Document:

exv10w1

 

Exhibit 10.1

MASTER LEASE AGREEMENT

dated as of 10/26/04 (“Agreement”)

     THIS AGREEMENT is between General Electric Capital Corporation (together
with its successors and assigns, if any, “Lessor”) and Alexa Springs, Inc.
(“Lessee”). Lessor has an office at 16479 Dallas Parkway #300, Addison, TX
75001-2512. Lessee is a corporation organized and existing under the laws of
the state of Texas. Lessee’s mailing address and chief place of business is
652 Southwestern Blvd., Coppell, Texas 75019. This Agreement contains the
general terms that apply to the leasing of Equipment from Lessor to Lessee.
Additional terms that apply to the Equipment (term, rent, options, etc.) shall
be contained on a schedule (“Schedule”).

1. LEASING:

     (a) Lessor agrees to lease to Lessee, and Lessee agrees to lease from
Lessor, the equipment and the property (“Equipment”) described in any Schedule
signed by both parties.

     (b) Lessor shall purchase Equipment from the manufacturer or supplier
(“Supplier”) and lease it to Lessee if on or before the Last Delivery Date
Lessor receives (i) a Schedule for the Equipment, (ii) evidence of insurance
which complies with the requirements of Section 9, and (iii) such other
documents as Lessor may reasonably request. Each of the documents required
above must be in form and substance satisfactory to Lessor. Lessor hereby
appoints Lessee its agent for inspection and acceptance of the Equipment from
the Supplier. Once the Schedule is signed, the Lessee may not cancel the
Schedule.

2. TERM, RENT AND PAYMENT:

     (a) The rent payable for the Equipment and Lessee’s right to use the
Equipment shall begin on the earlier of (i) the date when the Lessee signs the
Schedule and accepts the Equipment or (ii) when Lessee has accepted the
Equipment under a Certificate of Acceptance (“Lease Commencement Date”). The
term of this Agreement shall be the period specified in the applicable
Schedule. The word “term” shall include all basic and any renewal terms.

     (b) Lessee shall pay rent to Lessor at its address stated above, except as
otherwise directed by Lessor. Rent payments shall be in the amount set forth
in, and due as stated in the applicable Schedule. If any Advance Rent (as
stated in the Schedule) is payable, it shall be due when the Lessee signs the
Schedule. Advance Rent shall be applied to the first rent payment and the
balance, if any, to the final rent payment(s) under such Schedule. In no event
shall any Advance Rent or any other rent payments be refunded to Lessee. If
rent is not paid within ten (10) days of its due date, Lessee agrees to pay a
late charge of two cents ($.02) per dollar on, and in addition to, the amount
of such rent but not exceeding the lawful maximum, if any.

3. RENT ADJUSTMENT:

     (a) If, solely as a result of Congressional enactment of any law
(including, without limitation, any modification of, or amendment or addition
to, the Internal Revenue Code of 1986, as amended, (“Code”)), the maximum
effective corporate income tax rate (exclusive of any minimum tax rate) for
calendar-year taxpayers (“Effective Rate”) is higher than thirty-five percent
(35%) for any year during the lease term, then Lessor shall have the right to
increase such rent payments by requiring payment of a single additional sum,
unless such sum exceeds $5,000, and then Lessee shall pay $5,000 per rent
payment until paid in full. The additional sum shall be equal to the product
of (i) the Effective Rate (expressed as a decimal) for such year less .35 (or,
in the event that any adjustment has been made hereunder for any previous year,
the Effective Rate (expressed as a decimal) used in calculating the next
previous adjustment) times (ii) the adjusted Termination Value (defined below),
divided by (iii) the difference between the new Effective Rate (expressed as a
decimal) and one (1). The adjusted Termination Value shall be the Termination
Value (calculated as of the first rent due in the year for which the adjustment
is being made) minus the Tax Benefits that would be allowable under Section 168
of the Code (as of the first day of the year for which such adjustment is being
made and all future years of the lease term). The Termination Values and Tax
Benefits are defined on the Schedule. Lessee shall pay to Lessor the full
amount of the additional rent payment on the later of (i) receipt of notice or
(ii) the first day of the year for which such adjustment is being made.

     (b) Lessee’s obligations under this Section 3 shall survive any expiration
or termination of this Agreement.

4. TAXES:

     (a) If permitted by law, Lessee shall report and pay promptly all taxes,
fees and assessments due, imposed, assessed or levied against any Equipment (or
purchase, ownership, delivery, leasing, possession, use or operation thereof),
this Agreement (or any rents or receipts hereunder), any Schedule, Lessor or
Lessee by any governmental entity or taxing authority during or related to the
term of this Agreement, including, without limitation, all license and
registration fees, and all sales, use, personal property, excise, gross
receipts, franchise, stamp or other taxes, imposts, duties and charges,
together with any penalties, fines or interest thereon (collectively “Taxes”).
Lessee shall have no liability for Taxes imposed by the United States of
America or any state or political subdivision thereof which are on or measured
by the net income of Lessor except as provided in Sections 3 and 14(c). Lessee
shall promptly reimburse Lessor (on an after tax basis) for any Taxes charged
to or assessed against Lessor. Lessee shall show Lessor as the owner of the
Equipment on all tax reports or returns, and send Lessor a copy of each report
or return and evidence of Lessee’s payment of Taxes upon request.

 

 

     (b) Lessee’s obligations, and Lessor’s rights and privileges, contained in
this Section 4 shall survive the expiration or other termination of this
Agreement.

5. REPORTS:

     (a) If any tax or other lien shall attach to any Equipment, Lessee will
notify Lessor in writing, within ten (10) days after Lessee becomes aware of
the tax or lien. The notice shall include the full particulars of the tax or
lien and the location of such Equipment on the date of the notice.

     (b) If Lessee ceases to file its financials with the SEC, as part of the
consolidated reporting of a public company or as a public company, Lessee will
deliver to Lessor, Lessee’s complete financial statements, certified by a
recognized firm of certified public accountants within ninety (90) days of the
close of each fiscal year of Lessee. Lessee will deliver to Lessor copies of
Lessee’s quarterly financial report certified by the chief financial officer of
Lessee, within ninety (90) days of the close of each fiscal quarter of Lessee.
Lessee will deliver to Lessor all Forms 10-K and 10-Q, if any, filed with the
Securities and Exchange Commission within thirty (30) days after the date on
which they are filed.

     (c) Lessor may inspect any Equipment during normal business hours after
giving Lessee reasonable prior notice.

     (d) Lessee will keep the Equipment at the Equipment Location (specified in
the applicable Schedule) and will give Lessor prior written notice of any
relocation of Equipment. If Lessor asks, Lessee will promptly notify Lessor
in writing of the location of any Equipment.

     (e) If any Equipment is lost or damaged (where the estimated repair costs
would exceed the greater of ten percent (10%) of the original Equipment cost or
ten thousand and 00/100 dollars ($10,000)), or is otherwise involved in an
accident causing personal injury or property damage, Lessee will promptly and
fully report the event to Lessor in writing.

     (f) Lessee will furnish a certificate of an authorized officer of Lessee
stating that he has reviewed the activities of Lessee and that, to the best of
his knowledge, there exists no default or event which with notice or lapse of
time (or both) would become such a default within thirty (30) days after any
request by Lessor.

     (g) Lessee will promptly notify Lessor of any change in Lessee’s state of
incorporation or organization.

6. DELIVERY, USE AND OPERATION:

     (a) All Equipment shall be shipped directly from the Supplier to Lessee.

     (b) Lessee agrees that the Equipment will be used by Lessee solely in the
conduct of its business and in a manner complying with all applicable laws,
regulations and insurance policies and Lessee shall not discontinue use of the
Equipment.

     (c) Lessee will not move any equipment from the location specified on the
Schedule, without the prior written consent of Lessor.

     (d) Lessee will keep the Equipment free and clear of all liens and
encumbrances other than those which result from acts of Lessor.

     (e) Lessor shall not disturb Lessee’s quiet enjoyment of the Equipment
during the term of the Agreement unless a default has occurred and is
continuing under this Agreement.

7. MAINTENANCE:

     (a) Lessee will, at its sole expense, maintain each unit of Equipment in
good operating order and repair, normal wear and tear excepted. The Lessee
shall also maintain the Equipment in accordance with manufacturer’s
recommendations. Lessee shall make all alterations or modifications required
to comply with any applicable law, rule or regulation during the term of this
Agreement. If Lessor requests, Lessee shall affix plates, tags or other
identifying labels showing ownership thereof by Lessor. The tags or labels
shall be placed in a prominent position on each unit of Equipment.

     (b) Lessee will not attach or install anything on any Equipment that will
impair the originally intended function or use of such Equipment without the
prior written consent of Lessor. All additions, parts, supplies, accessories,
and equipment (“Additions”) furnished or attached to any Equipment that are
not readily removable shall become the property of Lessor. All Additions shall
be made only in compliance with applicable law. Lessee will not attach or
install any Equipment to or in any other personal or real property without the
prior written consent of Lessor.

8. STIPULATED LOSS VALUE: If for any reason any unit of Equipment becomes worn
out, lost, stolen, destroyed, irreparably damaged or unusable (“Casualty
Occurrences”) Lessee shall promptly and fully notify Lessor in writing. Lessee
shall pay Lessor the sum of (i) the Stipulated Loss Value (see Schedule) of the
affected unit determined as of the rent payment date prior to the Casualty
Occurrence; and (ii) all rent and other amounts which are then due under this
Agreement on the Payment Date (defined below) for the affected unit. The
Payment Date shall be the next rent payment date after the Casualty Occurrence.
Upon Payment of all sums due hereunder, the term of this lease as to such unit
shall terminate.

 

 

9. INSURANCE:

     (a) Lessee shall bear the entire risk of any loss, theft, damage to, or
destruction of, any unit of Equipment from any cause whatsoever from the time
the Equipment is shipped to Lessee.

     (b) Lessee agrees, at its own expense, to keep all Equipment insured for
such amounts and against such hazards as Lessor may reasonably require. All
such policies shall be with companies, and on terms, reasonably satisfactory to
Lessor. The insurance shall include coverage for damage to or loss of the
Equipment, liability for personal injuries, death or property damage. Lessor
shall be named as additional insured with a loss payable clause in favor of
Lessor, as its interest may appear, irrespective of any breach of warranty or
other act or omission of Lessee. The insurance shall provide for liability
coverage in an amount equal to at least ONE MILLION U.S. DOLLARS
($1,000,000.00) total liability per occurrence, unless otherwise stated in any
Schedule. The casualty/property damage coverage shall be in an amount equal to
the higher of the Stipulated Loss Value or the full replacement cost of the
Equipment. No insurance shall be subject to any co-insurance clause. The
insurance policies shall provide that the insurance may not be altered or
canceled by the insurer until after thirty (30) days written notice to Lessor.
Lessee agrees to deliver to Lessor evidence of insurance reasonably
satisfactory to Lessor.

     (c) Lessee hereby appoints Lessor as Lessee’s attorney-in-fact to make
proof of loss and claim for insurance, and to make adjustments with insurers
and to receive payment of and execute or endorse all documents, checks or
drafts in connection with insurance payments. Lessor shall not act as Lessee’s
attorney-in-fact unless Lessee is in default. Lessee shall pay any reasonable
expenses of Lessor in adjusting or collecting insurance. Lessee will not make
adjustments with insurers except with respect to claims for damage to any unit
of Equipment where the repair costs are less than the lesser of ten percent
(10%) of the original Equipment cost or ten thousand and 00/100 dollars
($10,000). Lessor shall apply proceeds of insurance, first to (i) repair or
replace Equipment or any portion thereof, then to (ii) satisfy any obligation
of Lessee to Lessor under this Agreement.

10. RETURN OF EQUIPMENT:

     (a) At the expiration or termination of this Agreement or any Schedule,
Lessee shall perform any testing and repairs required to place the units of
Equipment in the same condition and appearance as when received by Lessee
(reasonable wear and tear excepted) and in good working order for the original
intended purpose of the Equipment. If required the units of Equipment shall be
deinstalled, disassembled and crated by an authorized manufacturer’s
representative or such other service person as is reasonably satisfactory to
Lessor. Lessee shall remove installed markings that are not necessary for the
operation, maintenance or repair of the Equipment. All Equipment will be
cleaned, cosmetically acceptable, and in such condition as to be immediately
installed into use in a similar environment for which the Equipment was
originally intended to be used. All waste material and fluid must be removed
from the Equipment and disposed of in accordance with then current waste
disposal laws. Lessee shall return the units of Equipment to a location within
the continental United States as Lessor shall direct by written notice 30 days
prior to termination date. Lessee shall obtain and pay for a policy of transit
insurance for the redelivery period in an amount equal to the replacement value
of the Equipment. The transit insurance must name Lessor as the loss payee.
The Lessee shall pay for all costs to comply with this section (a).

     (b) Until Lessee has fully complied with the requirements of Section 10(a)
above, Lessee’s rent payment obligation and all other obligations under this
Agreement shall continue from month to month notwithstanding any expiration or
termination of the lease term. Lessor may terminate the Lessee’s right to use
the Equipment upon ten (10) days notice to Lessee.

     (c) Lessee shall provide to Lessor a detailed inventory of all components
of the Equipment including model and serial numbers with notice of termination
of the Lease. Lessee shall provide an up-to-date copy of all other
documentation pertaining to the Equipment, all service manuals, blue prints,
process flow diagrams, operating manuals, inventory and maintenance records
with the equipment when it is returned to Lessor.

     (d) Lessee shall make the Equipment and its records available for on-site
operational inspections by potential purchasers at least one hundred twenty
(120) days prior to and continuing up to lease termination. Lessor shall
provide Lessee with reasonable written notice prior to any inspection. Lessee
shall provide reasonable and available personnel, power and other requirements
necessary to demonstrate electrical, hydraulic and mechanical systems for each
item of Equipment.

11. DEFAULT AND REMEDIES:

     (a) Lessor may declare this Agreement in default if: (i) Lessee breaches
its obligation to pay rent or any other sum when due and fails to cure the
breach within ten (10) days; (ii) Lessee breaches any of its insurance
obligations under Section 9; (iii) Lessee breaches any of its other obligations
and fails to cure that breach within thirty (30) days after written notice from
Lessor; (iv) any representation or warranty made by Lessee in connection with
this Agreement shall be false or misleading in any material respect; (v) Lessee
or any guarantor or other obligor for the Lessee’s obligations hereunder
(“Guarantor”) becomes insolvent or ceases to do business as a going concern;
(vi) any Equipment is illegally used; (vii) if Lessee or any Guarantor is a
natural person, any death or incompetency of Lessee or such Guarantor; (viii) a
petition is filed by or against Lessee or any Guarantor under any bankruptcy or
insolvency laws and in the event of an involuntary petition, the petition is
not dismissed within forty-five (45) days of the filing date; (ix) any
Guarantor revokes or attempts to revoke its guaranty or fails to observe or
perform any covenant, condition or agreement to be performed under any guaranty
or other related document to which it is a party; or (x) Lessee defaults under
any other material obligation for (A) borrowed money, (B) the deferred purchase
price of property, or (C) payments due under lease agreements. The default
declaration shall apply to all Schedules unless specifically excepted by
Lessor.

     (b) After a default, at the request of Lessor, Lessee shall comply with
the provisions of Section 10(a). Lessee hereby authorizes Lessor to peacefully
enter any premises where any Equipment may be and take possession of the
Equipment. Lessee shall immediately pay to Lessor without further demand as
liquidated damages for loss of a bargain and not as a penalty, the Stipulated
Loss Value of the Equipment (calculated as of the rent payment date prior to
the declaration of default), and all rents and other sums then due under this
Agreement and all Schedules. Lessor may terminate this Agreement as to any or
all of the Equipment. A termination shall occur only upon written notice by
Lessor to Lessee and only as to the units of Equipment specified in any such
notice. Lessor may, but shall not be required to, sell

 

 

Equipment at private or public sale, in bulk or in parcels, with or without
notice, and without having the Equipment present at the place of sale. Lessor
may also, but shall not be required to, lease, otherwise dispose of or keep
idle all or part of the Equipment. Lessor may use Lessee’s premises for a
period of sixty (60) days for any or all of the purposes stated above without
liability for rent, costs, damages or otherwise. The proceeds of sale, lease
or other disposition, if any, shall be applied in the following order of
priorities: (i) to pay all of Lessor’s costs, charges and expenses incurred in
taking, removing, holding, repairing and selling, leasing or otherwise
disposing of Equipment; then, (ii) to the extent not previously paid by Lessee,
to pay Lessor all sums due from Lessee under this Agreement; then (iii) to
reimburse to Lessee any sums previously paid by Lessee as liquidated damages;
and (iv) any surplus shall be retained by Lessor. Lessee shall immediately pay
any deficiency in (i) and (ii) above .

     (c) The foregoing remedies are cumulative, and any or all thereof may be
exercised instead of or in addition to each other or any remedies at law, in
equity, or under statute. Lessee waives notice of the manner and place of any
advertising of the sale. Lessee shall pay Lessor’s actual attorney’s fees
incurred in connection with the enforcement, assertion, defense or preservation
of Lessor’s rights and remedies under this Agreement, or if prohibited by law,
such lesser sum as may be permitted. Waiver of any default shall not be a
waiver of any other or subsequent default.

12. ASSIGNMENT: LESSEE SHALL NOT SELL, TRANSFER, ASSIGN, ENCUMBER OR SUBLET
ANY EQUIPMENT OR THE INTEREST OF LESSEE IN THE EQUIPMENT WITHOUT THE PRIOR
WRITTEN CONSENT OF LESSOR. Lessor may, without the consent of Lessee, assign
this Agreement, any Schedule or the right to enter into a Schedule. Lessee
agrees that if Lessee receives written notice of an assignment from Lessor,
Lessee will pay all rent and all other amounts payable under any assigned
Schedule to such assignee or as instructed by Lessor. Lessee also agrees to
confirm in writing receipt of the notice of assignment as may be reasonably
requested by assignee. Lessee hereby waives and agrees not to assert against
any such assignee any defense, set-off, recoupment claim or counterclaim which
Lessee has or may at any time have against Lessor for any reason whatsoever.

13. NET LEASE: Lessee is unconditionally obligated to pay all rent and other
amounts due for the entire lease term no matter what happens, even if the
Equipment is damaged or destroyed, if it is defective or if Lessee no longer
can use it. Lessee is not entitled to reduce or set-off against rent or other
amounts due to Lessor or to anyone to whom Lessor assigns this Agreement or any
Schedule whether Lessee’s claim arises out of this Agreement, any Schedule, any
statement by Lessor, Lessor’s liability or any manufacturer’s liability,
strict liability, negligence or otherwise.

14. INDEMNIFICATION:

     (a) Lessee hereby agrees to indemnify Lessor, its agents, employees,
successors and assigns (on an after tax basis) from and against any and all
losses, damages, penalties, injuries, claims, actions and suits, including
legal expenses, of whatsoever kind and nature arising out of or relating to the
Equipment or this Agreement, except to the extent the losses, damages,
penalties, injuries, claims, actions, suits or expenses result from Lessor’s
gross negligence or willful misconduct (“Claims”). This indemnity shall
include, but is not limited to, Lessor’s strict liability in tort and Claims,
arising out of (i) the selection, manufacture, purchase, acceptance or
rejection of Equipment, the ownership of Equipment during the term of this
Agreement, and the delivery, lease, possession, maintenance, uses, condition,
return or operation of Equipment (including, without limitation, latent and
other defects, whether or not discoverable by Lessor or Lessee and any claim
for patent, trademark or copyright infringement or environmental damage) or
(ii) the condition of Equipment sold or disposed of after use by Lessee, any
sublessee or employees of Lessee. Lessee shall, upon request, defend any
actions based on, or arising out of, any of the foregoing.

     (b) Lessee hereby represents, warrants and covenants that (i) on the Lease
Commencement Date for any unit of Equipment, such unit will qualify for all of
the items of deduction and credit specified in Section C of the applicable
Schedule (“Tax Benefits”) in the hands of Lessor, and (ii) at no time during
the term of this Agreement will Lessee take or omit to take, nor will it permit
any sublessee or assignee to take or omit to take, any action (whether or not
such act or omission is otherwise permitted by Lessor or by this Agreement),
which will result in the disqualification of any Equipment for, or recapture
of, all or any portion of such Tax Benefits.

     (c) If as a result of a breach of any representation, warranty or covenant
of the Lessee contained in this Agreement or any Schedule (i) tax counsel of
Lessor shall determine that Lessor is not entitled to claim on its Federal
income tax return all or any portion of the Tax Benefits with respect to any
Equipment, or (ii) any Tax Benefit claimed on the Federal income tax return of
Lessor is disallowed or adjusted by the Internal Revenue Service, or (iii) any
Tax Benefit is recalculated or recaptured (any determination, disallowance,
adjustment, recalculation or recapture being a “Loss”), then Lessee shall pay
to Lessor, as an indemnity and as additional rent, an amount that shall, in the
reasonable opinion of Lessor, cause Lessor’s after-tax economic yields and cash
flows to equal the Net Economic Return that would have been realized by Lessor
if such Loss had not occurred. Such amount shall be payable upon demand,
unless the amount exceeds $5,000 and then Lessee shall pay $5,000 a month with
the rental payments until paid in full, accompanied by a statement describing
in reasonable detail such Loss and the computation of such amount. The
economic yields and cash flows shall be computed on the same assumptions,
including tax rates as were used by Lessor in originally evaluating the
transaction (“Net Economic Return”). If an adjustment has been made under
Section 3 then the Effective Rate used in the next preceding adjustment shall
be substituted.

     (d) All references to Lessor in this Section 14 include Lessor and the
consolidated taxpayer group of which Lessor is a member. All of Lessor’s
rights, privileges and indemnities contained in this Section 14 shall survive
the expiration or other termination of this Agreement. The rights, privileges
and indemnities contained herein are expressly made for the benefit of, and
shall be enforceable by Lessor, its successors and assigns.

15. DISCLAIMER: LESSEE ACKNOWLEDGES THAT IT HAS SELECTED THE EQUIPMENT WITHOUT
ANY ASSISTANCE FROM LESSOR, ITS AGENTS OR EMPLOYEES. LESSOR DOES NOT MAKE, HAS
NOT MADE, NOR SHALL BE DEEMED TO MAKE OR HAVE MADE, ANY WARRANTY OR
REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, WITH RESPECT TO THE
EQUIPMENT LEASED UNDER THIS AGREEMENT OR ANY COMPONENT THEREOF, INCLUDING,
WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE WITH SPECIFICATIONS,
QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY, FITNESS FOR ANY PURPOSE,
USE OR OPERATION,

 

 

SAFETY, PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT, OR TITLE. All such risks,
as between Lessor and Lessee, are to be borne by Lessee. Without limiting the
foregoing, Lessor shall have no responsibility or liability to Lessee or any
other person with respect to any of the following; (i) any liability, loss or
damage caused or alleged to be caused directly or indirectly by any Equipment,
any inadequacy thereof, any deficiency or defect (latent or otherwise) of the
Equipment, or any other circumstance in connection with the Equipment; (ii) the
use, operation or performance of any Equipment or any risks relating to it;
(iii) any interruption of service, loss of business or anticipated profits or
consequential damages; or (iv) the delivery, operation, servicing, maintenance,
repair, improvement or replacement of any Equipment. If, and so long as, no
default exists under this Agreement, Lessee shall be, and hereby is, authorized
during the term of this Agreement to assert and enforce whatever claims and
rights Lessor may have against any Supplier of the Equipment at Lessee’s sole
cost and expense, in the name of and for the account of Lessor and/or Lessee,
as their interests may appear.

