Document:

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                                                                   EXHIBIT 10.96

                                                           [CS&M Draft--7/12/00]

                               TeleCorp PCS, Inc.

                    10 5/8% Senior Subordinated Notes due 2010

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

                               FORM OF INDENTURE

                           Dated as of _______, 2000

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

                             Bankers Trust Company,

                                    Trustee
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                               TABLE OF CONTENTS
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ARTICLE 1Definitions and Incorporation by Reference
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     SECTION 1.01.  Definitions................................................................................................  1
     SECTION 1.02.  Other Definitions.......................................................................................... 22
     SECTION 1.03.  Incorporation by Reference of Trust Indenture Act.......................................................... 22
     SECTION 1.04.  Rules of Construction...................................................................................... 22

ARTICLE 2The Securities
     SECTION 2.01.  Form and Dating............................................................................................ 23
     SECTION 2.02.  Execution and Authentication............................................................................... 23
     SECTION 2.03.  Registrar and Paying Agent................................................................................. 24
     SECTION 2.04.  Paying Agent To Hold Money in Trust........................................................................ 24
     SECTION 2.05.  Securityholder Lists....................................................................................... 24
     SECTION 2.06.  Transfer and Exchange...................................................................................... 24
     SECTION 2.07.  Replacement Securities..................................................................................... 25
     SECTION 2.08.  Outstanding Securities..................................................................................... 26
     SECTION 2.09.  Temporary Securities....................................................................................... 26
     SECTION 2.10.  Cancelation................................................................................................ 26
     SECTION 2.11.  Defaulted Interest......................................................................................... 26
     SECTION 2.12.  CUSIP Numbers.............................................................................................. 26

ARTICLE 3Redemption
     SECTION 3.01.  Notices to Trustee......................................................................................... 27
     SECTION 3.02.  Selection of Securities To Be Redeemed..................................................................... 27
     SECTION 3.03.  Notice of Redemption....................................................................................... 27
     SECTION 3.04.  Effect of Notice of Redemption............................................................................. 28
     SECTION 3.05.  Deposit of Redemption Price................................................................................ 28
     SECTION 3.06.  Securities Redeemed in Part................................................................................ 28

ARTICLE 4Covenants
     SECTION 4.01.  Payment of Securities...................................................................................... 28
     SECTION 4.02.  Provision of Financial Information......................................................................... 29
     SECTION 4.03.  Limitation on Incurrence of Indebtedness................................................................... 29
     SECTION 4.04.  Limitation on Restricted Payments.......................................................................... 31
     SECTION 4.05.  Limitation on Restrictions Affecting Restricted Subsidiaries............................................... 35
     SECTION 4.06.  Limitation on Certain Asset Dispositions................................................................... 36
     SECTION 4.07.  Limitation on Transactions with Affiliates................................................................. 37
     SECTION 4.08.  Change of Control.......................................................................................... 39
     SECTION 4.09.  Compliance Certificate..................................................................................... 40
     SECTION 4.10.  Further Instruments and Acts............................................................................... 40
     SECTION 4.11.  Future Subsidiary Guarantors............................................................................... 40
     SECTION 4.12.  Limitation on Activities of the Company and the Restricted Subsidiaries.................................... 40
     SECTION 4.13.  Limitation on Designations of Unrestricted Subsidiaries.................................................... 40
     SECTION 4.14.  Limitation on Layered Indebtedness......................................................................... 41
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ARTICLE 5Successor Company
     SECTION 5.01.  Merger, Consolidation and Certain Sales of Assets.......................................................... 41

ARTICLE 6Defaults and Remedies
     SECTION 6.01.  Events of Default.......................................................................................... 42
     SECTION 6.02.  Acceleration............................................................................................... 44
     SECTION 6.03.  Other Remedies............................................................................................. 44
     SECTION 6.04.  Waiver of Past Defaults.................................................................................... 45
     SECTION 6.05.  Control by Majority........................................................................................ 45
     SECTION 6.06.  Limitation on Suits........................................................................................ 45
     SECTION 6.07.  Rights of Holders To Receive Payment....................................................................... 45
     SECTION 6.08.  Collection Suit by Trustee................................................................................. 46
     SECTION 6.09.  Trustee May File Proofs of Claim........................................................................... 46
     SECTION 6.10.  Priorities................................................................................................. 46
     SECTION 6.11.  Undertaking for Costs...................................................................................... 46
     SECTION 6.12.  Waiver of Stay or Extension Laws........................................................................... 46

ARTICLE 7Trustee
     SECTION 7.01.  Duties of Trustee.......................................................................................... 47
     SECTION 7.02.  Rights of Trustee.......................................................................................... 48
     SECTION 7.03.  Individual Rights of Trustee............................................................................... 48
     SECTION 7.04.  Trustee=s Disclaimer....................................................................................... 48
     SECTION 7.05.  Notice of Defaults......................................................................................... 48
     SECTION 7.06.  Reports by Trustee to Holders.............................................................................. 49
     SECTION 7.07.  Compensation and Indemnity................................................................................. 49
     SECTION 7.08.  Replacement of Trustee..................................................................................... 49
     SECTION 7.09.  Successor Trustee by Merger................................................................................ 50
     SECTION 7.10.  Eligibility; Disqualification.............................................................................. 50
     SECTION 7.11.  Preferential Collection of Claims Against Company.......................................................... 51
     SECTION 7.12.  Trustee Acting as Paying Agent or Registrar................................................................ 51

ARTICLE 8Discharge of Indenture; Defeasance
     SECTION 8.01.  Discharge of Liability on Securities; Defeasance........................................................... 51
     SECTION 8.02.  Conditions to Defeasance................................................................................... 52
     SECTION 8.03.  Application of Trust Money................................................................................. 52
     SECTION 8.04.  Repayment to Company....................................................................................... 53
     SECTION 8.05.  Indemnity for Government Obligations....................................................................... 53
     SECTION 8.06.  Reinstatement.............................................................................................. 53

ARTICLE 9Amendments
     SECTION 9.01.  Without Consent of Holders................................................................................. 53
     SECTION 9.02.  With Consent of Holders.................................................................................... 54
     SECTION 9.03.  Compliance with Trust Indenture Act........................................................................ 55
     SECTION 9.04.  Revocation and Effect of Consents and Waivers.............................................................. 55
     SECTION 9.05.  Notation on or Exchange of Securities...................................................................... 55
     SECTION 9.06.  Trustee To Sign Amendments................................................................................. 55
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     SECTION 9.07.  Payment for Consent........................................................................................ 55

ARTICLE 10Subordination
     SECTION 10.01.  Agreement To Subordinate.................................................................................. 56
     SECTION 10.02.  Liquidation, Dissolution, Bankruptcy...................................................................... 56
     SECTION 10.03.  Default on Senior Indebtedness............................................................................ 56
     SECTION 10.04.  Acceleration of Payment of Securities..................................................................... 57
     SECTION 10.05.  When Distribution Must Be Paid Over....................................................................... 57
     SECTION 10.06.  Subrogation............................................................................................... 57
     SECTION 10.07.  Relative Rights........................................................................................... 57
     SECTION 10.08.  Subordination May Not Be Impaired by Company.............................................................. 57
     SECTION 10.09.  Rights of Trustee and Paying Agent........................................................................ 58
     SECTION 10.10.  Distribution or Notice to Representative.................................................................. 58
     SECTION 10.11.  Article 10 Not To Prevent Events of Default
                        or Limit Right To Accelerate........................................................................... 58
     SECTION 10.12.  Trust Moneys Not Subordinated............................................................................. 58
     SECTION 10.13.  Trustee Entitled To Rely.................................................................................. 58
     SECTION 10.14.  Trustee To Effectuate Subordination....................................................................... 59
     SECTION 10.15.  Trustee Not Fiduciary for Holders of Senior Indebtedness.................................................. 59
     SECTION 10.16.  Reliance by Holders of Senior Indebtedness on Subordination Provisions.................................... 59
     SECTION 10.17.  Trustee=s Compensation Not Prejudiced..................................................................... 59
     SECTION 10.18.  Defeasance................................................................................................ 59

ARTICLE 11Subsidiary Guarantees
     SECTION 11.01.  Subsidiary Guarantees..................................................................................... 59
     SECTION 11.02.  Limitation on Liability................................................................................... 61
     SECTION 11.03.  Successors and Assigns.................................................................................... 61
     SECTION 11.04.  No Waiver................................................................................................. 62
     SECTION 11.05.  Modification.............................................................................................. 62
     SECTION 11.06.  Execution of Supplemental Indenture for Future Subsidiary Guarantors...................................... 62

ARTICLE 12 Subordination of the Subsidiary Guarantees
     SECTION 12.01.  Agreement To Subordinate.................................................................................. 62
     SECTION 12.02.  Liquidation, Dissolution, Bankruptcy...................................................................... 62
     SECTION 12.03.  Default on Designated Senior Indebtedness of a Subsidiary Guarantor....................................... 63
     SECTION 12.04.  Demand for Payment........................................................................................ 63
     SECTION 12.05.  When Distribution Must Be Paid Over....................................................................... 64
     SECTION 12.06.  Subrogation............................................................................................... 64
     SECTION 12.07.  Relative Rights........................................................................................... 64
     SECTION 12.08.  Subordination May Not Be Impaired by a Subsidiary  Guarantor.............................................. 64
     SECTION 12.09.  Rights of Trustee and Paying Agent........................................................................ 64
     SECTION 12.10.  Distribution or Notice to Representative.................................................................. 65
     SECTION 12.11.  Article 12 Not To Prevent Events of Default or Limit
                       Right To Accelerate..................................................................................... 65
     SECTION 12.12.  Trustee Entitled To Rely.................................................................................. 65
     SECTION 12.13.  Trustee To Effectuate Subordination....................................................................... 65
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     SECTION 12.14.  Trustee Not Fiduciary for Holders of Senior Indebtedness of a Subsidiary Guarantor........................ 65
     SECTION 12.15.  Reliance by Holders of Senior Indebtedness of a Subsidiary Guarantor on Subordination Provisions.......... 65
     SECTION 12.16.  Defeasance................................................................................................ 66

ARTICLE 13Satisfaction and Discharge

     SECTION 13.01.  Satisfaction and Discharge of Indenture.................................................................. 67
     SECTION 13.02.  Application of Trust Money............................................................................... 67

ARTICLE 14

     Miscellaneous
     SECTION 14.01.  Trust Indenture Act Controls.............................................................................. 68
     SECTION 14.02.  Notices................................................................................................... 68
     SECTION 14.03.  Communication by Holders with Other Holders............................................................... 68
     SECTION 14.04.  Certificate and Opinion as to Conditions Precedent........................................................ 69
     SECTION 14.05.  Statements Required in Certificate or Opinion............................................................. 69
     SECTION 14.06.  When Securities Disregarded............................................................................... 69
     SECTION 14.07.  Rules by Trustee, Paying Agent and Registrar.............................................................. 69
     SECTION 14.08.  Legal Holidays............................................................................................ 69
     SECTION 14.09.  Governing Law............................................................................................. 69
     SECTION 14.10.  No Recourse Against Others................................................................................ 70
     SECTION 14.11.  Successors................................................................................................ 70
     SECTION 14.12.  Multiple Originals........................................................................................ 70
     SECTION 14.13.  Table of Contents; Headings............................................................................... 70
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     Appendix A  - Provisions Relating to Initial Securities, Private Exchange Securities and Exchange Securities...........
     Exhibit A  -  Form of Initial Security.................................................................................
     Exhibit B  -  Form of Exchange Security................................................................................
     Exhibit C  -  Form of Supplemental Indenture...........................................................................
     Exhibit D  -  Form of Transferee Letter of Representation..............................................................
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                         INDENTURE dated as of ______ among TeleCorp PCS, Inc.,
               a Delaware corporation (the "Company"), TeleCorp Communications,
               Inc. (the "Subsidiary Guarantor") and Bankers Trust Company, a
               New York banking corporation, as trustee (the "Trustee").

          Each party agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the Holders of (i) the Company's 10 5/8%
Senior Subordinated Notes due 2010 issued on the date hereof (the "Initial
Securities"), (ii) if and when issued as provided in the Registration Agreement
(as defined in Appendix A hereto (the "Appendix")), the Company's 10 5/8% Senior
Subordinated Notes due 2010 issued in the Registered Exchange Offer (as defined
in the Appendix) in exchange for any Initial Securities (the "Exchange
Securities") and (iii) if and when issued as provided in the Registration
Agreement, the Private Exchange Securities (as defined in the Appendix, and
together with the Initial Securities and any Exchange Securities issued
hereunder, the "Securities") issued in the Private Exchange (as defined in the
Appendix). Except as otherwise provided herein, the Securities shall be limited
to $450,000,000 in aggregate principal amount outstanding.

                                    ARTICLE 1

                   Definitions and Incorporation by Reference
                   ------------------------------------------

           SECTION 1.01.  Definitions.
                          ------------

          "Acquired Indebtedness" means, with respect to any Person,
Indebtedness of such Person:

          (1)  existing at the time such Person becomes a Restricted Subsidiary;
     or

          (2) assumed in connection with the acquisition of assets from another
     Person, including Indebtedness Incurred in connection with, or in
     contemplation of, such Person becoming a Restricted Subsidiary or such
     acquisition, as the case may be.

          "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by, or under direct or indirect common
control with, any specified Person.  For purposes of this definition, "control"
when used with respect to any Person means the power to direct the management
and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative to the foregoing.
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          "Annualized Pro Forma Consolidated Operating Cash Flow" means
Consolidated Cash Flow for the latest two full fiscal quarters for which
consolidated financial statements of the Company are available multiplied by
two.  For purposes of calculating "Consolidated Cash Flow" for any period for
purposes of this definition only:

          (1) any Subsidiary of the Company that is a Restricted Subsidiary on
     the date of the transaction giving rise to the need to calculate
     "Annualized Pro Forma Consolidated Operating Cash Flow" (the "Transaction
     Date") shall be deemed to have been a Restricted Subsidiary at all times
     during such period; and

          (2) any Subsidiary of the Company that is not a Restricted Subsidiary
     on the Transaction Date shall be deemed not to have been a Restricted
     Subsidiary at any time during such period.

In addition to and without limitation of the foregoing, for purposes of this
definition only, "Consolidated Cash Flow" shall be calculated after giving
effect on a pro forma basis for the applicable period to, without duplication,
any Asset Dispositions or Asset Acquisitions (including, without limitation, any
Asset Acquisition giving rise to the need to make such calculation as a result
of the Company or one of the Restricted Subsidiaries (including any Person who
becomes a Restricted Subsidiary as a result of the Asset Acquisition) Incurring,
assuming or otherwise being liable for Acquired Indebtedness) occurring during
the period commencing on the first day of such two-fiscal-quarter period to and
including the Transaction Date (the "Reference Period"), as if such Asset Sale
or Asset Acquisition occurred on the first day of the Reference Period.

