  consolidation,  merger,  sale,  lease  or  conveyance  and  upon  any such
assumption  by the  successor  corporation,  such  successor  corporation  shall
succeed to and be substituted for the Company, with the same effect as if it had
been  named  herein  as the  party  of  the  first  part,  and  the  predecessor
corporation,  except in the event of a lease,  shall be  relieved of any further
obligation under this Indenture and the Securities.  Such successor  corporation
thereupon may cause to be signed, and may issue either in its own name or in the
name of the  Company,  any or all of the  Securities  issuable  hereunder  which
theretofore  shall not have been  signed by the  Company  and  delivered  to the
Trustee;  and,  upon the order of such  successor  corporation,  instead  of the
Company,  and  subject  to all the terms,  conditions  and  limitations  in this
Indenture  prescribed,  the Trustee  shall  authenticate  and shall  deliver any
Securities which previously shall have been signed and delivered by the officers
of the Company to the Trustee for authentication,  and any Securities which such
successor  corporation  thereafter shall cause to be signed and delivered to the
Trustee for that  purpose.  All the  Securities  so issued shall in all respects
have the same legal rank and  benefit  under this  Indenture  as the  Securities
theretofore or thereafter  issued in accordance with the terms of this Indenture
as though all of such  Securities  had been issued at the date of the  execution
hereof.

     In case of any such consolidation,  merger, sale, lease or conveyance, such
changes  in  phraseology  and  form  (but not in  substance)  may be made in the
Securities thereafter to be issued as may be appropriate.

     SECTION  8.03.   OFFICERS'   CERTIFICATE   AND  OPINION  OF  COUNSEL.   Any
consolidation, merger, sale, lease or conveyance permitted under Section 8.01 is
also subject to the condition that the Trustee receive an Officers'  Certificate
and an Opinion of Counsel  to the effect  that any such  consolidation,  merger,
sale,  lease or  conveyance,  and the  assumption by any successor  corporation,
complies  with the  provisions  of this  Article  VIII  and that all  conditions
precedent  herein provided for relating to such  transaction  have been complied
with.

                                       56
<PAGE>
                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

     SECTION 9.01. SUPPLEMENTAL  INDENTURES WITHOUT CONSENT OF HOLDERS.  Without
the consent of any Holders of  Securities,  the Company,  when  authorized by or
pursuant to a Board  Resolution,  and the Trustee,  at any time and from time to
time,  may  enter  into  one or more  indentures  supplemental  hereto,  in form
satisfactory to the Trustee, for any of the following purposes:

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

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

          (c) to add any  additional  Events of Default  for the  benefit of the
     Holders of all or any series of  Securities  (and if such Events of Default
     are to be for the  benefit of less than all series of  Securities,  stating
     that such Events of Default are  expressly  being  included  solely for the
     benefit of such  series);  provided,  however,  that in respect of any such
     additional Events of Default 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), may provide for an
     immediate  enforcement upon such default,  may limit the remedies available
     to the Trustee upon such default or may limit the right of the Holders of a
     majority  in  aggregate  principal  amount  of  that  or  those  series  of
     Securities to which such  additional  Events of Default apply to waive such
     default;

          (d) [Reserved];

          (e) to change or eliminate any of the  provisions  of this  Indenture,
     provided that any such change or  elimination  shall become  effective only
     when there is no Security  Outstanding  of any series  created prior to the
     execution of such  supplemental  indenture which is entitled to the benefit
     of such provision;

          (f) to subject to this Indenture to additional revenues, properties or
     Collateral or to otherwise further secure the Securities;

          (g) to  establish  the form or terms of  Securities  of any  series as
     permitted  by  Sections  2.01  and  3.01,   including  the  provisions  and
     procedures  relating  to  Securities   convertible  into  Common  Stock  or
     Preferred Stock, as the case may be;

          (h)  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 or different Trustees;

                                       57
<PAGE>
          (i) to cure any  ambiguity,  to correct or  supplement  any  provision
     herein  which may be  defective or  inconsistent  with any other  provision
     herein,  or to make  any  other  provisions  with  respect  to  matters  or
     questions arising under this Indenture which shall not be inconsistent with
     the provisions of this Indenture;  provided,  however, that such provisions
     shall not  adversely  affect the  interests of the Holders of Securities of
     any series in any material respect; or

          (j) to  supplement  any of the  provisions  of this  Indenture to such
     extent as shall be necessary to permit or  facilitate  the  defeasance  and
     discharge of any series of Securities  pursuant to Sections 4.01, 14.02 and
     14.03;  provided,  however, that any such action shall not adversely affect
     the  interests  of the  Holders of  Securities  of such series or any other
     series of Securities in any material respect.

     SECTION 9.02.  SUPPLEMENTAL  INDENTURES  WITH CONSENT OF HOLDERS.  With the
consent of the  Holders of not less than a majority in  principal  amount of all
Outstanding  Securities  of a series,  by Act of said  Holders  delivered to the
Company and the Trustee, the Company,  when authorized by or pursuant to a Board
Resolution,   and  the  Trustee  may  enter  into  an  indenture  or  indentures
supplemental  hereto for the purpose of adding any  provisions to or changing in
any manner or  eliminating  any of the provisions of this Indenture with respect
to such  series or of  modifying  in any  manner  the  rights of the  Holders of
Securities of such series under this Indenture;  provided, however, that no such
supplemental  indenture  shall,  without  the  consent  of the  Holder  of  each
Outstanding Security affected thereby:

          (a) change the Stated  Maturity of the  principal of (or  premium,  if
     any, on) or any  installment  of principal of or interest on, any Security;
     or reduce the  principal  amount  thereof or the rate or amount of interest
     thereon  or any  Additional  Amounts  payable in  respect  thereof,  or any
     premium  payable upon the redemption  thereof,  or change any obligation of
     the Company to pay Additional  Amounts pursuant to Section 10.10 (except as
     contemplated  by Section  8.01(a) and  permitted  by Section  9.01(a)),  or
     reduce the amount of the principal of an Original Issue  Discount  Security
     that would be due and payable upon a  declaration  of  acceleration  of the
     Maturity thereof pursuant to Section 5.02 or the amount thereof provable in
     bankruptcy  pursuant  to Section  5.04,  or  adversely  affect any right of
     repayment  of the  Holder of any  Security,  or change any Place of Payment
     where,  or the currency or currencies,  currency unit or units or composite
     currency or  currencies  in which,  the  principal  of any  Security or any
     premium  or the  interest  thereon  is  payable,  or  impair  the  right to
     institute  suit for the  enforcement  of any such  payment  on or after the
     Stated Maturity  thereof (or, in the case of redemption or repayment at the
     option of the  Holder,  on or after the  Redemption  Date or the  Repayment
     Date, as the case may be);

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

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     consequences) provided for in this Indenture, or reduce the requirements of
     Section 15.04 for quorum or voting;

          (c) create any lien on the Collateral  securing the Securities  except
     as otherwise provided herein; or

          (d) modify any of the provisions of this Section 9.02, Section 5.13 or
     10.11,  except to increase the required percentage to effect such action or
     to provide  that  certain  other  provisions  of this  Indenture  cannot be
     modified or waived  without  the consent of the Holder of each  Outstanding
     Security affected thereby.

     It shall not be necessary for any Act of Holders under this Section 9.02 to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.

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

     SECTION  9.03.  EXECUTION  OF  SUPPLEMENTAL  INDENTURES.  In  executing  or
accepting the additional trusts created by any supplemental  indenture permitted
by this  Article IX or the  modification  thereby of the trusts  created by this
Indenture,  the  Trustee  shall  be  entitled  to  receive,  and  shall be fully
protected in relying upon,  an Opinion of Counsel  stating that the execution of
such  supplemental  indenture is authorized or permitted by this Indenture.  The
Trustee  may, but shall not be  obligated  to, enter into any such  supplemental
indenture  which affects the Trustee's  own rights,  duties or immunities  under
this Indenture or otherwise.

     SECTION 9.04. EFFECT OF SUPPLEMENTAL  INDENTURE.  Upon the execution of any
supplemental  indenture  under this Article IX, this Indenture shall be modified
in accordance  therewith,  and such supplemental  indenture shall form a part of
this  Indenture  for all  purposes;  and  every  Holder of  Securities  that are
theretofore or thereafter  authenticated and delivered  hereunder shall be bound
thereby.

     SECTION 9.05.  CONFORMITY  WITH TRUST  INDENTURE  ACT.  Every  supplemental
indenture executed pursuant to this Article IX shall conform to the requirements
of the Trust Indenture Act as then in effect.

     SECTION  9.06.   REFERENCE  IN  SECURITIES  TO   SUPPLEMENTAL   INDENTURES.
Securities of any series  authenticated and delivered after the execution of any
supplemental  indenture  pursuant to this Article IX may, and shall, if required
by the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental  indenture. If the Company shall so determine,
new  Securities  of any series so modified as to conform,  in the opinion of the
Trustee and the Company, to any such supplemental  indenture may be prepared and
executed  by the  Company  and  authenticated  and  delivered  by the Trustee in
exchange for Outstanding Securities of such series.

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     SECTION 9.07. TRUSTEE TO ACT ON INSTRUCTIONS. Notwithstanding any provision
herein to the contrary  (other than Section  9.02),  in the event the Trustee is
uncertain as to the intention or  application of any provision of this Indenture
or such intention or application is ambiguous as to its purpose or  application,
or is, or appears to be, in conflict with any other applicable provision hereof,
or if this  Indenture  permits or does not  prohibit  any  determination  by the
Trustee or is silent or  incomplete as to the course of action which the Trustee
is  required  or is  permitted  or may be  permitted  to take with  respect to a
particular set of facts or  circumstances,  the Trustee shall, at the expense of
the Issuer, request and rely upon the following: (a) written instructions of the
Issuer  directing  the Trustee to take  certain  actions or refrain  from taking
certain actions,  which written  instructions shall contain a certification that
the taking of such actions or refraining  from taking certain  actions is in the
best  interest  of the  Holders,  and (b) a written  statement  from the  rating
agency,  if any,  that the proposed  action or inaction will not have an adverse
effect  on the  rating,  if any,  then  assigned  to the  applicable  series  of
Securities.  In such case,  the Trustee shall have no liability to the Issuer or
the Holders for,  and the Issuer  hereby holds  harmless the Trustee  from,  any
liability, costs or expenses arising from or relating to any action taken by the
Trustee  acting  upon  such   instructions,   and  the  Trustee  shall  have  no
responsibility  to the  Holders  with  respect to any such  liability,  costs or
expenses.

                                   ARTICLE X

                    COVENANTS; REPRESENTATIONS AND WARRANTIES

     SECTION  10.01.  PAYMENT  OF  PRINCIPAL,  PREMIUM,  IF  ANY,  INTEREST  AND
ADDITIONAL  AMOUNTS.  The  Company  covenants  and agrees for the benefit of the
Holders of each series of Securities  that it will duly and  punctually  pay the
principal of (and premium,  if any) and interest on and any  Additional  Amounts
payable in respect of the Securities of that series in accordance with the terms
of such series of Securities and this Indenture. Unless otherwise specified with
respect to Securities  of any series  pursuant to Section 3.01, at the option of
the Company,  all payments of principal  may be paid by check to the  registered
Holder of the  Registered  Security or other  person  entitled  thereto  against
surrender of such Security.

     SECTION 10.02.  MAINTENANCE OF OFFICE OR AGENCY. The Company shall maintain
in each Place of Payment for any series of  Securities an office or agency where
Securities  of that  series  may be  presented  or  surrendered  for  payment or
conversion,  where Securities of that series may be surrendered for registration
of transfer or exchange and where  notices and demands to or upon the Company in
respect of the Securities of that series and this  Indenture may be served.  The
Company will give prompt written notice to the Trustee of the location,  and any
change in the  location,  of each  such  office  or  agency.  If at any time the
Company shall fail to maintain any such required  office or agency or shall fail
to furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the  Corporate  Trust Office of the
Trustee.

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

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of any such other office or agency.  Unless otherwise  specified with respect to
any Securities  pursuant to Section 3.01 with respect to a series of Securities,
the  Company  hereby  designates  as a Place  of  Payment  for  each  series  of
Securities the office or agency of ___________________, in the City of ________,
__________,  and initially appoints the Trustee at its Corporate Trust Office as
Paying  Agent in such city and as its agent to receive  all such  presentations,
surrenders, notices and demands.

     SECTION 10.03.  MONEY FOR SECURITIES  PAYMENTS TO BE HELD IN TRUST.  If the
Company shall at any time act as its own Paying Agent with respect to any series
of any Securities,  it will, on or before each due date of the principal of (and
premium, if any), or interest on or Additional Amounts in respect of, any of the
Securities  of that series,  segregate  and hold in trust for the benefit of the
Persons entitled  thereto a sum in the currency or currencies,  currency unit or
units or composite currency or currencies in which the Securities of such series
are payable  (except as  otherwise  specified  pursuant to Section  3.01 for the
Securities of such series) sufficient to pay the principal (and premium, if any)
or interest or Additional  Amounts so becoming due until such sums shall be paid
to such Persons or otherwise  disposed of as herein provided,  and will promptly
notify the Trustee of its action or failure so to act.

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

     The Company  will cause each Paying Agent other than the Trustee to execute
and deliver to the Trustee an  instrument in which such Paying Agent shall agree
with the Trustee,  subject to the  provisions of this Section  10.03,  that such
Paying Agent will:

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

          (b) give the  Trustee  notice of any  default by the  Company  (or any
     other  obligor  upon the  Securities)  in the making of any such payment of
     principal  (and  premium,  if any) or  interest on the  Securities  of that
     series; 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.

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     The Company may at any time, for the purpose of obtaining the  satisfaction
and  discharge of this  Indenture or for any other  purpose,  pay, or by Company
Order  direct any Paying  Agent to pay, to the Trustee all sums held in trust by
the Company or such Paying  Agent,  such sums to be held by the Trustee upon the
same terms as those upon which such sums were held by the Company or such Paying
Agent;  and,  upon such payment by any Paying Agent to the Trustee,  such Paying
Agent shall be released from all further liability with respect to such sums.