16. REPRESENTATIONS AND WARRANTIES OF LESSEE: Lessee makes each of the
following representations and warranties to Lessor on the date hereof and on
the date of execution of each Schedule.

     (a) Lessee has adequate power and capacity to enter into, and perform
under, this Agreement and all related documents (together, the “Documents”).
Lessee is duly qualified to do business wherever necessary to carry on its
present business and operations, including the jurisdiction(s) where the
Equipment is or is to be located.

     (b) The Documents have been duly authorized, executed and delivered by
Lessee and constitute valid, legal and binding agreements, enforceable in
accordance with their terms, except to the extent that the enforcement of
remedies may be limited under applicable bankruptcy and insolvency laws.

     (c) No approval, consent or withholding of objections is required from any
governmental authority or entity with respect to the entry into or performance
by Lessee of the Documents except such as have already been obtained.

     (d) The entry into and performance by Lessee of the Documents will not:
(i) violate any judgment, order, law or regulation applicable to Lessee or any
provision of Lessee’s organizational documents; or (ii) result in any breach
of, constitute a default under or result in the creation of any lien, charge,
security interest or other encumbrance upon any Equipment pursuant to any
indenture, mortgage, deed of trust, bank loan or credit agreement or other
instrument (other than this Agreement) to which Lessee is a party.

     (e) There are no suits or proceedings pending or threatened in court or
before any commission, board or other administrative agency against or
affecting Lessee, which if decided against Lessee will have a material adverse
effect on the ability of Lessee to fulfill its obligations under this
Agreement.

     (f) The Equipment accepted under any Certificate of Acceptance is and will
remain tangible personal property.

     (g) Each financial statement delivered to Lessor has been prepared in
accordance with generally accepted accounting principles consistently applied.
Since the date of the most recent financial statement, there has been no
material adverse change.

     (h) Lessee’s exact legal name is as set forth in the first sentence of
this Agreement and Lessee is and will be at all times validly existing and in
good standing under the laws of the State of its incorporation or organization
(specified in the first sentence of this Agreement).

     (i) The Equipment will at all times be used for commercial or business
purposes.

     (j) Lessee is and will remain in full compliance with all laws and
regulations applicable to it including, without limitation, (i) ensuring that
no person who owns a controlling interest in or otherwise controls Lessee is or
shall be (Y) listed on the Specially Designated Nationals and Blocked Person
List maintained by the Office of Foreign Assets Control (“OFAC”), Department of
the Treasury, and/or any other similar lists maintained by OFAC pursuant to any
authorizing statute, Executive Order or regulation or (Z) a person designated
under Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23,
2001), any related enabling legislation or any other similar Executive Orders,
and (ii) compliance with all applicable Bank Secrecy Act (“BSA”) laws,
regulations and government guidance on BSA compliance and on the prevention and
detection of money laundering violations.

17. EARLY TERMINATION:

     (a) On or after the First Termination Date (specified in the applicable
Schedule), Lessee may, so long as no default exists hereunder, terminate this
Agreement as to all (but not less than all) of the Equipment on such Schedule
as of a rent payment date (“Termination Date”). Lessee must give Lessor at
least ninety (90) days prior written notice of the termination.

     (b) Lessee may, and Lessor may, solicit cash bids for the Equipment on an
AS IS, WHERE IS BASIS without recourse to or warranty from Lessor, express or
implied (“AS IS BASIS”). Prior to the Termination Date, Lessee shall (i)
certify to Lessor any bids received by Lessee and (ii) pay to Lessor (A) the
Termination Value (calculated as of the rent due on the Termination Date) for
the Equipment, and (B) all rent and other sums due and unpaid as of the
Termination Date.

     (c) If all amounts due hereunder have been paid on the Termination Date
and Lessee does not elect to purchase the equipment, Lessor shall (i) sell the
Equipment on an AS IS BASIS for cash to the highest bidder and (ii) refund the
proceeds of such sale (net of any related expenses) to Lessee up to the amount
of the Termination Value. If such sale is not consummated, no termination
shall occur and Lessor shall refund the Termination Value (less any expenses
incurred by Lessor) to Lessee.

 

 

     (d) Notwithstanding the foregoing, Lessor may elect by written notice, at
any time prior to the Termination Date, not to sell the Equipment. In that
event, on the Termination Date Lessee shall (i) return the Equipment (in
accordance with Section 10) and (ii) pay to Lessor all amounts required under
Section 17(b) less the amount of the highest bid certified by Lessee to Lessor.

18. PURCHASE OPTION:

     (a) Lessee may at lease expiration purchase all (but not less than all) of
the Equipment in any Schedule on an AS IS BASIS for cash equal to its then Fair
Market Value (plus all applicable sales taxes). Lessee must notify Lessor of
its intent to purchase the Equipment in writing at least one hundred eighty
(180) days in advance. If Lessee is in default or if the Lease has already
been terminated Lessee may not purchase the Equipment.

     (b) “Fair Market Value” shall mean the price that a willing buyer (who is
neither a lessee in possession nor a used equipment dealer) would pay for the
Equipment in an arm’s-length transaction to a willing seller under no
compulsion to sell. In determining the Fair Market Value the Equipment shall
be assumed to be in the condition in which it is required to be maintained and
returned under this Agreement. If the Equipment is installed it shall be
valued on an installed basis. The costs of removal from current location shall
not be a deduction from the value of the Equipment. If Lessor and Lessee are
unable to agree on the Fair Market Value at least one hundred thirty-five (135)
days before lease expiration, Lessor shall appoint an independent appraiser
(reasonably acceptable to Lessee) to determine Fair Market Value. The
independent appraiser’s determination shall be final, binding and conclusive.
Lessee shall bear all costs associated with any such appraisal.

     (c) Lessee shall be deemed to have waived this option unless it provides
Lessor with written notice of its irrevocable election to exercise the same
within fifteen (15) days after written notice of Fair Market Value is provided
to Lessee.

19. MISCELLANEOUS:

     (a) LESSEE AND LESSOR UNCONDITIONALLY WAIVE THEIR RIGHTS TO A JURY TRIAL
OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT,
ANY OF THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN LESSEE AND LESSOR RELATING
TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR
THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN LESSEE AND LESSOR. THE
SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES
THAT MAY BE FILED IN ANY COURT. THIS WAIVER IS IRREVOCABLE. THIS WAIVER MAY
NOT BE MODIFIED EITHER ORALLY OR IN WRITING. THE WAIVER ALSO SHALL APPLY TO
ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT, ANY RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS
RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

     (b) The Equipment shall remain Lessor’s property unless Lessee purchases
the Equipment from Lessor and until such time Lessee shall only have the right
to use the Equipment as a lessee. Any cancellation or termination by Lessor of
this Agreement, any Schedule, supplement or amendment hereto, or the lease of
any Equipment hereunder shall not release Lessee from any then outstanding
obligations to Lessor hereunder. All Equipment shall at all times remain
personal property of Lessor even though it may be attached to real property.
The Equipment shall not become part of any other property by reason of any
installation in, or attachment to, other real or personal property.

     (c) Time is of the essence of this Agreement. Lessor’s failure at any
time to require strict performance by Lessee of any of the provisions hereof
shall not waive or diminish Lessor’s right at any other time to demand strict
compliance with this Agreement. Lessee agrees, upon Lessor’s request, to
execute, or otherwise authenticate, any document, record or instrument
necessary or expedient for filing, recording or perfecting the interest of
Lessor or to carry out the intent of this Agreement. In addition, Lessee
hereby authorizes Lessor to file a financing statement and amendments thereto
describing the Equipment described in any and all Schedules now and hereafter
executed pursuant hereto and adding any other collateral described therein and
containing any other information required by the applicable Uniform Commercial
Code. Lessee irrevocably grants to Lessor the power to sign Lessee’s name and
generally to act on behalf of Lessee to execute and file financing statements
and other documents pertaining to any or all of the Equipment with copies of
all documents subsequent to filing provided to Lessee. Lessee hereby ratifies
its prior authorization for Lessor to file financing statements and amendments
thereto describing the Equipment and containing any other information required
by any applicable law (including without limitation the Uniform Commercial
Code) if filed prior to the date hereof. All notices required to be given
hereunder shall be deemed adequately given if sent by overnight deliver service
registered or certified mail to the addressee at its address stated herein, or
at such other place as such addressee may have specified in writing. This
Agreement and any Schedule and Annexes thereto constitute the entire agreement
of the parties with respect to the subject matter hereof. NO VARIATION OR
MODIFICATION OF THIS AGREEMENT OR ANY WAIVER OF ANY OF ITS PROVISIONS OR
CONDITIONS, SHALL BE VALID UNLESS IN WRITING AND SIGNED BY AN AUTHORIZED
REPRESENTATIVE OF THE PARTIES HERETO.

All notices to Lessee shall be sent to

Alexa Springs, Inc.

652 Southwestern Blvd

Coppell, Texas 75019

Attn: Marshall Sorokwasz

cc: Legal

     (d) If Lessee does not comply with any provision of this Agreement, Lessor
shall have the right, but shall not be obligated, to effect such compliance, in
whole or in part. All reasonable amounts spent and obligations incurred or
assumed by Lessor in effecting such compliance shall constitute additional rent
due to Lessor. Lessee shall pay the additional rent within five days after the
date Lessor sends written notice to Lessee requesting payment. Lessor’s
effecting such compliance shall not be a waiver of Lessee’s default.

 

 

     (e) Any rent or other amount not paid to Lessor when due shall bear
interest, from the due date until paid, at the lesser of eighteen percent (18%)
per annum or the maximum rate allowed by law. Any provisions in this Agreement
and any Schedule that are in conflict with any statute, law or applicable rule
shall be deemed omitted, modified or altered to conform thereto.
Notwithstanding anything to the contrary contained in this Agreement or any
Schedule, in no event shall this Agreement or any Schedule require the payment
or permit the collection of amounts in excess of the maximum permitted by
applicable law.

     (f) Lessee hereby irrevocably authorizes Lessor to adjust the Capitalized
Lessors Cost up or down by no more than ten percent (10%) within each Schedule
to account for equipment change orders, equipment returns, invoicing errors,
and similar matters. Lessee acknowledges and agrees that the rent shall be
adjusted as a result of the change in the Capitalized Lessors Cost. Lessor
shall send Lessee a written notice stating the final Capitalized Lessors Cost,
if it has changed.

     (g) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF CONNECTICUT (WITHOUT REGARD TO THE CONFLICT OF
LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE EQUIPMENT.

     (h) Any cancellation or termination by Lessor, pursuant to the provisions
of this Agreement, any Schedule, supplement or amendment hereto, of the lease
of any Equipment hereunder, shall not release Lessee from any then outstanding
obligations to Lessor hereunder.

     (i) To the extent that any Schedule would constitute chattel paper, as
such term is defined in the Uniform Commercial Code as in effect in any
applicable jurisdiction, no security interest therein may be created through
the transfer or possession of this Agreement in and of itself without the
transfer or possession of the original of a Schedule executed pursuant to this
Agreement and incorporating this Agreement by reference; and no security
interest in this Agreement and a Schedule may be created by the transfer or
possession of any counterpart of the Schedule other than the original thereof,
which shall be identified as the document marked “Original” and all other
counterparts shall be marked “Duplicate”.

     (j) Each party hereto agrees to keep confidential, the terms and
provisions of the Documents and the transactions contemplated hereby and
thereby (collectively, the “Transactions”). Notwithstanding the foregoing, the
obligations of confidentiality contained herein, as they relate to the
Transactions, shall not apply to the federal tax structure or federal tax
treatment of the Transactions or other disclosures required by law, and each
party hereto (and any employee, representative, or agent of any party hereto)
may disclose to any and all persons, without limitation of any kind, the
federal tax structure and federal tax treatment of the Transactions. The
preceding sentence is intended to cause each Transaction to be treated as not
having been offered under conditions of confidentiality for purposes of Section
1.6011-4(b)(3) (or any successor provision) of the Treasury Regulations
promulgated under Section 6011 of the Internal Revenue Code of 1986, as
amended, and shall be construed in a manner consistent with such purpose. In
addition, each party hereto acknowledges that it has no proprietary or
exclusive rights to the federal tax structure of the Transactions or any
federal tax matter or federal tax idea related to the Transactions.

     IN WITNESS WHEREOF, Lessee and Lessor have caused this Agreement to be
executed by their duly authorized representatives as of the date first
above written.

	 	 	 
	LESSOR:

	 	LESSEE:
	General Electric Capital Corporation

	 	Alexa Springs, Inc.
	 
	 	 
	By: /s/ W. Scott Cummins

	 	By: /s/ Marshall Sorokwasz
	

	 	

	 
	 	 
	Name: W. Scott Cummins

	 	Name: Marshall Sorokwasz
	 
	 	 
	Title: Risk Analyst

	 	Title: President

 

 

               SLB/CS(R062599) 4158756001 *LEAS8760*

EQUIPMENT SCHEDULE

SCHEDULE NO. 001

DATED THIS 10/26/04

TO MASTER LEASE AGREEMENT

DATED AS OF 10/26/04

	 	 	 
	Lessor & Mailing Address:

	 	Lessee & Mailing Address:
	
 

	 	
 
	 
	 	 
	General Electric Capital Corporation

	 	Alexa Springs, Inc.
	16479 Dallas Parkway #300

	 	652 Southwestern Blvd.
	Addison, TX 75001-2512

	 	Coppell, TX 75019

This Schedule is executed pursuant to, and incorporates by reference the terms
and conditions of, and capitalized terms not defined herein shall have the
meanings assigned to them in, the Master Lease Agreement identified above
(“Agreement” said Agreement and this Schedule being collectively referred to as
“Lease”). This Schedule, incorporating by reference the Agreement, constitutes
a separate instrument of lease.

A. Equipment: Subject to the terms and conditions of the Lease, Lessor agrees
to Lease to Lessee the Equipment described below (the
“Equipment”).

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Number	 	Capitalized	 	 	 	 	 	 
	of Units
	 	Lessor’s Cost
	 	Manufacturer
	 	Serial Number
	 	Model and Type of Equipment

	1
	 	$	1,938,290.89	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	Water bottling line including Priority One depalletizer, s/n 04-291, Sentry
bottle conveyor, s/n CP10682, Sentry conveyor control panel, s/n CP10682,
Sentry rinser, s/n CP10682, Fogg filler/capper, s/n 763-10-3-04LH, Fogg cap
sorter/bulk hopper, s/n 755-21-3-04RH, Industrial Dynamics bottle inspector,
s/n 116958, Langguth labeler, s/n 2004-913, Markem SmartLase 110 laser
coder, s/n 131659, Kisters Kayat tray packer, s/n 275-04, Kisters Kayat tray
wrapper, s/n 122-04, Sentry case conveyor, s/n CP10682, Diagraph case coder,
s/n IJ42801509, Columbia case palletizer, s/n 0406-6328-2372, Wulftec pallet
wrapper, s/n 14614-1-0604, Santa Rosa 30,000 gallon-storage tank, s/n
M043774, UV Systems storage tank positive air filter, s/n 04-07-1186-01,
Pacific Ozone ozone generator, s/n 8/4/3873, Pacific Ozone ozone destruct,
s/n 798-6-4, Aquafine UV disinfectant filter, s/n LS04029-E-DSE, Ingersoll
Rand air compressor (60 HP), s/n CA2740U04125, Ingersoll Rand air dryer, s/n
DB00000322-070904

	 	 	Equipment immediately listed above is located at: 1055 Owley Rd., Mount
Ida, Montgomery County, AR 71957

	B.	 	Financial Terms

	 	 	 	 	 	 	 	 	 
	1.

	 	Advance Rent (if any): $ 26,125.00
	 	 	5.	 	 	Basic Term Commencement Date: November 10, 2004
	 
	 	 	 	 	 	 	 	 
	2.

	 	Capitalized Lessor’s Cost: $ 1,938,290.89
	 	 	6.	 	 	Lessee Federal Tax ID No.: 861110268
	 
	 	 	 	 	 	 	 	 
	3.

	 	Basic Term (No. of Months): 84 Months.
	 	 	7.	 	 	Last Delivery Date: November 10, 2004
	 
	 	 	 	 	 	 	 	 
	4.

	 	Basic Term Lease Rate Factor: 0.01347837
	 	 	8.	 	 	Daily Lease Rate Factor: 0.00044928

	9.	 	First Termination Date: Twelve (12) months after the Basic Term
Commencement Date.
	 
	10.	 	Interim Rent: For the period from and including the Lease Commencement
Date to but not including the Basic Term Commencement Date (“Interim
Period”), Lessee shall pay as rent (“Interim Rent”) for each unit of
Equipment, the product of the Daily Lease Rate Factor times the
Capitalized Lessor’s Cost of such unit times the number of days in the
Interim Period. Interim Rent shall be due on November 9, 2004.
	 
	11.	 	Basic Term Rent. Commencing on November 10, 2004 and on the same day of
each month thereafter (each, a “Rent Payment Date”) during the Basic Term,
Lessee shall pay as rent (“Basic Term Rent”) the product of the Basic Term
Lease Rate Factor times the Capitalized Lessor’s Cost of all Equipment on
this Schedule.

 

 

	C.	 	Tax Benefits Depreciation Deductions:

          1. Depreciation method is the 200 % declining balance method, switching
to straight line method for the 1st taxable year for which using the
straight line method with respect to the adjusted basis as of the beginning
of such year will yield a larger allowance, taking into account the 30% or
50% special depreciation allowance and basis adjustment under Section
168(k)(1) of the Code, whichever is applicable.

          2. Recovery Period: 7 years.

          3. Basis: 100 % of the Capitalized Lessor’s Cost.

	D.	 	Property Tax

APPLICABLE TO EQUIPMENT LOCATED IN AR: Lessee agrees that it will not list any
of such Equipment for property tax purposes or report any property tax
assessed against such Equipment until otherwise directed in writing by
Lessor. Upon receipt of any property tax bill pertaining to such
Equipment from the appropriate taxing authority, Lessor will pay such tax
and will invoice Lessee for the expense. Upon receipt of such invoice,
Lessee will promptly reimburse Lessor for such expense.

	 	 	Lessor may notify Lessee (and Lessee agrees to follow such notification)
regarding any changes in property tax reporting and payment
responsibilities.

	E.	 	Article 2A Notice
	 
	 	 	IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE 2A OF THE UNIFORM COMMERCIAL
CODE AS ADOPTED IN THE APPLICABLE STATE, LESSOR HEREBY MAKES THE FOLLOWING
DISCLOSURES TO LESSEE PRIOR TO EXECUTION OF THE LEASE, (A) THE PERSON(S)
SUPPLYING THE EQUIPMENT IS Various — listed in the collateral description
(THE “SUPPLIER(S)”), (B) LESSEE IS ENTITLED TO THE PROMISES AND WARRANTIES,
INCLUDING THOSE OF ANY THIRD PARTY, PROVIDED TO THE LESSOR BY SUPPLIER(S),
WHICH IS SUPPLYING THE EQUIPMENT IN CONNECTION WITH OR AS PART OF THE
CONTRACT BY WHICH LESSOR ACQUIRED THE EQUIPMENT AND (C) WITH RESPECT TO SUCH
EQUIPMENT, LESSEE MAY COMMUNICATE WITH SUPPLIER(S) AND RECEIVE AN ACCURATE
AND COMPLETE STATEMENT OF SUCH PROMISES AND WARRANTIES, INCLUDING ANY
DISCLAIMERS AND LIMITATIONS OF THEM OR OF REMEDIES. TO THE EXTENT PERMITTED
BY APPLICABLE LAW, LESSEE HEREBY WAIVES ANY AND ALL RIGHTS AND REMEDIES
CONFERRED UPON A LESSEE IN ARTICLE 2A AND ANY RIGHTS NOW OR HEREAFTER
CONFERRED BY STATUTE OR OTHERWISE WHICH MAY LIMIT OR MODIFY ANY OF LESSOR’S
RIGHTS OR REMEDIES UNDER THE DEFAULT AND REMEDIES SECTION OF THE AGREEMENT.

	F.	 	Stipulated Loss and Termination Value Table*

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Termination	 	Stipulated	 	 	 	 	 	Termination	 	Stipulated
	Rental	 	Value	 	Loss Value	 	 	 	 	 	Value	 	Loss Value
	Basic
	 	Percentage
	 	Percentage
	 	Rental
	 	Percentage
	 	Percentage

	1
	 	 	0.00	 	 	 	107.850	 	 	 	43	 	 	 	66.058	 	 	 	69.637	 
	2
	 	 	0.00	 	 	 	107.081	 	 	 	44	 	 	 	64.965	 	 	 	68.627	 
	3
	 	 	0.00	 	 	 	106.260	 	 	 	45	 	 	 	63.867	 	 	 	67.614	 
	4
	 	 	0.00	 	 	 	105.434	 	 	 	46	 	 	 	62.763	 	 	 	66.594	 
	5
	 	 	0.00	 	 	 	104.604	 	 	 	47	 	 	 	61.656	 	 	 	65.570	 
	6
	 	 	0.00	 	 	 	103.769	 	 	 	48	 	 	 	60.544	 	 	 	64.543	 
	7
	 	 	0.00	 	 	 	102.929	 	 	 	49	 	 	 	59.426	 	 	 	63.508	 
	8
	 	 	0.00	 	 	 	102.086	 	 	 	50	 	 	 	58.304	 	 	 	62.470	 
	9
	 	 	0.00	 	 	 	101.238	 	 	 	51	 	 	 	57.178	 	 	 	61.429	 
	 10
	 	 	0.00	 	 	 	100.385	 	 	 	52	 	 	 	56.046	 	 	 	60.380	 
	 11
	 	 	0.00	 	 	 	99.528	 	 	 	53	 	 	 	54.906	 	 	 	59.324	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Termination	 	Stipulated	 	 	 	 	 	Termination	 	Stipulated
	Rental	 	Value	 	Loss Value	 	 	 	 	 	Value	 	Loss Value
	Basic
	 	Percentage
	 	Percentage
	 	Rental
	 	Percentage
	 	Percentage

	12
	 	 	0.00	 	 	 	98.666	 	 	 	54	 	 	 	53.762	 	 	 	58.264	 
	13
	 	 	96.736	 	 	 	97.799	 	 	 	55	 	 	 	52.615	 	 	 	57.201	 
	14
	 	 	95.781	 	 	 	96.927	 	 	 	56	 	 	 	51.464	 	 	 	56.133	 
	15
	 	 	94.821	 	 	 	96.051	 	 	 	57	 	 	 	50.308	 	 	 	55.062	 
	16
	 	 	93.855	 	 	 	95.169	 	 	 	58	 	 	 	49.146	 	 	 	53.983	 
	17
	 	 	92.884	 	 	 	94.282	 	 	 	59	 	 	 	47.979	 	 	 	52.900	 
	18
	 	 	91.909	 	 	 	93.391	 	 	 	60	 	 	 	46.808	 	 	 	51.813	 
	19
	 	 	90.930	 	 	 	92.496	 	 	 	61	 	 	 	45.630	 	 	 	50.719	 
	20
	 	 	89.948	 	 	 	91.597	 	 	 	62	 	 	 	44.448	 	 	 	49.621	 
	21
	 	 	88.961	 	 	 	90.694	 	 	 	63	 	 	 	43.262	 	 	 	48.519	 
	22
	 	 	87.968	 	 	 	89.786	 	 	 	64	 	 	 	42.069	 	 	 	47.409	 
	23
	 	 	86.972	 	 	 	88.873	 	 	 	65	 	 	 	40.868	 	 	 	46.292	 
	24
	 	 	85.971	 	 	 	87.957	 	 	 	66	 	 	 	39.662	 	 	 	45.171	 
	25
	 	 	84.965	 	 	 	87.034	 	 	 	67	 	 	 	38.453	 	 	 	44.045	 
	26
	 	 	83.954	 	 	 	86.107	 	 	 	68	 	 	 	37.244	 	 	 	42.920	 
	27
	 	 	82.939	 	 	 	85.176	 	 	 	69	 	 	 	36.033	 	 	 	41.793	 
	28
	 	 	81.918	 	 	 	84.239	 	 	 	70	 	 	 	34.816	 	 	 	40.660	 
	29
	 	 	80.892	 	 	 	83.296	 	 	 	71	 	 	 	33.595	 	 	 	39.522	 
	30
	 	 	79.861	 	 	 	82.350	 	 	 	72	 	 	 	32.368	 	 	 	38.379	 
	31
	 	 	78.827	 	 	 	81.399	 	 	 	73	 	 	 	31.136	 	 	 	37.231	 
	32
	 	 	77.789	 	 	 	80.445	 	 	 	74	 	 	 	29.898	 	 	 	36.078	 
	33
	 	 	76.747	 	 	 	79.487	 	 	 	75	 	 	 	28.655	 	 	 	34.919	 
	34
	 	 	75.699	 	 	 	78.523	 	 	 	76	 	 	 	27.407	 	 	 	33.755	 
	35
	 	 	74.647	 	 	 	77.555	 	 	 	77	 	 	 	26.154	 	 	 	32.585	 
	36
	 	 	73.592	 	 	 	76.584	 	 	 	78	 	 	 	24.895	 	 	 	31.410	 
	37
	 	 	72.530	 	 	 	75.605	 	 	 	79	 	 	 	23.631	 	 	 	30.230	 
	38
	 	 	71.464	 	 	 	74.623	 	 	 	80	 	 	 	22.362	 	 	 	29.044	 
	39
	 	 	70.394	 	 	 	73.637	 	 	 	81	 	 	 	21.087	 	 	 	27.853	 
	40
	 	 	69.318	 	 	 	72.645	 	 	 	82	 	 	 	19.806	 	 	 	26.657	 
	41
	 	 	68.235	 	 	 	71.646	 	 	 	83	 	 	 	18.521	 	 	 	25.455	 
	42
	 	 	67.148	 	 	 	70.643	 	 	 	84	 	 	 	17.229	 	 	 	24.247	 

	 	 	* The Stipulated Loss Value or Termination Value for any unit of Equipment
shall be the Capitalized Lessor’s Cost of such unit multiplied by the
appropriate percentage derived from the above table. In the event that the
Lease is for any reason extended, then the last percentage figure shown
above shall control throughout any such extended term.
	 