          "Asset Acquisition" means:

          (1) any purchase or other acquisition (by means of transfer of cash,
     Indebtedness or other property to others or payment for property or
     services for the account or use of others or otherwise) of Capital Stock of
     any Person by the Company or any Restricted Subsidiary, in either case,
     pursuant to which such Person shall become a Restricted Subsidiary or shall
     be merged with or into the Company or any Restricted Subsidiary; or

          (2) any acquisition by the Company or any Restricted Subsidiary of the
     property or assets of any Person which constitute all or substantially all
     of an operating unit or line of business of such Person.

          "Asset Disposition" means any sale, transfer or other disposition
(including, without limitation, by merger, consolidation or Sale/Leaseback
Transaction) of:

          (1) shares of Capital Stock of a Subsidiary of the Company (other than
     directors' qualifying shares);

          (2) any License for the provision of wireless telecommunications
     services held by the Company or any Restricted Subsidiary (whether by sale
     of Capital Stock or otherwise); or

          (3) any other property or assets of the Company or any Subsidiary of
     the Company other than in the ordinary course of business;
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provided, however, that an Asset Disposition shall not include:
--------  -------

          (A) any sale, transfer or other disposition of shares of Capital
     Stock, property or assets by a Restricted Subsidiary to the Company or to
     any other Restricted Subsidiary or by the Company to any Restricted
     Subsidiary;

          (B) any sale, transfer or other disposition of defaulted receivables
     for collection;

          (C) the sale, lease, conveyance or disposition or other transfer of
     all or substantially all of the assets of the Company as permitted under
     Article 5;

          (D) any disposition that constitutes a Change of Control; or

          (E) any sale, transfer or other disposition of shares of Capital Stock
     of any Marketing Affiliate; provided that such Marketing Affiliate is not
                                 --------
     engaged in any activity other than the registration, holding, maintenance
     or protection of trademarks and the licensing thereof; or

          (F) any sale, transfer or other disposition that does not (together
     with all related sales, transfers or dispositions) involve aggregate
     consideration in excess of $15,000,000.

          "AT&T Wireless" means AT&T Wireless PCS Inc., a Delaware corporation.

          "AT&T Wireless Exchange" means the transactions contemplated by the
Asset Exchange Agreement dated as of February 28, 2000, as amended, waived or
otherwise modified from time to time, among the Company, AT&T Wireless PCS, LLC,
TeleCorp PCS, LLC, TeleCorp Holding Corp, Inc., TeleCorp Communications, Inc.,
TeleCorp Equipment Leasing, L.P. and TeleCorp Realty, LLC.

          "AT&T Wireless Services Contribution" means the Contribution, as such
term is defined in the Merger Agreement.

          "Average Life" means, as of the date of determination, with respect to
any Indebtedness for borrowed money or Preferred Stock, the quotient obtained by
dividing:

          (1) the sum of the products of the number of years from the date of
     determination to the dates of each successive scheduled principal or
     liquidation value payments of such Indebtedness or Preferred Stock,
     respectively, and the amount of such principal or liquidation value
     payments by

          (2) the sum of all such principal or liquidation value payments.

          "Bank Indebtedness" means any and all amounts payable under or in
respect of the Credit Agreement and any Refinancing Indebtedness with respect
thereto, as amended from time to time, including principal, premium (if any),
interest (including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company whether or not a claim
for post-filing interest is allowed in such proceedings), fees, charges,
expenses, reimbursement obligations, guarantees and all other amounts payable
thereunder or in respect thereof.
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          "Bankruptcy Law" means Title 11, United States Code, or any similar
                                           ------------------
federal or state law for the relief of debtors.

          "board of directors" of any Person means the board of directors,
management committee or other governing body of such Person.

          "BTA" means a Basic Trading Area, as defined in 47 C.F.R. (S)24.202.

          "Business Day" means any date which is not a Legal Holiday.

          "C-Block License" means any License in the C block as set forth in
parts 1 and 24 of Title 47 of the Code of Federal Regulations.

          "Capital Lease Obligations" of any Person means the obligations to pay
rent or other amounts under a lease of (or other Indebtedness arrangements
conveying the right to use) real or personal property of such Person which are
required to be classified and accounted for as a capital lease or liability on
the face of a balance sheet of such Person in accordance with GAAP. The amount
of such obligations shall be the capitalized amount thereof in accordance with
GAAP, and the Stated Maturity thereof shall be the date of the last payment of
rent or any other amount due under such lease prior to the first date upon which
such lease may be terminated by the lessee without payment of a penalty.

          "Capital Stock" of any Person means any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) of corporate stock or other equity
participations, including partnership interests, whether general or limited, of
such Person.

          "Cash Equity Investors" means CB Capital Investors, L.P., Equity-
Linked Investors-II, Private Equity Investors III, L.P., Hoak Communications
Partners, L.P., HCP Capital Fund, L.P., Whitney Equity Partners, L.P., J. H.
Whitney III, L.P., Whitney Strategic Partners III, L.P., Media/ Communications
Partners III Limited Partnership, Media/Communications Investors Limited
Partnership, One Liberty Fund III, L.P., One Liberty Fund IV, L.P., Toronto
Dominion Investments, Inc., Northwood Ventures LLC, Northwood Capital Partners
LLC, Gerald Vento, Thomas Sullivan, Gilde International B.V., CIHC, Incorporated
and Dresdner Kleinwort Benson Private Equity LLC.

          "Cash Equivalents" means:

          (1) direct obligations of, or obligations the principal of and
     interest on which are unconditionally guaranteed by, the United States of
     America (or by any agency thereof to the extent such obligations are backed
     by the full faith and credit of the United States of America), in each case
     maturing within one year from the date of acquisition thereof;

          (2) investments in commercial paper maturing within 365 days from the
     date of acquisition thereof and having, at such date of acquisition, the
     highest credit rating obtainable from Standard & Poor's Corporation or from
     Moody's Investors Service;
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          (3) investments in certificates of deposit, banker's acceptance and
     time deposits maturing within 365 days from the date of acquisition thereof
     issued or guaranteed by or placed with, and money market deposit accounts
     issued or offered by, any domestic office of any commercial bank organized
     under the laws of the United States of America or any State thereof which
     has a combined capital and surplus and undivided profits of not less than
     $500,000,000;

          (4) fully collateralized repurchase agreements with a term of not more
     than 30 days for securities described in clause (1) above and entered into
     with a financial institution satisfying the criteria described in clause
     (3) above; and

          (5) money market funds substantially all of whose assets comprise
     securities of the type described in clauses (1) through (3) above.

          "Change of Control" means the assurance of any of the following
events:

          (1) any "person" or "group" (as such terms are used in Sections 13(d)
     and 14(d) of the Exchange Act), other than a Permitted Holder or Permitted
     Holders or a person or group controlled by a Permitted Holder or Permitted
     Holders, becomes the "beneficial owner" (as defined in Rules 13d-3 and 13d-
     5 under the Exchange Act, except that a person shall be deemed to have
     "beneficial ownership" of all such securities that such person has the
     right to acquire within one year, upon the happening of an event or
     otherwise) directly or indirectly (including, after the Merger, through
     ownership of Holdings), of securities of the Company representing 50% or
     more of the combined voting power of the Company's then outstanding Voting
     Stock;

          (2) the following individuals cease for any reason to constitute more
     than a majority of the number of directors then serving on the board of
     directors of the Company:  individuals who, on the date of this Indenture,
     constitute the board of directors of the Company and any new director
     (other than a director whose initial assumption of office is in connection
     with an actual or threatened election contest, including, but not limited
     to, a consent solicitation relating to the election of directors of the
     Company) whose appointment or election by the board of directors of the
     Company or nomination for election by the Company's stockholders was
     approved by the vote of at least two-thirds of the directors then still in
     office or whose appointment, election or nomination was previously so
     approved or recommended or made in accordance with the terms of the
     Stockholders' Agreement; or

          (3) the stockholders of the Company shall approve any Plan of
     Liquidation (whether or not otherwise in compliance with the provisions of
     the Indenture).

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

          "Common Stock" of any Person means Capital Stock of such Person that
does not rank prior, as to the payment of dividends or as to the distribution of
assets upon any voluntary or involuntary liquidation, dissolution or winding up
of such Person, to shares of Capital Stock of any other class of such Person.
<PAGE>

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          "Commission" means the Securities and Exchange Commission.

          "Communications Act" means the Communications Act of 1934, and any
similar or successor Federal statute, and the rules and regulations and
published policies of the FCC thereunder, all as amended and as the same may be
in effect from time to time.

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

          "Consolidated Cash Flow" of any Person means, for any period, the
Consolidated Net Income of such Person for such period:

          (1) increased (to the extent Consolidated Net Income for such period
     has been reduced thereby) by the sum of (without duplication):

               (A)  Consolidated Interest Expense of such Person for such
          period; plus

               (B)  Consolidated Income Tax Expense of such Person for such
          period; plus

               (C)  the consolidated depreciation and amortization expense of
          such Person and its Restricted Subsidiaries for such period; plus

               (D)  any other non-cash charges of such Person and its Restricted
          Subsidiaries for such period except for any non-cash charges that
          represent accruals of, or reserves for, cash disbursements to be made
          in any future accounting period; and

          (2) decreased (to the extent Consolidated Net Income for such period
     has been increased thereby) by any non-cash gains from Asset Dispositions.

          "Consolidated Income Tax Expense" of any Person means, for any period,
the consolidated provision for income taxes of such Person and its Restricted
Subsidiaries for such period calculated on a consolidated basis in accordance
with GAAP.

          "Consolidated Interest Expense" for any Person means, for any period,
without duplication:

          (1) the consolidated interest expense included in a consolidated
     income statement (without deduction of interest or finance charge income)
     of such Person and its Restricted Subsidiaries for such period calculated
     on a consolidated basis in accordance with GAAP (including, without
     limitation, (a) any amortization of debt discount, (b) the net costs under
     Hedging Agreements, (c) all capitalized interest, (d) the interest portion
     of any deferred payment obligation and (e) all amortization of any
     premiums, fees and expenses payable in connection with the Incurrence of
     any Indebtedness); plus
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                                                                               7

          (2) the interest component of Capital Lease Obligations paid, accrued
     and/or scheduled to be paid or accrued, by such Person and its Restricted
     Subsidiaries during such period as determined on a consolidated basis in
     accordance with GAAP.

          "Consolidated Net Income" of any Person means for any period the
consolidated net income (or loss) of such Person and its Restricted Subsidiaries
for such period determined on a consolidated basis in accordance with GAAP;

provided, however, that there shall be excluded therefrom:
--------  -------

          (1) the net income (or loss) of any Person acquired by such Person or
     a Restricted Subsidiary of such Person in a pooling-of-interests
     transaction for any period prior to the date of such transaction;

          (2) the net income (but not loss) of any Restricted Subsidiary of such
     Person which is subject to restrictions which prevent or limit the payment
     of dividends or the making of distributions to such Person to the extent of
     such restrictions (regardless of any waiver thereof);

          (3) the net income of any Person that is not a Restricted Subsidiary
     of such Person, except to the extent of the amount of dividends or other
     distributions representing such Person's proportionate share of such other
     Person's net income for such period actually paid in cash to such Person by
     such other Person during such period;

          (4) gains or losses (other than for purposes of calculating
     Consolidated Net Income under clause (C) of paragraph (a) of Section 4.04)
     on Asset Dispositions by such Person or its Restricted Subsidiaries;

          (5) all extraordinary gains (but not, other than for purposes of
     calculating Consolidated Net Income under clause (C) of paragraph (a) under
     Section 4.04, losses) determined in accordance with GAAP; and

          (6) in the case of a successor to such Person by consolidation or
     merger or as a transferee of such Person's assets, any earnings (or losses)
     of the successor corporation prior to such consolidation, merger or
     transfer of assets.

          "Corporate Trust Office" means the principal office of the Trustee at
which at any particular time its corporate trust business shall be administered,
which office at the date of the execution of the Indenture is located at Four
Albany Street, New York, New York 10006. Attention:  Corporate Trust and Agency
Group, or such other address as the Trustee may designate from time to time by
notice to the Securityholders.

          "Credit Agreement" means the Credit Agreement dated as of July 17,
1998, as amended, waived or otherwise modified from time to time, among the
Company, the financial institutions named therein as lenders, The Chase
Manhattan Bank, as Administrative Agent and Issuing Bank, TD Securities (USA)
Inc., as Syndication Agent, and Bankers Trust Company, as Documentation Agent
(except to the extent that any such amendment, waiver or other modification
thereto would be prohibited by the terms of this Indenture, unless otherwise
agreed to by the
<PAGE>

                                                                               8

holders of at least a majority in aggregate principal amount of the Securities
at the time outstanding).

          "Custodian" means any receiver, trustee, assignee, liquidator,
custodian or similar official under any Bankruptcy Law.

          "Default" means any event that is, or after notice or lapse of time or
both would become, an Event of Default.

          "Designated Senior Indebtedness" of the Company means:

          (1) so long as outstanding, Bank Indebtedness; and

          (2) so long as outstanding, any other Senior Indebtedness which has at
     the time of initial issuance an aggregate outstanding principal amount in
     excess of $25,000,000 and which has been so designated as Designated Senior
     Indebtedness by the board of directors of the Company at the time of its
     initial issuance in a resolution delivered to the Trustee.  "Designated
     Senior Indebtedness" of a Subsidiary Guarantor has a correlative meaning.

          "Discount Notes" means the 11 5/8% Senior Subordinated Discount Notes
due 2009 of the Company.

          "Disqualified Stock" of any Person means any Capital Stock of such
Person which, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable), or upon the happening of any
event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or is redeemable at the option of the holder thereof,
in whole or in part, on or prior to the first anniversary of the Stated Maturity
of the Securities; provided, however, that any Capital Stock that would not
                   --------  -------
constitute Disqualified Stock but for provisions thereof giving holders thereof
the right to require such Person to repurchase or redeem such Capital Stock upon
the occurrence of an "asset sale" or "change of control" occurring prior to the
first anniversary of the Stated Maturity of the Securities shall not constitute
Disqualified Stock if the "asset sale" or "change of control" provisions
applicable to such Capital Stock are no more favorable to the holders of such
Capital Stock than the provisions of Section 4.08.

          "Domestic Restricted Subsidiary" means any Restricted Subsidiary of
the Company other than a Foreign Restricted Subsidiary.

          "Equipment Subsidiary" means TeleCorp Equipment Leasing L.P. and/or
any other Wholly Owned Subsidiary of the Company designated as an Equipment
Subsidiary under the Credit Agreement.

          "Equity Offering" means any public or private sale of Qualified Stock
made on a primary basis by the Company after the date of this Indenture,
including through the issuance or sale of Qualified Stock to one or more
Strategic Equity Investors; provided, however, that a sale to Holdings will
                            --------  -------
constitute an Equity Offering only if funded by a substantially concurrent
Equity Offering by Holdings.
<PAGE>

                                                                               9

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated by the Commission thereunder.

          "Exchange and Registration Rights Agreement" means the Exchange and
Registration Rights Agreement, to be dated the date of this Indenture, among the
Company, the Subsidiary Guarantor and the Initial Purchasers.

          "Exchange Securities" means, collectively, debt securities of the
Company that are identical in all material respects to the Securities, except
for transfer restrictions relating to the Securities, issued in a like aggregate
principal amount of the Securities originally issued pursuant to the Exchange
and Registration Rights Agreement.