     Except as otherwise  provided in the  Securities  of any series,  any money
deposited with the Trustee or any Paying Agent, or then held by the Company,  in
trust for the payment of the principal of (and premium,  if any) or interest on,
or any  Additional  Amounts  in  respect  of,  any  Security  of any  series and
remaining  unclaimed for two years after such principal  (and premium,  if any),
interest or  Additional  amounts has become due and payable shall be paid to the
Company  upon  Company  Request  or (if  then  held  by the  Company)  shall  be
discharged from such trust; and the Holder of such Security shall thereafter, as
an  unsecured  general  creditor,  look only to the  Company for payment of such
principal of (and premium,  if any) or interest on, or any Additional Amounts in
respect of, any Security,  without  interest  thereon,  and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as Trustee  thereof,  shall thereupon cease;  provided,  however,
that the Trustee or such Paying  Agent,  before being  required to make any such
repayment,  may at the expense of the Company cause to be published  once, in an
Authorized Newspaper, notice that such money remains unclaimed and that, after a
date  specified  therein,  which shall not be less than 30 days from the date of
such  publication,  any unclaimed  balance of such money then  remaining will be
repaid to the Company.

     SECTION 10.04.  EXISTENCE.  Subject to Article VIII, the Company will do or
cause to be done all things  necessary  to  preserve  and keep in full force and
effect  its  corporate  existence,   all  material  rights  (by  certificate  of
incorporation,  bylaws and statute) and material franchises;  provided, however,
that the Company shall not be required to preserve any right or franchise if the
Board of Directors  shall determine that the  preservation  thereof is no longer
desirable in the conduct of the business of the Company.

     SECTION 10.05. MAINTENANCE OF PROPERTIES. The Company will cause all of its
material  properties  used or  useful  in the  conduct  of its  business  or the
business of any Subsidiary to be maintained and kept in good  condition,  repair
and working order and supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and improvements
thereof,  all as in the  judgment of the Company  may be  necessary  so that the
business carried on in connection  therewith may be properly and  advantageously
conducted at all times; provided, however, that the Company and its Subsidiaries
shall not be prevented from selling or otherwise  disposing of their  properties
for value in the ordinary course of their business.

     SECTION  10.06.  INSURANCE.  The Company  will,  and will cause each of its
Subsidiaries  to,  keep in  force  upon  all of its  properties  and  operations
policies of  insurance  carried with  responsible  companies in such amounts and
covering all such risks as shall be customary in the industry in accordance with
prevailing market conditions and availability.

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     SECTION 10.07.  PAYMENT OF TAXES AND OTHER CLAIMS.  The Company will pay or
discharge  or cause to be paid or  discharged,  before  the  same  shall  become
delinquent,  (a) all  taxes,  assessments  and  governmental  charges  levied or
imposed upon it or any Subsidiary or upon the income, profits or property of the
Company or any  Subsidiary  and (b) all lawful  claims for labor,  materials and
supplies which,  if unpaid,  might by law become a lien upon the property of the
Company or any  Subsidiary;  provided,  however,  that the Company  shall not be
required to pay or  discharge  or cause to be paid or  discharged  any such tax,
assessment,  charge or claim the amount,  applicability  or validity of which is
being  contested  in  good  faith  by  appropriate  proceedings,   provided  all
liabilities  relating to such tax,  assessment,  charge or claim are  adequately
provided for on the books of the Company in accordance  with GAAP.  The Company,
any  Subsidiaries  and any partnership in which the Company or its  Subsidiaries
are a partner shall timely and accurately  file all tax returns  required by law
to have been filed.

     SECTION  10.08.  PROVISION  OF  FINANCIAL  INFORMATION.  Whether or not the
Company is subject to  Section  13 or 15(d) of the  Securities  Exchange  Act of
1934, as amended,  the Company will, within 15 days after each of the respective
dates by which the Company  would have been  required  to file  annual  reports,
quarterly reports and other documents with the Commission if the Company were so
subject,  (a) file with the  Trustee  copies of the  annual  reports,  quarterly
reports and other  documents  which the Company would have been required to file
with the Commission  pursuant to Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  as amended,  if the Company were subject to such  Sections and (b)
promptly upon written  request and payment of the reasonable cost of duplication
and delivery, supply copies of such documents to any prospective Holder.

     SECTION 10.09. STATEMENT AS TO COMPLIANCE.  The Company will deliver to the
Trustee,  within 120 days after the end of each Fiscal Year, a brief certificate
from the principal  executive officer,  principal financial officer or principal
accounting  officer as to his or her knowledge of the Company's  compliance with
all  conditions  and  covenants  under this  Indenture  and, in the event of any
noncompliance,  specifying such noncompliance and the nature and status thereof.
For purposes of this Section 10.09, such compliance shall be determined  without
regard to any period of grace or requirement of notice under this Indenture.

     SECTION 10.10.  ADDITIONAL  AMOUNTS.  If any Securities of a series provide
for the payment of Additional Amounts, the Company will pay to the Holder of any
Security of such series  Additional  Amounts as may be specified as contemplated
by Section 3.01.  Whenever in this Indenture there is mentioned,  in any context
except in the case of Section  5.02(a),  the payment of the  principal of or any
premium or interest  on, or in respect of, any Security of any series or the net
proceeds  received on the sale or exchange of any  Security of any series,  such
mention shall be deemed to include mention of the payment of Additional  Amounts
provided by the terms of such series established pursuant to Section 3.01 to the
extent that, in such context,  Additional  Amounts are, were or would be payable
in respect thereof  pursuant to such terms and express mention of the payment of
Additional  Amounts  (if  applicable)  in any  provisions  hereof  shall  not be
construed as excluding  Additional Amounts in those provisions hereof where such
express mention is not made.

     Except as  otherwise  specified as  contemplated  by Section  3.01,  if the
Securities of a series provide for the payment of Additional  Amounts,  at least
10 days prior to the first Interest  Payment Date with respect to that series of

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Securities  (or if the Securities of that series will not bear interest prior to
Maturity,  the first day on which a payment  of  principal  and any  premium  is
made),  and at least 10 days prior to each date of payment of principal  and any
premium or interest if there has been any change with respect to the matters set
forth in the below-mentioned Officers' Certificate, the Company will furnish the
Trustee and the Company's principal Paying Agent or Paying Agents, if other than
the Trustee,  with an  Officers'  Certificate  instructing  the Trustee and such
Paying  Agent or Paying  Agents  whether  such  payment of  principal of and any
premium or interest on the Securities of that series shall be made to Holders of
Securities of that series who are not United States Persons without  withholding
for or on account of any tax,  assessment or other governmental charge described
in the Securities of the series. If any such withholding shall be required, then
such Officers' Certificate shall specify by country the amount, if any, required
to be withheld on such payments to such Holders of Securities of that series and
the Company will pay to the Trustee or such Paying Agent the Additional  Amounts
required by the terms of such Securities. If the Trustee or any Paying Agent, as
the case may be, shall not so receive the above-mentioned Officers' Certificate,
then the  Trustee or such Paying  Agent shall be entitled  (a) to assume that no
such  withholding  or  deduction  is  required  with  respect to any  payment of
principal or interest with respect to any  Securities of a series until it shall
have received a certificate  advising  otherwise and (b) to make all payments of
principal  and  interest  with  respect to the  Securities  of a series  without
withholding or deductions  until  otherwise  advised.  The Company  covenants to
indemnify  the  Trustee  and any  Paying  Agent for,  and to hold them  harmless
against,  any loss,  liability or expense reasonably incurred without negligence
or bad faith on their part arising out of or in connection with actions taken or
omitted by any of them or in reliance  on any  Officers'  Certificate  furnished
pursuant to this Section 10.10 or in reliance on the  Company's  not  furnishing
such an Officers' Certificate.

     SECTION  10.11.  WAIVER OF CERTAIN  COVENANTS.  The Company may omit in any
particular instance to comply with any term, provision or condition set forth in
Sections  10.04 to  10.08,  inclusive,  if  before  or  after  the time for such
compliance  the  Holders  of at least a  majority  in  principal  amount  of all
outstanding Securities of such series, by Act of such Holders, either waive such
compliance in such instance or generally waive  compliance with such covenant or
condition,  but no such  waiver  shall  extend to or  affect  such  covenant  or
condition except to the extent so expressly waived, and, until such waiver shall
become  effective,  the obligations of the Company and the duties of the Trustee
in respect of any such term,  provision or condition  shall remain in full force
and effect.

     SECTION 10.12.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The Company
represents and warrants as follows:

          (a) The  Company  owns  the  Collateral  free and  clear of any  lien,
     security  interest,  charge or  encumbrance,  except  (i) for the  security
     interest  created by this  Indenture and any financing  statement  filed in
     favor of the  Trustee  in  connection  herewith  and (ii) with  respect  to
     Collateral  other than Mortgage Loans,  any security  interest set forth on
     the schedule  describing such other Collateral provided pursuant to Section
     16.01(b) to the Trustee upon disbursement of funds from the Funding Account
     in connection with the acquisition of such other  Collateral.  No effective
     financing  statement or other instrument  similar in effect covering all or
     any part of the Collateral is on file in any recording office,  except such

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     as may have been filed in favor of the Trustee  relating to this Indenture,
     including  the  Collateral  acquired  upon  disbursement  of funds from the
     Funding Account in connection with the acquisition of Collateral.

          (b) This Indenture  creates a valid security  interest in favor of the
     Trustee in the Collateral, securing the payment of the Obligations, and all
     filings have been made that are necessary in any jurisdiction to perfect in
     favor of the  Trustee  for the  benefit  of the  Holders  a first  priority
     security  interest in the Mortgage Loans and the Real  Property,  including
     the acquisition of additional  Collateral  from  disbursement of funds from
     the Funding Account.

          (c)  Except  as  contemplated  by this  Indenture,  no  authorization,
     approval  or other  actions  by,  and no  notice  to or  filing  with,  any
     governmental authority or regulatory body is required by either (i) for the
     grant by the Company of the security  interest granted hereunder or for the
     execution, delivery or performance of this Indenture by the Company or (ii)
     for the  perfection  of or the  exercise  by the  Trustee of its rights and
     remedies hereunder.

          (d) Each  Mortgage  Loan is at the time of  grant  to the  Trustee  an
     Eligible Mortgage Loan.

     SECTION 10.13. REPURCHASES OF MORTGAGE LOANS AND REAL PROPERTY.

          (a) Upon  discovery  by the Company,  or upon actual  knowledge of the
     Trustee,  of a breach of any of the such  representations and warranties in
     Section  10.12  which  materially  and  adversely  affects the value of the
     Collateral  or the  interest  of  the  Holders,  or  which  materially  and
     adversely  affects the  interests  of the  Holders in the  related  item of
     Collateral as determined by the [Company] in the reasonable exercise of its
     discretion,  the party  discovering  such breach shall give prompt  written
     notice to the other.  The  Company  shall  within  ninety  (90) days of the
     earlier  of its  discovery  or its  receipt  of notice  of any  breach of a
     representation  or  warranty,  promptly  cure such  breach in all  material
     respects or (i) replace the  defective  item of  Collateral  with  Eligible
     Mortgage  Loans or Real  Property  as to which the  Company is  entitled to
     receive in the aggregate at least as much as under the  defective  Mortgage
     Loan or Real  Property  or  (ii)  prepay  principal  on  Outstanding  Notes
     pursuant to Article XI in an amount at least  equal to the funds  disbursed
     from the Funding Account to purchase the defective item of Collateral.

          (b) It is understood  and agreed that the  obligations  of the Company
     set forth in this Section 10.13 to cure or  substitute a defective  item of
     Collateral or prepay Notes  constitute the sole remedies of the Trustee and
     the  Holders  hereunder  respecting  a breach  of the  representations  and
     warranties  contained  in Section  10.12.  Any cause of action  against the
     Company  relating  to or  arising  out of a  material  defect in a document
     relating to  Collateral  or arising out of a breach of any  representations
     and  warranties  made in  Section  10.12  shall  accrue  as to any  item of
     Collateral  upon (i)  discovery  of such  defect or breach by any party and
     notice  thereof to the  Company,  (ii)  failure by the Company to cure such
     defect or breach or replace such  defective  collateral  or prepay Notes as
     provided in this  Section  10.13,  and (iii) demand upon the Company by the

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     Trustee or a majority of the Holders of the aggregate  principal  amount of
     then   Outstanding   Notes  to  take  the  actions   described  in  Section
     10.13(b)(ii).

          (c) Neither the Company nor the Trustee shall have any duty to conduct
     any  affirmative  investigation  as to  the  occurrence  of  any  condition
     requiring the  prepayment of Notes or  replacement of any defective item of
     Collateral  pursuant  to this  Section  or the  eligibility  of any item of
     Collateral for purposes of this Indenture.

          (d) In  connection  with a  prepayment  of Notes or  replacement  of a
     defective item of Collateral  pursuant to this Section  10.13,  the Company
     shall  amend  and  deliver  to  the  Trustee  the  applicable  schedule  of
     Collateral  provided  to  the  Trustee  and  an  executed   Certificate  of
     Replacement  Collateral  substantially  in the form of  Exhibit B hereto to
     reflect (i) the removal of the applicable item of defective Collateral from
     the terms of this Indenture and (ii) if applicable,  the replacement of the
     defective item of Collateral.  Upon the Company's compliance with the terms
     of this Section  10.13,  the Trustee shall cause the lien of this Indenture
     and any applicable  supplemental  indenture or Board Resolution  adopted in
     accordance with Section 3.01 hereof to be released with respect to the item
     of defective  collateral  and promptly  return to the Company all documents
     evidencing the item of defective Collateral.