	G.	 	Modifications and Additions for This Schedule Only
	 
	 	 	For purposes of this Schedule only, the Agreement is amended as follows:

1. The INDEMNIFICATION Section subsection (b) of the Lease is hereby amended
by deleting the word “and” immediately preceding “(ii)” on the second line
thereof and inserting the following at the end thereof:

; (iii) each item of Equipment constitutes “qualified property” pursuant to
Section 168(k) of the Internal Revenue Code of 1986, as now and hereafter
amended (the “Code”), and is eligible for the additional first-year
depreciation deduction equal to (A) thirty percent (30%) or (B) fifty
percent (50%) of 100% of the Capitalized Lessor’s Cost of the Equipment
contemplated by the Code, whichever is applicable; (iv) the Equipment shall
be treated as originally placed in service not earlier than the date of the
execution and delivery of this Schedule, or in the event the transaction is
a sale-leaseback transaction, Lessee shall not have placed in service the
Equipment subject to this Lease at any time prior to three months before the
execution and delivery of this Schedule; (v) Lessee has not arranged to
purchase, and Lessor is not purchasing the Equipment pursuant to a binding
written contract entered into before September 11, 2001, if clause (iii) (A)
above applies, or not before May 06, 2003, if clause (iii) (B) above
applies, and (vi) each item of Equipment shall be placed in service before
January 1, 2005.

 

 

2. The LEASING Section subsection (b) of the Lease is hereby deleted in its
entirety and the following substituted in its stead:

b) The obligation of Lessor to purchase the Equipment from Lessee and
to lease the same to Lessee shall be subject to receipt by Lessor, on or
prior to the earlier of the Lease Commencement Date or Last Delivery Date
therefor, of each of the following documents in form and substance
satisfactory to Lessor: (i) a Schedule for the Equipment (ii) evidence of
insurance which complies with the requirements of the INSURANCE Section of
the Lease, and (iii) such other documents as Lessor may reasonably request.
Once the Schedule is signed, the Lessee may not cancel the Lease.

3. The DELIVERY, USE AND OPERATION Section subsection (a) of the Lease shall
be deleted and the following substituted in its stead:

The parties acknowledge that this is a sale/leaseback transaction and
the Equipment is in Lessee’s possession as of the Lease Commencement Date.

4. BILL OF SALE

          Lessee, in consideration of the Lessor’s payment of the amount set
forth in B 2. above, which includes any applicable sales taxes (which
payment Lessee acknowledges), hereby grants, sells, assigns, transfers and
delivers to Lessor the Equipment along with whatever claims and rights
Seller may have against the manufacturer and/or Supplier of the Equipment,
including but not limited to all warranties and representations. At Lessors
request Lessee will cause Supplier to deliver to Lessor a written statement
wherein the Supplier (i) consents to the assignment to Lessor of whatever
claims and rights Lessee may have against the Supplier, (ii) agrees not to
retain any security interest, lien or other encumbrance in or upon the
Equipment at any time, and to execute such documents as Lessor may request
to evidence the release of any such encumbrance, and (iii) represents and
warrants to Lessor (x) that Supplier has previously conveyed full title to
the Equipment to Lessee, (y) that the Equipment was delivered to Lessee and
installation completed, and (z) that the final purchase price of the
Equipment (or a specified portion of such purchase price) has been paid by
Lessee.

          Lessor is purchasing the Equipment for leasing back to Lessee pursuant
to the Lease. Lessee represents and warrants to Lessor that (i) Lessor will
acquire by the terms of this Bill of Sale good title to the Equipment free
from all liens and encumbrances whatsoever; (ii) Lessee has the right to
sell the Equipment; and (iii) the Equipment has been delivered to Lessee in
good order and condition, and conforms to the specifications, requirements
and standards applicable thereto; and (iv) the equipment has been accurately
labeled, consistent with the requirements of 40 CFR part 82 Subpart E, with
respect to products manufactured with a controlled (ozone-depleting)
substance.

          Lessee agrees to save and hold harmless Lessor from and against any and
all federal, state, municipal and local license fees and taxes of any kind
or nature, including, without limiting the generality of the foregoing, any
and all excise, personal property, use and sales taxes, and from and against
any and all liabilities, obligations, losses, damages, penalties, claims,
actions and suits resulting therefrom and imposed upon, incurred by or
asserted against Lessor as a consequence of the sale of the Equipment to
Lessor.

5. ACCEPTANCE

          Pursuant to the provisions of the Lease, as it relates to this
Schedule, Lessee hereby certifies and warrants that (i) all Equipment listed
above has been delivered and installed (if applicable); (ii) Lessee has
inspected the Equipment, and all such testing as it deems necessary has been
performed by Lessee, Supplier or the manufacturer; and (iii) Lessee accepts
the Equipment for all purposes of the Lease, the purchase documents and all
attendant documents.

          Lessee does further certify that as of the date hereof (i) Lessee is
not in default under the Lease; (ii) the representations and warranties made
by Lessee pursuant to or under the Lease are true and correct on the date
hereof and (iii) Lessee has reviewed and approves of the purchase documents
for the Equipment, if any.

6. EQUIPMENT SPECIFIC PROVISIONS

See Exhibit I titled Food Processing Return Provisions

7. LEASE TERM OPTIONS

 

 

          Early Lease Term Options

               The Lease is hereby amended by adding the following to the end thereof:

               CANCELLATION OPTION:

               (a) So long as no default exists hereunder and expressly provided
that all of the terms and conditions of this Provision are fulfilled, Lessee
may cancel the Agreement as to all (but not less than all) of the Equipment
on this Schedule as of any one of the Cancellation Dates set forth below
(each, a “Cancellation Date”) upon at least 90 days prior written notice
(the “Notice Date”) to Lessor (which notice shall be irrevocable and shall
be sent to the attention of Lessor’s Asset Management Organization, 44 Old
Ridgebury Road, Danbury, CT 06810-5105). Such notice shall state the
Cancellation Date which shall apply. If all of the terms and conditions of
this Provision are not fulfilled, this Lease shall continue in full force
and effect and Lessee shall continue to be liable for all obligations
thereunder, including, without limitation, the obligation to continue paying
rent.

               (b) Prior to the Cancellation Date, Lessee shall

                    (i) pay to Lessor, as additional rent, (A) the Cancellation Value
(set forth below for the applicable Cancellation Date) for the Equipment,
plus (B) all rent and all other sums due and unpaid as of the Cancellation
Date (including, but not limited to, any Rent payment due and payable on the
Cancellation Date and any sales taxes and property taxes); and

                    (ii) return the Equipment in full compliance with the RETURN OF
EQUIPMENT Section of the Lease, such compliance being independently verified
by an independent appraiser selected by Lessor (reasonably acceptable to
Lessee) to determine that the Equipment is in such compliance, which
determination shall be final, binding and conclusive. Lessee shall bear all
costs associated with such appraiser’s determination and such costs, if any,
to cause the Equipment to be in full compliance with the RETURN OF EQUIPMENT
Section of the Lease on or prior to such Cancellation Date.

               (c) The Cancellation Dates and the applicable Cancellation Values are
as set forth below:

	 	 	 	 	 
	November 10, 2009
	 	$	533,030.00	 

               (d) Lessee shall, from the applicable Notice Date through the
Cancellation Date,

                    (i) continue to comply with all of the terms and conditions of the
Lease, including, but not limited to, Lessee’s obligation to pay rent, and

                    (ii) make the Equipment available to Lessor in such a manner as to
allow Lessor to market and demonstrate the Equipment to potential purchasers
or lessees from such premises at no cost to Lessor; provided, however, that,
subject to Lessor’s right to market and demonstrate the Equipment to
potential purchasers or lessees from time to time, Lessee may still use the
Equipment until the Cancellation Date.

               (e) Lessee shall, from the applicable Cancellation Date through the
earlier of the date the Equipment is sold by Lessor to a third party or 30
days following the Cancellation Date, comply with the following terms and
conditions:

                    (i) Continue to provide insurance for the Equipment, at Lessee’s own
expense, in compliance with the terms found in the INSURANCE Section of the
Lease, and

                    (ii) Make the Equipment available to Lessor and/or allow Lessor to
store the Equipment at Lessee’s premises, in such a manner as to allow
Lessor to market and demonstrate the Equipment to potential purchasers or
lessees from such premises at no cost to Lessor.

               (f) The proceeds of any sale or re-lease of the Equipment after
Lessee has exercised its Cancellation Option shall be for the sole benefit
of Lessor and Lessee shall have no interest in or any claim upon any of such
proceeds.

               The Lease is amended by adding the following thereto:

 

 

               EARLY PURCHASE OPTION:

               (a) Provided that the Lease has not been earlier terminated and
provided further that Lessee is not in default under the Lease or any other
agreement between Lessor and Lessee, Lessee may, UPON AT LEAST 30 DAYS BUT
NO MORE THAN 270 DAYS PRIOR WRITTEN NOTICE TO LESSOR OF LESSEE’S IRREVOCABLE
ELECTION TO EXERCISE SUCH OPTION, purchase on an AS IS BASIS all (but not
less than all) of the Equipment listed and described in this Schedule on any
of the rent payment dates (each an “Early Purchase Date”) which is listed
below at the price equal to the percent of the Capitalized Lessor’s Cost
listed below (each a “FMV Early Option Price”), plus all applicable sales
taxes:

# of Months from the Basic     Percent of the

Term Commencement Date         Capitalized Lessor’s Cost

	 	 	 
	48

	 	fifty six and 50/100 percent (56.50%)
	 
	 	 
	72

	 	twenty eight and 50/100 percent (28.50%)

Lessor and Lessee agree that the FMV Early Option Price is a reasonable
prediction of the Fair Market Value (as such term is defined in the PURCHASE
OPTION Section subsection (b) of the Lease hereof) of the Equipment at the
time the option is exercisable. Lessor and Lessee agree that if Lessee
makes any non-severable improvement to the Equipment which increases the
value of the Equipment and is not required or permitted by the MAINTENANCE
Section or the RETURN OF EQUIPMENT Section of the Lease prior to lease
expiration, then at the time of such option being exercised, Lessor and
Lessee shall adjust the purchase price to reflect any addition to the price
anticipated to result from such improvement. (Each purchase option granted
by this subsection shall be referred to herein as an “Early Purchase
Option”.)

               (b) If Lessee exercises its Early Purchase Option with respect to the
Equipment leased hereunder, then on the Early Purchase Option Date, Lessee
shall pay to Lessor any Rent and other sums due and unpaid on the Early
Purchase Option Date and Lessee shall pay the FMV Early Option Price, plus
all applicable sales taxes, to Lessor in cash.

	H.	 	Payment Authorization
	 
	 	 	You are hereby irrevocably authorized and directed to deliver and apply the
proceeds due under this Schedule as follows:

	 	 	 	 	 	 	 	 	 
	Company Name
	 	Address
	 	Amount

	Alexa Springs, Inc.
	 	 	 	 	 	$	1,938,290.89	 
	Alexa Springs, Inc. — Fee Payable
	 	 	 	 	 	$	85,000.00	 
	 
	 	 	 	 	 	 	
 	 
	Total
	 	 	 	 	 	$	2,023,290.89	 

     This authorization and direction is given pursuant to the same authority authorizing the above-mentioned financing.

     Except as expressly modified hereby, all terms and provisions of the
Agreement shall remain in full force and effect. This Schedule is not binding
or effective with respect to the Agreement or Equipment until executed on
behalf of Lessor and Lessee by authorized representatives of Lessor and Lessee,
respectively.

 

 

     IN WITNESS WHEREOF, Lessee and Lessor have caused this Schedule to be
executed by their duly authorized representatives as of the date first
above written.

	 	 	 
	LESSOR:

	 	LESSEE:
	 
	 	 
	General Electric Capital Corporation

	 	Alexa Springs, Inc.
	 
	 	 
	By: /s/ W. Scott Cummins

	 	By: /s/ Marshall Sorokwasz
	

	 	

	 
	 	 
	Name: W. Scott Cummins

	 	Name: Marshall Sorokwasz
	 
	 	 
	Title: Risk Analyst

	 	Title: PresidentEXECUTION COPY

                          Armor Holdings, Inc., Issuer

                                       and

                  Wachovia Bank, National Association, Trustee

                                    Indenture

                          Dated as of October 29, 2004

                                 DEBT SECURITIES

                                 ARMOR HOLDINGS,
                                 DEBT SECURITIES
                            CROSS REFERENCE SHEET(1)

              This Cross Reference Sheet shows the location in the
                  Indenture of the provisions inserted pursuant
                   to Sections 310 - 318(a), inclusive, of the
                    Trust Indenture Act of 1939, as amended.

Trust Indenture Act                                                        Sections of Indenture
-------------------                                                        ---------------------

         ss.310(a)(1).......................................................       9.08
                  (a)(2)....................................................       9.08
                  (a)(3)....................................................       Inapplicable
                  (a)(4)....................................................       Inapplicable
                  (a)(5)....................................................       9.08
                  (b).......................................................       9.07 and 9.09
                  (c).......................................................       Inapplicable
         ss.311(a)..........................................................       9.12
                  (b).......................................................       9.12
                  (c).......................................................       Inapplicable
         ss.312(a)..........................................................       7.01 and 7.02
                  (b).......................................................       7.02
                  (c).......................................................       7.02
         ss.313(a)..........................................................       7.03
                  (b).......................................................       7.03
                  (c).......................................................       7.03
                  (d).......................................................       7.03
         ss.314(a) .........................................................       7.04
                  (a)(4)....................................................       1.01 and 6.07
                  (b).......................................................       Inapplicable
                  (c)(l)....................................................       Inapplicable
                  (c)(2)....................................................       Inapplicable
                  (c)(3)....................................................       Inapplicable
                  (d).......................................................       Inapplicable
                  (e).......................................................       Inapplicable
                  (f).......................................................       Inapplicable
         ss.315 (a).........................................................       9.01
                  (b).......................................................       8.08
                  (c).......................................................       9.01
                  (d).......................................................       9.01
                  (e).......................................................       8.07
         ss.316 (a).........................................................       1.01

-------------
(1)  The Cross Reference Sheet is not part of the Indenture.

                  (a)(l)(A).................................................       8.01 and 8.06
                  (a)(l)(B) ................................................       8.01
                  (a)(2) ...................................................       Inapplicable
                  (b).......................................................       8.09
                  (c).......................................................       Inapplicable
         ss.317(a)(1) ......................................................       8.02
                  (a)(2) ...................................................       8.02
                  (b) ......................................................       6.03
         ss.318(a) .........................................................       Inapplicable

                                      (2)

                                TABLE OF CONTENTS

ARTICLE I.         DEFINITIONS...........................................................................1

   SECTION 1.01.     CERTAIN TERMS DEFINED...............................................................1

ARTICLE II.        THE SECURITIES.......................................................................13

   SECTION 2.01.     DESIGNATION AND AMOUNT OF SECURITIES...............................................13
   SECTION 2.02.     FORM OF SECURITIES AND TRUSTEE'S CERTIFICATE OF AUTHENTICATION.....................14
   SECTION 2.03.     DATE AND DENOMINATIONS.............................................................15
   SECTION 2.04.     EXECUTION, AUTHENTICATION AND DELIVERY OF SECURITIES...............................15
   SECTION 2.05.     REGISTRATION OF TRANSFER AND EXCHANGE..............................................16
   SECTION 2.06.     TEMPORARY SECURITIES...............................................................18
   SECTION 2.07.     MUTILATED, DESTROYED, LOST, AND STOLEN SECURITIES..................................18
   SECTION 2.08.     CANCELLATION OF SURRENDERED SECURITIES.............................................19
   SECTION 2.09.     PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.....................................20
   SECTION 2.10.     PERSONS DEEMED OWNERS..............................................................21
   SECTION 2.11.     COMPUTATION OF INTEREST............................................................21
   SECTION 2.12.     CUSIP NUMBERS......................................................................21

ARTICLE III.       REDEMPTION OF SECURITIES.............................................................22

   SECTION 3.01.     APPLICABILITY OF ARTICLE...........................................................22
   SECTION 3.02.     ELECTION TO REDEEM; NOTICE TO TRUSTEE..............................................22
   SECTION 3.03.     DEPOSIT OF REDEMPTION PRICE........................................................23
   SECTION 3.04.     SECURITIES PAYABLE ON REDEMPTION DATE..............................................23
   SECTION 3.05.     SECURITIES REDEEMED IN PART........................................................23

ARTICLE IV.        SINKING FUNDS........................................................................24

   SECTION 4.01.     APPLICABILITY OF ARTICLE...........................................................24
   SECTION 4.02.     SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES..............................24
   SECTION 4.03.     REDEMPTION OF SECURITIES FOR SINKING FUND..........................................24

ARTICLE V.         DEFEASANCE AND COVENANT DEFEASANCE...................................................25

   SECTION 5.01.     COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE.......................25
   SECTION 5.02.     DEFEASANCE AND DISCHARGE...........................................................25
   SECTION 5.03.     COVENANT DEFEASANCE................................................................25
   SECTION 5.04.     CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE....................................26
   SECTION 5.05.     DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE HELD IN TRUST;
                     OTHER MISCELLANEOUS PROVISIONS.....................................................27
   SECTION 5.06.     REINSTATEMENT......................................................................28

ARTICLE VI.        PARTICULAR COVENANTS OF THE COMPANY..................................................28

   SECTION 6.01.     PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST ON SECURITIES...........................28
   SECTION 6.02.     MAINTENANCE OF OFFICE OR AGENCY....................................................29
   SECTION 6.03.     MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST..................................29
   SECTION 6.04.     PAYMENT OF TAXES AND OTHER CLAIMS..................................................30
   SECTION 6.05.     MAINTENANCE OF PROPERTIES..........................................................30
   SECTION 6.06.     EXISTENCE..........................................................................31
   SECTION 6.07.     COMPLIANCE WITH LAWS...............................................................31
   SECTION 6.08.     STATEMENT BY OFFICERS AS TO DEFAULT................................................31
   SECTION 6.09.     WAIVER OF CERTAIN COVENANTS........................................................31
   SECTION 6.10.     CALCULATION OF ORIGINAL ISSUE DISCOUNT.............................................32

ARTICLE VII.      SECURITIES HOLDERS' LIST AND REPORTS BY THE COMPANY AND THE TRUSTEE...................32

   SECTION 7.01.     COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS..........................32
   SECTION 7.02.     PRESERVATION OF INFORMATION; COMMUNICATION TO HOLDERS..............................32
   SECTION 7.03.     REPORTS BY TRUSTEE.................................................................33

                                      (i)

   SECTION 7.04.     REPORTS BY COMPANY.................................................................33

ARTICLE VIII.     DEFAULT...............................................................................33

   SECTION 8.01.     EVENT OF DEFAULT...................................................................33
   SECTION 8.02.     COVENANT OF COMPANY TO PAY TO TRUSTEE WHOLE AMOUNT DUE ON SECURITIES
                     ON DEFAULT IN PAYMENT OF INTEREST OR PRINCIPAL; SUITS FOR ENFORCEMENT BY
                     TRUSTEE............................................................................36
   SECTION 8.03.     APPLICATION OF MONEY COLLECTED BY TRUSTEE..........................................37
   SECTION 8.04.     LIMITATION ON SUITS BY HOLDERS OF SECURITIES.......................................38
   SECTION 8.05.     RIGHTS AND REMEDIES CUMULATIVE; DELAY OR OMISSION IN EXERCISE OF RIGHTS
                     NOT A WAIVER OF EVENT OF DEFAULT...................................................38
   SECTION 8.06.     RIGHTS OF HOLDERS OF MAJORITY IN PRINCIPAL AMOUNT OF OUTSTANDING
                     SECURITIES TO DIRECT TRUSTEE.......................................................39
   SECTION 8.07.     REQUIREMENT OF AN UNDERTAKING TO PAY COSTS IN CERTAIN SUITS UNDER THE
                     INDENTURE OR AGAINST THE TRUSTEE...................................................39
   SECTION 8.08.     NOTICE OF DEFAULTS.................................................................39
   SECTION 8.09.     UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM, AND
                     INTEREST...........................................................................39
   SECTION 8.10.     RESTORATION OF RIGHTS AND REMEDIES.................................................40
   SECTION 8.11.     TRUSTEE MAY FILE PROOFS OF CLAIMS..................................................40