          "Exchange Offer" means a registered exchange offer for the Securities
undertaken by the Company pursuant to the Exchange and Registration Rights
Agreement.

          "Expiration Date" means the expiration date with respect to any Offer
to Purchase.

          "F-Block License" means any License in the F block as set forth in
parts 1 and 24 of Title 47 of the Code of Federal Regulations.

          "Fair Market Value" means, with respect to any asset or property, the
price that could be negotiated in an arm's-length free market transaction, for
cash, between a willing seller and a willing buyer, neither of which is under
pressure or compulsion to complete the transaction.  Unless otherwise specified
in this Indenture, Fair Market Value shall be determined by the board of
directors of the Company acting in good faith.

          "FCC" means the Federal Communications Commission, or any other
similar or successor agency of the Federal government administering the
Communications Act.

          "FCC Debt" means Indebtedness owed to the United States Treasury
Department or the FCC that is incurred in connection with the acquisition of a
License.

          "Foreign Restricted Subsidiary" means any Restricted Subsidiary of the
Company that is not organized under the laws of the United States of America or
any State thereof or the District of Columbia.

          "GAAP" means generally accepted accounting principles, consistently
applied, as in effect from time to time in the United States of America, as set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as is approved by a significant segment of the
accounting profession in the United States; provided, however, that for the
                                            --------  -------
calculation of the quarterly and annual balance sheet, income statements and
cash flow financial information, the operation of Tritel, Inc. and its
Subsidiaries and all adjustments related to the Merger other than the AT&T
Wireless Services Contribution and the AT&T Wireless Exchange (in each case
allocable to the Company) shall be excluded.
<PAGE>

                                                                              10

          "Hedging Agreement" means any interest rate, currency or commodity
swap agreement, interest rate, currency or commodity future agreement, interest
rate cap or collar agreement, interest rate, currency or commodity hedge
agreement and any put, call or other agreement designed to protect against
fluctuations in interest rates, currency exchange rates or commodity prices.

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

          "Holdings" means TeleCorp-Tritel Holding Company, a Delaware
corporation, and parent of the Company after the Merger until a successor
replaces it and thereafter, means the successor.

          "Incur" means, with respect to any Indebtedness or other obligation of
any Person, to create, issue, incur (including by conversion, exchange or
otherwise), assume, guarantee or otherwise become liable in respect of such
Indebtedness or other obligation or the recording, as required pursuant to GAAP
or otherwise, of any such Indebtedness or other obligation on the balance sheet
of such Person (and "Incurrence," "Incurred" and "Incurring" shall have meanings
correlative to the foregoing).  Indebtedness of any Person or any of its
Restricted Subsidiaries existing at the time such Person becomes a Restricted
Subsidiary (or is merged into, or consolidates with, the Company or any
Restricted Subsidiary), whether or not such Indebtedness was Incurred in
connection with, or in contemplation of, such Person becoming a Restricted
Subsidiary (or being merged into, or consolidated with, the Company or any
Restricted Subsidiary), shall be deemed Incurred at the time any such Person
becomes a Restricted Subsidiary or merges into, or consolidates with, the
Company or any Restricted Subsidiary.

          "Indebtedness" means (without duplication), with respect to any
Person, whether recourse is to all or a portion of the assets of such Person and
whether or not
contingent:

          (1) every obligation of such Person for money borrowed;

          (2) every obligation of such Person evidenced by bonds, debentures,
     notes or other similar instruments, including obligations Incurred in
     connection with the acquisition of property, assets or businesses;

          (3) every reimbursement obligation of such Person with respect to
     letters of credit, bankers' acceptances or similar facilities issued for
     the account of such Person;

          (4) every obligation of such Person issued or assumed as the deferred
     purchase price of property or services (but excluding trade accounts
     payable or accrued liabilities arising in the ordinary course of business
     which are not overdue or which are being contested in good faith);

          (5) every Capital Lease Obligation of such Person;

          (6) every net obligation under Hedging Agreements or similar
     agreements of such Person; and
<PAGE>

                                                                              11

          (7) every obligation of the type referred to in clauses (1) through
     (6) of another Person and all dividends of another Person the payment of
     which, in either case, such Person has guaranteed or is responsible or
     liable for, directly or indirectly, as obligor, guarantor or otherwise.

          Indebtedness shall:

          (1) include the liquidation preference and any mandatory redemption
     payment obligations in respect of any Disqualified Stock of the Company and
     any Restricted Subsidiary and any Preferred Stock of a Subsidiary of the
     Company;

          (2) never be calculated taking into account any cash and Cash
     Equivalents held by such Persons;

          (3) not include obligations arising from agreements of the Company or
     a Restricted Subsidiary to provide for indemnification, adjustment of
     purchase price, earn-out or other similar obligations, in each case,
     Incurred or assumed in connection with the disposition of any business or
     assets of a Restricted Subsidiary.

The amount of any Indebtedness outstanding as of any date shall be:

          (1) the accreted value thereof, in the case of any Indebtedness issued
     with original issue discount;

          (2) the principal amount thereof, in the case of any Indebtedness
     other than Indebtedness issued with original issue discount; and

          (3) the greater of the maximum repurchase or redemption price or
     liquidation preference thereof, in the case of any Disqualified Stock or
     Preferred Stock.

          "Indenture" means this Indenture as amended or supplemented from time
to time.

          "Ineligible Subsidiary" means:

          (1) any Special Purpose Subsidiary;

          (2) any Subsidiary Guarantor;

          (3) any Subsidiary of the Company that, directly or indirectly, owns
     any Capital Stock or Indebtedness of, or owns or holds any Lien on any
     property of, the Company or any other Subsidiary of the Company that is not
     a Subsidiary of the Subsidiary to be so designated; and

          (4) any Subsidiary of the Company that, directly or indirectly, owns
     any Capital Stock or Indebtedness of, or owns or holds any Lien on any
     property of, any other Subsidiary of the Company that is not eligible to be
     designated as an Unrestricted Subsidiary.
<PAGE>

                                                                              12

          "Initial Purchasers" means Chase Securities Inc., Lehman Brothers
Inc., and Deutsche Bank Securities Inc.

          "Investment" in any Person means any direct or indirect loan, advance,
guarantee or other extension of credit or capital contribution to (by means of
transfers of cash or other property to others or payments for property or
services for the account or use of others or otherwise), or purchase or
acquisition of Capital Stock, bonds, notes, debentures or other securities or
evidence of Indebtedness issued by, any other Person.

          "Initial Security" or "Initial Securities" means any Security or
Securities issued on the date of the Indenture.

          "Issue Date" means the date on which the Securities are originally
issued.

          "Legal Holiday" means a Saturday, Sunday or other day on which banking
institutions in the State of New York are authorized or required by law to
close.

          "License" means any broadband Personal Communications Services license
issued by the FCC in connection with the operation of a System.

          "License Subsidiary" means TeleCorp PCS, L.L.C. and THC and/or any
other Wholly Owned Restricted Subsidiary of the Company designated as a License
Subsidiary under the Credit Agreement.

          "Lien" means, with respect to any property or assets, any mortgage or
deed of trust, pledge, hypothecation, assignment, security interest, lien,
charge, easement (other than any easement not materially impairing usefulness or
marketability), encumbrance, preference, priority or other security agreement
with respect to such property or assets (including, without limitation, any
conditional sale or other title retention agreement having substantially the
same economic effect as any of the foregoing).

          "liquidated damages" means any liquidated damages payable under a
Registration Agreement.

          "Lucent" means Lucent Technologies Inc., a Delaware corporation.

          "Lucent Note Purchase Agreement" means the Note Purchase Agreement
dated as of May 11, 1998, between the Company and Lucent, as amended as of the
date of this Indenture.

          "Management Stockholders" means Gerald Vento and Thomas Sullivan.

          "Marketing Affiliate" means any Person which engages in no activity
other than the registration, holding, maintenance or protection of trademarks
and the licensing thereof.

          "Material Indebtedness" means Indebtedness having an aggregate
principal amount (or accreted value) of $50 million or more at the time
outstanding.

          "Merger" has the meaning given to such term in the Merger Agreement.
<PAGE>

                                                                              13

          "Merger Agreement" means the Agreement and Plan of Reorganization and
Contribution dated as of February 28, 2000, as amended, waived or otherwise
modified from time to time, among the Company, Tritel, Inc. and AT&T Wireless
Services, Inc.

          "MTA" means a Major Trading Area, as defined in 47 C.F.R. (S)24.202.

          "Net Available Proceeds" from any Asset Disposition by any Person
means cash or readily marketable Cash Equivalents received (including by way of
sale or discounting of a note, installment receivable or other receivable, but
excluding any other consideration received in the form of assumption by the
acquiror of Indebtedness or other obligations relating to such properties or
assets or received in any other non-cash form) therefrom by such Person,
including any cash received by way of deferred payment or upon the monetization
or other disposition of any non-cash consideration (including notes or other
securities) received in connection with such Asset Disposition, net of

          (1) all legal, title and recording tax expenses, commissions and other
     fees and expenses incurred and all federal, state, foreign and local taxes
     accrued as a liability as a consequence of such Asset Disposition;

          (2) all payments made by such Person or any of its Restricted
     Subsidiaries on any Indebtedness which is secured by such assets in
     accordance with the terms of any Lien upon or with respect to such assets
     or which must by the terms of such Lien, or in order to obtain a necessary
     consent to such Asset Disposition or by applicable law, be repaid out of
     the proceeds from such Asset Disposition;

          (3) all payments made with respect to liabilities associated with the
     assets which are the subject of the Asset Disposition, including, without
     limitation, trade payables and other accrued liabilities;

          (4) appropriate amounts to be provided by such Person or any
     Restricted Subsidiary thereof, as the case may be, as a reserve in
     accordance with GAAP against any liabilities associated with such assets
     and retained by such Person or any Restricted Subsidiary thereof, as the
     case may be, after such Asset Disposition, including, without limitation,
     liabilities under any indemnification obligations and severance and other
     employee termination costs associated with such Asset Disposition, until
     such time as such amounts are no longer reserved or such reserve is no
     longer necessary (at which time any remaining amounts will become Net
     Available Proceeds to be allocated in accordance with the provisions of
     clause (a)(3) of Section 4.06); and

          (5) all distributions and other payments made to minority interest
     holders in Restricted Subsidiaries of such Person or joint ventures as a
     result of such Asset Disposition.
<PAGE>

                                                                              14

          "Net Investment" means the excess of:

          (1) the aggregate amount of all Investments made in any Unrestricted
     Subsidiary or joint venture by the Company or any Restricted Subsidiary on
     or after the date of this Indenture (in the case of an Investment made
     other than in cash, the amount shall be the Fair Market Value of such
     Investment as determined in good faith by the Board of the Company or such
     Restricted Subsidiary); over

          (2) the aggregate amount returned in cash on or with respect to such
     Investments whether through interest payments, principal payments,
     dividends or other distributions or payments; provided, however, that such
                                                   --------  -------
     payments or distributions shall not be (and have not been) included in
     clause (C) of the paragraph (a) of Section 4.04; provided further that,
                                                      -------- -------
     with respect to all Investments made in any Unrestricted Subsidiary or
     joint venture, the amounts referred to in clause (1) above with respect to
     such Investments shall not exceed the aggregate amount of all such
     Investments made in such Unrestricted Subsidiary or joint venture.

          "New Intercarrier Roamer Service Agreement" means the Intercamer
Roamer Service Agreement by and between AT&T Wireless Services, Inc. and the
Company dated as of July 17, 1998 as in effect upon consummation of the Merger,
as amended from time to time or superceded by an agreement substantially in the
form of the Intercarrier Roamer Service Agreement attached as Exhibit 10.19 to
Holding's Registration Statement on Form S-4 as filed with the Securities and
Exchange Commission on June 20, 2000, as such agreement is amended from time to
time.

          "New Network Membership Licence Agreement" means the Network
Membership License Agreement by and among AT&T Corp., including AT&T Wireless
Services, Inc., and the Company dated as of July 17, 1998 as in effect upon
consummation of the Merger, as amended by the License Extension Agreement (as
defined in the Merger Agreement) as amended from time to time or superceded by
an agreement substantially in the form of the Network Membership License
Agreement attached as Exhibit 10.16 to Holding's Registration Statement on Form
S-4 as filed with the Securities and Exchange Commission on June 20, 2000, as
such agreement is amended from time to time.

          "New Roaming Administration Service Agreement" means the Roaming
Administration Service Agreement by and between AT&T Wireless Services, Inc. and
the Company dated as of July 17, 1998 as in effect upon consummation of the
Merger, as amended from time to time or superceded by an agreement substantially
in the form of the Intercarrier Roaming Administration Service Agreement
attached as Exhibit 10.21 to Holding's Registration Statement on Form S-4 as
filed with the Securities and Exchange Commission on June 20, 2000, as such
agreement is amended from time to time.

          "Offer" means any written offer sent by the Company that is the
subject of an Offer to Purchase.
<PAGE>

                                                                              15

          "Offer to Purchase" means an Offer sent by first class mail, postage
prepaid, to each holder of Securities at such holder's address appearing in the
register for the Securities on the date of the Offer offering to purchase up to
the principal amount of the Securities specified in such Offer at the purchase
price specified in such Offer (as determined pursuant to this Indenture).
Unless otherwise required by applicable law, the Offer shall specify an
Expiration Date of the Offer to Purchase which shall be not less than 30 days
nor more than 60 days after the date of such Offer and a Purchase Date for
purchase of Securities within five Business Days after the Expiration Date.  The
Company shall notify the Trustee at least 15 Business Days (or such shorter
period as is acceptable to the Trustee) prior to the mailing of the Offer of the
Company's obligation to make an Offer to Purchase, and the Offer shall be mailed
by the Company or, at the Company's request, by the Trustee in the name and at
the expense of the Company.  The Offer shall contain all the information
required by applicable law to be included therein.  The Offer shall contain all
instructions and materials necessary to enable holders of Securities to tender
their Securities pursuant to the Offer to Purchase.  The Offer shall also state:

          (1) the provision of this Indenture pursuant to which the Offer to
     Purchase is being made;

          (2) the Expiration Date and the Purchase Date;

          (3) the Purchase Amount;

          (4) the Purchase Price;

          (5) that such holder may tender all or any portion of the Securities
     registered in the name of such holder and that any portion of a Security
     tendered must be tendered in an integral multiple of $1,000 of principal
     amount;

          (6) the place or places where Securities are to be surrendered for
     tender pursuant to the Offer to Purchase;

          (7) that interest on any Security not tendered or tendered but not
     purchased by the Company pursuant to the Offer to Purchase will continue to
     accrue;

          (8) that on the Purchase Date the Purchase Price will become due and
     payable upon each Security being accepted for payment pursuant to the Offer
     to Purchase and that interest thereon shall cease to accrue on and after
     the Purchase Date;

          (9) that each holder electing to tender all or any portion of a
     Security pursuant to the Offer to Purchase shall be required to surrender
     such Security at the place or places specified in the Offer prior to the
     close of business on the Expiration Date (such Security being, if the
     Company or the Trustee so requires, duly endorsed by, or accompanied by a
     written instrument of transfer in form satisfactory to the Company and the
     Trustee duly executed by, the holder thereof or such holder's attorney duly
     authorized in writing);

          (10) that holders will be entitled to withdraw all or any portion of
     Securities tendered if the Company (or its paying agent) receives, not
     later than the close of business on the fifth Business Day next preceding
     the Expiration Date, a telegram, telex, facsimile
<PAGE>

                                                                              16

     transmission or letter setting forth the name of the holder, the principal
     amount of the Security the holder tendered, the certificate number of the
     Security the holder tendered and a statement that such holder is
     withdrawing all or a portion of such holder's tender;

          (11) that (a) if Securities in an aggregate principal amount less than
     or equal to the Purchase Amount are duly tendered and not withdrawn
     pursuant to the Offer to Purchase, the Company shall purchase all such
     Securities and (b) if Securities in an aggregate principal amount in excess
     of the Purchase Amount are tendered and not withdrawn pursuant to the Offer
     to Purchase, the Company shall purchase Securities having an aggregate
     principal amount equal to the Purchase Amount on a pro rata basis (with
                                                        --- ----
     such adjustments as may be deemed appropriate so that only Securities in
     denominations of $1,000 of principal amount or integral multiples thereof
     shall be purchased); and

          (12) that in the case of any holder whose Security is purchased only
     in part, the Company shall execute and the Trustee shall authenticate and
     deliver to the holder of such Security without service charge, a new
     Security or Securities, of any authorized denomination as requested by such
     holder, in an aggregate principal amount equal to and in exchange for the
     unpurchased portion of the Security so tendered.