                                   ARTICLE XI

                            REDEMPTION OF SECURITIES

     SECTION 11.01. APPLICABILITY OF ARTICLE. Securities of any series which are
redeemable  before their Stated  Maturity shall be redeemable in accordance with
their terms and (except as otherwise  specified as  contemplated by Section 3.01
for Securities of any series) in accordance with this Article XI.

     SECTION 11.02.  ELECTION TO REDEEM;  NOTICE TO TRUSTEE. The election of the
Company to redeem any  Securities  shall be  evidenced by or pursuant to a Board
Resolution.  In case of any  redemption  at the  election of the Company of less
than all of the Securities of any series,  the Company  shall,  at least 45 days
prior to the  giving of the notice of  redemption  in  Section  11.04  (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption  Date and of the principal  amount of Securities of such series to be
redeemed. In the case of any redemption of Securities prior to the expiration of
any restriction on such  redemption  provided in the terms of such Securities or
elsewhere  in this  Indenture,  the Company  shall  furnish the Trustee  with an
Officers' Certificate evidencing compliance with such restriction.

     SECTION 11.03.  SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED.  If less
than all the Securities of any series issued on the same day with the same terms
are to be redeemed,  the particular  Securities to be redeemed shall be selected
not more than 60 days  prior to the  Redemption  Date by the  Trustee,  from the
Outstanding  Securities  of such series  issued on such date with the same terms
not previously  called for redemption,  by such method as the Trustee shall deem
fair and  appropriate  and which may provide for the selection for redemption of
portions (equal to the minimum  authorized  denomination  for Securities of that

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series or any integral  multiple  thereof) of the principal amount of Securities
of such series of a denomination larger than the minimum authorized denomination
for Securities of that series.

     The Trustee shall  promptly  notify the Company and the Security  Registrar
(if other than itself) in writing of the Securities selected for redemption and,
in the case of any  Securities  selected for partial  redemption,  the principal
amount thereof to be redeemed.

     For all purposes of this Indenture,  unless the context otherwise requires,
all  provisions  relating to the redemption of Securities  shall relate,  in the
case of any 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 11.04. NOTICE OF REDEMPTION. Notice of redemption shall be given in
the manner provided in Section 1.06, not less than 30 days nor more than 60 days
prior to the Redemption Date,  unless a shorter period is specified by the terms
of  such  series  established  pursuant  to  Section  3.01,  to each  Holder  of
Securities to be redeemed,  but failure to give such notice in the manner herein
provided to the Holder of any Security  designated  for redemption as a whole or
in part,  or any defect in the notice to any such  Holder,  shall not affect the
validity of the  proceedings  for the  redemption  of any other such Security or
portion thereof.

     Any notice that is mailed to the Holders of Securities in the manner herein
provided shall be conclusively  presumed to have been duly given, whether or not
the Holder receives the notice.

     All notices of redemption shall state:

          (a) the Redemption Date;

          (b) the Redemption  Price,  accrued  interest to the  Redemption  Date
     payable as provided in Section 11.06,  if any, and Additional  Amounts,  if
     any;

          (c) if less than all  Outstanding  Securities  of any series are to be
     redeemed,  the identification (and, in the case of partial redemption,  the
     principal amount) of the particular Security or Securities to be redeemed;

          (d) in case any  Security is to be  redeemed in part only,  the notice
     which relates to such Security shall state that on and after the Redemption
     Date, upon surrender of such Security,  the holder will receive,  without a
     charge,  a new Security or Securities or authorized  denominations  for the
     principal amount thereof remaining unredeemed;

          (e) that on the  Redemption  Date the  Redemption  Price  and  accrued
     interest to the Redemption  Date payable as provided in Section  11.06,  if
     any,  will become due and payable upon each such  Security,  or the portion
     thereof,  to be redeemed and, if  applicable,  that interest  thereon shall
     cease to accrue on and after said date;

          (f) the Place or Places of  Payment  where such  Securities,  maturing
     after  the  Redemption  Date,  are to be  surrendered  for  payment  of the
     Redemption Price and accrued interest, if any, or for conversion;

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          (g) that the redemption is for a sinking fund, if such is the case;

          (h) the CUSIP number of such Security, if any; and

          (i) if applicable,  that a Holder of Securities who desires to convert
     Securities  for  redemption  must satisfy the  requirements  for conversion
     contained in such Securities,  the then-existing  conversion price or rate,
     the  place  or  places  where  such   Securities  may  be  surrendered  for
     conversion, and the date and time when the option to convert shall expire.

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

     SECTION  11.05.  DEPOSIT OF REDEMPTION  PRICE.  On or before any Redemption
Date,  the Company  shall deposit with the Trustee into the  Securities  Payment
Account in immediately available funds or with a Paying Agent an amount of money
in the currency or currencies,  currency unit or units or composite  currency or
currencies  in which the  Securities  of such  series  are  payable  (except  as
otherwise  specified pursuant to Section 3.01 for the Securities of such series)
sufficient to pay on the Redemption Date the Redemption Price of, and (except if
the Redemption Date shall be an Interest  Payment Date) accrued interest on, all
the  Securities or portions  thereof which are to be redeemed on that date.  The
Trustee shall,  as promptly as  practicable,  but in any event no later than the
Business Day following such  Redemption  Date,  return to the Company amounts on
deposit in the Securities  Payment Account all funds so deposited by the Company
that are not required to be paid to Holders as the Redemption Price.

     If any Security  called for  redemption is converted,  any money  deposited
with the Trustee or with any Paying Agent or so segregated and held in trust for
the  redemption  of such  Security  shall be paid to the  Company  upon  Company
Request or, if then held by the Company, shall be discharged from such trust.

     SECTION 11.06.  SECURITIES PAYABLE ON REDEMPTION DATE. Notice of redemption
having been given as aforesaid,  the Securities so to be redeemed  shall, on the
Redemption  Date,  become  due  and  payable  at the  Redemption  Price  therein
specified in the  currency or  currencies,  currency  unit or units or composite
currency  or  currencies  in which the  Securities  of such  series are  payable
(except as otherwise  specified  pursuant to Section 3.01 for the  Securities of
such series) (together with accrued  interest,  if any, to the Redemption Date),
and from and after such date (unless the Company shall default in the payment of
the Redemption  Price and accrued  interest) such Securities  shall, if the same
were interest-bearing,  cease to bear interest so to be redeemed,  except to the
extent  provided  below,  shall be void and shall  cease to be  entitled  to any
benefit or security under this Indenture,  and the Holders thereof shall have no
right in respect of such  Securities  (or portion  thereof)  except the right to
receive the Redemption  Price  thereof.  Upon surrender of any such Security for
redemption in accordance with said notice,  appertaining  thereto maturing after
the  Redemption  Date,  such Security shall be paid by the Trustee from funds on
deposit  in the  Securities  Payment  Account  on behalf of the  Company  at the
Redemption  Price,  together with accrued  interest,  if any, to the  Redemption

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Date;  provided  that,  except as otherwise  provided with respect to Securities
convertible  into Common Stock or Preferred  Stock,  installments of interest on
Securities  whose Stated Maturity is on or prior to the Redemption Date shall be
payable  to  the  Holders  of  such  Securities,  or  one  or  more  Predecessor
Securities,  registered as such at the close of business on the relevant  record
dates according to their terms and the provisions of Section 3.07.

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

     SECTION 11.07.  SECURITIES  REDEEMED IN PART. Any Registered Security which
is to be redeemed only in part (pursuant to the provisions of this Article XI or
of Article XII) shall be surrendered at a Place of Payment  therefor  (with,  if
the  Company  or the  Trustee  so  requires,  due  endorsement  by, or a written
instrument of transfer in form  satisfactory to the Company and the Trustee duly
executed  by,  the Holder  thereof or his or her  attorney  duly  authorized  in
writing) and the Company shall execute and the Trustee  shall  authenticate  and
deliver to the Holder of such Security  without service charge a new Security or
Securities  of the same series of any  authorized  denomination  as requested by
such Holder in  aggregate  principal  amount  equal to and in  exchange  for the
unredeemed portion of the principal of the Security so surrendered.  If a Global
Security is so  surrendered,  the Company  shall  execute and the Trustee  shall
authenticate and deliver to the depositary, without service charge, a new Global
Security in a denomination  equal to and in exchange for the unredeemed  portion
of the principal of the Global Security so surrendered.

                                  ARTICLE XII

                                  SINKING FUNDS

     SECTION 12.01. APPLICABILITY OF ARTICLE. The provisions of this Article XII
shall be  applicable  to any sinking fund for the  retirement of Securities of a
series  except as  otherwise  specified  as  contemplated  by  Section  3.01 for
Securities of such series.

     The minimum amount of any sinking fund payment provided for by the terms of
Securities  of any series is herein  referred to as a  "mandatory  sinking  fund
payment," and any payment in excess of such minimum  amount  provided for by the
terms of such  Securities  of any series is herein  referred to as an  "optional
sinking fund  payment." If provided  for by the terms of any  Securities  of any
series,  the cash amount of any mandatory sinking fund payment may be subject to
reduction as provided in Section  12.02.  Each  sinking  fund  payment  shall be
applied to the  redemption  of  Securities  of any series as provided for by the
terms of Securities of such series.

     SECTION 12.02.  SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.  The
Company may, in  satisfaction  of all or any part of any mandatory  sinking fund
payment  with respect to the  Securities  of a series,  (a) deliver  Outstanding
Securities of such series (other than any previously  called for redemption) and
(b) apply as a credit  Securities of such series which have been redeemed either
at the  election of the  Company  pursuant  to the terms of such  Securities  or
through the application of permitted  optional sinking fund payments pursuant to
the terms of such  Securities,  as provided for by the terms of such Securities,
or which have otherwise been acquired by the Company;  provided,  however,  that
such  Securities so delivered or applied as a credit have not been previously so

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credited. Such Securities shall be received and credited for such purpose by the
Trustee at the  applicable  Redemption  Price  specified in such  Securities for
redemption  through  operation  of the  sinking  fund  and  the  amount  of such
mandatory sinking fund payment shall be reduced accordingly.

     SECTION 12.03.  REDEMPTION OF SECURITIES FOR SINKING FUND. Not less than 60
days prior to each sinking fund payment date for  Securities of any series,  the
Company  will  deliver to the Trustee an Officers'  Certificate  specifying  the
amount of the next  ensuing  mandatory  sinking  fund  payment  for that  series
pursuant to the terms of that series,  the portion thereof,  if any, which is to
be satisfied by payment of cash in the currency or currencies,  currency unit or
units or composite currency or currencies in which the Securities of such series
are payable  (except as  otherwise  specified  pursuant to Section  3.01 for the
Securities  of such  series) and the  portion  thereof,  if any,  which is to be
satisfied by  delivering  and crediting  Securities  of that series  pursuant to
Section 12.02, and the optional amount,  if any, to be added in cash to the next
ensuing mandatory sinking fund payment, and will also deliver to the Trustee any
Securities to be so delivered and credited.  If such Officers' Certificate shall
specify an  optional  amount to be added in cash to the next  ensuing  mandatory
sinking fund payment, the Company shall thereupon be obligated to pay the amount
therein specified to the Securities Payment Account to be paid to the Holders by
the  Trustee.  Not less than 30 days before each such  sinking fund payment date
the Trustee  shall select the  Securities  to be redeemed upon such sinking fund
payment date in the manner  specified  in Section  11.03 and cause notice of the
redemption  thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 11.04. Such notice having been duly given, the
redemption  of such  Securities  shall be made upon the terms and in the  manner
stated in Sections 11.06 and 11.07.

                                  ARTICLE XIII

                       REPAYMENT AT THE OPTION OF HOLDERS

     SECTION  13.01.  APPLICABILITY  OF ARTICLE.  Repayment of Securities of any
series  before their Stated  Maturity at the option of Holders  thereof shall be
made in  accordance  with the terms of such  Securities,  if any, and (except as
otherwise specified by the terms of such series established  pursuant to Section
3.01) in accordance with this Article XIII.

     SECTION 13.02. REPAYMENT OF SECURITIES. Securities of any series subject to
repayment in whole or in part at the option of the Holders thereof will,  unless
otherwise  provided in the terms of such Securities,  be repaid at a price equal
to the principal amount thereof, together with interest, if any, thereon accrued
to the Repayment Date specified in or pursuant to the terms of such  Securities.
The Company  covenants  that on or prior to the  Repayment  Date it will deposit
with the Trustee into the Securities  Payment  Account or with a Paying Agent an
amount  of  money  in the  currency  or  currencies,  currency  unit or units or
composite  currency or  currencies  in which the  Securities  of such series are
payable  (except  as  otherwise  specified  pursuant  to  Section  3.01  for the
Securities of such series)  sufficient to pay the principal  (or, if so provided
by the terms of the Securities of any series, a percentage of the principal) of,
and (except if the  Repayment  Date shall be an Interest  Payment  Date) accrued
interest on, all the Securities or portions  thereof,  as the case may be, to be
repaid on such date.