ARTICLE IX.       CONCERNING THE TRUSTEE................................................................40

   SECTION 9.01.     CERTAIN DUTIES AND RESPONSIBILITIES................................................40
   SECTION 9.02.     CERTAIN RIGHTS OF TRUSTEE..........................................................41
   SECTION 9.03.     NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.............................43
   SECTION 9.04.     MAY HOLD SECURITIES................................................................43
   SECTION 9.05.     MONEY HELD IN TRUST................................................................43
   SECTION 9.06.     COMPENSATION AND REIMBURSEMENT.....................................................44
   SECTION 9.07.     DISQUALIFICATION; CONFLICTING INTERESTS............................................44
   SECTION 9.08.     CORPORATE TRUSTEE REQUIRED; ELIGIBILITY............................................44
   SECTION 9.09.     RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR..................................45
   SECTION 9.10.     ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.............................................46
   SECTION 9.11.     MERGER, CONVERSION, CONSOLIDATION, OR SUCCESSION TO BUSINESS.......................47
   SECTION 9.12.     PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY..................................48
   SECTION 9.13.     APPOINTMENT OF AUTHENTICATING AGENT................................................48
   SECTION 9.14.     TRUSTEE'S APPLICATION FOR INSTRUCTIONS FROM THE COMPANY............................49

ARTICLE X.        SUPPLEMENTAL INDENTURES AND CERTAIN ACTIONS...........................................50

   SECTION 10.01.       PURPOSES FOR WHICH SUPPLEMENTAL INDENTURES MAY BE ENTERED INTO
                        WITHOUT CONSENT OF HOLDERS......................................................50
   SECTION 10.02.       MODIFICATION OF INDENTURE WITH CONSENT OF HOLDERS OF AT LEAST A
                        MAJORITY IN PRINCIPAL AMOUNT OF OUTSTANDING SECURITIES..........................51
   SECTION 10.03.       EXECUTION OF SUPPLEMENTAL INDENTURES............................................52
   SECTION 10.04.       EFFECT OF SUPPLEMENTAL INDENTURES...............................................52
   SECTION 10.05.       CONFORMITY WITH TRUST INDENTURE ACT.............................................52
   SECTION 10.06.       REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES..............................52

ARTICLE XI.       CONSOLIDATION, MERGER, SALE, OR TRANSFER..............................................53

   SECTION 11.01.       CONSOLIDATIONS AND MERGERS OF COMPANY AND SALES PERMITTED ONLY ON
                        CERTAIN TERMS...................................................................53

ARTICLE XII.      SATISFACTION AND DISCHARGE OF INDENTURE...............................................53

   SECTION 12.01.       SATISFACTION AND DISCHARGE OF INDENTURE.........................................53
   SECTION 12.02.       APPLICATION OF TRUST MONEY......................................................54

                                      (ii)

ARTICLE XIII.     GUARANTEES............................................................................54

   SECTION 13.01.       UNCONDITIONAL GUARANTEE.........................................................54
   SECTION 13.02.       LIMITATION OF SUBSIDIARY GUARANTOR'S LIABILITY..................................55
   SECTION 13.03.       CONTRIBUTION....................................................................56
   SECTION 13.04.       EXECUTION AND DELIVERY OF SUBSIDIARY GUARANTEES.................................56
   SECTION 13.05.       SEVERABILITY....................................................................56

ARTICLE XIV.      SUBORDINATION OF SUBSIDIARY GUARANTEES................................................57

   SECTION 14.01.       GUARANTEES SUBORDINATED TO SENIOR DEBT..........................................57
   SECTION 14.02.       LIQUIDATION; DISSOLUTION; BANKRUPTCY............................................57
   SECTION 14.03.       DEFAULT ON DESIGNATED SENIOR DEBT...............................................58
   SECTION 14.04.       GUARANTEES UNCONDITIONAL........................................................58
   SECTION 14.05.       WHEN DISTRIBUTION MUST BE PAID OVER.............................................59
   SECTION 14.06.       NOTICE BY THE COMPANY...........................................................59
   SECTION 14.07.       SUBROGATION.....................................................................60
   SECTION 14.08.       RELATIVE RIGHTS.................................................................60
   SECTION 14.09.       SUBORDINATION MAY NOT BE IMPAIRED BY THE COMPANY................................60
   SECTION 14.10.       DISTRIBUTION OR NOTICE TO REPRESENTATIVE........................................60
   SECTION 14.11.       RIGHTS OF TRUSTEE AND PAYING AGENT..............................................61
   SECTION 14.12.       AUTHORIZATION TO EFFECT SUBORDINATION...........................................61
   SECTION 14.13.       TRUSTEE NOT FIDUCIARY FOR HOLDERS OF SENIOR DEBT................................61

ARTICLE XV.       MISCELLANEOUS PROVISIONS..............................................................62

   SECTION 15.01.       SUCCESSORS AND ASSIGNS OF COMPANY BOUND BY INDENTURE............................62
   SECTION 15.02.       SERVICE OF REQUIRED NOTICE TO TRUSTEE AND COMPANY...............................62
   SECTION 15.03.       SERVICE OF REQUIRED NOTICE TO HOLDERS; WAIVER...................................62
   SECTION 15.04.       INDENTURE AND SECURITIES TO BE CONSTRUED IN ACCORDANCE WITH THE
                        LAWS OF THE STATE OF NEW YORK; WAIVER OF JURY TRIAL.............................63
   SECTION 15.05.       COMPLIANCE CERTIFICATES AND OPINIONS............................................63
   SECTION 15.06.       FORM OF DOCUMENTS DELIVERED TO TRUSTEE..........................................63
   SECTION 15.07.       PAYMENTS DUE ON NON-BUSINESS DAYS...............................................64
   SECTION 15.08.       PROVISIONS REQUIRED BY TRUST INDENTURE ACT TO CONTROL...........................64
   SECTION 15.09.       INVALIDITY OF PARTICULAR PROVISIONS.............................................64
   SECTION 15.10.       INDENTURE MAY BE EXECUTED IN COUNTERPARTS.......................................64
   SECTION 15.11.       ACTS OF HOLDERS; RECORD DATES...................................................64
   SECTION 15.12.       EFFECT OF HEADINGS AND TABLE OF CONTENTS........................................67
   SECTION 15.13.       BENEFITS OF INDENTURE...........................................................67

                                     (iii)

         Indenture, dated as of October 29, 2004 (the "Indenture") between Armor
Holdings, Inc., a corporation duly organized and existing under the laws of the
state of Delaware (the "Company"), and Wachovia Bank, National Association, a
national banking association, (herein called the "Trustee").

                                    RECITALS

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

         B. The Securities of each series will be in such form as may be
established by or pursuant to a Board Resolution or in one or more indentures
supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions, and other variations as are required or permitted by this
Indenture, and may have such letters, numbers, or other marks of identification
and such legends or endorsements placed thereon as may be required to comply
with the rules of any securities exchange or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution of the Securities.

                                   Article I.

                                   DEFINITIONS

     Section 1.01. Certain Terms Defined.

         (a) The terms defined in this Section 1.01 (except as herein otherwise
expressly provided or unless the context of this Indenture otherwise requires)
for all purposes of this Indenture and of any indenture supplemental hereto have
the respective meanings specified in this Section 1.01. All other terms used in
this Indenture that are defined in the Trust Indenture Act, either directly or
by reference therein (except as herein otherwise expressly provided or unless
the context of this Indenture otherwise requires), have the respective meanings
assigned to such terms in the Trust Indenture Act as in force at the date of
this Indenture as originally executed.

Act:
----

         The term "Act", when used with respect to any Holder, has the meaning
set forth in Section 15.11.

Affiliate:
----------

         The term "Affiliate" means, with respect to a particular Person, any
Person that, directly or indirectly, is in control of, is controlled by, or is
under common control with, such Person. For purposes of this definition, control
of a 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 of the foregoing.

Authenticating Agent:
---------------------

         The term "Authenticating Agent" means any Person authorized by the
Trustee pursuant to Section 9.13 to act on behalf of the Trustee to authenticate
Securities of one or more series.

Board of Directors:
-------------------

         The term "Board of Directors" means the Board of Directors of the
Company or a duly authorized committee of such Board.

Board Resolution:
-----------------

         The term "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.

Business Day:
-------------

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

Capital Lease:
--------------

         The term "Capital Lease" means, with respect to any Person, any lease
of property (whether real, personal, or mixed) by such Person or its
Subsidiaries as lessee that would be capitalized on a balance sheet of such
Person or its Subsidiaries prepared in conformity with GAAP, other than, in the
case of such Person or its Subsidiaries, any such lease under which such Person
or any of its Subsidiaries is the lessor.

Capital Lease Obligations:
--------------------------

         The term "Capital Lease Obligations" means, with respect to any Person,
the capitalized amount of all obligations of such Person and its Subsidiaries
under Capital Leases, as determined on a consolidated basis in conformity with
GAAP.

Capital Stock:
--------------

         The term "Capital Stock" means (i) in the case of a corporation,
corporate stock; (ii) in the case of an association or business entity, any and
all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock; (iii) in the case of a partnership or limited
liability company, partnership or membership

                                      -2-

interests (whether general or limited); and (iv) any other interest or
participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person.

Commission:
-----------

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

Common Stock:
-------------

         The term "Common Stock" means the common stock of the Company, par
value $0.01 per share.

Company:
--------

         The term "Company" means Armor Holdings, Inc., a Delaware corporation,
until a successor Person shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter "Company" will mean such successor
Person.

Company Request or Company Order:
---------------------------------

         The term "Company Request" or "Company Order" means a written request
or order signed in the name of the Company by the Chairman of the Board of
Directors, the Vice Chairman of the Board of Directors, the President, a Vice
President, the Treasurer, an Assistant Treasurer, the Secretary, or an Assistant
Secretary of the Company, and delivered to the Trustee.

Corporate Trust Office:
-----------------------

         "Corporate Trust Office" means the principal office of the Trustee at
which at any time its corporate trust business shall be administered, which
office at the date hereof is located at 225 Water Street, 3rd Floor,
Jacksonville, Florida 32202, Attention: Corporate Trust, or such other address
as the Trustee may designate from time to time by notice to the Holders and the
Company, or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by
notice to the Holders and the Company).

Covenant Defeasance:
--------------------

         The term "Covenant Defeasance" has the meaning set forth in Section
5.03.

                                      -3-

Credit Agreement:
-----------------

         The term "Credit Agreement" means that certain Credit Agreement, dated
as of August 12, 2003, by and among the Company, Bank of America, N.A., as
Administrative Agent and Arranger and the other lenders named therein, relating
to a $60 million senior secured revolving credit facility, including any related
letters of credit, Securities, Guarantees, collateral documents, instruments and
agreements executed in connection therewith, and in each case, as amended,
restated, modified, renewed, refunded, replaced or refinanced from time to time
by one or more credit facilities, in which case, the credit agreement or similar
agreement together with all other documents and instruments related shall
constitute the "Credit Agreement," whether with the same or different agents and
lenders.

Credit Facilities:
------------------

         The term "Credit Facilities" means, one or more debt facilities
(including, without limitation, the Credit Agreement (and any hedging
arrangements with the lenders thereunder or Affiliates of such lenders, secured
by the collateral securing the Company's Obligations under the Credit Agreement)
or commercial paper facilities, in each case with banks or other institutional
lenders providing for revolving credit loans, term loans, receivables financing
(including through the sale of receivables to such lenders or to special purpose
entities formed to borrow from such lenders against such receivables) or letters
of credit, in each case, as amended, restated, modified, renewed, refunded,
replaced or refinanced in whole or in part from time to time by one or more of
such facilities, whether with the same or different banks and lenders.

Default:
--------

         The term "Default" means any event which, with notice or passage of
time or both, would constitute an Event of Default.

Defaulted Interest:
-------------------

         The term "Defaulted Interest" has the meaning set forth in Section
2.09.

Defeasance:
-----------

         The term "Defeasance" has the meaning set forth in Section 5.02.

Defeasible Series:
------------------

         The term "Defeasible Series" has the meaning set forth in Section 5.01.

Depositary:
-----------

         The term "Depositary" means, with respect to Securities of any series
issuable in whole or in part in the form of one or more Global Securities, a
clearing

                                      -4-

agency registered under the Exchange Act that is designated to act as Depositary
for such Securities as contemplated by Section 2.01.

Designated Senior Debt:
-----------------------

         The term "Designated Senior Debt" means (i) any Indebtedness
outstanding under the existing or future Credit Facilities, and (ii) after
payment in full of all Obligations under the Credit Facilities, any other Senior
Debt permitted under this Indenture the aggregate principal amount of which is
$25.0 million or more and that has been designated by the Company as "Designated
Senior Debt."

Domestic Subsidiary:
--------------------

         The term "Domestic Subsidiary" means any Subsidiary of the Company that
was formed under the laws of the United States or any state thereof or the
District of Columbia.

Equity Interests:
-----------------

         The term "Equity Interests" means Capital Stock and all warrants,
options or other rights to acquire Capital Stock (but excluding any debt
security that is convertible into, or exchangeable for, Capital Stock).

Event of Default:
-----------------

         The term "Event of Default" has the meaning set forth in Section
8.01(a).

Exchange Act:
-------------

         The term "Exchange Act" means the Securities Exchange Act of 1934, as
amended, or any similar Federal statute, and the rules and regulations of the
Commission thereunder, as the same may be in effect from time to time.

GAAP:
-----

         The term "GAAP" means generally accepted accounting principles in the
United States of America as in effect from time to time set forth in the
opinions and pronouncements of the Accounting Principles Board and The American
Institute of Certified Public Accountants and the statements and pronouncements
of the Financial Accounting Standards Board, or in such other statements by any
successor entity as may be in general use by significant segments of the
accounting profession, which are applicable to the circumstances as of the date
of determination.

Global Security:
----------------

         The term "Global Security" means a Security that evidences all or part
of the Securities of any series and is authenticated and delivered to, and
registered in the name of, the Depositary for such Securities or a nominee
thereof.

                                      -5-

Guarantee:
----------

         The tem "Guarantee" means a guarantee, other than by endorsement of
negotiable instruments for collection in the ordinary course of business, direct
or indirect, in any manner including, without limitation, by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect
thereof, of all or any part of any Indebtedness. The terms "guarantee" and
"guaranteed" used as a verb shall have a correlative meaning.

Holder:
-------

         The term "Holder" means a person in whose name a particular Security is
registered in the Security Register.

Indebtedness:
-------------

         The term "Indebtedness" means, as applied to any Person, without
duplication: (a) all obligations of such Person for borrowed money; (b) all
obligations of such Person for the deferred purchase price of property or
services (other than property and services purchased, and expense accruals and
deferred compensation items arising, in the ordinary course of business); (c)
all obligations of such Person evidenced by Securities, bonds, debentures,
mandatorily redeemable preferred stock, or other similar instruments (other than
performance, surety, and appeals bonds arising in the ordinary course of
business); (d) all payment obligations created or arising under any conditional
sale, deferred price, or other title retention agreement with respect to
property acquired by such Person (unless the rights and remedies of the seller
or lender under such agreement in the event of default are limited to
repossession or sale of such property); (e) any Capital Lease Obligation of such
Person; (f) all reimbursement, payment, or similar obligations, contingent or
otherwise, of such Person under acceptance, letter of credit, or similar
facilities (other than letters of credit in support of trade obligations or
incurred in connection with public liability insurance, workers compensation,
unemployment insurance, old-age pensions, and other social security benefits
other than in respect of employee benefit plans subject to ERISA); (g) all
obligations of such Person, contingent or otherwise, under any guarantee by such
Person of the obligations of another Person of the type referred to in clauses
(a) through (f) above; and (h) all obligations referred to in clauses (a)
through (f) above secured by (or for which the holder of such Indebtedness has
an existing right, contingent or otherwise, to be secured by) any mortgage or
security interest in property (including without limitation accounts, contract
rights, and general intangibles) owned by such Person and as to which such
Person has not assumed or become liable for the payment of such obligations
other than to the extent of the property subject to such mortgage or security
interest; provided, however, that Indebtedness of the type referred to in
clauses (g) and (h) above shall be included within the definition of
"Indebtedness" only to the extent of the least of: (i) the amount of the
underlying Indebtedness referred to in the applicable clause (a) through (f)
above; (ii) in the case of clause (g), the limit on recoveries, if any, from
such Person under obligations of the type referred to in clause (g) above; and
(iii) in the case of clause (h), the aggregate value (as determined in good
faith by the Board of Directors) of the security for such Indebtedness.

                                      -6-

Indenture:
----------

         The term "Indenture" means this Indenture, as this Indenture may be
amended, supplemented, or otherwise modified from time to time, including, for
all purposes of this Indenture and any such supplemental indenture, the
provisions of the Trust Indenture Act that are deemed to be a part of and govern
this instrument and any such supplemental indenture, respectively. The term
"Indenture" will also include the terms of particular series of Securities
established as contemplated by Section 2.01.

Interest:
---------

         The term "interest" (i) when used with respect to an Original Issue
Discount Security which by its terms bears interest only after Maturity, means
interest which accrues from and after and is payable after Maturity and (ii)
when used with respect to any Security, means the amount of all interest
accruing on such Security, including any default interest and any interest
accruing after any Event of Default that would have accrued but for the
occurrence of such Event of Default, whether or not a claim for such interest
would be otherwise allowable under applicable law.

Interest Payment Date:
----------------------

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

Issue Date:
-----------

         The term "Issue Date" means the date hereof, which is the date on which
the Securities are originally issued under this Indenture.

Material Adverse Effect:
------------------------

         The term "Material Adverse Effect" means a material adverse effect on
the business, assets, financial condition or results of operations of the
Company (taken together with its Subsidiaries as a whole). The Trustee shall be
entitled to conclusively rely upon an Opinion of Counsel as to the existence of
a Material Adverse Effect.

Maturity:
---------

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

Notice of Default:
------------------

         The term "Notice of Default" means a written notice of the kind set
forth in Section 8.01(a)(iv).

                                      -7-

Obligations:
------------

         The term "Obligations" means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Indebtedness.

Officer's Certificate:
----------------------

         The term "Officer's Certificate" means a certificate executed on behalf
of the Company by a responsible officer and delivered to the Trustee.

Opinion of Counsel:
-------------------

         The term "Opinion of Counsel" means an opinion in writing signed by
legal counsel, who, subject to any express provisions hereof, may be an employee
of or counsel for the Company or any Subsidiary.

Original Issue Discount Security:
---------------------------------

         The term "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 8.01(b).

Outstanding:
------------

         The term "Outstanding" means, when used with reference to Securities as
of a particular time, all Securities theretofore issued by the Company and
authenticated and delivered by the Trustee under this Indenture, except (a)
Securities theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation, (b) Securities for the payment or redemption of which money in the
necessary amount has been theretofore deposited with the Trustee or any Paying
Agent (other than the Company) in trust or set aside and segregated in trust by
the Company (if the Company is acting as its own Paying Agent) for the Holders
of such Securities; provided that, if such Securities are to be redeemed, notice
of such redemption has been duly given pursuant to this Indenture or provision
often not covered therefor satisfactory to the Trustee has been made, and (c)
Securities paid pursuant to Section 2.07 or Securities in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to
this Indenture, other than any such Securities in respect of which there shall
have been presented to the Trustee proof satisfactory to it that such Securities
are held by a bona fide purchaser in whose hands such Securities are valid
obligations of the Company; provided, however, that in determining whether the
Holders of the requisite principal amount of the Outstanding Securities have
given any request, demand, authorization, direction, notice, consent, or waiver
hereunder, (i) the principal amount of an Original Issue Discount Security that
will be deemed to be Outstanding will be the amount of the principal thereof
that would be due and payable as of the date of such determination upon
acceleration of the Maturity thereof to such date pursuant to Section 8.01(b),
(ii) the principal amount of a Security denominated in one or more foreign
currencies or currency units will be the U.S. dollar equivalent, determined in
the manner contemplated by Section 2.01 on the

                                      -8-

date of original issuance of such Security, of the principal amount (or, in the
case of an Original Issue Discount Security, the U.S. dollar equivalent on the
date of original issuance of such Security of the amount determined as provided
in clause (i) above) of such Security, and (iii) Securities owned by the Company
or any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor will be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee will be protected in relying upon any
such request, demand, authorization, direction, notice, consent, or waiver, only
Securities which a Responsible Officer of the Trustee actually knows to be so
owned will be so disregarded. Securities so owned which have been pledged in
good faith may be regarded as Outstanding if the pledgor establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor.

Paying Agent:
-------------

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

Permitted Junior Securities:
----------------------------

         The term "Permitted Junior Securities" means (i) Equity Interests in
the Company or any Subsidiary Guarantor or any other business entity provided
for by a plan of reorganization, or (ii) debt securities of the Company or any
Subsidiary Guarantor or any other business entity provided for by a plan of
reorganization, in each case, that are subordinated in right of payment to all
Senior Debt and any debt securities issued in exchange for Senior Debt to
substantially the same extent as, or to a greater extent than, the Securities
and the Subsidiary Guarantees are subordinated in right of payment to Senior
Debt under this Indenture.

Person:
-------

         The term "Person" means any individual, partnership, corporation, joint
stock company, business trust, trust, unincorporated association, joint venture,
or other entity, or government or political subdivision or agency thereof.

Place of Payment:
-----------------

         The term "Place of Payment" when used with respect to the Securities of
any series means the place or places where the principal of and any premium and
interest on the Securities of that series are payable as specified as
contemplated by Section 2.01.

Predecessor Security:
---------------------

         The term "Predecessor Security" when used with respect to any
particular Security means every previous Security evidencing all or a portion of
the same debt as that evidenced by such Security; and, for the purposes of this
definition, any Security

                                      -9-

authenticated and delivered under Section 2.07 in exchange for or in lieu of a
mutilated, destroyed, lost, or stolen Security will be deemed to evidence the
same debt as the mutilated, destroyed, lost, or stolen Security.

Redemption Date:
----------------

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

Redemption Price:
-----------------

         The term "Redemption Price" when used with respect to any Security to
be redeemed means the price (including premium, if any) at which it is to be
redeemed pursuant to this Indenture.

Regular Record Date:
--------------------

         The term "Regular Record Date" for the interest payable on any Interest
Payment Date on the Securities of any series means the date specified for that
purpose as contemplated by Section 2.01.

Representative:
---------------

         "Representative" means the indenture trustee or other trustee, agent or
representative in respect of any Senior Debt; provided that if, and for so long
as, any such Indebtedness lacks such representative, then the Representative for
such Senior Debt shall at all times constitute the holders of a majority in
outstanding principal amount of such Indebtedness in respect of any Senior Debt.

Responsible Officer:
--------------------

         "Responsible Officer" when used with respect to the Trustee, means any
vice president, any assistant vice president, any senior trust officer or
assistant trust officer, any trust officer, or any other officer associated with
the corporate trust department 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 person's knowledge of and
familiarity with the particular subject and who shall have direct responsibility
for the administration of this Indenture.

Securities:
-----------

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

                                      -10-

Security Register and Security Registrar:
-----------------------------------------

         The terms "Security Register" and "Security Registrar" have the
respective meanings set forth in Section 2.05.

Special Record Date:
--------------------

         The term "Special Record Date" for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 2.09.

Stated Maturity:
----------------

         The term "Stated Maturity" when used with respect to any Security, any
installment of interest thereon, or any other amount payable under this
Indenture or the Securities means the date specified in this Indenture or such
Security as the regularly scheduled date on which the principal of such
Security, such installment of interest, or such other amount, is due and
payable.