An Offer to Purchase shall be governed by and effected in accordance with the
provisions above pertaining to any Offer.

          "Officer" means the Chief Executive Officer, the Executive Vice
President, the Chief Financial Officer, the Chief Operating Officer, the
President, any Vice President, the Treasurer or any Secretary of the Company or
a Subsidiary of the Company, as the case may be.

          "Officers' Certificate" means a certificate signed by two Officers
(other than both the Treasurer and the Secretary) and delivered to the Trustee.

          "Opinion of Counsel" means a written opinion delivered to the Trustee
from legal counsel who is acceptable to the Trustee.  The counsel may be an
employee of or counsel to the Company or the Trustee.

          "Permitted Asset Swap" means any exchange of assets by the Company or
a Restricted Subsidiary where the Company and/or its Restricted Subsidiaries
receive consideration at least 75% of which consists of (1) cash, (2) assets
that are used or useful in a Permitted Business or (3) any combination thereof.

          "Permitted Business" means:

          (1) the delivery or distribution of telecommunications, voice, data or
     video services;

          (2) any business or activity reasonably related or ancillary thereto,
     including, without limitation, any business conducted by the Company or any
     Restricted Subsidiary on the date of this Indenture and the acquisition,
     holding or exploitation of any license relating to the delivery of the
     services described in clause (1) above; or
<PAGE>

                                                                              17

          (3) any other business or activity in which the Company (and the
     Restricted Subsidiaries) are expressly contemplated to be engaged pursuant
     to the provisions of the certificate of incorporation and by-laws of the
     Company as in effect on the date of this Indenture.

          "Permitted Holder" means:

          (1) each of AT&T Wireless, TWR Cellular, the Cash Equity Investors,
     the Management Stockholders, Digital PCS, L.L.C, Wireless 2000, Inc. and
     any of their respective Affiliates and the respective successors (by
     merger, consolidation, transfer or otherwise) to all or substantially all
     of the respective businesses and assets of any of the foregoing;  provided
     that Triton PCS, Inc. shall be deemed an Affiliate of AT&T Wireless so long
     as AT&T Wireless owns at least 10% of the equity interests of Triton PCS,
     Inc.; and

          (2) any "person" or "group" (as such terms are used in Sections 13(d)
     and 14(d) of the Exchange Act) controlled by one or more persons identified
     in clause (1) above.

          "Permitted Investments" means:

          (1) Investments in Cash Equivalents;

          (2) Investments representing Capital Stock or obligations issued to
     the Company or any Restricted Subsidiary in the course of the good faith
     settlement of claims against any other Person or by reason of a composition
     or readjustment of debt or a reorganization of any debtor of the Company or
     any Restricted Subsidiary;

          (3) deposits including interest-bearing deposits, maintained in the
     ordinary course of business in banks;

          (4) any Investment in any Person; provided, however, that, after
                                            --------  -------
     giving effect to such Investment, such Person is or becomes a Restricted
     Subsidiary or such Person is merged, consolidated or amalgamated with or
     into, or transfers or conveys substantially all of its assets to, or is
     liquidated into, the Company or a Restricted Subsidiary;

          (5) trade receivables and prepaid expenses, in each case arising in
     the ordinary course of business; provided, however, that such receivables
                                      --------  -------
     and prepaid expenses would be recorded as assets of such Person in
     accordance with GAAP;

          (6) endorsements for collection or deposit in the ordinary course of
     business by such Person of bank drafts and similar negotiable instruments
     of such other Person received as payment for ordinary course of business
     trade receivables;

          (7) any interest rate agreements with an unaffiliated Person otherwise
     permitted by clause (5) or (6) of paragraph (a) of Section 4.03;

          (8) Investments received as consideration for an Asset Disposition in
     compliance with the provisions of this Indenture described under Section
     4.06;
<PAGE>

                                                                              18

          (9) loans or advances to employees of the Company or any Restricted
     Subsidiary in the ordinary course of business in an aggregate amount not to
     exceed $5,000,000 in the aggregate at any one time outstanding;

          (10) any Investment acquired by the Company or any of its Restricted
     Subsidiaries as a result of a foreclosure by the Company or any of its
     Restricted Subsidiaries or in connection with the settlement of any
     outstanding Indebtedness or trade payable;

          (11) loans and advances to officers, directors and employees for
     business-related travel expense, moving expense and other similar expenses,
     each incurred in the ordinary course of business;

          (12) any Investment for which the sole consideration is Qualified
     Stock; and

          (13) other Investments (with each such Investment being valued as of
     the date made and without giving effect to subsequent changes in value) in
     an aggregate amount not to exceed $15,000,000 at any one time outstanding.

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

          "Plan of Liquidation" means, with respect to any Person, a plan
(including by operation of law) that provides for, contemplates, or the
effectuation of which is preceded or accompanied by (whether or not
substantially contemporaneously):

          (1) the sale, lease, conveyance or other disposition of all or
     substantially all of the assets of such Person; and

          (2) the distribution of all or substantially all of the proceeds of
     such sale, lease, conveyance or other disposition and all or substantially
     all of the remaining assets of such Person to holders of Capital Stock of
     such Person.

          "Preferred Stock," as applied to the Capital Stock of any Person,
means Capital Stock of such Person of any class or classes (however designated)
that ranks prior, as to the payment of dividends or as to the distribution of
assets upon any voluntary or involuntary liquidation, dissolution or winding up
of such Person, to shares of Capital Stock of any other class of such Person.

          "principal" of a Security means the principal of the Security plus the
premium, if any, payable on the Security which is due or overdue or is to become
due at the relevant time.

          "Private Exchange Securities" means, collectively, debt securities of
the Company that are identical in all material respects to the Exchange
Securities, except for transfer restrictions relating to such Private Exchange
Securities, issued by the Company (under the same indenture as the Exchange
Securities) simultaneously with the delivery of the Exchange Securities in the
Exchange Offer to any Securityholder that holds any Securities acquired by it
that have, or that are reasonably likely to be determined to have, the status of
an unsold allotment in an initial distribution, or to any Securityholder that is
not entitled to participate in the Exchange Offer, upon
<PAGE>

                                                                              19

the request of any such holder, in exchange for a like aggregate principal
amount of Securities held by such holder.

          "Public Sale" means any underwritten public offering, made on a
primary basis pursuant to a registration statement filed with, and declared
effective by, the Commission in accordance with the Securities Act.

          "Purchase Amount" means the aggregate principal amount of the
outstanding Securities offered to be purchased by the Company pursuant to any
Offer to Purchase (including, if less than 100%, the manner by which such amount
has been determined pursuant to a specified provision of this Indenture
requiring such Offer to Purchase).

          "Purchase Date" means the settlement date with respect to any Offer to
Purchase.

          "Purchase Money Indebtedness" means any Indebtedness (including,
without limitation, Capital Lease Obligations); provided that the net proceeds
of such Indebtedness are utilized solely for the purpose of financing the cost
(including, without limitation, the cost of design, development, site
acquisition, construction, integration, handset manufacture or acquisition or
microwave relocation) of assets used or usable in a Permitted Business
(including, without limitation, through the acquisition of Capital Stock of an
entity engaged in a Permitted Business).

          "Purchase Price" means, with respect to any Offer to Purchase, the
purchase price to be paid by the Company for each $1,000 aggregate principal
amount of Securities accepted for payment (as specified pursuant to this
Indenture).

          "Qualified License" means, as of the date of determination, any
License covering or adjacent to any geographical area in respect of which the
Company or any Restricted Subsidiary owns, as of the Business Day immediately
prior to such date of determination, at least one other License covering a
substantial portion of such area.

          "Qualified Stock" means any Capital Stock of the Company other than
Disqualified Stock.

          "Real Property Subsidiary" means TeleCorp Realty L.L.C., Puerto Rico
Acquisition Corp. and/or any other Wholly Owned Subsidiary of the Company
designated by the Company as a Real Property Subsidiary under the Credit
Agreement.

          "Refinance" means refinance, renew, extend, replace or refund; and
"Refinancing" and "Refinanced" have correlative meanings.

          "Refinancing Indebtedness" means Indebtedness that is Incurred to
refund, refinance, replace, renew, repay or extend (including pursuant to any
defeasance or discharge mechanism) any Indebtedness of the Company or any
Restricted Subsidiary existing on the date of this Indenture or Incurred in
compliance with this Indenture (including Indebtedness of the Company that
Refinances Refinancing Indebtedness); provided, however, that:
                                      --------  -------

          (1) the Refinancing Indebtedness has a Stated Maturity no earlier than
     the Stated Maturity of the Indebtedness being Refinanced;
<PAGE>

                                                                              20

          (2) the Refinancing Indebtedness has an Average Life at the time such
     Refinancing Indebtedness is Incurred that is equal to or greater than the
     Average Life of the Indebtedness being refinanced;

          (3) such Refinancing Indebtedness is Incurred in an aggregate
     principal amount (or if issued with original issue discount, an aggregate
     issue price) that is equal to or less than the aggregate principal amount
     (or if issued with original issue discount, the aggregate accreted value)
     then outstanding of the Indebtedness being Refinanced plus the amount of
     any premium required to be paid in connection with such Refinancing
     pursuant to the terms of the Indebtedness being Refinanced or the amount of
     any premium reasonably determined by the issuer of such Indebtedness as
     necessary to accomplish such Refinancing by means of a tender offer,
     exchange offer or privately negotiated repurchase, plus the expenses of
     such issuer reasonably incurred in connection therewith; and

          (4) if the Indebtedness being Refinanced is pari passu with the
                                                      ---- -----
     Securities, such Refinancing Indebtedness is made pari passu with, or
                                                       ---- -----
     subordinate in right of payment to, the Securities, and, if the
     Indebtedness being Refinanced is subordinate in right of payment to the
     Securities, such Refinancing Indebtedness is subordinate in right of
     payment to the Securities on terms no less favorable to the holders of
     Securities than those contained in the Indebtedness being Refinanced;

provided further, however, that Refinancing Indebtedness shall not include
-------- -------  -------

          (A) Indebtedness of a Restricted Subsidiary that Refinances
     Indebtedness of the Company; or

          (B) Indebtedness of the Company or a Restricted Subsidiary that
     Refinances Indebtedness of an Unrestricted Subsidiary.

          "Representative" means the trustee, agent or representative (if any)
for an issue of Senior Indebtedness.

          "Restricted Subsidiary" means any Subsidiary of the Company other than
an Unrestricted Subsidiary.

          "Sale/Leaseback Transaction" means an arrangement relating to property
owned on the date of this Indenture or thereafter acquired by the Company or a
Restricted Subsidiary whereby the Company or a Restricted Subsidiary transfers
such property to a Person and the Company or such Restricted Subsidiary leases
it from such Person, other than leases between the Company and a Wholly Owned
Subsidiary or between Wholly Owned Subsidiaries.

          "Secured Indebtedness" means any Indebtedness of the Company secured
by a Lien.  "Secured Indebtedness" of the Subsidiary Guarantor has a correlative
meaning.

          "Securities Act" means the Securities Act of 1933, as amended.
<PAGE>

                                                                              21

          "Security" or "Securities" means any Security or Securities issued
under this Indenture, including any Initial Security or Initial Securities or
any Exchange Security or Exchange Securities or any Private Exchange Security or
Private Exchange Securities issued in exchange therefor in connection with an
Exchange Offer undertaken pursuant to the Exchange and Registration Rights
Agreement.

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

          "Senior Indebtedness" of the Company means the principal of, premium
(if any) and accrued and unpaid interest (including interest accruing on or
after the filing of any petition in bankruptcy or for reorganization of the
Company, regardless of whether or not a claim for post-filing interest is
allowed in such proceedings) on, and fees and other amounts owing in respect of
Bank Indebtedness and all other Indebtedness of the Company, including FCC Debt,
whether outstanding on the date of this Indenture or thereafter Incurred, unless
in the instrument creating or evidencing the same or pursuant to which the same
is outstanding it is provided that such obligations are not superior in right of
payment to the Securities; provided, however, that Senior Indebtedness shall not
                           --------  -------
include:

          (1) any obligation of the Company to any Subsidiary of the Company;

          (2) any liability for federal, state, local or other taxes owed or
     owing by the Company;

          (3) any accounts payable or other liability to trade creditors arising
     in the ordinary course of business (including guarantees thereof or
     instruments evidencing such liabilities);

          (4) any Indebtedness or obligation of the Company, and any accrued and
     unpaid interest in respect thereof, that by its terms is subordinate or
     junior in any respect to any other Indebtedness or obligation of the
     Company, including any Senior Subordinated Indebtedness of the Company and
     any Subordinated Indebtedness of the Company;

          (5) any obligations with respect to any Capital Stock; or

          (6) any Indebtedness Incurred in violation of this Indenture.

"Senior Indebtedness" of any Subsidiary Guarantor has a correlative meaning.

          "Senior Subordinated Indebtedness" of the Company means the
Securities, the Discount Notes and any other Indebtedness of the Company that
specifically provides that such Indebtedness is to rank pari passu with the
                                                        ---- -----
Securities in right of payment and is not subordinated by its terms in right of
payment to any Indebtedness or other obligation of the Company which is not
Senior Indebtedness.  "Senior Subordinated Indebtedness" of a Subsidiary
Guarantor has a correlative meaning.

          "Series A Notes" means the Series A Notes of the Company purchased by
Lucent pursuant to the Lucent Note Purchase Agreement.
<PAGE>

                                                                              22

          "Significant Subsidiary" means any Restricted Subsidiary that would be
a "Significant Subsidiary" of the Company within the meaning of Rule 1-02 under
Regulation S-X promulgated by the Commission.