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     SECTION  13.03.  EXERCISE OF OPTION.  Securities  of any series  subject to
repayment at the option of the Holders  thereof will contain an "Option to Elect
Repayment" form on the reverse of such Securities.  In order for any Security to
be repaid at the option of the Holder,  the Trustee must receive at the Place of
Payment therefor specified in the terms of such Security (or at such other place
or places of which the  Company  shall from time to time  notify the  Holders of
such  Securities)  not earlier  than 60 days nor later than 30 days prior to the
Repayment  Date (a) the Security so providing for such  repayment  together with
the "Option to Elect  Repayment"  form on the reverse  thereof duly completed by
the Holder (or by the Holder's  attorney  duly  authorized  in writing) or (b) a
telegram,  telex,  facsimile  transmission or letter from a member of a national
securities exchange, or the National Association of Securities Dealers, Inc., or
a commercial  bank or trust company in the United States  setting forth the name
of the  Holder  of the  Security,  the  principal  amount of the  Security,  the
principal  amount of the Security to be repaid,  the CUSIP number,  if any, or a
description of the tenor and terms of the Security,  a statement that the option
to elect repayment is being exercised  thereby and a guarantee that the Security
to be repaid,  together with the duly completed  form entitled  "Option to Elect
Repayment" on the reverse of the  Security,  will be received by the Trustee not
later  than the  fifth  Business  Day after  the date of such  telegram,  telex,
facsimile transmission or letter; provided,  however, that such telegram, telex,
facsimile  transmission  or letter shall only be effective if such  Security and
form duly  completed are received by the Trustee by such fifth  Business Day. If
less  than the  entire  principal  amount  of such  Security  is to be repaid in
accordance  with the  terms  of such  Security,  the  principal  amount  of such
Security to be repaid, in increments of the minimum  denomination for Securities
of such  series,  and the  denomination  or  denominations  of the  Security  or
Securities to be issued to the Holder for the portion of the principal amount of
such  Security  surrendered  that is not to be repaid,  must be  specified.  The
principal  amount of any Security  providing  for repayment at the option of the
Holder  thereof  may not be repaid in part if,  following  such  repayment,  the
unpaid  principal  amount  of such  Security  would  be less  than  the  minimum
authorized denomination of Securities of the series of which such Security to be
repaid  is a part.  Except  as  otherwise  may be  provided  by the terms of any
Security  providing for repayment at the option of the Holder thereof,  exercise
or the repayment option by the Holder shall be irrevocable  unless waived by the
Company.

     SECTION  13.04.  WHEN  SECURITIES  PRESENTED FOR  REPAYMENT  BECOME DUE AND
PAYABLE.  If Securities  of any series  providing for repayment at the option of
the Holders thereof shall have been surrendered as provided in this Article XIII
and as provided by or pursuant to the terms of such Securities,  such Securities
or the portions  thereof,  as the case may be, to be repaid shall become due and
payable and shall be paid on behalf of the Company by the Trustee  from  amounts
on deposit in the  Securities  Payment  Account on the  Repayment  Date  therein
specified,  and on and after such  Repayment  Date  (unless  the  Company  shall
default  in the  payment  of  such  Securities  on  such  Repayment  Date)  such
Securities shall, if the same were  interest-bearing,  cease to bear interest so
to be repaid, except to the extent provided below, shall be void. Upon surrender
of any such Security for repayment in accordance with such provisions,  maturing
after the Repayment Date, the principal  amount of such Security so to be repaid
shall be paid by the Trustee on behalf of the Company from amounts on deposit in
the Securities Payment Account,  together with accrued interest,  if any, to the
Repayment  Date;  provided  that,  in the case of  Securities,  installments  of

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interest,  if any,  whose Stated  Maturity is on or prior to the Repayment  Date
shall be payable (but without interest thereon, unless the Company shall default
in the  payment  thereof)  to the  Holders  of such  Securities,  or one or more
Predecessor  Securities,  registered  as such at the  close of  business  on the
relevant  record dates  according to their terms and the  provisions  of Section
3.07.

     If the principal amount of any Security surrendered for repayment shall not
be so repaid upon  surrender  thereof,  such  principal  amount  (together  with
interest,  if any,  thereon accrued to such Repayment  Date) shall,  until paid,
bear  interest  from  the  Repayment  Date at the rate of  interest  or Yield to
Maturity (in the case of Original Issue Discount  Securities)  set forth in such
Security.

     SECTION 13.05.  SECURITIES REPAID IN PART. Upon surrender of any Registered
Security  which is to be repaid in part only,  the Company shall execute and the
Trustee shall  authenticate and deliver to the Holder of such Security,  without
service charge and at the expense of the Company,  a new Registered  Security or
Securities of the same series, of any authorized  denomination  specified by the
Holder,  in an  aggregate  principal  amount  equal to and in  exchange  for the
portion of the  principal  of such  Security so  surrendered  which is not to be
repaid.

                                  ARTICLE XIV

                       DEFEASANCE AND COVENANT DEFEASANCE

     SECTION  14.01.  APPLICABILITY  OF  ARTICLE;  COMPANY'S  OPTION  TO  EFFECT
DEFEASANCE OR COVENANT  DEFEASANCE.  If, pursuant to Section 3.01,  provision is
made for  either  or both of (a)  defeasance  of the  Securities  of or within a
series under  Section 14.02 or (b) covenant  defeasance of the  Securities of or
within a series under  Section  14.03,  then the  provisions  of such Section or
Sections, as the case may be, together with the other provisions of this Article
XIV (with such  modifications  thereto as may be  specified  pursuant to Section
3.01 with respect to any  Securities),  shall be applicable to such  Securities,
and the Company may at its option by Board Resolution, at any time, with respect
to such Securities, elect to have Section 14.02 (if applicable) or Section 14.03
(if applicable) be applied to such  Outstanding  Securities upon compliance with
the conditions set forth below in this Article XIV.

     SECTION 14.02. DEFEASANCE AND DISCHARGE. Upon the Company's exercise of the
above option  applicable to this Section 14.02 with respect to any Securities of
or within a series, the Company shall be deemed to have been discharged from its
obligations  with  respect  to  such  Outstanding  Securities  on the  date  the
conditions set forth in Section 14.04 are satisfied (hereinafter, "defeasance").
For this purpose, such defeasance means that the Company shall be deemed to have
paid and discharged  the entire  indebtedness  represented  by such  Outstanding
Securities,  which shall thereafter be deemed to be  "Outstanding"  only for the
purposes of Section 14.05 and the other Sections of this  Indenture  referred to
in clauses (a) and (b) below, and to have satisfied all of its other obligations
under  such  Securities  and  this  Indenture  insofar  as such  Securities  are
concerned (and the Trustee, at the expense of the Company,  shall execute proper
instruments  acknowledging  the same),  except  for the  following  which  shall
survive until otherwise  terminated or discharged  hereunder:  (a) the rights of
Holders of such  Outstanding  Securities to receive,  solely from the trust fund
described in Section 14.04 and as more fully set forth in such Section, payments
in respect of the  principal of (and premium,  if any) and interest,  if any, on
such Securities when such payments are due, (b) the Company's  obligations  with
respect to such Securities  under Sections 3.05,  3.06, 10.02 and 10.03 and with

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respect to the payment of  Additional  Amounts,  if any, on such  Securities  as
contemplated  by Section  10.10,  (c) the  rights,  powers,  trusts,  duties and
immunities  of the  Trustee  hereunder  and (d) this  Article  XIV.  Subject  to
compliance  with this Article XIV the Company may exercise its option under this
Section  14.02  notwithstanding  the prior  exercise of its option under Section
14.03 with respect to such Securities.

     SECTION  14.03.  COVENANT  DEFEASANCE.  Upon the Company's  exercise of the
above option  applicable  to this Section with respect to any  Securities  of or
within a series,  the  Company  shall be  released  from its  obligations  under
Sections 10.04 to 10.08, inclusive,  and, if specified pursuant to Section 3.01,
its  obligations  under any other  covenant,  with  respect to such  Outstanding
Securities on and after the date the  conditions  set forth in Section 14.04 are
satisfied  (hereinafter,  "covenant  defeasance"),  and  such  Securities  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 10.04 to 10.08,  inclusive,  or such other
covenant,  but shall continue to be deemed  "Outstanding" for all other purposes
hereunder.  For this purpose,  such covenant defeasance means that, with respect
to such  Outstanding  Securities,  the Company may omit to comply with and shall
have no liability in respect of any term,  condition or limitation  set forth in
any such Section or such other  covenant,  whether  directly or  indirectly,  by
reason of any  reference  elsewhere  herein to any such  Section  or such  other
covenant or by reason of reference in any such Section or such other covenant 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  5.01(d) or
5.01(h) or otherwise,  as the case may be, but, except as specified  above,  the
remainder of this Indenture and such Securities shall be unaffected thereby.

     SECTION  14.04.  CONDITIONS  TO  DEFEASANCE  OR  COVENANT  DEFEASANCE.  The
following  shall be the  conditions to  application  of Section 14.02 or Section
14.03 to any Outstanding Securities of or within a series:

          (a) The  Company  shall  irrevocably  have  deposited  or caused to be
     deposited with the Trustee (or another Trustee  satisfying the requirements
     of  Section  6.07 who shall  agree to comply  with the  provisions  of this
     Article  XIV  applicable  to it) as trust funds in trust for the purpose of
     making the following  payments,  specifically  pledged as security for, and
     dedicated solely to, the benefit of the Holders of such Securities,  (i) an
     amount  in  such  currency,  currencies  or  currency  unit in  which  such
     Securities  are then  specified  as  payable  at Stated  Maturity,  or (ii)
     Government  Obligations  applicable to such  Securities  (determined on the
     basis of the currency, currencies or currency unit in which such Securities
     are then  specified  as  payable  at Stated  Maturity)  which  through  the
     scheduled   payment  of  principal  and  interest  in  respect  thereof  in
     accordance with their terms will provide, not later than one day before the
     due date of any payment of principal of (and premium, if any) and interest,
     if any, on such Securities or (iii) a combination  thereof, in any case, in
     an amount  sufficient,  without  consideration  of any reinvestment of such
     principal and interest,  in the opinion of a nationally  recognized firm of
     independent public accountants expressed in a written certification thereof
     delivered to the Trustee, to pay and discharge,  and which shall be applied
     by the Trustee (or other qualifying Trustee) to pay and discharge,  (A) the
     principal  of  (and  premium,  if  any)  and  interest,  if  any,  on  such
     Outstanding  Securities  on  the  Stated  Maturity  of  such  principal  or

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<PAGE>
     installment  of principal or interest  and (B) any  mandatory  sinking fund
     payments or analogous payments applicable to such Outstanding Securities on
     the day on which such payments are due and payable in  accordance  with the
     terms of this Indenture and of such Securities.

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

          (c) No Event of Default or event which with notice or lapse of time or
     both would become an Event of Default with respect to such Securities shall
     have occurred and be continuing on the date of such deposit or,  insofar as
     Sections  5.01(f) and 5.01(g) are concerned,  at any time during the period
     ending on the 91st day after the date of such deposit (it being  understood
     that this condition  shall not be deemed  satisfied until the expiration of
     such period).

          (d) In the case of an election under Section 14.02,  the Company shall
     have  delivered  to the Trustee an Opinion of Counsel  stating that (i) the
     Company 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  Outstanding  Securities  will not
     recognize income,  gain or loss for federal income tax purposes as a result
     of such  defeasance  and will be subject to federal  income tax on the same
     amounts,  in the same  manner  and at the same times as would have been the
     case if such defeasance had not occurred.

          (e) In the case of an election under Section 14.03,  the Company shall
     have  delivered to the Trustee an Opinion of Counsel to the effect that the
     Holders of such Outstanding  Securities 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.

          (f) The  Company  shall have  delivered  to the  Trustee an  Officers'
     Certificate  and an Opinion of Counsel,  each stating  that all  conditions
     precedent to the defeasance under Section 14.02 or the covenant  defeasance
     under  Section  14.03 (as the case may be) have been  complied  with and an
     Opinion of Counsel to the effect  that  either (i) as a result of a deposit
     pursuant  to clause (a) above and the  related  exercise  of the  Company's
     option under Section 14.02 or 14.03 (as the case may be),  registration  is
     not required under the Investment  Company Act of 1940, as amended,  by the
     Company,  with respect to the trust funds  representing  such deposit or by
     the Trustee for such trust funds or (ii) all necessary  registrations under
     said act have been effected.

          (g)  Notwithstanding  any other provisions of this Section 14.04, 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 Company in connection therewith pursuant to Section 3.01.

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     SECTION 14.05.  DEPOSITED  MONEY AND  GOVERNMENT  OBLIGATIONS TO BE HELD IN
TRUST;  OTHER  MISCELLANEOUS  Provisions.  Subject to the provisions of the last
paragraph  of Section  10.03,  all money and  Government  Obligations  (or other
property as may be provided  pursuant to Section 3.01)  (including  the proceeds
thereof) deposited with the Trustee (or other qualifying  Trustee,  collectively
for purposes of this Section 14.05, the "Trustee")  pursuant to Section 14.04 in
respect of any  Outstanding  Securities of any series shall be held in trust and
applied by the Trustee, in accordance with the provisions of such Securities and
this Indenture,  to the payment,  either directly or through any Paying Agent as
the Trustee may determine, to the Holders of such Securities of all sums due and
to become due thereon in respect of principal (and premium, if any) and interest
and Additional Amounts, if any, but such money need not be segregated from other
funds except to the extent required by law.

     Unless otherwise specified with respect to any Security pursuant to Section
3.01, if, after a deposit referred to in Section 14.04(a) has been made, (a) the
Holder of a Security in respect of which such  deposit was made is entitled  to,
and does,  elect  pursuant  to  Section  3.01 or the terms of such  Security  to
receive  payment in a  currency  or  currency  unit other than that in which the
deposit  pursuant to Section  14.04(a) has been made in respect of such Security
or (b) a Conversion  Event occurs in respect of the currency or currency unit in
which the deposit  pursuant to Section  14.04(a) has been made, the indebtedness
represented  by such Security  shall be deemed to have been,  and will be, fully
discharged  and satisfied  through the payment of the principal of (and premium,
if any),  and interest,  if any, on such Security as the same becomes due out of
the proceeds  yielded by converting (from time to time as specified below in the
case of any such election) the amount or other property  deposited in respect of
such Security into the currency or currency unit in which such Security  becomes
payable as a result of such election or Conversion Event based on the applicable
market  exchange rate for such currency or currency unit in effect on the second
Business Day prior to each payment  date,  except,  with respect to a Conversion
Event,  for such  currency or currency unit in effect (as nearly as feasible) at
the time of the Conversion Event.