Subsidiary:
-----------

         The term "Subsidiary" means, as applied with respect to any Person, any
corporation, partnership, or other business entity of which, in the case of a
corporation, more than 50% of the issued and outstanding capital stock having
ordinary voting power to elect a majority of the board of directors of such
corporation (irrespective of whether at the time capital stock of any other
class or classes of such corporation has or might have voting power upon the
occurrence of any contingency), or, in the case of any partnership or other
legal entity, more than 50% of the ordinary equity capital interests, is at the
time directly or indirectly owned or controlled by such Person, by such Person
and one or more of its other Subsidiaries, or by one or more of such Person's
other Subsidiaries.

Subsidiary Guarantee:
---------------------

         "Subsidiary Guarantee" means a Guarantee of the Company's payment
obligations under the Securities by each Subsidiary Guarantor on a senior
subordinated basis.

Subsidiary Guarantor:
---------------------

         "Subsidiary Guarantor" means: (i) each Subsidiary of the Company as of
the Issue Date that is a signatory to this Indenture as a Subsidiary Guarantor;
and (ii) after the Issue Date, any other Subsidiary that executes a Subsidiary
Guarantee in accordance with the provisions of this Indenture; and their
respective successors and assigns until released from their obligations under
their Subsidiary Guarantees and this Indenture in accordance with the terms of
this Indenture.

                                      -11-

Trust Indenture Act:
--------------------

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

Trustee:
--------

         The term "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" will mean or include each Person who is then a Trustee hereunder, and
if at any time there is more than one such Person, "Trustee" as used with
respect to the Securities of any series will mean each Trustee with respect to
Securities of that series.

U.S. Government Obligation:
---------------------------

         The term "U.S. Government Obligation" means (a) any security that is
(i) a direct obligation of the United States of America for the payment of which
full faith and credit of the United States of America is pledged or (ii) an
obligation of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America, which, in either case (i) or (ii), is not callable or
redeemable at the option of the issuer thereof and (b) any depositary receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933,
as amended) as custodian with respect to any U.S. Government Obligation
specified in clause (a), which U.S. Government Obligation is held by such
custodian for the account of the holder of such depositary receipt, or with
respect to any specific payment of principal of or interest on any such U.S.
Government Obligation, provided that (except as required by law) such custodian
is not authorized to make any deduction from the amount payable to the holder of
such depositary receipt from any amount received by the custodian in respect of
the U.S. Government Obligation or the specific payment of principal or interest
evidenced by such depositary receipt.

Vice President:
---------------

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

         (b) The words "Article" and "Section" refer to an Article and Section,
respectively, of this Indenture. 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. Certain terms used
principally in Articles V, VI, and IX are defined in those Articles. Terms in
the singular include the plural and terms in the plural include the singular.

                                      -12-

                                   Article II.

                                 THE SECURITIES

     Section 2.01. Designation and Amount of Securities.

         (a) The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited.

         (b) The Securities may be issued in one or more series. There will be
established in or pursuant to a Board Resolution and, subject to Section 2.04,
set forth or determined in the manner provided in an Officer's Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series: (i) the title of the Securities of the series
(which will distinguish the Securities of the series from Securities of any
other series); (ii) any limit upon the aggregate principal amount of the
Securities of the series which may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in the exchange for, or in lieu of, other Securities of the
series pursuant to Section 2.05, 2.06, 2.07, 3.05, or 10.06 and except for any
Securities which, pursuant to Section 2.04, are deemed never to have been
authenticated and delivered hereunder); (iii) the Person to whom any interest on
a Security of the series will 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; (iv) the date or dates
on which the principal of the Securities of the series is payable; (v) the rate
or rates at which the Securities of the series will bear interest, if any, the
date or dates from which such interest will accrue, the Interest Payment Dates
on which any such interest will be payable, and the Regular Record Date for any
interest payable on any Interest Payment Date; (vi) the place or places where
the principal of and any premium and interest on Securities of the series will
be payable; (vii) the period or periods within which, the price or prices at
which, and the terms and conditions upon which Securities of the series may be
redeemed, in whole or in part, at the option of the Company; (viii) the
obligation, if any, of the Company to redeem or purchase Securities of the
series pursuant to any sinking fund or analogous provisions or at the option of
a Holder thereof and the period or periods within which, the price or prices at
which, and the terms and conditions upon which Securities of the series will be
redeemed or purchased, in whole or in part, pursuant to such obligation; (ix) if
other than denominations of $1,000 and integral multiples thereof, the
denominations in which Securities of the series will be issuable; (x) the
currency, currencies, or currency units in which payment of the principal of and
any premium and interest on any Securities of the series will be payable if
other than the currency of the United States of America and the manner of
determining the equivalent thereof in the currency of the United States of
America for purposes of the definition of "Outstanding" in Section 1.01; (xi) if
the amount of payments of principal of or any premium or interest on any
Securities of the series may be determined with reference to an index, based
upon a formula, or in some other manner, the manner in which such amounts will
be determined; (xii) if the principal of or any premium or interest on any
Securities of the series is to be payable, at the election of the Company or a
Holder thereof, in one or more currencies or currency units other than that or
those in which the

                                      -13-

Securities are stated to be payable, the currency, currencies, or currency units
in which payment of the principal of and any premium and interest on Securities
of such series as to which such election is made will be payable, and the
periods within which and the terms and conditions upon which such election is to
be made; (xiii) if other than the principal amount thereof, the portion of the
principal amount of Securities of the series which will be payable upon
declaration of acceleration of the Maturity thereof pursuant to Section 8.01(b);
(xiv) if applicable, that the Securities of the series will be subject to either
or both of Defeasance or Covenant Defeasance as provided in Article V, provided
that no series of Securities that is convertible into Common Stock pursuant to
Section 2.01(b)(xvi) or convertible into or exchangeable for any other
securities pursuant to Section 2.01(b)(xvii) will be subject to Defeasance
pursuant to Section 5.02; (xv) if and as applicable, that the Securities of the
series will be issuable in whole or in part in the form of one or more Global
Securities and, in such case, the Depositary or Depositaries for such Global
Security or Global Securities and any circumstances other than those set forth
in Section 2.05 in which any such Global Security may be transferred to, and
registered and exchanged for Securities registered in the name of, a Person
other than the Depositary for such Global Security or a nominee thereof and in
which any such transfer may be registered; (xvi) the terms and conditions, if
any, pursuant to which the Securities are convertible into Common Stock; (xvii)
the terms and conditions, if any, pursuant to which the Securities are
convertible into or exchangeable for any other securities, including (without
limitation) securities of Persons other than the Company; and (xviii) any other
terms of, or provisions, covenants, rights or other matters applicable to, the
series (which terms, provisions, covenants, rights or other matters will not be
inconsistent with the provisions of this Indenture, except as permitted by
Section 10.01(e)).

         (c) All Securities of any one series will be substantially identical
except as to denomination and except as may otherwise be provided in or pursuant
to the Board Resolution referred to below and (subject to Section 2.04) set
forth or determined in the manner provided in the Officer's Certificate referred
to above or in any such indenture supplemental hereto.

         (d) If any of the terms of the series are established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
will be certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee concurrently with or prior to the delivery of the
Officer's Certificate setting forth the terms of the series.

     Section 2.02. Form of Securities and Trustee's Certificate of
Authentication.

         (a) If the form of Securities of any series is established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such
action will be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee concurrently with or prior to the delivery
of the Company Order contemplated by Section 2.04 for the authentication and
delivery of such Securities.

         (b) The definitive Securities will be printed, lithographed, or
engraved on steel engraved borders or may be produced in any other manner
permitted by the rules

                                      -14-

of any securities exchange on which the Securities may be listed, all as
determined by the officers executing such Securities, as evidenced by their
execution of such Securities.

     Section 2.03. Date and Denominations.

         Each Security will be dated the date of its authentication. The
Securities of each series will be issuable only in registered form without
coupons in such denominations as may be specified as contemplated by Section
2.01. In the absence of any such specified denomination with respect to the
Securities of any series, the Securities of such series will be issuable in
denominations of $1,000 and integral multiples thereof.

     Section 2.04. Execution, Authentication and Delivery of Securities.

         (a) The Securities will be executed on behalf of the Company by the
Chairman or any Vice Chairman of the Board of Directors, the Chief Executive
Officer, the President, the Controller, the Treasurer, or any Vice President of
the Company. The signature of any of these officers on the Securities may be
manual or facsimile.

         (b) Only such Securities bearing the Trustee's certificate of
authentication, signed manually by the Trustee, will be entitled to the benefits
of this Indenture or be valid or obligatory for any purpose. Such execution of
the certificate of authentication by the Trustee upon any Securities executed by
the Company will be conclusive evidence that the Securities so authenticated
have been duly authenticated and delivered hereunder. Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered hereunder
but never issued and sold by the Company, and the Company shall deliver such
Security to the Trustee for cancellation as provided in Section 2.08, for all
purposes of this Indenture such Security will be deemed never to have been
authenticated and delivered hereunder and will never be entitled to the benefits
of this Indenture.

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

         (d) At any time and from time to time after the execution and delivery
of this Indenture, the Company may deliver Securities of any series executed by
the Company to the Trustee for authentication, together with a Company Order for
the authentication and delivery of such Securities, and the Trustee in
accordance with the Company Order will authenticate and deliver such Securities.
If the form or terms of the Securities of the series have been established in or
pursuant to one or more Board Resolutions as permitted by Sections 2.01 and
2.02, in authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall receive, and (subject to Section 9.01) will be fully protected in
relying upon, an Opinion of Counsel stating:

                                      -15-

         (i) if the form of such Securities has been established by or pursuant
     to a Board Resolution as permitted by Section 2.02, that such form has been
     established in conformity with the provisions of this Indenture,

         (ii) if the terms of such Securities have been established by or
     pursuant to a Board Resolution as permitted by Section 2.01, that such
     terms have been established in conformity with the provisions of this
     Indenture,

         (iii) that such Securities, when authenticated and delivered by the
     Trustee and issued by the Company in the manner and subject to any
     conditions specified in such Opinion of Counsel, will constitute valid and
     binding obligations of the Company enforceable in accordance with their
     terms, except as the enforceability thereof may be limited by bankruptcy,
     insolvency, reorganization, moratorium, or other laws relating to or
     affecting creditors' rights and by general principles of equity; and

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

         The Trustee shall have the right to decline to authenticate and deliver
any Securities under this Section if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken or if the Trustee in good
faith shall determine that such action would expose the Trustee to personal
liability to existing Holders.

         (e) Notwithstanding the provisions of Sections 2.01 and 2.04(d), if all
Securities of a series are not to be originally issued at one time, it will not
be necessary to deliver the Officer's Certificate otherwise required pursuant to
Section 2.01 or the Company Order and Opinion of Counsel otherwise required
pursuant to Section 2.04(d) at or prior to the time of authentication of each
Security of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to be
issued.

     Section 2.05. Registration of Transfer and Exchange.

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

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

                                      -16-

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

         (d) Every Security presented or surrendered for registration of
transfer or exchange will (if so required by the Company or the Trustee) be duly
endorsed, or be accompanied by a written instrument or instruments of transfer,
in form reasonably satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing. No
service charge will 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, assessment, fee 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 2.06, 3.05, or 10.06 not involving any
transfer. The Company will not be required (i) to issue, register the transfer
of, or exchange Securities of any series during a period beginning at the
opening of business 15 calendar days before the mailing of a notice of
redemption of Securities of that series selected for redemption under Section
3.02(c) and ending at the close of business on the day of such mailing or (ii)
to register the transfer of or exchange any Security so selected for redemption
in whole or in part, except, in the case of any Securities to be redeemed in
part, the portion thereof not being redeemed.

         (e) All Securities issued upon any registration of transfer or exchange
of Securities will be 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.

         (f) Notwithstanding any other provision in this Indenture, no Global
Security may be transferred to, or registered or exchanged for Securities
registered in the name of, any Person other than the Depositary for such Global
Security or any nominee thereof, and no such transfer may be registered, unless
(i) such Depositary (A) notifies the Company that it is unwilling or unable to
continue as Depositary for such Global Security or (B) ceases to be a clearing
agency registered under the Exchange Act, (ii) the Company executes and delivers
to the Trustee a Company Order that such Global Security shall be so
transferable, registrable, and exchangeable, and such transfers shall be
registrable, (iii) there shall have occurred and be continuing an Event of
Default with respect to the Securities evidenced by such Global Security, or
(iv) there shall exist such other circumstances, if any, as have been specified
for this purpose as contemplated by Section 2.01. Notwithstanding any other
provision in this Indenture, a Global Security to which the restriction set
forth in the preceding sentence shall have ceased to apply may be transferred
only to, and may be registered and exchanged for Securities registered only in
the name or names of, such Person or Persons as the Depositary for such Global
Security shall have directed and no transfer thereof other than such a transfer
may be registered. Every Security authenticated and delivered upon registration
of transfer of, or in exchange for or in lieu of, a Global Security to which the
restriction set forth in the

                                      -17-

first sentence of this Section 2.05(f) shall apply, whether pursuant to this
Section 2.05, Section 2.06, 2.07, 3.05, or 10.06 or otherwise, will be
authenticated and delivered in the form of, and will be, a Global Security.

         (g) Each Holder of a Security agrees to indemnify the Company and the
Trustee against any liability that may result from the transfer, exchange or
assignment of such Holder's Security in violation of any provision of this
Indenture and/or applicable United States Federal or state securities law.

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

     Section 2.06. Temporary Securities.

         Pending the preparation of definitive Securities of any series, the
Company may execute and register and upon Company Order the Trustee will
authenticate and deliver temporary Securities (printed, lithographed, or
typewritten) of any authorized denomination, and substantially in the form of
the definitive Securities but with such omissions, insertions, and variations as
may be appropriate for temporary Securities, all as may be determined by the
officers executing such Securities as evidenced by their execution of such
Securities; provided, however that the Company will use reasonable efforts to
have definitive Securities of that series available at the times of any issuance
of Securities under this Indenture. Every temporary Security will be executed
and registered by the Company and be authenticated by the Trustee upon the same
conditions and in substantially the same manner, and with like effect, as the
definitive Securities. The Company will execute and register and furnish
definitive Securities of such series as soon as practicable and thereupon any or
all temporary Securities of such series may be surrendered in exchange therefor
at the office or agency of the Company in the Place of Payment for that series,
and the Trustee will authenticate and deliver in exchange for such temporary
Securities of such series one or more definitive Securities of the same series,
of any authorized denominations, and of a like aggregate principal amount and
tenor. Such exchange will be made by the Company at its own expense and without
any charge to the Holder therefor. Until so exchanged, the temporary Securities
of any series will be entitled to the same benefits under this Indenture as
definitive Securities of the same series authenticated and delivered hereunder.

     Section 2.07. Mutilated, Destroyed, Lost, and Stolen Securities.

         (a) If any mutilated Security is surrendered to the Trustee, the
Company will execute and the Trustee will authenticate and deliver in exchange
therefor

                                      -18-

a new Security of the same series and of like tenor and principal amount and
bearing a number not contemporaneously outstanding.

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

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

         (d) Upon the issuance of any new Security under this Section 2.07, the
Company may require the payment of a sum sufficient to cover any tax,
assessment, fee 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.

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

         (f) The provisions of this Section 2.07 are exclusive and will 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 2.08. Cancellation of Surrendered Securities.

         All Securities surrendered for payment, redemption, registration of
transfer or exchange, or for credit against any sinking fund payment will, if
surrendered to any Person other than the Trustee, be delivered to the Trustee
and will 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 will be promptly
cancelled by the Trustee. No Securities will be authenticated in lieu of or in
exchange for any Securities cancelled as provided in this Section 2.08, except
as expressly permitted by this Indenture. The Trustee shall dispose of all
cancelled Securities in accordance with its customary procedures.

                                      -19-

     Section 2.09. Payment of Interest; Interest Rights Preserved.

         (a) Except as otherwise provided as contemplated by Section 2.01 with
respect to any series of Securities, interest on any Security which is payable,
and is punctually paid or duly provided for, on any Interest Payment Date will
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.

         (b) Any interest on any Security of any series which is payable, but is
not punctually paid or duly provided for, on any Interest Payment Date (herein
called "Defaulted Interest") will forthwith cease to be payable to the Holder on
the relevant regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company together with interest thereon (to
the extent permitted by law) at the rate of interest applicable to such
Security, at its election in each case, as provided in clause (i) or (ii) below:

         (i) The Company may elect to make payment of any Defaulted Interest
     (and interest thereon, if any) 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 will be fixed in the following manner. The
     Company will promptly notify the Trustee in writing of the amount of
     Defaulted Interest (and interest thereon, if any) proposed to be paid on
     each Security of such series and the date of the proposed payment, and at
     the same time the Company will deposit with the Trustee an amount of money
     equal to the aggregate amount proposed to be paid in respect of such
     Defaulted Interest (and interest thereon, if any) or will make arrangements
     satisfactory to the Trustee for such deposit prior to the date of the
     proposed payment, such money when deposited to be held in trust for the
     benefit of the persons entitled to such Defaulted Interest (and interest
     thereon, if any) as in this clause (i) provided. Thereupon the Trustee will
     fix a Special Record Date for the payment of such Defaulted Interest (and
     interest thereon, if any) which will be not more than 15 calendar days and
     not less than 10 calendar days prior to the date of the proposed payment
     and not less than 10 calendar days after the receipt by the Trustee of the
     notice of the proposed payment. The Trustee will promptly notify the
     Company of such Special Record Date and, in the name and at the expense of
     the Company, will 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 calendar days
     prior to such Special Record Date. Notice of the proposed payment of such
     Defaulted Interest (and interest thereon, if any) and the Special Record
     Date therefor having been so mailed, such Defaulted Interest will 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 will no longer be payable pursuant to the
     following clause (ii).

                                      -20-

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

         (c) Subject to the foregoing provisions of this Section 2.09, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security will carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Security.

     Section 2.10. Persons Deemed Owners.

         Prior to due presentment of a Security for registration of transfer,
the Company, the Trustee, and any agent of the Company or the Trustee may treat
the Person in whose name such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of and any premium
and (subject to Section 2.09) any interest on such Security and for all other
purposes whatsoever, whether or not such Security shall be overdue, and neither
the Company, the Trustee nor any agent of the Company or the Trustee will be
affected by notice to the contrary.

     Section 2.11. Computation of Interest.

         Except as otherwise specified as contemplated by Section 2.01 for
Securities of any series, interest on the Securities of each series will be
computed on the basis of a 360-day year consisting of twelve 30-day months.

     Section 2.12. CUSIP Numbers.

         The Company in issuing any series of the Securities may use CUSIP
numbers, if then generally in use, and thereafter with respect to such series,
the Trustee may use such numbers in any notice of redemption or exchange with
respect to such series provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any notice of a redemption or exchange and
that reliance may be placed only on the other identification numbers printed on
the Securities, and any such redemption or exchange shall not be affected by any
defect in or omission of such numbers. The Company will promptly notify the
Trustee in writing of any change in the CUSIP numbers.

                                      -21-

                                  Article III.

                            REDEMPTION OF SECURITIES

     Section 3.01. Applicability of Article.

         Securities of any series which are redeemable before their Stated
Maturity will be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 2.01 for Securities of any
series) in accordance with this Article III.

     Section 3.02. Election to Redeem; Notice to Trustee.

         (a) The election of the Company to redeem any Securities will be
evidenced by a Board Resolution. In case of any redemption at the election of
the Company, the Company will, at least 60 calendar days prior to the Redemption
Date fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date 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 will furnish the Trustee with an Officer's Certificate evidencing
compliance with such restriction.

         (b) Notice of redemption of Securities to be redeemed at the election
of the Company will be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company and will be irrevocable.
Notice of redemption will be given by mail, first class postage prepaid, not
less than 30 or more than 60 calendar days prior to the Redemption Date, to each
Holder of Securities to be redeemed, at his address appearing in the Security
Register. All notices of redemption will include the CUSIP number and will state
(i) the Redemption Date, (ii) the Redemption Price, (iii) if less than all the
Outstanding Securities of any series are to be redeemed, the identification
(and, in the case of partial redemption of any Securities, the principal
amounts) of the particular Securities to be redeemed, (iv) that on the
Redemption Date the Redemption Price will become due and payable upon each such
Security to be redeemed and, if applicable, that interest thereon will cease to
accrue on and after said date, (v) the place or places where such Securities are
to be surrendered for payment of the Redemption Price, (vi) that the redemption
is for a sinking fund, if such is the case, and (vii) the specific provision of
this Indenture pursuant to which such Securities are to be redeemed.

         (c) If less than all the Securities of any series are to be redeemed,
the particular Securities to be redeemed will be selected not more than 60
calendar days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not previously called for redemption, by lot, on a pro
rata basis or by such method as the Trustee may deem fair and appropriate and
which may provide for the selection for redemption of portions (equal to the
minimum authorized denomination for Securities of that series or any integral
multiple thereof) of the principal amount of Securities of such

                                      -22-

series of a denomination larger than the minimum authorized denomination for
Securities of that series. The Trustee will promptly notify the Company in
writing of the Securities selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount thereof to be
redeemed.

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

     Section 3.03. Deposit of Redemption Price.

         Prior to 10:00 a.m. (local time at the Place of Payment) on the
Redemption Date specified in the notice of redemption given as provided in
Section 3.02, the Company will deposit with the Trustee or with a Paying Agent
(or, if the Company is acting as its own Paying Agent, segregate and hold in
trust as provided in Section 6.03) an amount of money sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date) any accrued interest on, all of the Securities that are to be
redeemed on that date.

     Section 3.04. Securities Payable on Redemption Date.

         (a) Notice of redemption having been given as aforesaid, the Securities
so to be redeemed will, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company defaults in the payment of the Redemption Price and accrued interest)
such Securities will cease to accrue interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security will be
paid by the Company at the Redemption Price, together with accrued interest to
the Redemption Date; provided, however, that unless otherwise specified as
contemplated by Section 2.01, installments of interest whose Stated Maturity is
on or prior to the Redemption Date will 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 in accordance with their terms
and the provisions of Section 2.09.

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

     Section 3.05. Securities Redeemed in Part.

         Any Security that is to be redeemed only in part will be surrendered at
a Place of Payment therefor (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company will execute, and the Trustee will
authenticate and deliver to the Holder of such Security without service charge,
a new Security or Securities of the same series and of like tenor, of any
authorized denomination as requested by such

                                      -23-

Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.

                                  Article IV.

                                  SINKING FUNDS

     Section 4.01. Applicability of Article.

         The provisions of this Article IV will be applicable to any sinking
fund for the retirement of Securities of a series except as otherwise specified
as contemplated by Section 2.01 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 Securities
of any series is herein referred to as an "optional sinking fund payment". If
provided for by the terms of Securities of any series, the amount of any sinking
fund payment may be subject to reduction as provided in Section 4.02. Each
sinking fund payment with respect to Securities of a particular series will be
applied to the redemption of Securities of such series as provided for by the
terms of Securities of such series.

     Section 4.02. Satisfaction of Sinking Fund Payments With Securities.

         The Company (a) may deliver Outstanding Securities of a series (other
than any previously called for redemption) and (b) may apply as a credit
Securities of a series which have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series, provided that such Securities have not been previously so credited. Such
Securities will be received and credited for such purpose by the Trustee at the
Redemption Price specified in such Securities for redemption through operation
of the sinking fund and the amount of such sinking fund payment will be reduced
accordingly.