          "Special Purpose Subsidiary" means any Equipment Subsidiary, License
Subsidiary or Real Property Subsidiary.

          "Stated Maturity" means, with respect to any security, the date
specified in such security as the fixed date on which the final payment of
principal of such security is due and payable, including pursuant to any
mandatory redemption provision (but excluding any provision providing for the
repurchase of such security at the option of the holder thereof upon the
happening of any contingency beyond the control of the issuer unless such
contingency has occurred).

          "Stockholders' Agreement" means the Stockholders' Agreement dated as
of July 17, 1998, among AT&T Wireless, TWR Cellular, the Cash Equity Investors,
the Management Stockholders and the Company, as such agreement may be amended
from time to time in accordance with the provisions of such agreement, so long
as the terms of any such amendment are no less favorable to the Securityholders
than the terms of the Stockholders' Agreement in effect on the date of this
Indenture.

          "Strategic Equity Investor" means any of the Cash Equity Investors,
any Affiliate thereof, any other Person engaged in a Permitted Business whose
Total Equity Market Capitalization exceeds $500,000,000 or any other Person who
has at least $100,000,000 total funds under management and who has issued an
irrevocable, unconditional commitment to purchase Qualified Stock of the Company
for an aggregate purchase price that does not exceed 20% of the value of the
funds under management by such Person.

          "Subordinated Indebtedness" means any Indebtedness of the Company or
any Subsidiary Guarantor (whether outstanding on the date of this Indenture or
thereafter Incurred) which is by its terms expressly subordinate or junior in
right of payment to the Securities or the Subsidiary Guarantee of such
Subsidiary Guarantor, as the case may be.

          "Subsidiary" of any Person means:

          (1) a corporation more than 50% of the outstanding Voting Stock of
     which is owned, directly or indirectly, by such Person or by one or more
     other Subsidiaries of such Person or by such Person and one or more other
     Subsidiaries thereof; or

          (2) any other Person (other than a corporation) in which such Person,
     or one or more other Subsidiaries of such Person or such Person and one or
     more other Subsidiaries thereof, directly or indirectly, has at least a
     majority ownership and voting power relating to the policies, management
     and affairs thereof.

          "Subsidiary Guarantee" means each guarantee of the obligations with
respect to the Securities issued by a Subsidiary of the Company pursuant to the
terms of this Indenture, each such Subsidiary Guarantee having subordination
provisions equivalent to those contained in this
<PAGE>

                                                                              23

Indenture with respect to the Securities and being substantially in the form
prescribed in this Indenture.

          "Subsidiary Guarantor" means any Subsidiary of the Company that has
issued a Subsidiary Guarantee.

          "System" means, as to any Person, assets constituting a radio
communications system authorized under the rules for wireless communications
services (including any license and the network, marketing, distribution, sales,
customer interface and operations and functions relating thereof) owned and
operated by such Person.

          "THC" means TeleCorp Holding Corp., Inc., a Delaware corporation and a
Wholly Owned Subsidiary.

          "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. (S)(S) 77aaa-
                                                          ------
77bbbb) as in effect on the date of this Indenture.

          "Total Assets" means the total assets of the Company, as shown on the
most recent quarterly balance sheet of the Company.

          "Total Consolidated Indebtedness" means, at any date of determination,
an amount equal to:

          (1) the accreted value of all Indebtedness, in the case of any
     Indebtedness issued with original issue discount; plus
<PAGE>

                                                                              24

          (2) the principal amount of all Indebtedness, in the case of any other
     Indebtedness,

of the Company and its Restricted Subsidiaries outstanding as of the date of
determination; provided, however, that no amount owing by the Company or any of
               --------  -------
its Restricted Subsidiaries in respect of any Series A Notes outstanding as of
the date of determination shall be included in the determination of Total
Consolidated Indebtedness.

          "Total Equity Market Capitalization" of any Person means, as of any
day of determination, the sum of (a) the product of (1) the aggregate number of
outstanding primary shares of common stock of such Person on such day (which
shall not include any options or warrants on, or securities convertible or
exchangeable into, shares of common stock of such Person) multiplied by (2) the
average closing price of such common stock listed on a national securities
exchange or the Nasdaq National Market System over the 20 consecutive Business
Days immediately preceding such day plus (b) the liquidation value of any
outstanding shares of preferred stock of such Person on such day.

          "Total Invested Capital" means, as of any date of determination, the
sum of, without duplication:

          (1) the total amount of equity contributed to the Company as of the
     date of this Indenture (as set forth on the March 31, 2000 consolidated
     balance sheet of the Company); plus

          (2) irrevocable, unconditional commitments from any Strategic Equity
     Investor to purchase Capital Stock of the Company (other than Disqualified
     Stock) within 36 months of the date of issuance of such commitment, but in
     any event not later than the Stated Maturity of the Securities; provided,
                                                                     --------
     however, that such commitments shall exclude commitments related to any
     -------
     Investment in any Person incorporated, formed or created for the purpose of
     acquiring one or more Qualified Licenses unless such Person shall become a
     Restricted Subsidiary; plus

          (3) the aggregate net cash proceeds received by the Company from
     capital contributions or the issuance or sale of Capital Stock of the
     Company (other than Disqualified Stock, but including Qualified Stock
     issued upon the conversion of convertible Indebtedness or upon the exercise
     of options, warrants or rights to purchase Qualified Stock) subsequent to
     the date of this Indenture, other than issuances or sales of Capital Stock
     to a Restricted Subsidiary and other than capital contributions from, or
     issuances or sales of Capital Stock to, any Strategic Equity Investor in
     connection with (a) any Investment in any Person incorporated, formed or
     created for the purpose of acquiring one or more Qualified Licenses and (b)
     any Investment in any Person engaged in a Permitted Business, unless, in
     either case, such Person shall become a Restricted Subsidiary; provided,
                                                                    --------
     however, such aggregate net cash proceeds shall exclude any amounts
     -------
     included as commitments to purchase Capital Stock in the preceding clause
     (2); plus

          (4) the Fair Market Value of assets that are used or useful in a
     Permitted Business or of the Capital Stock of a Person engaged in a
     Permitted Business received by the Company as a capital contribution or in
     exchange for Capital Stock of the Company (other than Disqualified Stock)
     subsequent to the date of this Indenture, other than (x) capital
     contributions from a Restricted Subsidiary or issuance or sales of Capital
     Stock of the Company to a Restricted Subsidiary or (y) the proceeds from
     the sale of Qualified Stock to an employee stock ownership plan or other
     trust established by the Company or any of its subsidiaries; plus

          (5) the aggregate net cash proceeds received by the Company or any
     Restricted Subsidiary from the sale, disposition or repayment of any
     Investment made after the date of this Indenture and constituting a
     Restricted Payment in an amount equal to the lesser of (a) the return of
     capital with respect to such Investment and (b) the initial amount of such
     Investment, in either case, less the cost of the disposition of such
     Investment; plus

          (6) an amount equal to the consolidated Net Investment of the Company
     and/or any of its Restricted Subsidiaries in any Subsidiary that has been
     designated as an Unrestricted Subsidiary after the date of this Indenture
     upon its redesignation as a Restricted Subsidiary in accordance with
     Section 4.13; plus

          (7) cash proceeds from the sale to Lucent of the Series A Notes (less
     payments made by the Company or any of its Subsidiaries with respect to
     Series A Notes (other than payments of additional Series A Notes)); plus

          (8) Total Consolidated Indebtedness; minus
<PAGE>

                                                                              25

          (9) the aggregate amount of all Restricted Payments (including any
     Designation Amount, but other than a Restricted Payment of the type
     referred to in clause (3)(b) of paragraph (c) of Section 4.04) declared or
     made on or after the date of this Indenture.

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

          "Trust Officer" means any officer within the Corporate Trust Office
including any Vice President, Managing Director, Assistant Vice President,
Secretary, Assistant Secretary, Treasurer or Assistant Treasurer or any other
officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer's knowledge and familiarity with the particular subject.

          "TWR Cellular" means TWR Cellular, Inc., a Delaware corporation, and
an Affiliate of AT&T Wireless.

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

          "Unrestricted Subsidiary" means (1) until Holdings ceases to be a
subsidiary of the Company, Holdings and its Subsidiaries, (2) any Subsidiary of
the Company (other than an Ineligible Subsidiary) designated after the date of
this Indenture as such pursuant to, and in compliance with, Section 4.13 and (3)
any Marketing Affiliate.  Any such designation of any Subsidiary of the Company
may be revoked by a resolution of the board of directors of the Company
delivered to the Trustee certifying compliance with Section 4.13, subject to the
provisions of Section 4.13.

          "U.S. Government Obligations" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for
the payment of which the full faith and credit of the United States of America
is pledged and which are not callable or redeemable at the issuer's option.

          "Voting Stock" of any Person means the Capital Stock of such Person
which ordinarily has voting power for the election of directors (or Persons
performing similar functions) of such Person, whether at all times or only so
long as no senior class of securities has such voting power by reason of any
contingency.

          "Wholly Owned Subsidiary" means a Restricted Subsidiary, all of the
outstanding Capital Stock or other ownership interests of which (other than
directors' qualifying shares) shall at the time be owned by the Company and/or
by one or more Wholly Owned Subsidiaries.
<PAGE>

                                                                              26

           SECTION 1.02.  Other Definitions.
                          ------------------

<TABLE>
<CAPTION>
                                                        Defined in
              Term                                        Section
              ----                                     -------------

<S>                                                    <C>
"Blockage Notice"....................................       10.03
"Change of Control Offer"............................     4.04(b)
"covenant defeasance option".........................     8.01(b)
"cross acceleration provision".......................        6.01
"Designation Amount".................................        4.13
"Event of Default"...................................        6.01
"Guaranteed Obligations".............................       11.01
"judgment default provision".........................        6.01
"legal defeasance option"............................     8.01(b)
"Notice of Default"..................................        6.01
"pay its guarantee"..................................       12.03
"pay the Securities".................................       10.03
"Paying Agent".......................................        2.03
"Payment Blockage Period"............................       10.03
"protected purchaser"................................        2.07
"Registrar"..........................................        2.03
"Revocation".........................................        4.13
"Surviving Entity"...................................     5.01(a)
</TABLE>

          SECTION 1.03.  Incorporation by Reference of Trust Indenture Act.
                         --------------------------------------------------
This Indenture is subject to the mandatory provisions of the TIA, which are
incorporated by reference in and made a part of this Indenture.  The following
TIA terms have the following meanings:

          "indenture securities" means the Securities and the Subsidiary
Guarantees.

          "indenture security holder" means a Holder or Securityholder.

          "indenture to be qualified" means this Indenture.

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

          "obligor" on the indenture securities means the Company, the
Subsidiary Guarantors and any other obligor on the indenture securities.

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

           SECTION 1.04.  Rules of Construction.  Unless the context otherwise
                          ----------------------
requires:

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

                                                                              27

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

          (3) "or" is not exclusive;

          (4) "including" means including without limitation;

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

          (6) unsecured Indebtedness shall not be deemed to be subordinate or
     junior to Secured Indebtedness merely by virtue of its nature as unsecured
     Indebtedness;

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

          (8) the principal amount of any Preferred Stock shall be (i) the
     maximum liquidation value of such Preferred Stock or (ii) the maximum
     mandatory redemption or mandatory repurchase price with respect to such
     Preferred Stock, whichever is greater.

                                   ARTICLE 2

                                 The Securities
                                 --------------

          SECTION 2.01.  Form and Dating.  Provisions relating to the Initial
                         ----------------
Securities, the Private Exchange Securities and the Exchange Securities are set
forth in the Appendix, which is hereby incorporated in and expressly made a part
of this Indenture.  The (i) Initial Securities and the Trustee's certificate of
authentication and (ii) Private Exchange Securities and the Trustee's
certificate of authentication shall each be substantially in the form of Exhibit
A hereto, which is hereby incorporated in and expressly made a part of this
Indenture.  The Exchange Securities and the Trustee's certificate of
authentication shall each be substantially in the form of Exhibit B hereto,
which is hereby incorporated in and expressly made a part of this Indenture. The
Securities may have notations, legends or endorsements required by law, stock
exchange rule, agreements to which the Company or any Subsidiary Guarantor is
subject, if any, or usage (provided that any such notation, legend or
endorsement is in a form acceptable to the Company). Each Security shall be
dated the date of its authentication.  The Securities shall be issuable only in
registered form without interest coupons and only in denominations of $1,000 of
principal amount and integral multiples thereof.

          SECTION 2.02.  Execution and Authentication.  One or more Officers
                         -----------------------------
shall sign the Securities for the Company by manual or facsimile signature.

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

                                                                              28

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

          The Trustee shall authenticate and make available for delivery
Securities for original issue in an aggregate principal amount of $450,000,000
and otherwise as set forth in the Appendix.

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

          SECTION 2.03.  Registrar and Paying Agent.  The Company shall maintain
                         ---------------------------
an office or agency where Securities may be presented for registration of
transfer or for exchange (the "Registrar") and an office or agency where
Securities may be presented for payment (the "Paying Agent").  The Registrar
shall keep a register of the Securities and of their transfer and exchange.  The
Company may have one or more co-registrars and one or more additional paying
agents.  The term "Paying Agent" includes any additional paying agent, and the
term "Registrar" includes any co-registrars.  The Company initially appoints the
Trustee as (i) Registrar and Paying Agent in connection with the Securities and
(ii) the Securities Custodian (as defined in the Appendix) with respect to the
Global Securities (as defined in the Appendix).

          The Company shall enter into an appropriate agency agreement with any
Registrar or Paying Agent not a party to this Indenture, which shall incorporate
the terms of the TIA.  Any such agreement shall implement the provisions of this
Indenture that relate to such agent.  The Company shall notify the Trustee of
the name and address of any such agent.  If the Company fails to maintain a
Registrar or Paying Agent, the Trustee shall act as such and shall be entitled
to appropriate compensation therefor pursuant to Section 7.07.  The Company or
any of its domestically organized Wholly Owned Subsidiaries may act as Registrar
or Paying Agent .

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

          SECTION 2.04.  Paying Agent To Hold Money in Trust.  Prior to each due
                         ------------------------------------
date of the principal and interest on any Security, the Company shall deposit
with the Paying Agent (or if the Company or a Subsidiary is acting as Paying
Agent, segregate and hold in trust for the benefit of the Persons entitled
thereto) a sum sufficient to pay such principal and interest then so
<PAGE>

                                                                              29

becoming due. The Company shall require each Paying Agent (other than the
Company or the Trustee) to agree in writing that the Paying Agent shall hold in
trust for the benefit of Securityholders or the Trustee all money held by the
Paying Agent for the payment of principal of or interest on the Securities and
shall notify the Trustee of any default by the Company in making any such
payment. If the Company or a Subsidiary of the Company acts as Paying Agent, it
shall segregate the money held by it as Paying Agent and hold it as a separate
trust fund. The Company at any time may require a Paying Agent to pay all money
held by it to the Trustee and to account for any funds disbursed by the Paying
Agent. Upon complying with this Section, the Paying Agent shall have no further
liability for the money delivered to the Trustee.