     The Company  shall pay and  indemnify  the Trustee  against any tax, fee or
other charge imposed on or assessed against the Government Obligations deposited
pursuant to Section  14.04 or the  principal  and  interest  received in respect
thereof  other than any such tax,  fee or other  charge  which by law is for the
account of the Holders of such Outstanding Securities.

     Anything in this  Article XIV to the contrary  notwithstanding,  subject to
Section 6.06,  the Trustee shall deliver or pay to the Company from time to time
upon Company Request any money or Government  Obligations (or other property and
any proceeds  therefrom)  held by it as provided in Section 14.04 which,  in the
opinion  of a  nationally  recognized  firm of  independent  public  accountants
expressed in a written  certification  thereof delivered to the Trustee,  are in
excess of the amount  thereof  which would then be required to be  deposited  to
effect a defeasance or covenant  defeasance,  as applicable,  in accordance with
this Article XIV.

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                                   ARTICLE XV

                        MEETINGS OF HOLDERS OF SECURITIES

     SECTION  15.01.  PURPOSES FOR WHICH  MEETINGS  MAY BE CALLED.  A meeting of
Holders of  Securities  of any series may be called at any time and from time to
time  pursuant to this  Article XV to make,  give or take any  request,  demand,
authorization,  direction,  notice,  consent, waiver or other action provided by
this  Indenture  to be made,  given or taken by  Holders of  Securities  of such
series.

     SECTION 15.02. CALL, NOTICE AND PLACE OF MEETINGS.

          (a)  The  Trustee  may at  any  time  call a  meeting  of  Holders  of
     Securities of any series for any purpose  specified in Section 15.01, to be
     held at such time and at such place as the Trustee shall determine.  Notice
     of every meeting of Holders of Securities of any series,  setting forth the
     time and the place of such meeting and in general terms the action proposed
     to be taken at such  meeting,  shall be given,  in the manner  provided  in
     Section  1.06,  not less than 20 nor more  than 180 days  prior to the date
     fixed for the meeting.

          (b) In case at any time the Company,  pursuant to a Board  Resolution,
     or the  Holders  of at least 50% in  principal  amount  of the  Outstanding
     Securities of any series shall have requested the Trustee to call a meeting
     of the Holders of  Securities  of such series for any purpose  specified in
     Section 15.01, by written  request  setting forth in reasonable  detail the
     action proposed to be taken at the meeting,  and the Trustee shall not have
     made the first  publication  of the notice of such  meeting  within 20 days
     after receipt of such request or shall not thereafter  proceed to cause the
     meeting to be held as provided  herein,  then the Company or the Holders of
     Securities  of such series in the amount above  specified,  as the case may
     be, may determine the time and the place for such meeting and may call such
     meeting for such  purposes by giving  notice  thereof as provided in clause
     (a) of this Section 15.02.

     SECTION 15.03. PERSONS ENTITLED TO VOTE AT MEETINGS. To be entitled to vote
at any meeting of Holders of Securities  of any series,  a Person shall be (a) a
Holder  of one or more  Outstanding  Securities  of such  series or (b) a Person
appointed by an instrument in writing as proxy for a Holder or Holders of one or
more Outstanding  Securities of such series by such Holder or Holders.  The only
Persons  who shall be  entitled  to be  present  or to speak at any  meeting  of
Holders of  Securities  of any series  shall be the Persons  entitled to vote at
such  meeting  and their  counsel,  any  representatives  of the Trustee and its
counsel and any representatives of the Company and its counsel.

     SECTION 15.04.  QUORUM;  ACTION. The Persons entitled to vote a majority in
principal  amount of the Outstanding  Securities of a series shall  constitute a
quorum for a meeting of Holders of Securities of such series; provided, however,
that if any action is to be taken at such  meeting  with respect to a consent or
waiver which this  Indenture  expressly  provides may be given by the Holders of
not less than a specified  percentage  in  principal  amount of the  Outstanding
Securities of a series,  the Persons entitled to vote such specified  percentage

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in  principal  amount  of  the  Outstanding  Securities  of  such  series  shall
constitute a quorum. In the absence of a quorum within 30 minutes after the time
appointed for any such meeting, the meeting shall, if convened at the request of
Holders  of  Securities  of such  series,  be  dissolved.  In any other case the
meeting may be adjourned  for a period of not less than 10 days as determined by
the chairman of the meeting prior to the  adjournment  of such  meeting.  In the
absence  of a quorum at the  reconvening  of any such  adjourned  meeting,  such
adjourned  meeting  may be  further  adjourned  for a period of not less than 10
days; at the reconvening of any meeting  adjourned or further adjourned for lack
of a quorum,  the persons  entitled to vote 50% or more in  aggregate  principal
amount of the then  Outstanding  Securities  shall  constitute  a quorum for the
taking of any action set forth in the notice of the original meeting.  Notice of
the  reconvening of any adjourned  meeting shall be given as provided in Section
15.02(b),  except  that such  notice  need be given only once not less than five
days prior to the date on which the meeting is scheduled to be reconvened.

     Except as limited by the proviso to Section 9.02, any resolution  presented
to a meeting or adjourned  meeting duly  reconvened at which a quorum is present
as aforesaid may be adopted by the affirmative vote of the Holders of a majority
in principal  amount of the  Outstanding  Securities  of that series;  provided,
however,  that, except as limited by the proviso to Section 9.02, any resolution
with respect to any request, demand, authorization,  direction, notice, consent,
waiver or other  action  which this  Indenture  expressly  provides may be made,
given or taken by the  Holders of a specified  percentage,  which is less than a
majority,  in principal amount of the Outstanding  Securities of a series may be
adopted at a meeting or an  adjourned  meeting  duly  reconvened  and at which a
quorum is present as  aforesaid by the  affirmative  vote of the Holders of such
specified  percentage in principal amount of the Outstanding  Securities of that
series.

     Any  resolution  passed or  decision  taken at any  meeting  of  Holders of
Securities of any series duly held in  accordance  with this Section 15.04 shall
be  binding on all the  Holders of  Securities  of such  series,  whether or not
present or represented at the meeting.

     Notwithstanding  the  foregoing  provisions of this Section  15.04,  if any
action is to be taken at a meeting of Holders of  Securities  of any series with
respect to any  request,  demand,  authorization,  direction,  notice,  consent,
waiver or other action that this Indenture expressly provides may be made, given
or taken by the Holders of a specified  percentage  in  principal  amount of all
Outstanding  Securities  affected thereby,  or of the Holders of such series and
one or more additional series:

          (a) there shall be no minimum quorum requirement for such meeting; and

          (b) the principal amount of the Outstanding  Securities of such series
     that  vote in  favor of such  request,  demand,  authorization,  direction,
     notice,  consent,  waiver or other  action  shall be taken into  account in
     determining whether such request, demand, authorization, direction, notice,
     consent,  waiver or other  action has been made,  given or taken under this
     Indenture.

     SECTION 15.05.  DETERMINATION OF VOTING RIGHTS,  CONDUCT AND ADJOURNMENT OF
MEETINGS.

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          (a) Notwithstanding any provisions of this Indenture,  the Trustee may
     make such  reasonable  regulations as it may deem advisable for any meeting
     of Holders of  Securities  of a series in regard to proof of the holding of
     Securities of such series and of the  appointment  of proxies and in regard
     to the appointment and duties of inspector of elections, the submission and
     examination  of proxies,  certificates  and other  evidence of the right to
     vote,  and such other matters  concerning  the conduct of the meeting as it
     shall deem  appropriate.  Except as otherwise  permitted or required by any
     such  regulations,  the holding of Securities shall be proved in the manner
     specified in Section 1.04 and the  appointment of any proxy shall be proved
     in the manner  specified in Section 1.04 or by having the  signature of the
     Person  executing the proxy  witnessed or guaranteed by any trust  company,
     bank or banker  authorized by Section 1.04.  Such  regulations  may provide
     that written instruments appointing proxies,  regular on their face, may be
     presumed valid and genuine  without the proof  specified in Section 1.04 or
     other proof.

          (b) The Trustee shall, by an instrument in writing appoint a temporary
     chairman of the meeting,  unless the meeting  shall have been called by the
     Company or by Holders of  Securities  as provided in Section  15.02(b),  in
     which case the Company or the Holders of Securities  of the series  calling
     the meeting,  as the case may be, shall in like manner  appoint a temporary
     chairman.  A permanent  chairman  and a permanent  secretary of the meeting
     shall be  elected by vote of the  Persons  entitled  to vote a majority  in
     principal amount of the Outstanding  Securities of such series  represented
     at the meeting.

          (c) At any  meeting  each Holder of a Security of such series or proxy
     shall be  entitled  to one vote for each  $1,000  principal  amount  of the
     Outstanding Securities of such series held or represented by him; provided,
     however, that no vote shall be cast or counted at any meeting in respect of
     any Security challenged as not Outstanding and ruled by the chairman of the
     meeting to be not  Outstanding.  The chairman of the meeting  shall have no
     right to vote, except as a Holder of a Security of such series or proxy.

          (d) Any  meeting of Holders of  Securities  of any series  duly called
     pursuant  to Section  15.02 at which a quorum is present  may be  adjourned
     from time to time by  Persons  entitled  to vote a  majority  in  principal
     amount of the  Outstanding  Securities  of such series  represented  at the
     meeting,  and  the  meeting  may be held as so  adjourned  without  further
     notice.

     SECTION 15.06.  COUNTING VOTES AND RECORDING  ACTION OF MEETINGS.  The vote
upon any  resolution  submitted to any meeting of Holders of  Securities  of any
series shall be by written  ballots on which shall be subscribed  the signatures
of the Holders of Securities of such series or of their representatives by proxy
and the principal  amounts and serial numbers of the  Outstanding  Securities of
such series held or represented  by them. The permanent  chairman of the meeting
shall  appoint  two  inspectors  of votes who shall  count all votes cast at the
meeting  for or  against  any  resolution  and who shall  make and file with the
secretary  of the meeting  their  verified  written  reports in duplicate of all
votes cast at the meeting.  A record, at least in duplicate,  of the proceedings
of each meeting of Holders of  Securities of any series shall be prepared by the
secretary of the meeting and there shall be attached to said record the original
reports  of the  inspectors  of votes on any vote by ballot  taken  thereat  and
affidavits by one or more persons having knowledge of the fact,  setting forth a
copy of the notice of the  meeting  and  showing  that said  notice was given as
provided in Section 15.02 and, if applicable,  Section 15.04. Each copy shall be

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<PAGE>
signed and verified by the affidavits of the permanent chairman and secretary of
the meeting and one such copy shall be  delivered  to the Company and another to
the Trustee to be preserved by the Trustee,  the latter to have attached thereto
the ballots  voted at the meeting.  Any record so signed and  verified  shall be
conclusive evidence of the matters therein stated.

                                   ARTICLE XVI

                                    SECURITY

     SECTION 16.01. GRANT OF SECURITY; ACKNOWLEDGMENT

          (a) To secure payment of the Notes and all  obligations of the Company
     under this  Indenture,  the  Company  hereby does  grant,  convey,  pledge,
     transfer, assign and deliver to the Trustee for the equal and proportionate
     benefit and security of all present and future  registered  Holders a first
     priority  security  interest  in,  all of the  Company's  right,  title and
     interest in and to the following  property and all rights and documentation
     relative  thereto,  whether now or  hereafter  existing  and/or  arising or
     acquired:

               (i) all of the Company's right,  title and interest in and to the
          Mortgage  Loans,  that are  identified on a certificate in the form of
          Exhibit B-1 hereto  delivered  to the Trustee in  connection  with the
          disbursement  of funds from the Funding  Account by the Trustee at the
          direction of the Company to purchase the Mortgage Loans  identified on
          such  certificate  or the  replacement  of Mortgage Loans that are not
          Eligible Mortgage Loans pursuant to Section 10.13;

               (ii) all of the Company's  right title and interest in and to the
          Real  Property  that is  identified  on a  certificate  in the form of
          Exhibit B-2;

               (iii) all  collections in respect of such Mortgage Loans and Real
          Property and all funds as may be held by the Trustee from time to time
          in the Accounts  together with all certificates  and  instruments,  if
          any, from time to time evidencing such Accounts,  and funds on deposit
          and all investments made with such funds, all claims  thereunder or in
          connection therewith, and interest,  dividends,  moneys,  instruments,
          securities and other  property from time to time received,  receivable
          or otherwise distributed in respect of any or all of the foregoing;

               (iv) all  moneys,  cash,  credits,  contract  rights,  and  other
          obligations of any kind now or hereafter  existing  and/or arising out
          of or in connection  with the Mortgage Loans and the Real Property and
          all rights now or  hereafter  existing  in and to all  agreements  and
          contracts securing or otherwise relating to any such Mortgage Loans or
          Real Property;

               (v) the  Accounts,  and  credits and money held by the Trustee in
          the name of Company for the benefit of the Holders;

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<PAGE>
               (vi) the rights of the Company (but not its  obligations)  in, to
          and  under  the  Loan  Documents  and  the  Real  Property   Documents
          including,  without  limitation,  the  rights  of the  Company  (A) to
          enforce the Loan  Documents and the Real Property  Documents  [and the
          agreements pursuant to which the Lock Box Accounts are established and
          maintained  against the  respective  Mortgagors]  and the  obligations
          thereunder,  (B) [to cause the Mortgagors to repurchase Mortgage Loans
          purchased  under the respective  Purchase  Document] as to which there
          has  occurred a breach of  representation,  warranty  or  covenant  in
          accordance  with the provisions of the Loan Documents and (C) to cause
          the Land Sale Purchasers to purchase the Real Property purchased or to
          be purchased under the Real Property Documents;

               (vii) all of the  Mortgage  Notes,  the  Mortgages  and all other
          instruments,    agreements   and   documents   evidencing,   securing,
          guaranteeing and governing Mortgage Loans,  title insurance  policies,
          hazard and liability insurance policies,  legal opinions,  appraisals,
          environmental  site assessments,  surveys,  relative to the foregoing;
          any  guarantees  relative to any of the  foregoing,  all other rights,
          interests and  documents now or hereafter  given to or procured by the
          Company,  or to which the Company now or  hereafter  is  entitled,  in
          conjunction or connection with the making by the Company now or at any
          time and from time to time hereafter of a Mortgage Loan; and all other
          property and all interests  therein of any kind hereafter  acquired by
          the  Company   meeting  or  falling  within  the  description  of  the
          foregoing,   without  limitation,  any  interest  in  property  (real,
          personal  or mixed),  that the  Company  may now or  hereafter  own by
          virtue of such  mortgages,  deeds of trust or deeds to secure  debt or
          any foreclosure or transfer related thereto;

               (viii) all files,  information and data of the Company related to
          the Mortgage Loans and the Real Property,  including all  information,
          data  programs,  tapes,  discs and cards  necessary to administer  and
          service such Mortgage Loans and Real Property;

               (ix) all accounts,  contract  rights and general  intangibles (as
          those terms are defined in Article 9 of the Uniform  Commercial  Code)
          arising out of or otherwise  related to any of the items  described in
          (i) - (viii)  above,  and any  security  now or  hereafter  held by or
          granted  to the  Company  to secure  payment  of any of the amount due
          pursuant to the documents described in (i) - (viii) above;

               (x) all  products  and  proceeds of any and all of the  foregoing
          and,  to  the  extent  not  otherwise  included,  all  payments  under
          insurance  (whether or not the Debtor is the loss payee  thereof),  or
          any  indemnity,  warranty  or  guaranty,  payable by reason of loss or
          damage to or otherwise with respect to any of the foregoing; and

               (xi) any and all other  property,  rights and  interests of every
          kind or  description  that from  time to time  hereafter  is  granted,
          conveyed, pledged,  transferred,  assigned or delivered to the Trustee
          as additional security hereunder.