     Section 4.03. Redemption of Securities for Sinking Fund.

         Not less than 60 calendar days prior to each sinking fund payment date
for any series of Securities, the Company will deliver to the Trustee an
Officer's Certificate specifying the amount of the next ensuing sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, that is to be satisfied by payment of cash and the portion
thereof, if any, that is to be satisfied by delivering and crediting Securities
of that series pursuant to Section 4.02 and will also deliver to the Trustee any
Securities to be so delivered. Not less than 30 calendar days before each such
sinking fund payment date, the Trustee will select the Securities to be redeemed
upon such sinking fund payment date in the manner specified in Section 3.02(c)
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 3.02(b). Such notice
having been duly given, the

                                      -24-

redemption of such Securities will be made upon the terms and in the manner
stated in Sections 3.04 and 3.05.

                                   Article V.

                       DEFEASANCE AND COVENANT DEFEASANCE

     Section 5.01. Company's Option to Effect Defeasance or Covenant Defeasance.

         The Company may elect, at its option by Board Resolution at any time,
to have either Section 5.02 or Section 5.03 applied to the Outstanding
Securities of any series designated pursuant to Section 2.01 as being defeasible
pursuant to this Article V (hereinafter called "Defeasible Series"), upon
compliance with the conditions set forth below in this Article V, provided that
Section 5.02 will not apply to any series of Securities that is convertible into
Common Stock pursuant to Section 2.01(b)(xvi) or convertible into or
exchangeable for any other securities pursuant to Section 2.01 (b)(xvii).

     Section 5.02. Defeasance and Discharge.

         Upon the Company's exercise of the option provided in Section 5.01 to
have this Section 5.02 applied to the Outstanding Securities of any Defeasible
Series and subject to the proviso to Section 5.01, the Company will be deemed to
have been discharged from its obligations with respect to the Outstanding
Securities of such series as provided in this Section 5.02 on and after the date
the conditions set forth in Section 5.04 are satisfied (hereinafter called
"Defeasance"). For this purpose, such Defeasance means that the Company will be
deemed to have paid and discharged the entire indebtedness represented by the
Outstanding Securities of such series and to have satisfied all its other
obligations under the Securities of such series and this Indenture insofar as
the Securities of such series are concerned (and the Trustee, at the expense of
the Company, will execute proper instruments acknowledging the same), subject to
the following which will survive until otherwise terminated or discharged
hereunder: (a) the rights of Holders of Securities of such series to receive,
solely from the trust fund described in Section 5.04 and as more fully set forth
in Section 5.04, payments in respect of the principal of and any premium and
interest on such Securities of such series when payments are due, (b) the
Company's obligations with respect to the Securities of such series under
Sections 2.05, 2.06, 2.07, 6.02, 6.03, and 10.06, (c) the rights, powers,
trusts, duties, and immunities of the Trustee hereunder, and (d) this Article V.
Subject to compliance with this Article V, the Company may exercise its option
provided in Section 5.01 to have this Section 5.02 applied to the Outstanding
Securities of any Defeasible Series notwithstanding the prior exercise of its
option provided in Section 5.01 to have Section 5.03 applied to the Outstanding
Securities of such series.

     Section 5.03. Covenant Defeasance.

         Upon the Company's exercise of the option provided in Section 5.01 to
have this Section 5.03 applied to the Outstanding Securities of any Defeasible
Series, (a) the Company will be released from its obligations under Sections
6.04 through 6.07,

                                      -25-

inclusive, Section 11.01, and the provisions of any Supplemental Indenture
specified in such Supplemental Indenture, and (b) the occurrence of any event
specified in Sections 8.01(a)(iii), 8.01(a)(iv) (with respect to any of Sections
6.04 through 6.07, inclusive, Section 11.01, and the provisions of any
Supplemental Indenture specified in such Supplemental Indenture), 8.01(a)(v),
and 8.01(a)(viii) will be deemed not to be or result in an Event of Default, in
each case with respect to the Outstanding Securities of such series as provided
in this Section on and after the date the conditions set forth in Section 5.04
are satisfied (hereinafter called "Covenant Defeasance"). For this purpose, such
Covenant Defeasance means that the Company may omit to comply with and will have
no liability in respect of any term, condition, or limitation set forth in any
such specified Section (to the extent so specified in the case of Section
8.01(a)(iv)), whether directly or indirectly by reason of any reference
elsewhere herein to any such Section or by reason of any reference in any such
Section to any other provision herein or in any other document, but the
remainder of this Indenture and the Securities of such series will be unaffected
thereby.

     Section 5.04. Conditions to Defeasance or Covenant Defeasance.

         The following will be the conditions to application of either Section
5.02 or Section 5.03 to the Outstanding Securities of any Defeasible Series:

         (a) The Company shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee that satisfies the requirements
contemplated by Section 9.08 and agrees to comply with the provisions of this
Article V applicable to it) as trust funds in trust for the benefit of the
Holders of Outstanding Securities of such series (i) money in an amount, or (ii)
U.S. Government Obligations that through the scheduled payment of principal and
interest in respect thereof in accordance with their terms will provide, without
reinvestment, not later than one day before the due date of any payment, money
in an amount, or (iii) a combination thereof, in each case sufficient in the
opinion of an independent firm of certified public accountants, to pay and
discharge, and which will be applied by the Trustee (or any such other
qualifying trustee) to pay and discharge, the principal of and any premium and
interest on the Securities of such series on the respective Stated Maturities or
on any earlier date or dates on which the Securities of such series shall be
subject to redemption and the Company shall have given the Trustee irrevocable
instructions satisfactory to the Trustee to give notice to the Holders of the
redemption of the Securities of such series, all in accordance with the terms of
this Indenture and the Securities of such series.

         (b) In the case of an election under Section 5.02, the Company shall
have delivered to the Trustee an Opinion of Counsel (from a counsel who shall
not be an employee of the Company) to the effect 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 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 the Outstanding
Securities of such series will not recognize gain or loss for Federal income tax
purposes as a result of the deposit, Defeasance, and discharge to be effected
with respect to the Securities of such series and will be subject to Federal
income tax on the

                                      -26-

same amount, in the same manner, and at the same times as would be the case if
such deposit, Defeasance, and discharge were not to occur.

         (c) In the case of an election under Section 5.03, the Company shall
have delivered to the Trustee an Opinion of Counsel (from a counsel who shall
not be an employee of the Company) to the effect that the Holders of the
Outstanding Securities of such series will not recognize gain or loss for
Federal income tax purposes as a result of the deposit and Covenant Defeasance
to be effected with respect to the Securities of such series and will be subject
to Federal income tax on the same amount, in the same manner, and at the same
times as would be the case if such deposit and Covenant Defeasance were not to
occur.

         (d) The Company shall have delivered to the Trustee an Officer's
Certificate to the effect that the Securities of such series, if then listed on
any securities exchange, will not be delisted solely as a result of such
deposit.

         (e) No Event of Default or event that (after notice or lapse of time or
both) would become an Event of Default shall have occurred and be continuing at
the time of such deposit or, with regard to any Event of Default or any such
event specified in Sections 8.01(a)(vi) and (vii), at any time on or prior to
the 90th calendar day after the date of such deposit (it being understood that
this condition will not be deemed satisfied until after such 90th calendar day).

         (f) Such Defeasance or Covenant Defeasance will not cause the Trustee
to have a conflicting interest within the meaning of the Trust Indenture Act
(assuming all Securities are in default within the meaning of such Act).

         (g) Such Defeasance or Covenant Defeasance will not result in a breach
or violation of, or constitute a default under, any other agreement or
instrument to which the Company is a party or by which it is bound.

         (h) The Company shall have delivered to the Trustee an Officer's
Certificate and an Opinion of Counsel, each stating that all conditions
precedent with respect to such Defeasance or Covenant Defeasance have been
complied with.

         (i) Such Defeasance or Covenant Defeasance will not result in the trust
arising from such deposit constituting an investment company within the meaning
of the Investment Company Act of 1940, as amended, unless such trust will be
qualified under such Act or exempt from regulation thereunder.

     Section 5.05. Deposited Money and U.S. Government Obligations to be Held in
Trust; Other Miscellaneous Provisions.

         (a) Subject to the provisions of Section 6.03(e), all money and U.S.
Government Obligations (including the proceeds thereof) deposited with the
Trustee or other qualifying trustee (solely for purposes of this Section 5.05
and Section 5.06, the Trustee and any such other trustee are referred to
collectively as the "Trustee") pursuant to Section 5.04 in respect of the
Securities of any Defeasible Series will be held in trust

                                      -27-

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

         (b) The Company will pay and indemnify the Trustee against any tax,
fee, or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 5.04 or the principal and interest
received in respect thereof other than any such tax, fee, or other charge that
by law is for the account of the Holders of Outstanding Securities.

         (c) Notwithstanding anything in this Article V to the contrary, the
Trustee will deliver or pay to the Company from time to time upon a Company
Request any money or U.S. Government Obligations held by it as provided in
Section 5.04 with respect to Securities of any Defeasible Series that are in
excess of the amount thereof that would then be required to be deposited to
effect an equivalent Defeasance or Covenant Defeasance with respect to the
Securities of such series.

     Section 5.06. Reinstatement.

         If the Trustee or the Paying Agent is unable to apply any money in
accordance with this Article V with respect to the Securities of any series by
reason of any order or judgment of any court or governmental authority
enjoining, restraining, or otherwise prohibiting such application, then the
Company's obligations under this Indenture and the Securities of such series
will be revived and reinstated as though no deposit had occurred pursuant to
this Article V with respect to Securities of such series until such time as the
Trustee or Paying Agent is permitted to apply all money held in trust pursuant
to Section 5.05 with respect to Securities of such series in accordance with
this Article V; provided, however, that if the Company makes any payment of
principal of or any premium or interest on any Security of such series following
the reinstatement of its obligations, the Company will be subrogated to the
rights of the Holders of Securities of such series to receive such payment from
the money so held in trust.

                                   Article VI.

                       PARTICULAR COVENANTS OF THE COMPANY

     Section 6.01. Payment of Principal, Premium and Interest on Securities.

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

                                      -28-

     Section 6.02. Maintenance of Office or Agency.

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

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

     Section 6.03. Money for Securities Payments to be Held in Trust.

         (a) If the Company shall at any time act as its own Paying Agent with
respect to any series of Securities, it will, prior to 10:00 a.m. (local time at
the Place of Payment) on the due date of the principal of or any premium or
interest on any of the Securities of that series, segregate and hold in trust
for the benefit of the Persons entitled thereto a sum sufficient to pay the
principal and any premium and interest so becoming due until such sums shall be
paid to such Persons or otherwise disposed of as herein provided and will
promptly notify the Trustee of its action or failure so to act.

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

         (c) The Company will cause each Paying Agent for any series of
Securities other than the Trustee to execute and deliver to the Trustee an
instrument in which such Paying Agent will agree with the Trustee, subject to
the provisions of this Section 6.03, that such Paying Agent will (i) comply with
the provisions of the Trust Indenture Act applicable to it as a Paying Agent and
(ii) during the continuance of any default by the Company (or any other obligor
upon the Securities of that series) in the making of any payment in respect of
the Securities of that series, and upon the written

                                      -29-

request of the Trustee, forthwith pay to the Trustee all sums held in trust by
such Paying Agent for payment in respect of the Securities of that series.

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

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

     Section 6.04. 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 the Company or any Subsidiary of the
Company or upon the income, profits, or property of the Company or any
Subsidiary of the Company, and (b) all lawful claims for labor, materials, and
supplies, in each case which, if unpaid, might by law become a lien upon the
property of the Company or any Subsidiary of the Company and might have a
Material Adverse Effect; provided, however, that the Company will 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.

     Section 6.05. Maintenance of Properties.

         The Company will cause all properties used or useful in the conduct of
its business or the business of any Subsidiary of the Company 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

                                      -30-

improvements thereof, all as in the judgment of the Company may be necessary so
that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in this
Section 6.05 will prevent the Company from discontinuing the operation or
maintenance of any of such properties if such discontinuance is, in the judgment
of the Company, desirable in the conduct of its business or the business of any
Subsidiary of the Company and will not result in a Material Adverse Effect.

     Section 6.06. Existence.

         Subject to Article XI, the Company will, and will cause each of its
Subsidiaries to, do or cause to be done all things necessary to preserve and
keep in full force and effect its existence, rights (charter and statutory), and
franchises; provided, however, that neither the Company nor any Subsidiary will
be required to preserve any such right or franchise if the Company determines
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and that the loss thereof will not result in a Material
Adverse Effect.

     Section 6.07. Compliance with Laws.

         The Company will, and will cause each of its Subsidiaries to, comply
with all applicable Federal, state, local, or foreign laws, rules, regulations,
or ordinances, including without limitation such laws, rules, regulations, or
ordinances relating to pension, environmental, employee, and tax matters, in
each case to the extent that the failure so to comply would have a Material
Adverse Effect.

     Section 6.08. Statement by Officers as to Default.

         The Company will deliver to the Trustee, within 120 calendar days after
the end of each fiscal year of the Company ending after the date hereof, an
Officer's Certificate signed by the principal executive officer, principal
financial officer, or principal accounting officer of the Company stating
whether or not to the knowledge of such person after due inquiry the Company is
in default in the performance and observance of any of the terms, provisions,
and conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company is in default,
specifying all such defaults and the nature and status thereof of which such
person may have such knowledge.

     Section 6.09. Waiver of Certain Covenants.

         The Company may omit in any particular instance to comply with any
term, provision, or condition set forth in Sections 6.04 through 6.07,
inclusive, and the provisions of any Supplemental Indenture specified in such
Supplemental Indenture, with respect to the Securities of any series if the
Holders of a majority in principal amount of the Outstanding Securities of such
series shall, by Act of such Holders, either waive such compliance in such
instance or generally waive compliance with such term, provision, or condition,
but no such waiver will extend to or affect such term, provision, or condition
except to the extent so expressly waived, and, until such waiver shall become
effective,

                                      -31-

the obligations of the Company and the duties of the Trustee in respect of any
such term, provision, or condition will remain in full force and effect.

     Section 6.10. Calculation of Original Issue Discount.

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

                                  Article VII.

                          SECURITIES HOLDERS' LIST AND

                     REPORTS BY THE COMPANY AND THE TRUSTEE

     Section 7.01. Company to Furnish Trustee Names and Addresses of Holders.

         The Company will furnish or cause to be furnished to the Trustee (a)
semi-annually, not more than 15 calendar days after the applicable Regular
Record Date, a list for each series of Securities, 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 and (b) at such other times as the
Trustee may request in writing, within 30 calendar 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 calendar days prior to the time such list is furnished; excluding
from any such list names and addresses received by the Trustee in its capacity
as Security Registrar.

     Section 7.02. Preservation of Information; Communication to Holders.

         (a) The Trustee will preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 7.01 and the names and
addresses of Holders received by the Trustee in its capacity as Security
Registrar. The Trustee may destroy any list furnished to it as provided in
Section 7.01 upon receipt of a new list so furnished.

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

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

                                      -32-

     Section 7.03. Reports by Trustee.

         (a) The Trustee will transmit to Holders such reports concerning the
Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto. If
required by Section 313 (a) of the Trust Indenture Act, the Trustee shall,
within sixty days after May 15 following the date of this Indenture deliver to
Holders a brief report, dated as of such May 15, which complies with the
provisions of such Section 313 (a).

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

     Section 7.04. Reports by Company.

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

         Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to conclusively rely exclusively on Officer's Certificates).

                                 Article VIII.

                                     DEFAULT

     Section 8.01. Event of Default.

         (a) "Event of Default", wherever used herein with respect to Securities
of any series, means any one of the following events (whatever the reason for
such Event of Default and whether it may 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):

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

                                      -33-

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

         (iii) default in the making of any sinking fund payment when and as due
     by the terms of a Security of that series;

         (iv) default in the performance, or breach, of any covenant or warranty
     of the Company in this Indenture (other than a covenant or warranty, a
     default in the performance or breach of which is elsewhere in this Section
     8.01 specifically dealt with or which has expressly been included in this
     Indenture solely for the benefit of one or more series of Securities other
     than that series), and continuance of such default or breach for a period
     of 60 calendar days after there has been given, by registered or certified
     mail, to the Company by the Trustee or to the Company and the Trustee by
     the Holders of at least 25% in principal amount of the Outstanding
     Securities of that series a written notice specifying such default or
     breach and requiring it to be remedied and stating that such notice is a
     "Notice of Default" hereunder;

         (v) any nonpayment at maturity or other default is made under any
     agreement or instrument relating to any other Indebtedness of the Company
     (the unpaid principal amount of which is not less than $ 15.0 million),
     and, in any such case, such default (A) continues beyond any period of
     grace provided with respect thereto and (B) results in such Indebtedness
     becoming due prior to its stated maturity or occurs at the final maturity
     of such Indebtedness; provided, however, that, subject to the provisions of
     Section 9.01 and 8.08, the Trustee will not be deemed to have knowledge of
     such nonpayment or other default unless either (1) a Responsible Officer of
     the Trustee has actual knowledge of nonpayment or other default or (2) the
     Trustee has received written notice thereof from the Company, from any
     Holder, from the holder of any such Indebtedness or from the trustee under
     the agreement or instrument relating to such Indebtedness;

         (vi) the entry by a court having jurisdiction in the premises of (A) a
     decree or order for relief in respect of the Company in an involuntary case
     or proceeding under any applicable Federal or state bankruptcy, insolvency,
     reorganization, or other similar law or (B) a decree or order adjudging the
     Company a bankrupt or insolvent, or approving as properly filed a petition
     seeking reorganization, arrangement, adjustment, or composition of or in
     respect of the Company under any applicable Federal or state law, or
     appointing a custodian, receiver, liquidator, assignee, trustee,
     sequestrator, or other similar official of the Company or of any
     substantial part of its property, or ordering the winding up or liquidation
     of its affairs, and the continuance of any such decree or order for relief
     or any such other decree or order unstayed and in effect for a period of 60
     consecutive calendar days;

         (vii) the commencement by the Company of a voluntary case or proceeding
     under any applicable Federal or state bankruptcy, insolvency,
     reorganization, or other similar law or of any other case or proceeding to
     be

                                      -34-

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

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

         (b) If an Event of Default (other than an Event of Default arising
under Section 8.01(a)(vi) or (vii)) with respect to Securities of any series at
the time Outstanding occurs and is continuing, then in every case the Trustee or
the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series may declare the principal amount (or, if any of the
Securities of that series are Original Issue Discount Securities, such portion
of the principal amount of such Securities as may be specified in the terms
thereof) of all of the Securities of that series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount) will become immediately due and payable. If an Event of Default under
Section 8.01(a)(vi) or (vii) occurs, then the principal of, premium, if any, and
accrued interest on the Securities shall become immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder.

         (c) At any time after such a declaration of acceleration with respect
to Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article VIII provided, the Holders of a majority in principal amount of the
outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if (i) the
Company has paid or deposited with the Trustee a sum sufficient to pay (A) all
overdue interest on all Securities of that series, (B) the principal of (and
premium, if any, on) any Securities of that series which have become due
otherwise than by such declaration of acceleration and any interest thereon at
the rate or rates prescribed therefor in such Securities, (C) to the extent that
payment of such interest is lawful, interest upon overdue interest at the rate
or rates prescribed therefor in such Securities, and (D) all sums paid or
advanced by the Trustee hereunder and the reasonable compensation, expenses,
disbursements, and advances of the Trustee and its agents and counsel and (ii)
all Events of Default with respect to Securities of that series, other than the
nonpayment of the principal of Securities of that series which have

                                      -35-

become due solely by such declaration of acceleration, have been cured or waived
as provided in Section 8.01(d). No such rescission will affect any subsequent
default or impair any right consequent thereon.

         (d) The Holders of 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 (i) in the payment of the principal of or any
premium or interest on any Security of such series or (ii) in respect of a
covenant or provision hereof which under Article X 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 will cease to exist, and any Event
of Default arising therefrom will be deemed to have been cured, for every
purpose of this Indenture, but no such waiver will extend to any subsequent or
other default or impair any right consequent thereon.

     Section 8.02. Covenant of Company to Pay to Trustee Whole Amount Due on
Securities on Default in Payment of Interest or Principal; Suits for Enforcement
by Trustee.

         (a) The Company covenants that if (i) default is made in the payment of
any interest on any Security when such interest becomes due and payable and such
default continues for a period of 30 calendar days or (ii) default is made in
the payment of the principal of (or premium, if any, on) any Security when it
becomes due and payable, the Company will, upon demand of the Trustee, pay to
it, for the benefit of the Holders of such Securities, the whole amount then due
and payable on such Securities for principal and any premium and interest and,
to the extent that payment of such interest will be legally enforceable,
interest on any overdue principal and premium and on any overdue interest, at
the rate or rates prescribed therefor in such Securities, and, in addition
thereto, such further amount as will be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements, and advances of the Trustee and its agents and counsel.

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

         (c) In case of any judicial proceeding relative to the Company (or any
other obligor upon the Securities), its property or its creditors, the Trustee
will be entitled and empowered, by intervention in such proceeding or otherwise,
to take any and all actions authorized under the Trust Indenture Act in order to
have claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee will be authorized 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,

                                      -36-

liquidator, sequestrator, or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee consents to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements, and advances of the
Trustee and its agents and counsel, and any other amounts due the Trustee under
Section 9.06.

         (d) No provision of this Indenture will be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment, or composition affecting
the Securities or the rights of any Holder thereof or to authorize the Trustee
to vote in respect of the claim of any Holder in any such proceeding; provided,
however, that the Trustee may, on behalf of the Holders, vote for the election
of a trustee in bankruptcy or similar official and be a member of a creditors'
or other similar committee.

         (e) All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee will be brought in
its own name as trustee of an express trust, and any recovery of judgment will,
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 8.03. Application of Money Collected by Trustee.

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

         FIRST:        To the payment of all amounts due the Trustee under
                       Section 9.06;

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

         THIRD:        To the Company.

                                      -37-

     Section 8.04. Limitation on Suits by Holders of Securities.

         No Holder of any Security of any series will 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 25% in principal amount of the
Outstanding Securities of that series shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default in its own
name as Trustee hereunder, (c) such Holder or Holders have offered to the
Trustee indemnity satisfactory to the Trustee against the costs, expenses, and
liabilities to be incurred in compliance with such request, (d) the Trustee for
60 calendar days after its receipt of such notice, request, and offer of
indemnity satisfactory to it 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, it being understood and
intended that no one or more of such Holders will have any right in any manner
whatsoever 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 (it being
understood that the Trustee does not have an affirmative duty to ascertain
whether or not such actions or forbearances are unduly prejudicial to such
Holders), or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.

     Section 8.05. Rights and Remedies Cumulative; Delay or Omission in Exercise
of Rights not a Waiver of Event of Default.

         (a) Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost, or stolen Securities in the last
paragraph of Section 2.07, no right or remedy herein conferred upon or reserved
to the Trustee or to the Holders is intended to be exclusive of any other right
or remedy, and every right and remedy will, 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, will not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

         (b) No delay or omission of the Trustee or of any Holder of any
Securities to exercise any right or remedy accruing upon any Event of Default
will 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
VIII or by law to the Trustee or to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by the Trustee or by the Holders,
as the case may be.