          SECTION 2.05.  Securityholder Lists.  The Trustee shall preserve in as
                         ---------------------
current a form as is reasonably practicable the most recent list available to it
of the names and addresses of Securityholders.  If the Trustee is not the
Registrar, the Company shall furnish, or cause the Registrar to furnish, to the
Trustee, in writing at least five Business Days before each interest payment
date and at such other times as the Trustee may request in writing, a list in
such form and as of such date as the Trustee may reasonably require of the names
and addresses of Securityholders.

          SECTION 2.06.  Transfer and Exchange.   The Securities shall be issued
                         ----------------------
in registered form and shall be transferable only upon the surrender of a
Security for registration of transfer and in compliance with the Appendix.  When
a Security is presented to the Registrar with a request to register a transfer,
the Registrar shall register the transfer as requested if the requirements of
Section 8-401(a)(l) of the Uniform Commercial Code are met.  When Securities are
presented to the Registrar with a request to exchange them for an equal
principal amount of Securities of other denominations, the Registrar shall make
the exchange as requested if the same requirements are met.  To permit
registration of transfers and exchanges, the Company shall execute and the
Trustee shall authenticate Securities (in the form of Exhibit A or Exhibit B, as
appropriate) at the Registrar's request.  The Company may require payment of a
sum sufficient to pay all taxes, assessments or other governmental charges in
connection with any transfer or exchange pursuant to this Section 2.06.  The
Company shall not be required to make and the Registrar need not register
transfers or exchanges of Securities selected for redemption (except, in the
case of Securities to be redeemed in part, the portion thereof not to be
redeemed) or any Securities for a period of 15 days before a selection of
Securities to be redeemed.

          Prior to the due presentation for registration of transfer of any
Security, the Company, any Subsidiary Guarantor, the Trustee, the Paying Agent
and the Registrar may deem and treat the Person in whose name a Security is
registered as the absolute owner of such Security for the purpose of receiving
payment of principal of and interest, if any, on such Security and for all other
purposes whatsoever, whether or not such Security is overdue, and none of the
Company, any Subsidiary Guarantor, the Trustee, the Paying Agent, or the
Registrar shall be affected by notice to the contrary.

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

                                                                              30

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

          SECTION 2.07.  Replacement Securities.  If a mutilated Security is
                         -----------------------
surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall issue
and the Trustee shall authenticate a replacement Security if the requirements of
Section 8-405 of the Uniform Commercial Code are met, such that the Holder (i)
satisfies the Company and the Trustee within a reasonable time after such Holder
has notice of such loss, destruction or wrongful taking and the Registrar does
not register a transfer prior to receiving such notification, (ii) makes such
request to the Company or the Trustee prior to the Security being acquired by a
protected purchaser as defined in Section 8-303 of the Uniform Commercial Code
(a "protected purchaser") and (iii) satisfies any other reasonable requirements
of the Trustee.  If required by the Company or the Trustee, such Holder shall
furnish an indemnity bond sufficient in the judgment of the Company and the
Trustee to protect the Company, the Trustee, the Paying Agent and the Registrar
from any loss that any of them may suffer if a Security is replaced.  The
Company and the Trustee may charge the Holder for their expenses in replacing a
Security.  In the event any such mutilated, lost, destroyed or wrongfully taken
Security has become or is about to become due and payable, the Company in its
discretion may pay such Security instead of issuing a new Security in
replacement thereof.

          Every replacement Security is an additional obligation of the Company.

          The provisions of this Section 2.07 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, lost, destroyed or wrongfully taken
Securities.

          SECTION 2.08.  Outstanding Securities.  Securities outstanding at any
                         -----------------------
time are all Securities authenticated by the Trustee except for those canceled
by it, those delivered to it for cancelation and those described in this Section
2.08 as not outstanding.  Subject to Section 14.06, a Security does not cease to
be outstanding because the Company or an Affiliate of the Company holds the
Security.

          If a Security is replaced pursuant to Section 2.07, it ceases to be
outstanding unless the Trustee and the Company receive proof satisfactory to
them that the replaced Security is held by a protected purchaser.

          If the Paying Agent segregates and holds in trust, in accordance with
this Indenture, on a redemption date or maturity date money sufficient to pay
all principal and interest and liquidated damages payable on that date with
respect to the Securities (or portions thereof) to be redeemed or maturing, as
the case may be, and the Paying Agent is not prohibited from paying such money
to the Securityholders on that date pursuant to the terms of this Indenture,
then on and after that date such Securities (or portions thereof) cease to be
outstanding and interest on them ceases to accrue.

          SECTION 2.09.  Temporary Securities.  In the event that Definitive
                         ---------------------
Securities (as defined in the Appendix) are to be issued under the terms of this
Indenture, until such Definitive Securities are ready for delivery, the Company
may prepare and the Trustee shall authenticate
<PAGE>

                                                                              31

temporary Securities. Temporary Securities shall be substantially in the form of
Definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate Definitive Securities and
deliver them in exchange for temporary Securities upon surrender of such
temporary Securities at the office or agency of the Company, without charge to
the Holder.

          SECTION 2.10.  Cancelation.  The Company at any time may deliver
                         ------------
Securities to the Trustee for cancelation.  The Registrar and the Paying Agent
shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange or payment.  The Trustee and no one else shall cancel all
Securities surrendered for registration of transfer, exchange, payment or
cancelation and deliver canceled Securities to the Company pursuant to written
direction by an Officer.  The Company may not issue new Securities to replace
Securities it has redeemed, paid or delivered to the Trustee for cancelation.
The Trustee shall not authenticate Securities in place of canceled Securities
other than pursuant to the terms of this Indenture.

          SECTION 2.11.  Defaulted Interest.  If the Company defaults in a
                         -------------------
payment of interest on the Securities, the Company shall pay the defaulted
interest (plus interest on such defaulted interest to the extent lawful) in any
lawful manner.  The Company may pay the defaulted interest to the Persons who
are Securityholders on a subsequent special record date. The Company shall fix
or cause to be fixed any such special record date and payment date to the
reasonable satisfaction of the Trustee and shall promptly mail or cause to be
mailed to each Securityholder a notice that states the special record date, the
payment date and the amount of defaulted interest to be paid.

          SECTION 2.12.  CUSIP Numbers.  The Company in issuing the Securities
                         --------------
may use CUSIP numbers (if then generally in use) and, if so, the Trustee shall
use CUSIP numbers in notices of redemption solely as a convenience to Holders;
provided, however, that any such notice may state that (i) none of the Company,
--------  -------
any Subsidiary Guarantor, the Trustee or the Paying Agent shall be responsible
for selection or use of such CUSIP numbers, (ii) no representation is made as to
the correctness of such CUSIP numbers either as printed on the Securities or as
contained in any notice of a redemption and (iii) reliance may be placed only on
the other identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such numbers.

                                   ARTICLE 3

                                   Redemption
                                   ----------

          SECTION 3.01.  Notices to Trustee.  If the Company elects to redeem
                         -------------------
Securities pursuant to paragraph 5 of the Securities, it shall notify the
Trustee in writing of the redemption date and the principal amount of Securities
to be redeemed.

          The Company shall give each notice to the Trustee provided for in this
Section 3.01 at least 60 days before the redemption date unless the Trustee
consents to a shorter period.  Such notice shall be accompanied by an Officers'
Certificate (which Officers' Certificate shall comply with the requirements of
Section 14.04(1) and 14.05) and an Opinion of Counsel
<PAGE>

                                                                              32

(which Opinion of Counsel shall comply with the requirements of Section 14.04(2)
and 14.05) from the Company to the effect that such redemption will comply with
the conditions herein. If fewer than all the Securities are to be redeemed, the
record date relating to such redemption shall be selected by the Company and
given to the Trustee, which record date shall be not fewer than 15 days after
the date of notice to the Trustee. Any such notice may be canceled at any time
prior to notice of such redemption being mailed to any Holder and shall thereby
be void and of no effect.

          SECTION 3.02.  Selection of Securities To Be Redeemed.  If fewer than
                         ---------------------------------------
all the Securities are to be redeemed, the Trustee shall select the Securities
to be redeemed pro rata or by lot or by a method that complies with applicable
               --- ----
legal and securities exchange requirements, if any, and that the Trustee in its
sole discretion shall deem to be fair and appropriate and in accordance with
methods generally used at the time of selection by fiduciaries in similar
circumstances.  The Trustee shall make the selection from outstanding Securities
not previously called for redemption.  The Trustee may select for redemption
portions of the principal amount of Securities that have denominations larger
than $1,000.  Securities and portions thereof the Trustee selects shall be in
amounts of $1,000 of principal amount or a whole multiple of $1,000 thereof.
Provisions of this Indenture that apply to Securities called for redemption also
apply to portions of Securities called for redemption.  The Trustee shall notify
the Company promptly of the Securities or portions of Securities to be redeemed.

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

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

          (1) the redemption date;

          (2) the redemption price and the amount of accrued interest to the
     redemption date;

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

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

          (5) if fewer than all the outstanding Securities are to be redeemed,
     the certificate numbers of certificated securities and principal amounts
     of the particular Securities to be redeemed;

          (6) that, unless the Company defaults in making such redemption
     payment or the Paying Agent is prohibited from making such payment pursuant
     to the terms of this Indenture, interest on Securities (or portion thereof)
     called for redemption ceases to accrue on and after the redemption date;

          (7) the CUSIP number, if any, printed on the Securities being
     redeemed; and
<PAGE>

                                                                              33

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

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

          SECTION 3.04.  Effect of Notice of Redemption.  Once notice of
                         -------------------------------
redemption is mailed, Securities called for redemption become due and payable on
the redemption date and at the redemption price stated in the notice.  Upon
surrender to the Paying Agent, such Securities shall be paid at the redemption
price stated in the notice, plus accrued interest and liquidated damages, if
any, to the redemption date; provided, however, that if the redemption date is
                             --------  -------
after a regular record date and on or prior to the interest payment date, the
accrued interest shall be payable to the Securityholder of the redeemed
Securities registered on the relevant record date. Failure to give notice or any
defect in the notice to any Holder shall not affect the validity of the notice
to any other Holder.

          SECTION 3.05.  Deposit of Redemption Price.  Prior to 10:00 a.m. on
                         ----------------------------
the redemption date, the Company shall deposit with the Paying Agent (or, if the
Company or a Subsidiary is the Paying Agent, shall segregate and hold in trust)
money sufficient to pay the redemption price of and accrued interest and
liquidated damages (if any) on all Securities to be redeemed on that date other
than Securities or portions of Securities called for redemption that have been
delivered by the Company to the Trustee for cancelation.  On and after the
redemption date, interest will cease to accrue on Securities or portions thereof
called for redemption so long as the Company has deposited with the Paying Agent
funds sufficient to pay the principal of, plus accrued and unpaid interest and
liquidated damages (if any) on, the Securities to be redeemed.

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

                                   ARTICLE 4

                                   Covenants
                                   ---------

          SECTION 4.01.  Payment of Securities.  The Company shall promptly pay
                         ----------------------
the principal of and interest on the Securities on the dates and in the manner
provided in the Securities and in this Indenture.  Principal and interest shall
be considered paid on the date due if on such date the Trustee or the Paying
Agent holds in accordance with this Indenture money sufficient to pay all
principal and interest then due and the Trustee or the Paying Agent, as the case
may be, is not prohibited from paying such money to the Securityholders on that
date pursuant to the terms of this Indenture.

          The Company shall pay interest on overdue principal at the rate
specified therefor in the Securities, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.
<PAGE>

                                                                              34

          SECTION 4.02.  Provision of Financial Information.  (a)  Whether or
                         -----------------------------------
not required by the rules and regulations of the Commission, so long as any
Securities are outstanding, the Company shall furnish to the holders of
Securities:

          (1) all quarterly and annual financial information that would be
     required to be contained in a filing with the Commission on Forms 10-Q and
     10-K if the Company were required to file such forms, including a section
     entitled "Management's Discussion and Analysis of Financial Condition and
     Results of Operations" that describes the financial condition and results
     of operations of the Company and its consolidated Subsidiaries and, with
     respect to annual information only, a report thereon by the Company's
     certified independent accountants; and

          (2) all current reports that would be required to be filed with the
     Commission on Form 8-K if the Company were required to file such reports,
     in each case within the time period specified in the Commission's rules and
     regulations; and

          (3) all quarterly and annual balance sheet, income statement and cash
     flow financial information required to be furnished pursuant to Sections
     4.02(a)(1) and 4.02(a)(2), adjusted to exclude the operations of Tritel,
     Inc. and its subsidiaries and all adjustments related to the Merger other
     than the AT&T Wireless Services Contribution and the AT&T Wireless Exchange
     (in each case allocable to the Company).

          (b)  Following the consummation of the Exchange Offer contemplated by
the Exchange and Registration Rights Agreement, whether or not required by the
rules and regulations of the Commission, the Company shall file a copy of all
such information and reports specified in Sections 4.02(a)(1) and 4.02(a)(2)
with the Commission for public availability within the time periods specified in
the Commission's rules and regulations (unless the Commission will not accept
such a filing) and make such information available to prospective investors upon
request.  In addition, the Company shall, for so long as any Securities remain
outstanding, furnish to the holders of Securities, upon request, the information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.
The Company shall also comply with Section 314(a) of the TIA.