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<PAGE>
          (b) The  Company  will  deliver to and  deposit  with  Trustee all the
     Collateral  received  or  procured  by  the  Company.  The  portion  of the
     Collateral  not  delivered  to the  Trustee  shall  be held in trust by the
     Company  for the  benefit  of the  Trustee  subject  to the  terms  of this
     Indenture.

          (c) All of the moneys,  rights,  and properties  described in Sections
     16.01(a) and are referred to as the  "Collateral"  unless released from the
     lien of this Indenture pursuant to the terms hereof.

          (d) The Trustee  acknowledges  the grant of the  security  interest in
     this  Article  XVI,  accepts  the trusts  hereunder  for the benefit of the
     Holders in accordance with the provisions of this Indenture,  and agrees to
     perform the duties herein required  pursuant to the terms and provisions of
     this Indenture and subject to the conditions hereof.

     SECTION 16.02.  PLEDGE TO SECURE  OBLIGATIONS.  This Indenture  secures the
Securities and  enforcement of the payment of the Securities in accordance  with
their terms, and all other sums payable hereunder or on the Securities  (whether
now or hereafter existing,  whether for principal,  interest,  fees, expenses or
otherwise,  whether matured or unmatured,  absolute or contingent),  and for the
performance of and compliance with the obligations, covenants, and conditions of
this  Indenture,  as if all the  Securities  at any  time  Outstanding  had been
executed and  delivered  simultaneously  with the execution and delivery of this
Indenture (collectively, the "Obligations");  provided however, that pursuant to
the  terms  of a  supplemental  indenture,  or a  Board  Resolution  adopted  in
accordance  with  Section  3.01 hereof,  under which a series of  Securities  is
issued,  the Mortgage Loans and Real Property acquired from the proceeds of such
series of Securities  and the related  Collateral  can be pledged to secure only
that series of Securities  and the other related  Obligations  and not any other
series of  Securities  or its  related  Obligations,  in which  case  Collateral
pledged to secure other series of Securities and their related Obligations shall
not  secure  the  series of  Securities  issued  pursuant  to such  supplemental
indenture or a Board  Resolution  adopted in accordance with Section 3.01 hereof
or other related Obligations.

     SECTION  16.03.  COLLATERAL  TRANSFERS AND OTHER LIENS.  Subject to Section
16.04 below, the Company shall not:

          (a) assign (by operation of law or otherwise) or otherwise  dispose of
     any of the Collateral or any interest therein; or

          (b)  create or suffer to exist any lien,  security  interest  or other
     charge or  encumbrance  upon or with  respect to any of the  Collateral  to
     secure  debt of any person or  entity,  except  for the  security  interest
     created  by  this  Indenture,   including  the  Collateral   acquired  upon
     disbursement  of funds  from the  Funding  Account in  connection  with the
     acquisition of Collateral.

     SECTION 16.04. SALE OF COLLATERAL.

          (a)  Collateral may be sold,  transferred or otherwise  disposed of by
     the  Company  free  from  the  lien of this  Indenture  and any  applicable
     supplemental  indenture  or Board  Resolution  adopted in  accordance  with
     Section 3.01 at any time,  provided  that the Trustee has received from the

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<PAGE>
     Company a written  statement  of the gross  proceeds to be derived from the
     sale and the Person to which the  Collateral  is to be sold or  transferred
     and certifying to the Trustee substantially in the form of Exhibit C:

               (i) the disposition  price is equal to or in excess of the amount
          disbursed from the Funding Account to acquire the Collateral (less any
          principal  amounts  received  by the  Trustee  with  respect  to  such
          Collateral); or

               (ii) the  disposition  price is lower than the  amount  disbursed
          from the Funding Account to acquire the Collateral (less any principal
          amounts received by the Trustee with respect to such Collateral),  and
          (A) the Revenues expected to be received from the remaining Collateral
          (after giving effect to such  disposition)  would be at least equal to
          the Revenues  required to timely pay the principal and interest on the
          Outstanding  Securities,  or (B) the Company  shall remain able to pay
          debt  service  on  the  Securities  and  make  payment  on  any  other
          Obligations  on a timely  basis  (after  giving  effect to such  sale,
          transfer or other disposition)  whereas it would not have been able to
          do so on a timely basis if it had not sold, transferred or disposed of
          the  Collateral  at  such  discounted  amount,  or (C)  the sum of the
          amounts on deposit in the Accounts  (less moneys in any Account  which
          the  Company is then  entitled  to receive  but which has not yet been
          removed  from the  Account)  plus the Net  Collectible  Amount  of the
          Mortgage  Loans,  the Real Property and the fair market value of other
          Collateral will be at least equal to one hundred percent (100%) of the
          aggregate  principal amount of the then  Outstanding  Obligations plus
          accrued  interest after giving effect to such sale,  transfer or other
          disposition.

          (b) The Trustee,  following  receipt of the  foregoing  and such other
     certificates  as  may be  required  by  this  Indenture  or any  applicable
     supplemental  indenture  or Board  Resolution  adopted in  accordance  with
     Section 3.01, shall release such Collateral from the lien of this Indenture
     upon the  receipt  of the  gross  proceeds  set  forth  on a  certification
     substantially in the form of Exhibit C and deliver all documents evidencing
     the  Company's  ownership of the  collateral  as directed in writing by the
     Company at the expense of the Company.

          (c) Gross  proceeds to be received upon any  disposition of Collateral
     may consist of cash, Permitted Investments, and/or Eligible Mortgage Loans.
     The  Trustee  shall  deposit  all of such gross  proceeds  into the Funding
     Account.

     SECTION 16.05. RESPONSIBILITIES OF COMPANY.

          (a) In  connection  with the  Company's  grant of a security  interest
     pursuant to Section  16.01 above,  the Company shall deliver to and deposit
     with, or cause to be delivered to and deposited  with,  the Trustee [or the
     Custodian],  [on or before the date in which funds from the Funding Account
     are  remitted by the Trustee to the  Company  for the  acquisition  of such
     Mortgage  Loan or Real  Property],  the Mortgage  File or the Real Property
     File,  as the case may be, for each of the Mortgage  Loans or Real Property
     so granted.  If the Company cannot deliver,  or cause to be delivered as to
     any Mortgage Loan, the original  Mortgage Note, the Company shall deliver a
     copy  or  duplicate  original  of  such  Mortgage  Note,  together  with an

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     affidavit  certifying that the original  thereof has been lost or destroyed
     and providing  for customary  indemnity.  If any other  Collateral  (or the
     Company's  ownership  interest  therein) shall be evidenced by a promissory
     note, other instrument or chattel paper, the Company shall promptly deliver
     possession thereof to the Trustee duly endorsed and accompanied by the duly
     executed instruments of transfer or assignment.  The Company shall promptly
     deliver possession to the Trustee of such other original documents relating
     to the  Collateral,  possession  of which  are  necessary  to  perfect  the
     security interest of the Trustee in the Collateral under this Indenture.

          (b)  [With  respect  to the  acquisition  of  Mortgage  Loans and Real
     Property, as a condition precedent to the disbursement of funds pursuant to
     Section  7.05(a)(ii)(F),  the Company shall deliver at Company's expense an
     opinion of counsel reasonably  acceptable to the Trustee to the effect that
     immediately  following the acquisition of the Collateral,  the Trustee will
     have a perfected  security  interest  therein,  which security  interest is
     subject to the provisions of this Indenture.]

          (c) The  Company  shall  keep its chief  place of  business  and chief
     executive  office and the office where it keeps its records  concerning the
     Collateral at the Company's notice address set forth in the first paragraph
     of this  Indenture  or, upon thirty (30) days prior  written  notice to the
     Trustee,  at such  other  locations  specified  in a written  notice to the
     Trustee.  The Company will hold and preserve  its records  concerning  such
     Collateral,  and will permit representatives of the Trustee and the Holders
     upon  reasonable  prior notice during normal  business hours to inspect and
     make abstracts from such records  relating to the Collateral as well as any
     contract,  other agreements,  documents,  instruments or chattel paper that
     relate to the Collateral.

          (d)  This  Indenture  shall  constitute  a  security  agreement  under
     applicable  law.  The Company  shall take or cause to be taken such actions
     and execute such documents (including,  without limitation, the delivery of
     such legal  opinions as may  reasonably be requested by the Trustee in form
     and  substance  reasonably  acceptable to the Trustee and the filing in the
     applicable  public  recording  office  of  all  necessary  UCC-1  financing
     statements  or  chattel  mortgage  agreements,  which  may be made  through
     blanket filings covering  Collateral and after-acquired  Collateral pledged
     to the Trustee under this  Indenture)  naming the Company as debtor and the
     Trustee as secured party and any amendments to UCC-1  financing  statements
     as are  necessary  to perfect and protect the  Trustee's  interests  in the
     Collateral on behalf of the Holders and the proceeds  thereof and all other
     items described in Section 16.01.

          (e) The Trustee shall be responsible at the Company's  expense to file
     all required  continuation  statements for the UCC-1  financing  statements
     then on file  against  the  Company  with  respect to the  Collateral.  The
     Company  shall  cooperate  in a  reasonable  manner  with  the  Trustee  in
     preparing  and filing such  continuation  statements.  This  section  shall
     constitute notice to the Trustee pursuant to any of the requirements of the
     applicable Uniform Commercial Code.

                                       83
<PAGE>
          (f) The  Company  authorizes  the filing by the Trustee of any and all
     UCC-1  financing  statements  with respect to the Collateral or amendments,
     continuation  statements,  or termination  statements for any related UCC-1
     financing statement as may be necessary to perfect the security interest of
     the Trustee in the Collateral  under the applicable  UCC. In the event that
     the Company fails to file UCC-1 financing  statements as required  pursuant
     to Sections  16.05(d),  the Trustee shall file such statements  pursuant to
     Section  16.05(e)  promptly  after  actual  knowledge  of such  failure  is
     obtained  by any  officer  within the  Corporate  Trust  Department  of the
     Trustee.

          (g)  The  Company  will  provide  to  the  Trustee  a  schedule  in an
     electronic  form readable by the Trustee  listing (i) all of the Collateral
     then  pledged  to the  Trustee  and  each of the  related  UCC-1  financing
     statements  showing the Trustee as secured  party,  the location where each
     was filed,  filing  number  assigned  by the  applicable  public  recording
     agency, date of filing, and the Company's name appearing as Company thereon
     and (ii) the UCC-1  financing  statement  filed with respect to each of the
     Mortgage  Loans or Real  Property  then pledged to the Trustee  showing the
     Company as secured party,  the location  where it was filed,  filing number
     assigned by the applicable public recording agency, date of filing, and the
     Company's  name  appearing  thereon.  The schedule shall be provided to the
     Trustee within 15 days after the end of each calendar quarter.  The Trustee
     shall  hold such  schedule  in its files and shall  have no  obligation  to
     review,  examine,  inspect,  or  otherwise  determine  the  accuracy of the
     information  set forth  therein.  The  Company  shall  also  provide to the
     Trustee along with the quarterly  schedule,  a certification that, pursuant
     to Section 4(a) of Exhibit B, original copies of the Loan Documents and the
     Real  Property  Documents  between  the Company and the sellers of Eligible
     Mortgage Loans or the purchasers of the Real Property,  as the case may be,
     referenced  on said  schedule are on file with the Company on behalf of the
     Trustee.

     SECTION 16.06.  CONTINUING SECURITY INTEREST. This Agreement shall create a
continuing  security  interest  in the  Collateral  and shall (a) remain in full
force and  effect  until  payment  of all  Securities  (or  release  of  certain
Collateral  upon sale as  described in Section  16.04),  (b) be binding upon the
Company,  its  successors  and  assigns,  and (c)  inure to the  benefit  of the
Trustee,  the Holders,  and any  participant  and their  respective  successors,
transferees, and assigns.

     SECTION 16.07. FURTHER ASSURANCES.