                                      -38-

     Section 8.06. Rights of Holders of Majority in Principal Amount of
Outstanding Securities to Direct Trustee.

         The Holders of a majority in principal amount of the Outstanding
Securities of any series will 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 (a) such direction will not be in
conflict with any rule of law or with this Indenture and (b) the Trustee may
take any other action deemed proper by the Trustee which is not inconsistent
with such direction.

     Section 8.07. Requirement of an Undertaking to Pay Costs in Certain Suits
Under the Indenture or Against the Trustee.

         In any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken, suffered, or
omitted by it as Trustee, a court may require any party litigant in such suit to
file an undertaking to pay the costs of such suit, and may assess costs,
including attorney's fees and expenses, against any such party litigant, in the
manner and to the extent provided in the Trust Indenture Act; provided that
neither this Section 8.07 nor the Trust Indenture Act will be deemed to
authorize any court to require such an undertaking or to make such an assessment
in any suit instituted by the Trustee, a suit by a Holder pursuant to Section
8.09 hereof, or a suit by Holders of more than 10% in aggregate principal amount
of the then Outstanding Securities.

     Section 8.08. Notice of Defaults.

         If a Default occurs hereunder with respect to Securities of any series,
the Trustee will give the Holders of Securities of such series notice of such
Default as and to the extent provided by the Trust Indenture Act; provided,
however, that in the case of any Default of the character specified in Section
8.01(a)(iv) with respect to Securities of such series no such notice to Holders
will be given until at least 30 calendar days after the occurrence thereof. The
Company will give the Trustee notice of any uncured Event of Default within 10
days after any officer of the Company becomes aware of or receives actual notice
of such Event of Default.

     Section 8.09. Unconditional Right of Holders to Receive Principal, Premium,
and Interest.

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

                                      -39-

     Section 8.10. Restoration of Rights and Remedies.

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

     Section 8.11. Trustee May File Proofs of Claims.

         The Trustee may file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements,
and advances of the Trustee, its agents and counsel) and the Holders allowed in
any judicial proceeding relative to the Company or the Subsidiaries (or any
other obligor upon the Securities), their creditors or their property and shall
be entitled and empowered to collect and receive any monies or other property
payable or deliverable on any such claim and to distribute the same, and any
custodian in any such judicial proceedings is hereby authorized by each Holder
to make such payments to the Trustee and, in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses,
disbursements, and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee hereunder. Nothing herein contained shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

                                  Article IX.

                             CONCERNING THE TRUSTEE

     Section 9.01. Certain Duties and Responsibilities.

         (a) Except during the continuance of an Event of Default,

             (1)      the Trustee undertakes to perform such duties and only
                      such duties as are specifically set forth in this
                      Indenture, and no implied covenants or obligations shall
                      be read into this Indenture against the Trustee; and

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

                                      -40-

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

         (b) In case an Event of Default has occurred and is continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in its exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs.

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

             (1)      this Subsection shall not be construed to limit the effect
                      of Subsection (a) of this Section;

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

             (3)      the Trustee shall not be liable with respect to any action
                      taken or omitted to be taken by it in good faith in
                      accordance with the direction of the Holders of a majority
                      in principal amount of the Outstanding Securities of any
                      series, determined as provided in Sections 1.01, 8.06 and
                      14.11, relating to the time, method and place of
                      conducting any proceeding for any remedy available to the
                      Trustee, or exercising any trust or power conferred upon
                      the Trustee, under this Indenture with respect to the
                      Securities of such series; and

             (4)      no provision of this Indenture shall require the Trustee
                      to expend or risk its own funds or otherwise incur any
                      financial liability in the performance of any of its
                      duties hereunder, or in the exercise of any of its rights
                      or powers.

         (d) Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this
Section.

     Section 9.02. Certain Rights of Trustee.

         Subject to the provisions of Section 9.01:

                                      -41-

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

         (b) any request or direction of the Company mentioned herein will be
sufficiently evidenced by a Company Request or Company Order and any resolution
of the Board will 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,
conclusively rely upon an Officer's Certificate;

         (d) the Trustee may consult with counsel of its selection and the
advice of such counsel or any Opinion of Counsel will 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 will be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of
any of the Holders pursuant to this Indenture, unless such Holders shall have
offered to the Trustee security or indemnity 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 will 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,
Security, other evidence of indebtedness, or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it will be entitled to examine the
books, records, and premises of the Company, personally or by agent or attorney
at the sole cost of the Company and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation;

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

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

                                      -42-

         (i) in no event shall the Trustee be responsible or liable for special,
indirect, or consequential loss or damage of any kind whatsoever (including, but
not limited to, loss of profit) irrespective of whether the Trustee has been
advised of the likelihood of such loss or damage and regardless of the form of
action;

         (j) the Trustee shall not be deemed to have notice of any Default or
Event of Default unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a
default is received by the Trustee at the Corporate Trust Office of the Trustee,
and such notice references the Securities and this Indenture;

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

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

     Section 9.03. Not Responsible for Recitals or Issuance of Securities.

         The recitals contained herein and in the Securities, except the
Trustee's certificates of authentication, may 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. The Trustee
or any Authenticating Agent will not be accountable for the use or application
by the Company of Securities or the proceeds thereof.

     Section 9.04. May Hold Securities.

         The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar, or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections
9.07 and 9.12, may otherwise deal with the Company with the same rights it would
have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar, or such other agent.

     Section 9.05. Money Held in Trust.

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

                                      -43-

     Section 9.06. Compensation and Reimbursement.

         The Company will (a) pay to the Trustee from time to time such
compensation for all services rendered by it hereunder as the parties shall
agree from time to time (which compensation will not be limited to any provision
of law in regard to the compensation of a trustee of an express trust); (b)
except as otherwise expressly provided herein, reimburse the Trustee upon its
request for all reasonable expenses, disbursements, and advances incurred or
made by the Trustee in accordance with provision of this Indenture (including
the reasonable compensation and the expenses and disbursements of agents and
counsel), except any such expense, disbursement, or advance as shall be
determined to have been caused by its own negligence or willful misconduct; and
(c) indemnify each of the Trustee and any predecessor Trustee and their agents
for, and hold them harmless against, any and all loss, liability, claim, damage
or expense, including taxes (other than taxes based on the income of the
Trustee) incurred without negligence or willful misconduct on its part arising
out of or in connection with the acceptance or administration of the trust or
trusts hereunder, including the costs and expenses of defending itself against
any claim (whether asserted by the Company, any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers or
duties hereunder or in connection with enforcing the provisions of this Section.

         The Trustee shall have a lien prior to the Securities as to all
property and funds held by it hereunder for any amount owing it or any
predecessor Trustee pursuant to this Section 9.06, except with respect to funds
held in trust for the benefit of the Holders of particular Securities.

         When the Trustee incurs expenses or renders services in connection with
an Event of Default specified in Section 8.01(a)(vi) or Section 8.01(a)(vii),
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.

         The provisions of this Section shall survive the termination of this
Indenture and resignation or removal of the Trustee.

     Section 9.07. Disqualification; Conflicting Interests.

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

     Section 9.08. Corporate Trustee Required; Eligibility.

         There will at all times be one or more Trustees hereunder with respect
to the Securities of each series, at least one of which will be a Person that is
eligible pursuant to the Trust Indenture Act to act as such and has a combined
capital and surplus of at least $50,000,000 and its Corporate Trust Office or
principal office in New York City, or any other major city in the United States
that is acceptable to the Company. If

                                      -44-

such Person publishes reports of condition at least annually, pursuant to law or
to the requirements of a supervising or examining state or Federal authority,
then for the purposes of this Section 9.08, the combined capital and surplus of
such Person shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section
9.08, it will resign immediately in the manner and with the effect hereinafter
specified in this Article IX.

     Section 9.09. Resignation and Removal; Appointment of Successor.

         (a) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article IX will become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 9.10.

         (b) The Trustee may resign at any time with respect to the Securities
of one or more series by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 9.10 shall
not have been delivered to the Trustee within 30 calendar days after the giving
of such notice of resignation, the resigning Trustee may, at the expense of the
Company, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

         (c) The Trustee may be removed at any time with respect to the
Securities of any series by Act of the Holders of a majority in principal amount
of the Outstanding Securities of such series, delivered to the Trustee and to
the Company. If the instrument of acceptance by a successor Trustee required by
Section 9.10 shall not have been delivered to the Trustee within 30 calendar
days after the giving of such notice of removal, the Trustee being removed may,
at the expense of the Company, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

         (d) If, at any time, (i) the Trustee fails to comply with Section 9.07
after written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Security for at least six months, (ii) the Trustee ceases
to be eligible under Section 9.08 and fails to resign after written request
therefor by the Company or by any such Holder, or (iii) the Trustee becomes
incapable of acting or is adjudged a bankrupt or insolvent or a receiver of the
Trustee or of its property is appointed or any public officer takes 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, (A) the
Company by a Board Resolution may remove the Trustee with respect to all
Securities or (B) subject to Section 8.07, any Holder who has been a bona fide
Holder of a Security for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees.

                                      -45-

         (e) If the Trustee resigns, is removed, or becomes incapable of acting,
or if a vacancy occurs in the office of Trustee for any cause, with respect to
the Securities of one or more series, the Company by a Board Resolution will
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 will be only one Trustee with respect to the
Securities of any particular series) and will comply with the applicable
requirements of Section 9.10. 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 is 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 will, forthwith upon its acceptance of such appointment in accordance
with the applicable requirements of Section 9.10, become the successor Trustee
with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect
to the Securities of any series shall have been so appointed by the Company or
the Holders and accepted appointment in the manner required by Section 9.10, any
Holder who has been a bona fide Holder of a Security of such series for at least
six months may, on behalf of himself and all others similarly situated, at the
expense of the Company, petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such
series.

         (f) The Company will give notice of each resignation and each removal
of the Trustee with respect to the Securities of any series and each appointment
of a successor Trustee with respect to the Securities of any series to all
holders of Securities of such series in the manner provided in Section 15.03.
Each notice will include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

     Section 9.10. Acceptance of Appointment by Successor.

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

         (b) In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee, and each successor Trustee with respect to the Securities of
one or more series will execute and deliver an indenture supplemental hereto
wherein such successor

                                      -46-

Trustee will accept such appointment and which (i) will contain such provisions
as may 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, (ii) if the retiring Trustee
is not retiring with respect to all Securities, will contain such provisions as
may 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 will
continue to be vested in the retiring Trustee, and (iii) will add to or change
any of the provisions of this Indenture as may 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 will
constitute such Trustees co-trustees of the same trust and that each such
Trustee will be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustees and upon
the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee will become effective to the extent provided
therein and each such successor Trustee, without any further act, deed, or
conveyance, will 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 will duly assign,
transfer, and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.

         (c) Upon request of any such successor Trustee, the Company will
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all applicable rights, powers, and trusts
referred to in the preceding paragraphs of this Section 9.10.

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

     Section 9.11. 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 may be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of the Trustee, will be the successor of the Trustee hereunder, provided such
corporation is otherwise qualified and eligible under this Article IX, without
the execution or filing of any paper or any further act on the part of any of
the parties hereto. In case any Securities shall have been authenticated, but
not delivered, by the Trustee then in office, any successor by merger,
conversion, or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities.

                                      -47-

     Section 9.12. Preferential Collection of Claims Against Company.

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

     Section 9.13. Appointment of Authenticating Agent.

         (a) The Trustee may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which will be authorized to act on
behalf of the Trustee to authenticate Securities of such series issued upon
original issue and upon exchange, registration of transfer, or partial
redemption thereof or pursuant to Section 2.07, and Securities so authenticated
will be entitled to the benefits of this Indenture and will be valid and
obligatory for all purposes as if authenticated by the Trustee hereunder.
Wherever reference is made in this Indenture to the authentication and delivery
of Securities by the Trustee or the Trustee's certificate of authentication,
such reference will be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a corporation organized and doing business under the laws of the United
States of America, any state thereof, or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination
by Federal or state authority. If such Authenticating Agent publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section 9.13,
the combined capital and surplus of such Authenticating Agent will be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section 9.13, such
Authenticating Agent will resign immediately in the manner and with the effect
specified in this Section 9.13.

         (b) 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
may be a party, or any corporation succeeding to all or substantially all the
corporate agency or corporate trust business of an Authenticating Agent, will
continue to be an Authenticating Agent, provided such corporation is otherwise
eligible under this Section 9.13, without the execution or filing of any paper
or any further act on the part of the Trustee or the Authenticating Agent.

         (c) An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof
to such Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease

                                      -48-

to be eligible in accordance with the provisions this Section 9.13, the Trustee
may appoint a successor Authenticating Agent which shall be acceptable to the
Company and will mail written notice of such appointment by first-class mail,
postage prepaid, to all Holders of Securities of the series with respect to
which such Authenticating Agent will serve, as their names and addresses appear
in the Security Register. Any successor Authenticating Agent upon acceptance of
its appointment hereunder will become vested with all the rights, powers, and
duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent will be appointed
unless eligible under the provisions of this Section 9.13.

         (d) The Company agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section 9.13.

         (e) If an appointment with respect to one or more series of Securities
is made pursuant to this Section 9.13, the Securities of such series may have
endorsed thereon, in addition to the Trustee's certificate of authentication, an
alternative form of certificate of authentication in the following form:

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

                                     Wachovia Bank, National Association,
                                     as Trustee

Dated:                               By:
       --------------------              ----------------------------------
                                              As Authenticating Agent

                                     By:
                                         ----------------------------------
                                              Authorized Signatory

     Section 9.14. Trustee's Application for Instructions from the Company.

         Any application by the Trustee for written instructions from the
Company may, at the option of the Trustee, set forth in writing any action
proposed to be taken or omitted by the Trustee under this Indenture and the date
on and/or after which such action shall be taken or such omission shall be
effective. The Trustee shall not be liable for any action taken by, or omission
of, the Trustee in accordance with a proposal included in such application on or
after the date specified in such application (which date shall not be less than
three Business Days after the date any officer of the Company actually receives
such application, unless any such officer shall have consented in writing to any
earlier date) unless prior to taking any such action (or the effective date in
the case of an omission), the Trustee shall have received written instructions
in response to such application specifying the action to be taken or omitted.

                                      -49-

                                   Article X.

                   SUPPLEMENTAL INDENTURES AND CERTAIN ACTIONS

     Section 10.01. Purposes for Which Supplemental Indentures May Be Entered
Into Without Consent of Holders.

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

         (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, all to the extent otherwise permitted hereunder;

         (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;

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

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

         (f) to establish the form or terms of Securities of any series as
permitted by Sections 2.01 and 2.02;

         (g) 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 may be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, pursuant to the requirements of Section 9.10; or

         (h) 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

                                      -50-

any other provisions with respect to matters or questions arising under this
Indenture, provided that such action pursuant to this clause (h) will not
adversely affect the interests of the Holders of Securities of any series in any
material respect.

     Section 10.02. Modification of Indenture with Consent of Holders of at
Least a Majority in Principal Amount of Outstanding Securities.

         (a) With the consent of the Holders of a majority in principal amount
of the Outstanding Securities of each series affected by such supplemental
indenture, by Act of said Holders delivered to the Company and the Trustee, the
Company, when authorized by a Board Resolution, and the Trustee may enter into
an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of modifying in any manner the rights of the Holders of
Securities of such series under this Indenture; provided, however that no such
supplemental indenture will, without the consent of the Holder of each
Outstanding Security affected thereby:

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

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

         (iii) modify any of the provisions of this Section 10.02, Section
     8.01(d) or Section 6.09, except to increase the percentage in principal
     amount of Holders required under any such Section or to provide that
     certain other provisions of this Indenture cannot be modified or waived
     without the consent of the Holder of each Outstanding Security affected
     thereby, provided, however that this clause (iii) will not be deemed to
     require the consent of any Holder with respect to changes in the references
     to "the Trustee" and concomitant changes in this Section 10.02 and Section
     6.09, or the deletion of this proviso, in accordance with the requirements
     of Sections 9.10 and 10.01(g).

         (b) A supplemental indenture which changes or eliminates any covenant
or other provision of this Indenture which has expressly been included solely
for the benefit of one or more particular series of Securities, or which
modifies the rights

                                      -51-

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

         (c) It will not be necessary for any Act of Holders under this Section
10.02 to approve the particular form of any proposed supplemental indenture, but
it will be sufficient if such Act approves the substance thereof.

     Section 10.03. Execution of Supplemental Indentures.

         In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article X or the modifications thereby
of the trusts created by this Indenture, the Trustee will receive, and (subject
to Section 9.01) will be fully protected in relying upon, an Officer's
Certificate and an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee
may, but will 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 10.04. Effect of Supplemental Indentures.

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

     Section 10.05. Conformity with Trust Indenture Act.

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

     Section 10.06. Reference in Securities to Supplemental Indentures.

         Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article X may, and will
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.

                                      -52-

                                   Article XI.

                    CONSOLIDATION, MERGER, SALE, OR TRANSFER

     Section 11.01. Consolidations and Mergers of Company and Sales Permitted
Only on Certain Terms.

         (a) The Company shall not (1) consolidate with or merge with or into
any other Person, or transfer (by lease, assignment, sale, or otherwise) all or
substantially all of its properties and assets to another Person in any one
transaction or series of related transactions or (2) permit any Person to
consolidate with or merge into the Company, unless (i) either (A) the Company
shall be the continuing or surviving Person in such a consolidation or merger or
(B) the Person (if other than the Company) formed by such consolidation or into
which the Company is merged or to which all or substantially all of the
properties and assets of the Company are transferred (the Company or such other
Person being referred to as the "Surviving Person") shall be a corporation
organized and validly existing under the laws of the United States, any state
thereof, or the District of Columbia, and shall expressly assume, by a
supplemental indenture, all the obligations of the Company under the Securities
and the Indenture, (ii) immediately after the transaction and the incurrence or
anticipated incurrence of any Indebtedness to be incurred in connection
therewith, no Default or Event of Default should have occurred and be
continuing, and (iii) an Officer's Certificate has been delivered to the Trustee
to the effect that the conditions set forth in the preceding clauses (i) and
(ii) have been satisfied and an Opinion of Counsel (from a counsel who shall not
be an employee of the Company) has been delivered to the Trustee to the effect
that the conditions set forth in the preceding clause (i) have been satisfied.

         (b) The Surviving Person will succeed to and be substituted for the
Company with the same effect as if it had been named herein as a party hereto,
and thereafter the predecessor corporation will be relieved of all obligations
and covenants under this Indenture and the Securities.

                                  Article XII.

                     SATISFACTION AND DISCHARGE OF INDENTURE

     Section 12.01. Satisfaction and Discharge of Indenture.

         This Indenture will upon a Company Request cease to be of further
effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for), and the Trustee, at the
expense of the Company, will execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when: (a) either (i) all
Securities theretofore authenticated and delivered (other than (A) Securities
which have been destroyed, lost, or stolen and which have been replaced or paid
as provided in Section 2.07 and (B) Securities for the payment of which 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 6.03) have been delivered to the Trustee for cancellation or
(ii) all such Securities not

                                      -53-

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) 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 clause (A), (B), or (C) above, has deposited or caused to be deposited
with the Trustee as trust funds in trust for such purpose an amount sufficient
to pay and discharge the entire indebtedness on such Securities not theretofore
delivered to the Trustee for cancellation, for principal and any premium and
interest to the date of such deposit (in the case of Securities which have
become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be; (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 Officer's Certificate and an Opinion of Counsel, each stating that
all conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been satisfied. Notwithstanding the
satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee under Section 9.06, the obligations of the Company to any
Authenticating Agent under Section 9.13, and, if money shall have been deposited
with the Trustee pursuant to subclause (ii) of clause (a) of this Section 12.01,
the obligations of the Trustee under Sections 6.03(e) and 12.02, will survive.

     Section 12.02. Application of Trust Money.

         Subject to provisions of Section 6.03(e), all money deposited with the
Trustee pursuant to Section 12.01 will be held in trust and applied by it, in
accordance with the provisions of the Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal and any premium and interest for whose
payment such money has been deposited with the Trustee.

                                  Article XIII.

                                   GUARANTEES

     Section 13.01. Unconditional Guarantee.

     Each Subsidiary Guarantor hereby, jointly and severally, unconditionally
guarantees (such guarantee to be referred to herein as the "Subsidiary
Guarantee") to each Holder and to the Trustee the due and punctual payment of
the principal of, premium, if any, and interest on the Securities and all other
amounts due and payable under this Indenture and the Securities by the Company
whether at maturity, by acceleration, redemption, repurchase or otherwise,
including, without limitation, amounts owed the Trustee under Section 9.06,
interest on the overdue principal of, premium, if any, and interest on the
Securities, to the extent lawful, all in accordance with the terms hereof and
thereof; subject, however, to the limitations set forth in this Article XIII and
Article XIV.

                                      -54-

     Failing payment when due of any amount so guaranteed for whatever reason,
the Subsidiary Guarantors will be jointly and severally obligated to pay the
same immediately. Each Subsidiary Guarantor hereby agrees that its obligations
hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Securities or this Indenture, the absence of any action to
enforce the same, any waiver or consent by any Holder of the Securities with
respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor. Each Subsidiary Guarantor hereby waives diligence, presentment,
demand of payments, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever and covenants that this
Subsidiary Guarantee will not be discharged except by complete performance of
the obligations contained in the Securities, this Indenture and in this
Subsidiary Guarantee. If any Holder or the Trustee is required by any court or
otherwise to return to the Company, any Subsidiary Guarantor, or any custodian,
trustee, liquidator or other similar official acting in relation to the Company
or any Subsidiary Guarantor, any amount paid by the Company or any Subsidiary
Guarantor to the Trustee or such Holder, this Subsidiary Guarantee, to the
extent theretofore discharged, shall be reinstated in full force and effect.
Each Subsidiary Guarantor agrees it shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby. Each
Subsidiary Guarantor further agrees that, as between each Subsidiary Guarantor,
on the one hand, and the Holders and the Trustee, on the other hand, (x) the
maturity of the Obligations guaranteed hereby may be accelerated as provided in
Article VIII for the purposes of this Subsidiary Guarantee, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect of
the obligations guaranteed hereby, and (y) in the event of any acceleration of
such obligations as provided in Article VIII, such obligations (whether or not
due and payable) shall forthwith become due and payable by each Subsidiary
Guarantor for the purpose of this Subsidiary Guarantee.

     The Subsidiary Guarantee of each Subsidiary Guarantor herein shall be, in
the manner and to the extent set forth in Article XIV, subordinated in right of
payment to the prior payment when due of the principal of, premium, if any,
accrued and unpaid interest and all other amounts owing on all existing and
future Senior Debt of such Subsidiary Guarantor and of the Company, as the case
may be, and senior to the right of payment of principal of, premium, if any, and
accrued and unpaid interest on all existing and future Subordinated Indebtedness
of such Subsidiary Guarantor that is subordinated in right of payment to the
Securities or the Subsidiary Guarantee.

     Section 13.02. Limitation of Subsidiary Guarantor's Liability.