          SECTION 4.03.  Limitation on Incurrence of Indebtedness.  (a)  The
                         -----------------------------------------
Company shall not, and shall not cause or permit any Restricted Subsidiary to,
directly or indirectly, Incur any Indebtedness (including Acquired
Indebtedness), except:

          (1) Indebtedness of the Company or any Subsidiary Guarantor if,
     immediately after giving effect to the Incurrence of such Indebtedness and
     the receipt and application of the net proceeds therefrom (including,
     without limitation, the application or use of the net proceeds therefrom to
     repay Indebtedness, consummate an Asset Acquisition or make any Restricted
     Payment):

               (a) the ratio of (x) Total Consolidated Indebtedness to (y)
          Annualized Pro Forma Consolidated Operating Cash Flow would be less
          than:  7.0 to 1.0; or
<PAGE>

                                                                              35

               (b) in the case of any Incurrence of Indebtedness prior to April
          1, 2005 only, Total Consolidated Indebtedness would be equal to or
          less than 75% of Total Invested Capital;

          (2) Bank Indebtedness of the Company and its Restricted Subsidiaries
     in an aggregate principal amount not to exceed $1,000,000,000 at any time
     outstanding;

          (3) Purchase Money Indebtedness;

          (4) Indebtedness owed by the Company to any Restricted Subsidiary or
     Indebtedness owed by a Restricted Subsidiary to the Company or another
     Restricted Subsidiary; provided, however, that, upon either (a) the
                            --------  -------
     transfer or other disposition by such Restricted Subsidiary or the Company
     of any Indebtedness so permitted under this clause (4) to a Person other
     than the Company or another Restricted Subsidiary or (b) the issuance
     (other than of directors' qualifying shares), sale, transfer or other
     disposition of shares of Capital Stock or other ownership interests
     (including by consolidation or merger) of such Restricted Subsidiary to a
     Person other than the Company or another such Restricted Subsidiary, the
     exception provided by this clause (4) shall no longer be applicable to such
     Indebtedness and such Indebtedness shall be deemed to have been Incurred at
     the time of any such issuance, sale, transfer or other disposition, as the
     case may be;

          (5) Indebtedness of the Company or any Restricted Subsidiary under any
     Hedging Agreement to the extent entered into to protect the Company or such
     Restricted Subsidiary from fluctuations in interest rates on any other
     Indebtedness permitted under this Indenture (including the Securities),
     currency exchange rates or commodity prices and not for speculative
     purposes;

          (6) Refinancing Indebtedness Incurred to Refinance any Indebtedness
     Incurred under the prior clause (1) or (3) above, or (13) below, the
     Discount Notes, guarantees of the Discount Notes, the Securities, the
     Subsidiary Guarantees, Indebtedness existing on the date of this Indenture,
     or any Refinancing Indebtedness in respect of Refinancing Indebtedness
     Incurred pursuant to this clause (6);

          (7) Indebtedness of the Company under the Securities and Indebtedness
     of the Subsidiary Guarantors under the Subsidiary Guarantees, in each case
     Incurred in accordance with this Indenture;

          (8) Capital Lease Obligations of the Company or any Restricted
     Subsidiary in an aggregate principal amount not in excess of the greater of
     $50,000,000 or 5.0% of Total Assets at any time outstanding;

          (9) FCC Debt assumed in connection with any acquisition after the date
     of this Indenture;

           (10) Indebtedness incurred in connection with the Merger Agreement
     (including the AT&T Wireless Services Contribution, the AT&T Wireless
     Exchange and the acquisitions relating to Indus, Inc., Airadigm
     Communications, Inc., Polycell
<PAGE>

                                                                              36

     Communications, Inc., ABC Wireless, L.L.C. and Clinton Communications,
     Inc.) not in excess of $135,000,000 at any time outstanding;

          (11) Indebtedness of the Company or any Restricted Subsidiary
     consisting of a guarantee of Indebtedness of the Company or a Restricted
     Subsidiary that was permitted to be Incurred by another provision of this
     Section 4.03;

          (12) Indebtedness of the Company or any Restricted Subsidiary in
     respect of statutory obligations, performance, surety or appeal bonds or
     other obligations of a like nature Incurred in the ordinary course of
     business;

          (13) Indebtedness of a Restricted Subsidiary existing at the time such
     Restricted Subsidiary was acquired by the Company (other than Indebtedness
     Incurred in connection with, or in contemplation of, the transaction or
     series of related transactions pursuant to which such Restricted Subsidiary
     was acquired by the Company); provided, however, that on the date such
                                   --------  -------
     Restricted Subsidiary is acquired by the Company, the Company would have
     been able to Incur $1.00 of additional Indebtedness pursuant to clause (1)
     above after giving effect to the Incurrence of such Indebtedness pursuant
     to this clause (13) and the acquisition of such Restricted Subsidiary; and

          (14) Indebtedness of the Company not otherwise permitted to be
     Incurred pursuant to clauses (1) through (13) above which, together with
     any other outstanding Indebtedness Incurred pursuant to this clause (14),
     has an aggregate principal amount not in excess of $75,000,000 at any time
     outstanding.

          (b)  Indebtedness of a Person existing at the time such Person becomes
a Restricted Subsidiary or which is secured by a Lien on an asset acquired by
the Company or a Restricted Subsidiary (whether or not such Indebtedness is
assumed by the acquiring person) shall be deemed Incurred at the time the Person
becomes a Restricted Subsidiary or at the time of the asset acquisition, as the
case may be.

          (c)  For purposes of determining compliance with this Section 4.03:

          (1) in the event that an item of Indebtedness meets the criteria of
     more than one of the categories of Indebtedness permitted pursuant to
     clauses (1) through (14) above, the Company shall, in its sole discretion,
     be permitted to classify such item of Indebtedness in any manner that
     complies with this Section 4.03 and may from time to time reclassify such
     items of Indebtedness in any manner that would comply with this Section
     4.03 at the time of such reclassification;

          (2) Indebtedness permitted by this Section 4.03 need not be permitted
     solely by reference to one provision permitting such Indebtedness but may
     be permitted in part by one such provision and in part by one or more other
     provisions of this Section 4.03 permitting such Indebtedness;

          (3) in the event that Indebtedness meets the criteria of more than one
     of the types of Indebtedness described in this Section 4.03, the Company,
     in its sole discretion, shall classify such Indebtedness and only be
     required to include the amount of such Indebtedness in one of such clauses;
     and
<PAGE>

                                                                              37

          (4) accrual of interest (including interest paid-in-kind) and the
     accretion of accreted value shall not be deemed to be an Incurrence of
     Indebtedness for purposes of this Section 4.03.

          (d)  Notwithstanding any other provision of this Section 4.03:

          (1) the maximum amount of Indebtedness that the Company or any
     Restricted Subsidiary may Incur pursuant to this Section 4.03 shall not be
     deemed to be exceeded solely as a result of fluctuations in the exchange
     rates of currencies; and

          (2) Indebtedness Incurred pursuant to the Credit Agreement prior to or
     on the date of this Indenture shall be treated as Incurred pursuant to
     clause (2) of paragraph (a) of this Section 4.03.

          SECTION 4.04.  Limitation on Restricted Payments.  (a)  The Company
                         ----------------------------------
shall not, and shall not cause or permit any Restricted Subsidiary to, directly
or indirectly, on or prior to June 30, 2003;

          (1) declare or pay any dividend, or make any distribution of any kind
     or character (whether in cash, property or securities), in respect of any
     class of Capital Stock of the Company, excluding any dividends or
     distributions payable solely in shares of Qualified Stock of the Company or
     in options, warrants or other rights to acquire Qualified Stock of the
     Company;

          (2) purchase, redeem or otherwise acquire or retire for value any
     shares of Capital Stock of the Company, any options, warrants or rights to
     purchase or acquire such shares or any securities convertible or
     exchangeable into such shares (other than any such shares of Capital Stock,
     options, warrants, rights or securities that are owned by the Company or a
     Restricted Subsidiary);

          (3) make any Investment (other than a Permitted Investment) in any
     Person other than the Company or a Restricted Subsidiary; or

          (4) redeem, defease, repurchase, retire or otherwise acquire or retire
     for value, prior to its scheduled maturity, repayment or any sinking fund
     payment, Subordinated Indebtedness or make any payment of interest or
     premium on, or distribution of any kind or character (whether in cash,
     property or securities) in respect of, the Series A Notes, excluding
     payments of interest or distributions payable solely in additional Series A
     Notes,

each of the transactions described in clauses (1) through (4) (other than any
exception to any such clause) being a "Restricted Payment"; and at any time
after June 30, 2003, the Company shall not, and shall not cause or permit any
Restricted Subsidiary to, directly or indirectly, make a Restricted Payment if,
at the time thereof:

          (A) a Default or an Event of Default shall have occurred and be
     continuing at the time of or after giving effect to such Restricted
     Payment;
<PAGE>

                                                                              38

          (B) immediately after giving effect to such Restricted Payment, the
     Company could not Incur at least $1.00 of additional Indebtedness pursuant
     to clause (1) of Section 4.03; and

          (C) immediately upon giving effect to such Restricted Payment, the
     aggregate amount of all Restricted Payments declared or made on or after
     the date of this Indenture (including any Designation Amount) exceeds the
     sum (without duplication) of:

               (1) the amount of (x) the Consolidated Cash Flow of the Company
          after June 30, 2003, through the end of the latest full fiscal quarter
          for which consolidated financial statements of the Company are
          available preceding the date of such Restricted Payment (treated as a
          single accounting period), less (y) 150% of the cumulative
          Consolidated Interest Expense of the Company after June 30, 2003,
          through the end of the latest full fiscal quarter for which
          consolidated financial statements of the Company are available
          preceding the date of such Restricted Payment (treated as a single
          accounting period); plus

               (2) the aggregate net cash proceeds received by the Company as a
          capital contribution in respect of Qualified Stock or from the
          proceeds of a sale of Qualified Stock made after the date of this
          Indenture (excluding in each case (x) the proceeds from a sale of
          Qualified Stock to a Restricted Subsidiary and (y) the proceeds from a
          sale of Qualified Stock to an employee stock ownership plan or other
          trust established by the Company or any of its Subsidiaries); plus

               (3) the aggregate net cash proceeds received by the Company or
          any Restricted Subsidiary from the sale, disposition or repayment
          (other than to the Company or a Restricted Subsidiary) of any
          Investment made after the date of this Indenture and constituting a
          Restricted Payment in an amount equal to the lesser of (x) the return
          of capital with respect to such Investment and (y) the initial amount
          of such Investment, in either case, less the cost of disposition of
          such Investment; plus

               (4) an amount equal to the consolidated Net Investment on the
          date of Revocation made by the Company and/or any Restricted
          Subsidiary in any Subsidiary of the Company that has been designated
          as an Unrestricted Subsidiary after the date of this Indenture upon
          its redesignation as a Restricted Subsidiary in accordance with
          Section 4.13.
<PAGE>

                                                                              39

          (b)  For purposes of:

          (1) the preceding clause (a)(C)(2), the value of the aggregate net
     cash proceeds received by the Company from, or as a capital contribution in
     connection with, the issuance of Qualified Stock either upon the conversion
     of convertible Indebtedness of the Company or any of its Restricted
     Subsidiaries or in exchange for outstanding Indebtedness of the Company or
     any of its Restricted Subsidiaries or upon the exercise of options,
     warrants or rights shall be the net cash proceeds received by the Company
     or any Restricted Subsidiary upon the issuance of such Indebtedness,
     options, warrants or rights plus the incremental amount received by the
     Company or any Restricted Subsidiary upon the conversion, exchange or
     exercise thereof;

          (2) the preceding clause (a)(C)(4), the value of the consolidated Net
     Investment on the date of Revocation shall be equal to the Fair Market
     Value of the aggregate amount of the Company's and/or any Restricted
     Subsidiary's Investments in such Subsidiary of the Company on the
     applicable date of Designation; and

          (3) determining the amount expended for Restricted Payments, cash
     distributed shall be valued at the face amount thereof and property other
     than cash shall be valued at its Fair Market Value on the date such
     Restricted Payment is made by the Company or a Restricted Subsidiary, as
     the case may be.

          (c)  The provisions of this Section 4.04 shall not prohibit:

          (1) the payment of any dividend or distribution within 60 days after
     the date of declaration thereof, if at such date of declaration such
     payment would comply with the provisions of this Indenture;

          (2) so long as no Default or Event of Default shall have occurred and
     be continuing, the purchase, redemption, retirement or other acquisition of
     any Capital Stock of the Company out of the net cash proceeds of the
     substantially concurrent capital contribution to the Company in connection
     with Qualified Stock or out of the net cash proceeds received by the
     Company from the substantially concurrent issue or sale (other than to a
     Restricted Subsidiary or to an employee stock ownership plan or other trust
     established by the Company or any of its Subsidiaries) of Qualified Stock;

     provided that any such net cash proceeds shall be excluded from clause
     --------
     (a)(C)(2);

          (3) so long as no Default or Event of Default shall have occurred and
     be continuing, the purchase, redemption, retirement, defeasance or other
     acquisition of Subordinated Indebtedness of the Company made by exchange
     for or conversion into, or out of the net cash proceeds received by the
     Company, or out of a capital contribution to the Company in connection with
     a substantially concurrent issue and sale (other than to a Restricted
     Subsidiary) of, (a) Qualified Stock (provided that (x) any such net cash
     proceeds are excluded from clause (a)(C)(2), and (y) such proceeds, if from
     a sale other than a Public Sale, are not applied to optionally redeem
     Securities on or prior to July 15, 2003) or (b) other Subordinated
     Indebtedness of the Company that has an Average Life equal to or greater
     than the Average Life of the Subordinated Indebtedness being purchased,
     redeemed, retired, defeased or otherwise acquired and that is subordinated
     in
<PAGE>

                                                                              40

     right of payment to the Securities at least to the same extent as the
     Subordinated Indebtedness being purchased, redeemed, retired, defeased or
     otherwise acquired;

          (4) so long as no Default or Event of Default shall have occurred and
     be continuing, the making of a direct or indirect Investment constituting a
     Restricted Payment in an amount not to exceed the amount of the net cash
     proceeds of capital contributions in respect of Qualified Stock or from the
     issue or sale (other than to a Restricted Subsidiary) of Qualified Stock of
     the Company, in each case made no more than one year prior to the date of
     such investment; provided that (a) any such net cash proceeds are excluded
                      --------
     from clause (a)(C)(2), and (b) such proceeds, if from a sale other than a
     Public Sale, are not applied to optionally redeem Securities on or prior to
     July 15, 2003;

          (5) prior to the consummation of the Merger, so long as no Default or
     Event of Default shall have occurred and be continuing and so long as,
     immediately after giving effect to such Investment, the Company could Incur
     at least $1.00 of additional Indebtedness pursuant to clause (1) of Section
     4.03, the making by the Company of a direct or indirect Investment
     constituting a Restricted Payment in any Person incorporated, formed or
     created for the purpose of acquiring one or more Qualified Licenses through
     participation in any auction or reauction of Licenses conducted by the FCC,
     in an amount not to exceed $150,000,000 at any time outstanding; provided
                                                                      --------
     that (a) such Person shall qualify as an "entrepreneur" under the
     Communications Act in the case of any proposed acquisition of Qualified
     Licenses through participation in any auction or reauction of C-Block
     Licenses or F-Block Licenses conducted by the FCC, and (b) the Company
     shall have received, prior to making such Investment, from one or more
     Strategic Equity Investors, irrevocable, unconditional commitments to
     purchase Qualified Stock of the Company, (i) at the earliest to occur of
     (A) the date that is 30 days after the date on which such Person acquires
     any such Qualified Licenses, (B) the date that is 30 days after the date on
     which such Person withdraws from such auction or reauction, (C) the date
     that is 30 days after the date the FCC terminates such auction or reauction
     and (D) the date that is 180 days after the date on which any amounts were
     deposited by or on behalf of such Person in escrow with the FCC in
     connection with such proposed acquisition of Qualified Licenses, and (ii)
     in an amount not less than the amount of such Investment (plus the amount
     of all fees, expenses and other costs incurred in connection with such
     participation); provided further that if at any time the aggregate net cash
                     -------- -------
     proceeds paid to the Company by such Strategic Equity Investors shall
     exceed the amount of such Investment plus all fees, expenses and other
     costs incurred in connection with such participation (a) such commitments
     may terminate in accordance with their terms to the extent, but only to the
     extent, of such excess and (b) the Company may rescind all or a portion of
     the payments made by the Strategic Equity Investors for such Qualified
     Stock and redeem all or a portion of such Qualified Stock in an amount not
     greater than such excess; provided further that such proceeds are not
                               -------- -------
     applied to optionally redeem the Securities prior to July 15, 2003; or

          (6) so long as no Default or Event of Default has occurred and is
     continuing, the repurchase, redemption, acquisition or retirement for value
     of any Capital Stock of the Company held by any member of management of the
     Company or any of its Subsidiaries pursuant to any management equity
     subscription agreement, stock option agreement, restricted stock agreement
     or other similar agreement; provided that (a) the aggregate
                                 --------
<PAGE>

                                                                              41

     amount of such dividends or distributions shall not exceed $10,000,000 in
     any twelve-month period, (b) any unused amount in any twelve-month period
     may be carried forward to one or more future twelve-month periods and (c)
     the aggregate of all unused amounts that may be carried forward to any
     future twelve-month period shall not exceed $20,000,000.