          (a) The Company  agrees from time to time,  at Company's  expense,  to
     promptly  execute  and  deliver  all  further   instruments  and  documents
     (including,  without  limitation,  legal  opinions  in form  and  substance
     reasonably  acceptable to the Trustee),  and take all further action,  that
     may be necessary or desirable,  or that the Trustee may reasonably request,
     in order to perfect and protect any security  interest granted or purported
     to be granted  hereby or to enable the Trustee to exercise  and enforce its
     rights and remedies  hereunder with respect to any Collateral.  The Company
     shall  from time to time at  Trustee's  request  provide  promptly  to it a
     current, accurate and complete list of all Mortgagors (and their respective
     addresses) from whom Company has acquired any Mortgage Loans.

                                       84
<PAGE>
          (b) The Company hereby  authorizes the Trustee in connection  with the
     lapse or imminent lapse of any previously filed financing statement to file
     one or more financing or continuation  statements,  and amendments  thereto
     relative  to all  or  part  of  the  then  Collateral  (including,  without
     limitation, the financing or continuation statements referred to in Section
     16.05(e))  without the signature of the Company where permitted by law. The
     Company  agrees  to  reimburse  the  Trustee  for the  expense  of any such
     filings,  including  its legal fees and  expenses  incurred  in  connection
     herewith.

          (c) The Company will furnish to the Trustee and the Holders, from time
     to time,  statements and schedules  further  identifying and describing the
     Collateral and such other reports in connection  with the Collateral as the
     Trustee or the Holders may reasonably request, all in reasonable detail.

                           [Execution Page(s) Follow]

                                       85
<PAGE>
     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Indenture to be
duly executed all as of the day and year first above written.

                                        TERRA CAPITAL GROUP, INC.

                                        By
                                           -------------------------------------
                                        Name
                                             -----------------------------------
                                        Title
                                              ----------------------------------
[SEAL]

Attest:

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

                                        [_________________], a _______________,
                                        as Trustee

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

[SEAL]

Attest:

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

                                       86
<PAGE>
STATE OF __________                 )
                                    ) ss.
COUNTY OF ________                  )

     On this ____ day of ________  ____,  before me, the  undersigned,  a Notary
Public  in and for  the  State  of  __________,  duly  commissioned  and  sworn,
personally         appeared         ________________________________         and
________________________________________  to me  known  to be  the  persons  who
signed           as           ___________________________________,           and
___________________________________, respectively, of TERRA CAPITAL GROUP, INC.,
the  corporation  that  executed  the  within  and  foregoing  instrument,   and
acknowledged  said  instrument to be the free and voluntary act and deed of said
corporation for the uses and purposes therein  mentioned and on oath stated that
they  were  duly  elected,   qualified  and  acting  as  said  officers  of  the
corporation,  that they were  authorized to execute said instrument and that the
seal affixed if any, is the corporate seal of said corporation.

     IN WITNESS  WHEREOF I have  hereunto see my hand and official  seal the day
and year first above written.

                                        ----------------------------------------
                                        (Signature of Notary)

                                        ----------------------------------------
                                        (Print or stamp name of Notary)

                                        NOTARY  PUBLIC  in and for the  State of
                                        __________, residing at ________________
                                        My Appointment Expires: ________________

                                       87
<PAGE>
STATE OF __________                )
                                   ) ss.
COUNTY OF _____________            )

     On this ____ day of _______  ____,  before me,  the  undersigned,  a Notary
Public  in and for  the  State  of  __________,  duly  commissioned  and  sworn,
personally       appeared        _____________________________________       and
__________________________________,  to me known to be the persons who signed as
________________________________     and      _________________________________,
respectively,  of  [_______________],  the  ________________  that  executed the
within and foregoing  instrument and acknowledged said instrument to be the free
and voluntary act and deed of said banking corporation for the uses and purposes
therein mentioned, and on oath stated that they were duly elected, qualified and
acting as said officers of the [national  banking  association],  that they were
authorized to execute said  instrument  and that the seal affixed if any, is the
seal of said [national banking association].

     IN WITNESS  WHEREOF I have  hereunto set my hand and official  seal the day
and year first above written.

                                        ----------------------------------------
                                        (Signature of Notary)

                                        ----------------------------------------
                                        (Print or stamp name of Notary)

                                        NOTARY  PUBLIC  in and for the  State of
                                        __________, residing at ________________
                                        My Appointment Expires: ________________

                                       88
<PAGE>
                                    EXHIBIT A

                  FORM OF REDEEMABLE OR NONREDEEMABLE SECURITY

                               [FACE OF SECURITY]

     [If the Holder of this Security (as indicated  below it) is The  Depository
Trust Company  ("DTC") or a nominee of DTC,  this Security is a Global  Security
and the following two legends apply:

     UNLESS THIS  SECURITY IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF THE
DEPOSITORY TRUST COMPANY ("DTC"),  _______________________  TO THE ISSUER OR ITS
AGENT FOR  REGISTRATION  OF  TRANSFER,  EXCHANGE OR PAYMENT,  AND SUCH  SECURITY
ISSUED IS REGISTERED IN THE NAME OF __________,  OR SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR  OTHERWISE BY OR TO ANY PERSON IS  WRONGFUL,  SINCE THE  REGISTERED
OWNER HEREOF, __________, HAS AN INTEREST HEREIN.

     UNLESS  AND  UNTIL  THIS  SECURITY  IS  EXCHANGED  IN  WHOLE OR IN PART FOR
SECURITIES IN CERTIFICATED  FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS
A WHOLE BY DTC TO A NOMINEE  THEREOF  OR BY A NOMINEE  THEREOF TO DTC OR ANOTHER
NOMINEE OF DTC OR BY DTC OR ANY SUCH  NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE
OF SUCH SUCCESSOR.]

     [IF THIS SECURITY IS AN ORIGINAL  ISSUE  DISCOUNT  SECURITY,  INSERT -- FOR
PURPOSES OF SECTIONS 1273 AND 1275 OF THE UNITED STATES  INTERNAL  REVENUE CODE,
THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THIS SECURITY IS ____% OF ITS PRINCIPAL
AMOUNT, THE ISSUE DATE IS __________, ____ [AND] THE YIELD TO MATURITY IS ____%.
[THE METHOD USED TO DETERMINE THE AMOUNT OF ORIGINAL ISSUE  DISCOUNT  APPLICABLE
TO THE SHORT ACCRUAL PERIOD OF __________, ____ TO __________, ____, IS ____% OF
THE PRINCIPAL AMOUNT OF THIS SECURITY.]

                                   ----------
                             [DESIGNATION OF SERIES]

No. __________                                                       $__________

     ___________________,  a __________  corporation  (herein referred to as the
"Company," which term includes any successor under the Indenture  referred to on
the  reverse   hereof),   for  value   received,   hereby  promises  to  pay  to
____________________  or  registered  assigns the  principal  sum of  __________
Dollars on  ____________________  (the "Stated  Maturity  Date") [OR INSERT DATE
FIXED FOR EARLIER  REDEMPTION  (the  "Redemption  Date)" and,  together with the
Stated  Maturity  Date with  respect to principal  repayable  on such date,  the
"Maturity Date")].
<PAGE>
     [IF THE SECURITY IS TO BEAR INTEREST PRIOR TO MATURITY,  INSERT--and to pay
interest  thereon  from or from the most recent  interest  payment date to which
interest has been paid or duly provided for,  semi-annually in arrears on and of
each year (each, an "Interest Payment Date"),  commencing , at the rate of ____%
per annum,  until the entire  principal  amount  hereof is paid or duly provided
for. The interest so payable,  and punctually  paid or duly provided for, on any
Interest Payment Date will, as provided in such Indenture, be paid to the Holder
in  whose  name  this  Security  (or  one or  more  predecessor  Securities)  is
registered  at the  close  of  business  on the  Regular  Record  Date  for such
interest,  which  shall be the or  (whether  or not a Business  Day,  as defined
below),  as the case may be, next preceding  such Interest  Payment Date [at the
office or agency of the Company maintained for such purpose; provided,  however,
that such interest may be paid, at the Company's  option,  by mailing a check to
such  Holder at his  registered  address or by  transfer  of funds to an account
maintained  by such Holder within the United  States].  Any such interest not so
punctually  paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular  Record Date, and may be paid to the Holder in whose name
this Security (or one or more predecessor Securities) is registered at the close
of business on a Special Record Date for the payment of such Defaulted  Interest
to be fixed by the  Trustee,  notice  whereof  shall  be  given  to  Holders  of
Securities  of this series not more than 15 days and not less than 10 days prior
to such  Special  Record  Date,  or may be paid at any time in any other  lawful
manner not  inconsistent  with the  requirements  of any securities  exchange on
which the  Securities of this series may be listed,  and upon such notice as may
be  required by such  exchange,  all as more fully  provided  in the  Indenture.
Interest  will be  computed  on the  basis of a 360-day  year of  twelve  30-day
months.]

     [IF THE SECURITY IS NOT TO BEAR  INTEREST  PRIOR TO  MATURITY,  INSERT--The
principal  of this  Security  shall  not bear  interest  except in the case of a
default in payment of principal  upon  acceleration,  upon  redemption or at the
[Stated]  Maturity Date and in such case the overdue  principal of this Security
shall bear  interest  at the rate of % per annum (to the extent that the payment
of such interest shall be legally enforceable), which shall accrue from the date
of such default in payment to the date payment of such  principal  has been made
or duly  provided  for.  Interest on any overdue  principal  shall be payable on
demand. Any such interest on any overdue principal that is not so paid on demand
shall  bear  interest  at the rate of ____% per annum  (to the  extent  that the
payment of such interest shall be legally enforceable),  which shall accrue from
the date of such demand for  payment to the date  payment of such  interest  has
been made or duly  provided  for,  and such  interest  shall  also be payable on
demand.]

     The  principal of this Security  payable on the [Stated]  Maturity Date [or
the  principal  of,  premium,  if any,  and,  if the  Redemption  Date is not an
Interest Payment Date, interest on this Security payable on the Redemption Date]
will be paid against  presentation  of this  Security at the office or agency of
the Company maintained for that purpose in __________,  in such coin or currency
of the United  States as at the time of payment is legal  tender for the payment
of public and private debts.

                                      A-2
<PAGE>
     Interest  payable on this Security on any Interest  Payment Date and on the
[Stated]  Maturity Date [or  Redemption  Date, as the case may be,] will include
interest accrued from and including the next preceding  Interest Payment Date in
respect  of which  interest  has  been  paid or duly  provided  for (or from and
including , if no interest has been paid on this Security) to but excluding such
Interest Payment Date or the [Stated]  Maturity Date [or Redemption Date, as the
case may be]. If any Interest  Payment Date or the  [Stated]  Maturity  Date [or
Redemption Date] falls on a day that is not a Business Day, principal,  premium,
if any,  and/or interest  payable with respect to such Interest  Payment Date or
[Stated] Maturity Date [or Redemption Date, as the case may be,] will be paid on
the next  succeeding  Business  Day with the same force and effect as if it were
paid on the date such  payment  was due,  and no  interest  shall  accrue on the
amount so payable for the period from and after such  Interest  Payment  Date or
[Stated] Maturity Date [or Redemption Date, as the case may be].  "Business Day"
means any day,  other than a Saturday or Sunday,  on which banks in New York are
not required or authorized by law or executive order to close.

     [IF THIS SECURITY IS A GLOBAL SECURITY,  INSERT--All payments of principal,
premium,  if any, and interest in respect of this  Security  will be made by the
Company in immediately available funds.]

     Reference  is hereby made to the further  provisions  of this  Security set
forth on the reverse  hereof,  which further  provisions  shall for all purposes
have the same effect as if set forth at this place.

     Unless the  Certificate of  Authentication  hereon has been executed by the
Trustee by manual signature of one of its authorized signatories,  this Security
shall  not be  entitled  to any  benefit  under  the  Indenture,  or be valid or
obligatory for any purpose.

     IN WITNESS  WHEREOF,  the  Company has caused  this  instrument  to be duly
executed under its [facsimile] corporate seal.

Dated _____________________________     ______________________________

Attest:
                                        By ___________________________

___________________________________
Secretary

                                      A-3
<PAGE>
                              [Reverse of Security]

                                   ----------

     This  Security  is one of a duly  authorized  issue  of  securities  of the
Company, issued and to be issued in one or more series under an Indenture, dated
as of __________,  _____ (herein called the "Indenture") between the Company and
____________________,  as  Trustee  (herein  called  the  "Trustee,"  which term
includes any successor trustee under the Indenture with respect to the series of
which  this  Security  is  a  part),  to  which  Indenture  and  all  indentures
supplemental  thereto reference is hereby made for a statement of the respective
rights,  limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the  Securities,  and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one
of the duly  authorized  series  of  Securities  designated  on the face  hereof
(collectively,  the  "Securities"),  [IF  APPLICABLE,  INSERT--and the aggregate
principal  amount of the securities to be issued under such series is limited to
$__________ (except for Securities authenticated and delivered upon transfer of,
or in  exchange  for, or in lieu of other  Securities).]  All terms used in this
Security which are defined in the Indenture shall have the meanings  assigned to
them in the Indenture.

     If an Event of Default shall occur and be continuing,  the principal of the
Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture.

     [IF  APPLICABLE,  INSERT--The  Securities  may not be redeemed prior to the
[Stated] Maturity Date.]

     [IF APPLICABLE,  INSERT--The  Securities are subject to redemption [(a) [IF
APPLICABLE, INSERT--on ___________ in any year commencing with the year ____ and
ending with the year ____ through  operation of the sinking fund for this series
at a  Redemption  Price  equal  to ___% of the  principal  amount  and (b) ] [IF
APPLICABLE,  INSERT--at  any time [on or  after  ___________],  as a whole or in
part,  at the  election  of the  Company,  at the  following  Redemption  Prices
(expressed as  percentages  of the principal  amount):  If redeemed on or before
___________,   ___%  and  if  redeemed  during  the  12-month  period  beginning
___________ of the years indicated, at the Redemption Prices indicated below.