     Each Subsidiary Guarantor and by its acceptance hereof each Holder hereby
confirms that it is the intention of all such parties that the guarantee by such
Subsidiary Guarantor pursuant to its Subsidiary Guarantee not constitute a
fraudulent transfer or conveyance for purposes of any federal, state or foreign
law. To effectuate the foregoing intention, the Holders and each Subsidiary
Guarantor hereby irrevocably agree that the

                                      -55-

obligations of each Subsidiary Guarantor under its Subsidiary Guarantee shall be
limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Subsidiary Guarantor and after giving
effect to any collections from or payments made by or on behalf of any other
Subsidiary Guarantor in respect of the obligations of such other Subsidiary
Guarantor under its Subsidiary Guarantee or pursuant to Section 13.03, result in
the obligations of such Subsidiary Guarantor under the Subsidiary Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under federal, state
or foreign law.

     Section 13.03. Contribution.

     In order to provide for just and equitable contribution among the
Subsidiary Guarantors, the Subsidiary Guarantors agree, inter se, that in the
event any payment or distribution is made by any Subsidiary Guarantor (a
"Funding Guarantor") under the Subsidiary Guarantee, such Funding Guarantor
shall be entitled to a contribution from each other Subsidiary Guarantor for all
payments, damages and expenses incurred by the Funding Guarantor in discharging
the Company's Obligations with respect to the Securities or any other Subsidiary
Guarantor's Obligations with respect to the Subsidiary Guarantee.

     Section 13.04. Execution and Delivery of Subsidiary Guarantees.

     Each Subsidiary Guarantor hereby agrees that its execution and delivery of
this Indenture or any supplemental indentures pursuant to Section 10.03 hereof
shall evidence its Subsidiary Guarantee set forth in Section 13.01 without the
need for any further notation on the Securities.

     Each of the Subsidiary Guarantors hereby agrees that its Subsidiary
Guarantee set forth in Section 13.01 shall remain in full force and effect
notwithstanding any failure to endorse on each Security a notation relating to
such Subsidiary Guarantee.

     If an Officer of a Subsidiary Guarantor whose signature is on this
Indenture or any Supplemental indenture no longer holds that office at the time
the Trustee authenticates such Securities or at any time thereafter, such
Subsidiary Guarantor's Subsidiary Guarantee shall be valid nevertheless.

     The delivery of any Security by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of any Subsidiary Guarantee set
forth in this Indenture on behalf of the Subsidiary Guarantor.

     Section 13.05. Severability.

     In case any provision of this Subsidiary Guarantee shall be invalid,
illegal or unenforceable, that portion of such provision that is not invalid,
illegal or unenforceable shall remain in effect, and the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

                                      -56-

                                  Article XIV.

                     SUBORDINATION OF SUBSIDIARY GUARANTEES

     Section 14.01. Guarantees Subordinated to Senior Debt.

     Each Subsidiary Guarantor agrees, and each Holder by accepting a Security
agrees, that any payment in respect of the Subsidiary Guarantee of such
Subsidiary Guarantor is subordinated in right of payment, to the extent and in
the manner provided in this Article XIV, to the prior payment in full in cash of
all Senior Debt of such Subsidiary Guarantor (whether outstanding on the date
hereof or hereafter created, incurred, assumed or guaranteed), and that the
subordination is for the benefit of the holders of Senior Debt.

     This Article XIV shall constitute a continuing offer to all Persons who
become holders of, or continue to hold, Senior Debt, and such provisions are
made for the benefit of the holders of Senior Debt, and such holders are made
obligees hereunder and any one or more of them may enforce such provisions.

     Section 14.02. Liquidation; Dissolution; Bankruptcy.

     The holders of Senior Debt of the Subsidiary Guarantors shall be entitled
to receive payment in full in cash of all Obligations due in respect of such
Senior Debt (including interest after the commencement of any bankruptcy
proceeding at the rate specified in the applicable Senior Debt of the Company)
before the Holders of Securities shall be entitled to receive any payment with
respect to any such Subsidiary Guarantor's Subsidiary Guarantee or any
distribution of assets or proceeds (except that Holders of Securities may
receive and retain Permitted Junior Securities and payments made from the trust
pursuant to Article V hereof), in the event of any distribution to creditors of
any such Subsidiary Guarantors in connection with:

     (i) any liquidation or dissolution of such Subsidiary Guarantor, whether
voluntary or involuntary;

     (ii) any bankruptcy, reorganization, insolvency, receivership or similar
proceeding relating to such Subsidiary Guarantor or its property, whether
voluntary or involuntary;

     (iii) any assignment for the benefit of such Subsidiary Guarantor's
creditors; or

     (iv) any marshaling of such Subsidiary Guarantor's assets and liabilities.

     The Company shall give prompt written notice to the Trustee of the
occurrence of any event described in clauses (i) through (iv) above with respect
to any Subsidiary Guarantor.

                                      -57-

     Section 14.03. Default on Designated Senior Debt

     No Subsidiary Guarantor may make any payment in respect of its Subsidiary
Guarantee or any distribution of assets or proceeds (except in respect of
Permitted Junior Securities or from the trust pursuant to Article V hereof) if:

     (1) a payment default on Designated Senior Debt of such Subsidiary
Guarantor occurs and is continuing beyond any applicable grace period; or

     (2) any other default occurs and is continuing on any series of Designated
Senior Debt of such Subsidiary Guarantor that permits holders of that series of
Designated Senior Debt of such Subsidiary Guarantor to accelerate its maturity
and the Trustee receives a notice (a "Subsidiary Payment Blockage Notice") of
such default from the Company, such Subsidiary Guarantor or any agent or
representative with respect to such Designated Senior Debt (a "Subsidiary
nonpayment default").

     Payments on such Subsidiary Guarantee may be resumed:

     (1) in the case of a payment default on Designated Senior Debt of such
Subsidiary Guarantor, upon the date on which such default is cured or waived;
and

     (2) in case of a Subsidiary nonpayment default, the earlier of (x) the date
on which such default is cured or waived or (y) 179 days after the date on which
the applicable Subsidiary Payment Blockage Notice is received by the Trustee,
unless the maturity of such Designated Senior Debt of such Subsidiary Guarantor
has been accelerated.

     No new Subsidiary Payment Blockage Notice may be delivered unless and until
360 days have elapsed since the delivery of the immediately prior Subsidiary
Payment Blockage Notice.

     No Subsidiary nonpayment default that existed or was continuing on the date
of delivery of any Subsidiary Payment Blockage Notice to the Trustee shall be,
or be made, the basis for a subsequent Subsidiary Payment Blockage Notice unless
such default has been cured or waived for a period of not less than 90 days.

     Section 14.04. Guarantees Unconditional.

     Except as otherwise provided herein, nothing contained in this Indenture or
in any Guarantee is intended to or shall impair, as between the Subsidiary
Guarantors and the Holders, the Guarantees, which are absolute and
unconditional, as and when the same shall become due and payable in accordance
with their terms, or is intended to or shall affect the relative rights of the
Holders and creditors of the Subsidiary Guarantors, other than the holders of
the Senior Debt, nor shall anything herein or therein prevent the Trustee or any
Holder from exercising all remedies otherwise permitted by applicable law upon
default under this Indenture, subject to the rights, if any, under this Article
XIV, of the holders of Senior Debt in respect of cash, property or securities of
any Subsidiary Guarantor received upon the exercise of any such remedy. Upon any
distribution of

                                      -58-

assets of any Subsidiary Guarantor referred to in this Article XIV, the Trustee,
subject to the provisions of Section 9.01, and the Holders shall be entitled to
rely upon any order or decree made by any court of competent jurisdiction in
which any insolvency or liquidation proceedings is pending, or a certificate of
the liquidating trustee or agent or other Person making any distribution to the
Trustee or to the Holders for the purpose of ascertaining the Persons entitled
to participate in such distribution, the holders of the Senior Debt and other
indebtedness of such Subsidiary Guarantor, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article XIV.

     Section 14.05. When Distribution Must Be Paid Over.

     If the Trustee or any Holder of the Securities receives a payment in
respect of any Subsidiary Guarantor's Subsidiary Guarantee (except in respect of
Permitted Junior Securities or from the trust under Article V hereof) when:

     (1) the payment is prohibited by this Article XIV; and

     (2) the Trustee or the Holder has actual knowledge that the payment is
prohibited;

         the Trustee or the Holder, as the case may be, shall hold the payment
     in trust for the benefit of the holders of Senior Debt of such Subsidiary
     Guarantor and shall deliver notice thereof to the agent or representative
     of the holders of such Senior Debt. Upon the proper written request of the
     agent or representative of the holders of Designated Senior Debt of such
     Subsidiary Guarantor, or, if no such Designated Senior Debt exists, the
     holders of Senior Debt of such Subsidiary Guarantor, the Trustee or the
     Holder, as the case may be, shall deliver the amounts in trust to the
     holders of Senior Debt of such Subsidiary Guarantor or their proper
     representative.

     With respect to the holders of Senior Debt, the Trustee undertakes to
perform only such obligations on the part of the Trustee as are specifically set
forth in this Article XIV, and no implied covenants or obligations with respect
to the holders of Senior Debt shall be read into this Indenture against the
Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt, and shall not be liable to any such holders if the
Trustee shall mistakenly pay over or distribute to or on behalf of Holders or
any Subsidiary Guarantor or any other Person money or assets to which any
holders of Senior Debt shall be entitled by virtue of this Article XIV, except
if such payment is made as a result of the willful misconduct or gross
negligence of the Trustee.

     Section 14.06. Notice by the Company.

     The Company shall promptly notify the Trustee and the Paying Agent in
writing of any facts known to the Company that would cause a payment of any
Obligations with respect to the Subsidiary Guarantees to violate this Article
XIV, but failure to give such notice shall not affect the subordination of the
Subsidiary Guarantees to the Senior Debt as provided in this Article XIV.

                                      -59-

     Section 14.07. Subrogation.

     After all Senior Debt of a Subsidiary Guarantor is paid in full and until
the Securities are paid in full, Holders of Securities shall be subrogated to
the rights of holders of such Senior Debt to receive distributions applicable to
Senior Debt to the extent that distributions otherwise payable to the Holders of
Securities have been applied to the payment of such Senior Debt. A distribution
made under this Article XIV to holders of such Senior Debt that otherwise would
have been made to Holders of Securities is not, as between any Subsidiary
Guarantor and the Holders, a payment by any such Subsidiary Guarantors with
respect to a Subsidiary Guarantee.

     Section 14.08. Relative Rights.

     This Article XIV defines the relative rights of Holders of Securities and
holders of Senior Debt of the Subsidiary Guarantors. Nothing in this Indenture
shall:

         (a) impair, as between any Subsidiary Guarantor and Holders of
Securities, the obligation of such Subsidiary Guarantor, which is absolute and
unconditional, to make payments in accordance with the terms of the Subsidiary
Guarantee;

         (b) affect the relative rights of Holders of Securities and creditors
of any Subsidiary Guarantor other than their rights in relation to holders of
such Senior Debt; or

         (c) prevent the Trustee or any Holder of Securities from exercising its
available remedies upon a Default or Event of Default, subject to the rights of
holders and owners of such Senior Debt to receive distributions and payments
otherwise payable to Holders of Securities by any such Subsidiary Guarantor.

     If any Subsidiary Guarantor fails because of this Article XIV to make a
payment pursuant to the terms of its Subsidiary Guarantee, the failure is still
a Default or Event of Default.

     Section 14.09. Subordination May Not Be Impaired by the Company.

     No right of any holder of Senior Debt of any Subsidiary Guarantor to
enforce the subordination of the Indebtedness evidenced by the Subsidiary
Guarantees shall be impaired by any act or failure to act by the Company, any
Subsidiary Guarantor or any Holder or by the failure of the Company, any
Subsidiary Guarantor or any Holder to comply with this Indenture.

     Section 14.10. Distribution or Notice to Representative.

     Whenever a distribution is to be made or a notice given to holders of
Senior Debt of the Subsidiary Guarantors, the distribution may be made and the
notice given to their Representative.

                                      -60-

     Upon any payment or distribution of assets of any Subsidiary Guarantor
referred to in this Article XIV, the Trustee and the Holders of Securities shall
be entitled to rely upon any order or decree made by any court of competent
jurisdiction or upon any certificate of such Representative or of the
liquidating trustee or agent or other Person making any distribution to the
Trustee or to the Holders of Securities for the purpose of ascertaining the
Persons entitled to participate in such distribution, the holders of the Senior
Debt and other Indebtedness of such Subsidiary Guarantor, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article XIV.

     Section 14.11. Rights of Trustee and Paying Agent.

     Notwithstanding the provisions of this Article XIV or any other provision
of this Indenture, the Trustee shall not be charged with knowledge of the
existence of any facts that would prohibit the making of any payment or
distribution by the Trustee, and the Trustee and the Paying Agent may continue
to make payments on the Securities, unless the Trustee shall have received at
its Corporate Trust Office at least five Business Days prior to the date of such
payment written notice of facts that would cause the payment of any Obligations
with respect to the Securities or any Subsidiary Guarantee to violate this
Article XIV. Only the Company or a Representative may give the notice. Nothing
in this Article Fourteen shall impair the claims of, or payments to, the Trustee
under or pursuant to Section 9.06 hereof.

     The Trustee in its individual or any other capacity may hold Senior Debt of
any Subsidiary Guarantor with the same rights it would have if it were not
Trustee. Any Agent may do the same with like rights.

     Section 14.12. Authorization to Effect Subordination.

     Each Holder of Securities, by the Holder's acceptance thereof, authorizes
and directs the Trustee on such Holder's behalf to take such action as may be
necessary or appropriate to effectuate the subordination as provided in this
Article XIV, and appoints the Trustee to act as such Holder's attorney-in-fact
for any and all such purposes. If the Trustee does not file a proper proof of
claim or proof of debt in the form required in any proceeding referred to in
Section 8.04 hereof at least 30 days before the expiration of the time to file
such claim, the lenders under the Credit Facilities are hereby authorized to
file an appropriate claim for and on behalf of the Holders of the Securities.

     Section 14.13. Trustee Not Fiduciary for Holders of Senior Debt.

         The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt and shall not be liable to any such holders if the
Trustee shall in good faith mistakenly pay over or distribute to Holders of the
Securities or to the Company, to a Subsidiary Guarantor or to any other person
cash, property or securities to which any holders of Senior Debt shall be
entitled by virtue of this Article or otherwise. With respect to the holders of
Senior Debt, the Trustee undertakes to perform or to observe only such of its
covenants or obligations as are specifically set forth in this Article and no

                                      -61-

implied covenants or obligations with respect to holders of Senior Debt shall be
read into this Indenture against the Trustee.

                                   Article XV.
                            MISCELLANEOUS PROVISIONS

     Section 15.01. Successors and Assigns of Company Bound by Indenture.

         All the covenants, stipulations, promises, and agreements in this
Indenture by or on behalf of the Company will bind its successors and assigns,
whether so expressed or not.

     Section 15.02. Service of Required Notice to Trustee and Company.

         Any request, demand, authorization, direction, notice, consent, waiver,
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 will be sufficient for every purpose hereunder if made, given,
furnished, or filed in writing to or with the Trustee at its Corporate Trust
Office, Attention: Corporate Trust Administration or (b) the Company by the
Trustee or by any Holder will 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 Armor Holdings, Inc.,
Attention: Philip A. Baratelli, or at any other address previously furnished in
writing to the Trustee by the Company.

     Section 15.03. Service of Required Notice to Holders; Waiver.

         Where this Indenture provides for notice to Holders of any event, such
notice will be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected
by such event, at his address as it appears in the Security Register, not later
than the latest date (if any, and not earlier than the earliest date (if any),
prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder will affect the sufficiency of such
notice with respect to other Holders. Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver will be
the equivalent of such notice. Waivers of notice by Holders will be filed with
the Trustee, but such filing will not be a condition precedent to the validity
of any action taken in reliance upon such waiver. In case by reason of the
suspension of regular mail service or by reason of any other cause it will be
impracticable to give such notice by mail, then such notification as may be made
with the approval of the Trustee will constitute a sufficient notification for
every purpose hereunder.

                                      -62-

     Section 15.04. Indenture and Securities to be Construed in Accordance with
the Laws of the State of New York; WAIVER OF JURY TRIAL.

         This Indenture and the Securities will be deemed to be a contract made
under the laws of the State of New York, and for all purposes will be construed
in accordance with the laws of said State without giving effect to principles of
conflicts of laws of such State.

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

     Section 15.05. Compliance Certificates and Opinions.

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

         Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture shall include: (1) a statement that the person
making such certificate or opinion has read such covenant or condition; (2) a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based; (3) a statement that, in the opinion of such person, he or she has
made such examination or investigation as is necessary to enable him or her to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and (4) a statement as to whether or not, in the opinion of
such person, such condition or covenant has been complied with.

     Section 15.06. Form of Documents Delivered to Trustee.

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

                                      -63-

applications, requests, consents, certificates, statements, opinions, or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

     Section 15.07. Payments Due on Non-Business Days.

         In any case where any Interest Payment Date, Redemption Date, or Stated
Maturity of any Security shall not be a Business Day at any Place of Payment,
then (notwithstanding any other provision of this Indenture or of the Securities
(other than a provision of the Securities of any series which specifically
states that such provision will apply in lieu of this Section 15.07)) payment of
interest or principal (and premium, if any) need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day at
such Place of Payment with the same force and effect as if made on the Interest
Payment Date or Redemption Date, or at the Stated Maturity, provided that no
interest will accrue for the period from and after such Interest Payment Date,
Redemption Date, or Stated Maturity, as the case may be.

     Section 15.08. Provisions Required by Trust Indenture Act to Control.

         If any provision of this Indenture limits, qualifies, or conflicts with
the duties imposed on any Person by Sections 310 to and including 317 of the
Trust Indenture Act (including provisions automatically deemed included in this
Indenture pursuant to the Trust Indenture Act unless this Indenture provides
that such provisions are excluded), which are deemed to be a part of and govern
this Indenture, whether or not contained herein, then such imposed duties will
control.

     Section 15.09. Invalidity of Particular Provisions.

         In case any one or more of the provisions contained in this Indenture
or in the Securities is for any reason held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or unenforceability
will not affect any other provision of this Indenture or of the Securities, but
this Indenture and such Securities will be construed as if such invalid or
illegal or unenforceable provision had never been contained herein or therein.

     Section 15.10. Indenture May be Executed In Counterparts.

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

     Section 15.11. Acts of Holders; Record Dates.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver, or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action will become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly

                                      -64-

required, to the Company. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
"Act" of the Holders signing such instrument or instruments. Proof of execution
of any such instrument or of a writing appointing any such agent will be
sufficient for any purpose of this Indenture and conclusive in favor of the
Trustee and the Company, if made in the manner provided in this Section 15.11.

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

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

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

         (e) The Company may, in the circumstances permitted by the Trust
Indenture Act, set any day as the record date for the purpose of determining the
Holders of Outstanding Securities of any series entitled to give or take any
request, demand, authorization, direction, notice, consent, waiver, or other
action provided or permitted by this Indenture to be given or taken by Holders
of Securities of such series. With regard to any record date set pursuant to
this paragraph, the Holders of Outstanding Securities of the relevant series on
such record date (or their duly appointed agents), and only such Persons, will
be entitled to give or take the relevant action, whether or not such Holders
remain Holders after such record date. With regard to any action that may be
given or taken hereunder only by Holders of a requisite principal amount of
Outstanding Securities of any series (or their duly appointed agents) and for
which a record date is set pursuant to this paragraph, the Company may, at its
option, set an expiration date after which no such action purported to be given
or taken by any Holder will be effective hereunder unless given or taken on or
prior to such expiration date by Holders of the requisite principal amount of
Outstanding Securities of such series on such record date (or their duly
appointed agents). On or prior to any expiration date set pursuant to this
paragraph, the Company may, on one or more occasions at its option, extend such
date to any later date. Nothing in this paragraph will prevent any Holder (or
any duly appointed agent thereof) from giving or taking, after any such
expiration date, any action identical to, or, at any time, contrary to or
different from, the action or purported action to which

                                      -65-

such expiration date relates, in which event the Company may set a record date
in respect thereof pursuant to this paragraph. Nothing in this Section 15.11(e)
will be construed to render ineffective any action taken at any time by the
Holders (or their duly appointed agents) of the requisite principal amount of
Outstanding Securities of the relevant series on the date such action is so
taken. Notwithstanding the foregoing or the Trust Indenture Act, the Company
will not set a record date for, and the provisions of this Section 15.1l(e) will
not apply with respect to, any notice, declaration, or direction referred to in
the next paragraph.

         (f) Upon receipt by the Trustee from any Holder of Securities of a
particular series of (a) any notice of default or breach referred to in Section
8.01(a)(iv) or 8.01(a)(v) with respect to Securities of such series, if such
default or breach has occurred and is continuing and the Trustee shall not have
given such notice to the Company, (b) any declaration of acceleration referred
to in Section 8.01(b), if an Event of Default with respect to Securities of such
series has occurred and is continuing and the Trustee shall not have given such
a declaration to the Company, or (c) any direction referred to in Section 8.06
with respect to Securities of such series, if the Trustee shall not have taken
the action specified in such direction, then a record date will automatically
and without any action by the Company or the Trustee be set for determining the
Holders of Outstanding Securities of such series entitled to join in such
notice, declaration, or direction, which record date will be the close of
business on the tenth calendar day following the day on which the Trustee
receives such notice, declaration, or direction. Promptly after such receipt by
the Trustee, and in any case not later than the fifth calendar day thereafter,
the Trustee will notify the Company and the Holders of Outstanding Securities of
such series of any such record date so fixed. The Holders of Outstanding
Securities of such series on such record date (or their duly appointed agents),
and only such Persons, will be entitled to join in such notice, declaration, or
direction, whether or not such Holders remain Holders after such record date;
provided that, unless such notice, declaration, or direction shall have become
effective by virtue of Holders of the requisite principal amount of Outstanding
Securities of such series on such record date (or their duly appointed agents)
having joined therein on or prior to the 90th calendar day after such record
date, such notice, declaration, or direction will automatically and without any
action by any Person be cancelled and of no further effect. Nothing in this
Section 15.11(f) will be construed to prevent a Holder (or a duly appointed
agent thereof) from giving, before or after the expiration of such 90-day
period, a notice, declaration, or direction contrary to or different from, or,
after the expiration of such period, identical to, the notice, declaration, or
direction to which such record date relates, in which event a new record date in
respect thereof will be set pursuant to this Section 15.11(f). Nothing in this
Section 15.11(f) will be construed to render ineffective any notice,
declaration, or direction of the type referred to in this Section 15.11(f) given
at any time to the Trustee and the Company by Holders (or their duly appointed
agents) of the requisite principal amount of Outstanding Securities of the
relevant series on the date such notice, declaration, or direction is so given.

         (g) Without limiting the foregoing, a Holder entitled hereunder to give
or take any action hereunder with regard to any particular Security may do so
with regard to all or any part of the principal amount of such Security or by
one or more duly

                                      -66-

appointed agents each of which may do so pursuant to such appointment with
regard to all or any different part of such principal amount.

     Section 15.12. Effect of Headings and Table of Contents.

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

     Section 15.13. Benefits of Indenture.

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

                                      -67-

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

                                     Armor Holdings, Inc.

                                     By: /s/ Philip A. Baratelli
                                        ----------------------------------------
                                     Name:  Philip A. Baratelli
                                          --------------------------------------
                                     Title: Corporate Controller,
                                              Treasurer and Secretary
                                           -------------------------------------

                                     Wachovia Bank, National Association

                                     By: /s/ Stephanie Moore
                                        ----------------------------------------
                                     Name: Stephanie Moore
                                          --------------------------------------
                                     Title: Assistant Vice President
                                           -------------------------------------

                                      -68-

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