     YEAR         REDEMPTION PRICE          YEAR           REDEMPTION PRICE

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

                                      A-4
<PAGE>
     [IF  APPLICABLE,  INSERT--The  Securities  are subject to redemption (a) on
__________  in any year  commencing  with the year ____ and ending with the year
________________  at the Redemption  Prices for redemption  through operation of
the sinking fund (expressed as percentages of the principal amount) set forth in
the table below and (b) at any time [on or after  __________],  as a whole or in
part, at the election of the Company,  at the  Redemption  Prices for redemption
otherwise than through  operation of the sinking fund  (expressed as percentages
of the principal  amount) set forth in the table below:  If redeemed  during the
12-month period beginning ______ of the years indicated,

<TABLE>
<S>                  <C>                                <C>
                      REDEMPTION PRICE FOR REDEMPTION       REDEMPTION PRICE FOR REDEMPTION
                          THROUGH OPERATION OF THE        OTHERWISE THAN THROUGH OPERATION OF
    YEAR                        SINKING FUND                        THE SINKING FUND
</TABLE>

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

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

     [IF APPLICABLE,  INSERT--The  sinking fund for the Securities  provides for
the  redemption  on __________  in each year,  beginning  with the year ____ and
ending with the year ____, of [not less than] $__]  [("mandatory  sinking fund")
and not more than  $__________]  aggregate  principal  amount of the Securities.
[The  Securities  acquired or redeemed by the  Company  otherwise  than  through
[mandatory] sinking fund payments may be credited against subsequent [mandatory]
sinking fund  payments  otherwise  required to be made in the  [DESCRIBE  ORDER]
order in which they become due.]]

     Notice of redemption  will be given by mail to Holders of  Securities,  not
less than 30 nor more than 60 days prior to the Redemption Date, all as provided
in the Indenture.

     In the event of  redemption of the Security in part only, a new Security or
Securities for the unredeemed  portion hereof shall be issued in the name of the
Holder hereof upon the cancellation hereof.

     [IF  APPLICABLE,  INSERT  CONVERSION  PROVISIONS  SET  FORTH  IN ANY  BOARD
RESOLUTION OR INDENTURE SUPPLEMENTAL TO THE INDENTURE.]

                                      A-5
<PAGE>
     The Indenture  permits,  with certain  exceptions as therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Company and the rights of the Holders of the  Securities  under the Indenture at
any time by the Company  and the Trustee  with the consent of the Holders of not
less than a majority of the aggregate  principal amount of all Securities issued
under the Indenture at the time Outstanding and affected thereby.  The Indenture
also contains  provisions  permitting the Holders of not less than a majority of
the aggregate principal amount of the Outstanding  Securities,  on behalf of the
Holders of all such Securities,  to waive compliance by the Company with certain
provisions of the Indenture. Furthermore, provisions in the Indenture permit the
Holders  of not less than a  majority  of the  aggregate  principal  amount,  in
certain  instances,  of the  Outstanding  Securities of any series to waive,  on
behalf of all of the Holders of Securities of such series, certain past defaults
under the  Indenture and their  consequences.  Any such consent or waiver by the
Holder of this  Security  shall be  conclusive  and binding upon such Holder and
upon all future  Holders of this Security and other  Securities  issued upon the
registration  of  transfer  hereof or in  exchange  herefor  or in lieu  hereof,
whether or not notation of such consent or waiver is made upon this Security.

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

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

     As provided in the  Indenture  and subject to certain  limitations  therein
[and  herein] set forth,  this  Security is  exchangeable  for a like  aggregate
principal  amount  of  Securities  of  different  authorized  denominations  but
otherwise  having  the same terms and  conditions,  as  requested  by the Holder
hereof surrendering the same.

     The  Securities  of this series are  issuable  only in  registered  form in
denominations  of  $__________  and any integral  multiple  thereof.  No service
charge shall be made for any such registration of transfer or exchange,  but the
Company  may  require  payment  of a sum  sufficient  to cover  any tax or other
governmental charge payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the
Company,  the  Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this  Security is  registered  as the owner  hereof for all
purposes,  whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

                                      A-6
<PAGE>
     No recourse shall be had for the payment of the principal of or premium, if
any,  or the  interest on this  Security,  or for any claim  based  thereon,  or
otherwise in respect  hereof,  or based on or in respect of the Indenture or any
indenture supplemental thereto, against any past, present or future stockholder,
employee,  officer or  director,  as such,  of the Company or of any  successor,
either  directly or through the Company or any  successor,  whether by virtue of
any constitution, statute or rule of law or by the enforcement of any assessment
or penalty or otherwise,  all such liability being, by the acceptance hereof and
as  part of the  consideration  for  the  issue  hereof,  expressly  waived  and
released.

     The  Indenture  and the  Securities  shall be governed by and  construed in
accordance  with the laws of the State of Nevada  applicable to agreements  made
and to be performed entirely in such State.

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                        [NAME OF TRUSTEE], as Trustee

                                        By _____________________________________
                                           Authorized Signatory

                                      A-7
<PAGE>
                                   EXHIBIT B-1

                      MORTGAGE LOAN ACQUISITION CERTIFICATE

     This  Mortgage  Loan  Acquisition   Certificate  (this   "Certificate")  is
submitted pursuant to the provisions of Section 7.05(a)(ii)(E) of the Indenture,
dated as of February __ 2003,  (the  "Agreement"),  between Terra Capital Group,
Inc., a Nevada  corporation (the "Company") and Compass Bank, an Alabama banking
corporation,  as Trustee (the  "Trustee").  All  capitalized  terms used in this
Certificate and not otherwise  defined herein shall have the same meanings given
to such terms in the  Agreement.  In your  capacity as  Trustee,  you are hereby
authorized and requested to disburse to the Company the sum of $____________ for
the  acquisition  of  Eligible  Mortgage  Loans.  With  respect to the  Eligible
Mortgage Loans so to be acquired, the Company hereby certifies as follows:

     1. The Mortgage Loans to be acquired are Eligible  Mortgage Loans,  and the
wiring instructions and related information are specified in Schedule A attached
hereto (the "Acquired  Eligible Mortgage Loans") and the information  therein is
true and correct.

     2. If applicable,  the  requirements of Section 16.04 of the Agreement will
be met upon the acquisition of the Acquired Eligible Mortgage Loans.

     3. Each  Acquired  Eligible  Mortgage  Loan is an  Eligible  Mortgage  Loan
authorized so to be acquired by the Agreement.

     4. You have been previously,  or are herewith,  provided with the following
items:

          (a) a copy of the Loan Documents between the Company and the seller of
     the Acquired  Eligible  Mortgage  Loans (the  "Seller") with respect to the
     Acquired Eligible Mortgage Loans (original copy maintained on file with the
     Company on behalf of the Trustee); and

          (b) instruments duly assigning the Acquired Eligible Mortgage Loans to
     the Trustee pursuant to the Indenture.

     5. The Company is not, on the date hereof,  in default  under the Agreement
or in the  performance of any of its covenants and  agreements  made in the Loan
Documents  relating to the Acquired  Eligible  Mortgage Loans,  and, to the best
knowledge of the Company, the Seller is not in default in the performance of any
of its covenants and  agreements  made in the Loan  Documents  applicable to the
Acquired  Eligible  Mortgage  Loans,  and the  Agreement  and the  covenants and
agreements  made in the Loan Documents are  enforceable in accordance with their
terms,  except  as  enforceability  may be  limited  by  applicable  bankruptcy,
insolvency,  reorganization,  moratorium  or other similar laws now or hereafter
effect affecting the enforcement of creditors' rights general and except as such
enforceability   may  be  limited  by  general  principles  of  equity  (whether
considered in a proceeding at law or in equity).

     6. All of the conditions  specified in any purchase agreement applicable to
the Acquired  Eligible  Mortgage Loans and the Agreement for the  acquisition of
<PAGE>
the Acquired Eligible Mortgage Loans and the disbursement  hereby authorized and
requested have been satisfied.

     7. [If an Eligible  Mortgage Loan currently pledged to the Trustee is being
sold in exchange for an Acquired  Eligible  Mortgage  Loan,  the final  expected
maturity date of such  Acquired  Eligible  Mortgage Loan shall be  substantially
similar  to that of the  Eligible  Mortgage  Loan  being  sold and such sale and
exchange  will not  adversely  affect the  ability of the Trustee to make timely
principal and interest payments under the Agreement on the Notes.]

     8. The  proposed  use of moneys in the  Funding  Account as directed by the
Company to acquire the Acquired  Eligible  Mortgage Loans is in compliance  with
the provisions of the Agreement.

     9. The [Company] has conducted  such UCC searches as it has deemed  prudent
with  respect  to such  Acquired  Eligible  Mortgage  Loans,  and such  searches
indicate that such Acquired  Eligible  Mortgage  Loans are free and clear of all
liens and security interests. The Company on your behalf is [retaining] such UCC
searches.

     10. The Company will use the funds disbursed  pursuant to this  Certificate
solely in connection with the  acquisition  and pledge of the Acquired  Eligible
Mortgage Loans pursuant to the Agreement.

     The  undersigned  is  authorized  to sign and deliver this  Certificate  on
behalf of the Company.

     WITNESS my hand this _____ day of ___________.

                                        TERRA CAPITAL GROUP, INC.

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

                                     B-1-2
<PAGE>
                            SCHEDULE A TO EXHIBIT B-1

                        ACQUIRED ELIGIBLE MORTGAGE LOANS

LIST OF ACQUIRED ELIGIBLE MORTGAGE LOANS

[INSERT INFORMATION]

                               WIRING INSTRUCTIONS

We hereby authorize and request you to wire funds per the following instructions
to Terra Capital Group, Inc. for the purpose of acquiring the Acquired Eligible
Mortgage Loans:

   Face Amount          Adjusted Value          Advance           Amount to be
of Mortgage Loans      of Mortgage Loans        Amount          Wired at Closing
-----------------      -----------------        ------          ----------------
$                       $                       $                 $

Wire Instructions:

               Account #
               ABA#

Withhold anticipated shortfall $__________

                                     B-1-3
<PAGE>
                                   EXHIBIT B-2

                      REAL PROPERTY ACQUISITION CERTIFICATE

<PAGE>
                            SCHEDULE A TO EXHIBIT B-2

                             ACQUIRED REAL PROPERTY

LIST OF ACQUIRED REAL PROPERTY

[INSERT INFORMATION]

                               WIRING INSTRUCTIONS

We hereby authorize and request you to wire funds per the following instructions
to Terra Capital Group, Inc. for the purpose of acquiring the Real Property:

 Purchase Amount        Adjusted Value          Advance           Amount to be
of Real Property       of Real Property         Amount          Wired at Closing
----------------       ----------------         ------          ----------------
$                       $                       $                 $

Wire Instructions:

               Account #
               ABA#

Withhold anticipated shortfall $__________

                                     B-2-2
<PAGE>
                                    EXHIBIT C

               SALE OF COLLATERAL AND RELEASE OF LIEN CERTIFICATE

     This Sale of  Collateral  and  Release  of Lien  Certificate  is  submitted
pursuant  to the  provisions  of  Section  16.04 of the  Indenture,  dated as of
February __, 2003 (the  "Agreement"),  between  Terra Capital  Group,  Inc. (the
"Company") and ______________,  a _____________, as Trustee (the "Trustee"). All
capitalized  terms used in this  Certificate  and not otherwise  defined  herein
shall have the same meanings given to such terms in the Agreement.

     Pursuant to Section 16.04,  the Company  intends to sell the Collateral set
forth  on the  attached  Schedule  I (the  "Sale  Collateral")  to  [name]  (the
"Purchaser").  In your  capacity  as  Trustee,  you are  hereby  authorized  and
directed to take all actions reasonably  requested by the Company to release the
lien to which the Sale Collateral is subject under the Agreement and to transfer
the Sale  Collateral to the Purchaser.  The gross proceeds from the sale will be
$________,  consisting  of ________.  The gross  proceeds from the sale shall be
deposited  directly with the Trustee and the Trustee shall deposit such proceeds
into the Funding Account.  With respect to the sale of the Sale Collateral,  the
Company  hereby  certifies  to  the  Trustee  as  follows  [INCLUDE  ONE  OF THE
FOLLOWING]:

     [the  disposition  price is equal to or in excess of the  amount  disbursed
from the Funding  Account to acquire  the Sale  Collateral  (less any  principal
amounts received by the Trustee with respect to such Sale Collateral).]; or

     [the disposition  price is lower than the amount disbursed from the Funding
Account to acquire the Sale Collateral  (less any principal  amounts received by
the Trustee with respect to such Sale Collateral), and (A) the Revenues expected
to be  received  from the  remaining  Collateral  (after  giving  effect to such
disposition)  would be at least equal to the Revenues required to timely pay the
principal and interest on the Outstanding Notes, or (B) the Company shall remain
able to pay debt service on the Notes and make payment on any other  Obligations
on a  timely  basis  (after  giving  effect  to such  sale,  transfer  or  other
disposition)  whereas it would not have been able to do so on a timely  basis if
it had  not  sold,  transferred  or  disposed  of the  Sale  Collateral  at such
discounted  amount,  or (C) the sum of the  amounts on  deposit in the  Accounts
(less  moneys in any Account  which the Company is then  entitled to receive but
which has not yet been removed from the Account) plus Net Collectible  Amount of
the  [Mortgage  Loans]  [Real  Property]  and the  fair  market  value  of other
Collateral will be at least equal to one hundred percent (100%) of the aggregate
principal amount of the then Outstanding Obligations plus accrued interest after
giving  effect  to  such  sale,  transfer  or  other  disposition  of  the  Sale
Collateral.]

     The  undersigned  is  authorized  to sign and deliver this  Certificate  on
behalf of the Company.
<PAGE>
     IN WITNESS  WHEREOF,  the undersigned  has executed this  Certificate as of
this _____ day of ___________.

                                        TERRA CAPITAL GROUP, INC.

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

                                      C-2

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