          (7) provided the Merger has occurred, payments to Holdings to
     reimburse Holdings for its out-of-pocket operating and administrative
     expenses attributable to the Company, provided this reimbursement shall not
     exceed $10,000,000 in any fiscal year;

          (8) provided the Merger has occurred, payments to Holdings pursuant to
     a tax sharing agreement so long as such payments in the aggregate do not
     exceed the lesser of (A) the aggregate amount of taxes that would be
     payable by the Company and its Subsidiaries if they were filing on a
     separate return basis as a consolidated entity and (B) the aggregate amount
     of taxes paid by Holdings and its consolidated subsidiaries;

          (9) payments or distributions to dissenting stockholders pursuant to
     applicable law in connection with a consolidation, merger or transfer of
     assets that complies with the provisions of this Indenture applicable to
     mergers, consolidations and transfers of all or substantially all of the
     property and assets of the Company;

          (10) the repurchase, redemption or other acquisition or retirement for
     value of the Company's Capital Stock to the extent necessary in the good
     faith judgment of the board of directors of the Company evidenced by a
     board resolution delivered to the Trustee to prevent the loss or secure the
     renewal or reinstatement of any material license or franchise held by the
     Company or any Restricted Subsidiary from any government agency; provided
     that no Capital Stock shall be repurchased, redeemed or otherwise acquired
     from any Permitted Holder pursuant to this clause (10);

          (11) the repurchase of Indebtedness subordinated to the Securities at
     a purchase price not greater than 101% of the principal amount thereof
     (plus accrued and unpaid interest) pursuant to a mandatory offer to
     repurchase made upon the occurrence of a Change of Control; provided that
     the Company first make an Offer to Purchase the Securities (and repurchase
     all tendered notes) under this Indenture pursuant to the provisions of
     Section 4.08 of this Indenture; or

          (12) loans to the Management Stockholders to fund the purchase of up
     to 10,490 shares of Holdings' class E common stock.

          (d)  Restricted Payments made pursuant to clauses (1), (5), (6), (7),
(9) and (11) of paragraph (c) shall be included in making the determination of
available amounts under clause (C) of paragraph (a) and Restricted Payments made
pursuant to clauses (2), (3), (4), (8), (10) and (12) of paragraph (c) shall not
be included in making the determination of available amounts under clause (C) of
paragraph (a).

          SECTION 4.05.  Limitation on Restrictions Affecting Restricted
                         -----------------------------------------------
Subsidiaries. The Company shall not, and shall not cause or permit any
-------------
Restricted Subsidiary to, directly or
<PAGE>

                                                                              42

indirectly, create or otherwise cause or suffer to exist any consensual
encumbrances or restrictions of any kind on the ability of any Restricted
Subsidiary to:

          (1) pay, directly or indirectly, dividends, in cash or otherwise, or
     make any other distributions in respect of its Capital Stock or pay any
     Indebtedness or other obligation owed to the Company or any other
     Restricted Subsidiary;

          (2) make any Investment in the Company or any other Restricted
     Subsidiary; or

          (3) transfer any of its property or assets to the Company or any other
     Restricted Subsidiary,

except for such encumbrances or restrictions existing under or by reason of:

          (A) any agreement in effect on the date of this Indenture as any such
     agreement is in effect on such date;

          (B) any agreement relating to any Indebtedness Incurred by such
     Restricted Subsidiary prior to the date on which such Restricted Subsidiary
     was acquired by the Company and outstanding on such date and not Incurred
     in anticipation or contemplation of becoming a Restricted Subsidiary;

     provided, however, that such encumbrance or restriction shall not apply to
     --------  -------
     any property or assets of the Company or any Restricted Subsidiary other
     than such Restricted Subsidiary;

          (C) customary provisions contained in an agreement which has been
     entered into for the sale or disposition of all or substantially all of the
     Capital Stock or assets of a Restricted Subsidiary;

     provided, however, that such encumbrance or restriction is applicable only
     --------  -------
     to such Restricted Subsidiary or its property and assets;

          (D) any agreement effecting a Refinancing or amendment of Indebtedness
     Incurred pursuant to any agreement referred to in clause (A) or (B) above;

     provided, however, that the provisions contained in such Refinancing or
     --------  -------
     amendment agreement relating to such encumbrance or restriction are no more
     restrictive in any material respect than the provisions contained in the
     agreement that is the subject thereof in the reasonable judgment of the
     board of directors of the Company;

          (E) this Indenture;

          (F) applicable law or any applicable rule, regulation or order;

          (G) customary provisions restricting subletting or assignment of any
     lease governing any leasehold interest of any Restricted Subsidiary;

          (H) purchase money obligations for property acquired in the ordinary
     course of business that impose restrictions of the type referred to in
     clause (3) of this Section 4.05; and
<PAGE>

                                                                              43

          (I) restrictions of the type referred to in clause (3) of this Section
     4.05 contained in security agreements securing Indebtedness of a Restricted
     Subsidiary to the extent that such Liens restrict the transfer of property
     subject to such agreements.

          SECTION 4.06.  Limitation on Certain Asset Dispositions.  (a)  The
                         -----------------------------------------
Company shall not, and shall not cause or permit any Restricted Subsidiary to,
directly or indirectly, make any Asset Disposition unless:

          (1) the Company or such Restricted Subsidiary, as the case may be,
     receives consideration for such Asset Disposition at least equal to the
     Fair Market Value of the assets sold or disposed of as determined by the
     board of directors of the Company in good faith and evidenced by a
     resolution of such board of directors filed with the Trustee;

          (2) other than in the case of a Permitted Asset Swap, not less than
     75% of the consideration received by the Company or such Restricted
     Subsidiary from the disposition consists of:

               (A) cash or Cash Equivalents;

               (B) the assumption of Indebtedness (other than non-recourse
     Indebtedness or any Subordinated Indebtedness) of the Company or such
     Restricted Subsidiary or other obligations relating to such assets
     (accompanied by an irrevocable and unconditional release of the Company or
     such Restricted Subsidiary from all liability on the Indebtedness or other
     obligations assumed); or

               (C) notes, other obligations or common stock received by the
     Company or such Restricted Subsidiary from such transferee that are
     converted by the Company or such Restricted Subsidiary into cash or Cash
     Equivalents concurrently with the receipt of such notes or other
     obligations (to the extent of the cash actually received by the Company);
     and

          (3) all Net Available Proceeds, less any amounts invested within 365
     days of such Asset Disposition to acquire all or substantially all of the
     assets of, or a majority of the Voting Stock of, an entity primarily
     engaged in a Permitted Business, to make a capital expenditure or to
     acquire other long-term assets that are used or useful in a Permitted
     Business, are applied, on or prior to the 365th day after such Asset
     Disposition, unless and to the extent that the Company shall determine to
     make an Offer to Purchase, to the permanent reduction and prepayment of any
     Senior Indebtedness of the Company then outstanding (including a permanent
     reduction of the commitments in respect thereof).

          (b)  Any Net Available Proceeds from any Asset Disposition which is
subject to the immediately preceding sentence that are not applied as provided
in the immediately preceding sentence shall be used promptly after the
expiration of the 365th day after such Asset Disposition (or earlier if the
Company so elects) to make an Offer to Purchase outstanding Securities at a
purchase price in cash equal to 100% of the principal amount on the Purchase
Date, plus accrued and unpaid interest to the Purchase Date; provided, however,
                                                             --------  -------
that if the Company elects (or is required by the terms of any other Senior
Subordinated Indebtedness) an offer may be made
<PAGE>

                                                                              44

ratably to purchase the Securities and such other Senior Subordinated
Indebtedness. Notwithstanding the foregoing, the Company may defer making any
Offer to Purchase outstanding Securities (and any offer to purchase other Senior
Subordinated Indebtedness ratably) until there are aggregate unutilized Net
Available Proceeds from Asset Dispositions otherwise subject to the two
immediately preceding sentences equal to or in excess of $15,000,000 (at which
time the entire unutilized Net Available Proceeds from Asset Dispositions
otherwise subject to the two immediately preceding sentences, and not just the
amount in excess of $15,000,000, shall be applied as required pursuant to this
paragraph). Any remaining Net Available Proceeds following the completion of the
required Offer to Purchase (and any offer to purchase other Senior Subordinated
Indebtedness ratably) may be used by the Company for any other purpose (subject
to the other provisions of this Indenture), and the amount of Net Available
Proceeds then required to be otherwise applied in accordance with this Section
4.06 shall be reset to zero. These provisions shall not apply to a transaction
consummated in compliance with the provisions of Section 5.01.

          (c)  Pending application as set forth above, the Net Available
Proceeds of any Asset Disposition may be invested in cash or Cash Equivalents or
used to reduce temporarily Indebtedness outstanding under any revolving credit
agreement to which the Company is a party and pursuant to which it has Incurred
Indebtedness.

          (d)  The Company shall comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act and any other securities laws
or regulations in connection with the repurchase of Securities pursuant to this
Section 4.06.  To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section 4.06, the Company shall be
required to comply with the applicable securities laws and regulations and shall
not be deemed to have breached its obligations under this Section 4.06 by virtue
thereof.

          SECTION 4.07.  Limitation on Transactions with Affiliates.  (a)  The
                         -------------------------------------------
Company shall not, and shall not cause or permit any Restricted Subsidiary to,
directly or indirectly, conduct any business or enter into, renew or extend any
transaction with any of their respective Affiliates, including, without
limitation, the purchase, sale, lease or exchange of property, the rendering of
any service or the making of any guarantee, loan, advance or Investment, either
directly or indirectly, unless the terms of such transaction are at least as
favorable as the terms that could be obtained at such time by the Company or
such Restricted Subsidiary, as the case may be, in a comparable transaction made
on an arm's-length basis with a Person that is not such an Affiliate; provided,
                                                                      --------
however, that:
-------

          (1) in any transaction involving aggregate consideration in excess of
     $10,000,000, the Company shall deliver an Officers' Certificate to the
     Trustee stating that a majority of the disinterested directors of the board
     of directors of the Company or such Restricted Subsidiary, as the case may
     be, have determined, in their good faith judgment, that the terms of such
     transaction are at least as favorable as the terms that could be obtained
     by the Company or such Restricted Subsidiary, as the case may be, in a
     comparable transaction made on an arm's-length basis between unaffiliated
     parties; and

          (2) if the aggregate consideration is in excess of $25,000,000, the
     Company shall also deliver to the Trustee, prior to the consummation of the
     transaction, the favorable written opinion of a nationally recognized
     accounting, appraisal or investment banking firm as to the fairness of the
     transaction to the holders of the Securities, from a financial
<PAGE>

                                                                              45

     point of view; provided, however, that the requirements set forth in this
                    --------  -------
     clause (2) shall not apply in the case of exchanges of licenses and related
     assets between the Company or any of its Subsidiaries and AT&T Corp. and
     any of its Subsidiaries so long as the Fair Market Value of licenses and
     related assets exchanged by the Company or any of its Subsidiaries shall
     not exceed $50,000,000.

          (b)  Notwithstanding the foregoing, the restrictions set forth in this
Section 4.07 shall not apply to:

          (1) transactions between or among the Company and/or any Restricted
     Subsidiaries;

          (2) any Restricted Payment or Permitted Investment permitted by
     Section 4.04;

          (3) directors' fees, indemnification and similar arrangements,
     officers' indemnification, employment agreements, employee stock option or
     employee benefit plans and employee salaries and bonuses paid or created in
     the ordinary course of business;

          (4) any transactions pursuant to agreements existing on the date of
     this Indenture and described in the offering memorandum dated _________ on
     terms substantially consistent with those set forth in such offering
     memorandum;

          (5) transactions with AT&T or any of its Affiliates relating to the
     marketing or provision of telecommunication services or related hardware,
     software or equipment on terms that are no less favorable (when taken as a
     whole) to the Company or such Restricted Subsidiary, as applicable, than
     those available from unaffiliated third parties;

          (6) transactions involving the leasing or sharing or other use by the
     Company or any Restricted Subsidiary of communications network facilities
     (including, without limitation, cable or fiber lines, equipment or
     transmission capacity) of any Affiliate of the Company (such Affiliate
     being a "Related Party") on terms that are no less favorable (when taken as
     a whole) to the Company or such Restricted Subsidiary, as applicable, than
     those available from such Related Party to unaffiliated third parties;

          (7) transactions involving the provision of telecommunication services
     by a Related Party in the ordinary course of its business to the Company or
     any Restricted Subsidiary, or by the Company or any Restricted Subsidiary
     to a Related Party, on terms that are no less favorable (when taken as a
     whole) to the Company or such Restricted Subsidiary, as applicable, than
     those available from such Related Party to unaffiliated third parties;

          (8) any sales agency agreements pursuant to which an Affiliate has the
     right to market any or all of the products or services of the Company or
     any of the Restricted Subsidiaries;

          (9) transactions involving the sale, transfer or other disposition of
     any shares of Capital Stock of any Marketing Affiliate; provided that such
                                                             --------
     Marketing Affiliate is not
<PAGE>

                                                                              46

     engaged in any activity other than the registration, holding, maintenance
     or protection of trademarks and the licensing thereof; and

          (10) customary commercial banking, investment banking, underwriting,
     placement agent or financial advisory fees paid in connection with services
     rendered to the Company and its subsidiaries in the ordinary course.

          SECTION 4.08.  Change of Control.  (a)  Upon the occurrence of a
                         ------------------
Change of Control, each holder of Securities shall have the right to require the
Company to repurchase all or any part of such holder's Securities at a purchase
price in cash equal to 101% of the principal amount on the Purchase Date, plus
accrued and unpaid interest, if any, to the Purchase Date (subject to the right
of holders of record on the relevant record date to receive interest due on the
relevant interest payment date).

          (b)  Within 30 days following any Change of Control, the Company shall
be required to mail a notice to each holder of Securities, with a copy to the
Trustee (the "Change of Control Offer"), stating that the Company is commencing
an Offer to Purchase all outstanding Securities at a purchase price in cash
equal to 101% of the principal amount on the Purchase Date, plus accrued and
unpaid interest, if any, to the Purchase Date (subject to the right of holders
of record on the relevant record date to receive interest due on the relevant
interest payment date).

          (c)  The Company shall not be required to make a Change of Control
Offer upon a Change of Control if a third party makes the Change of Control
Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Indenture applicable to a Change of Control Offer
made by the Company.  The Company's obligation to make a Change of Control Offer
will be reinstated unless such third party purchases all Securities validly
tendered and not withdrawn under such Change of Control Offer in accordance with
its terms.

          (d)  The Company shall be required to comply, to the extent
applicable, with the requirements of Section 14(e) of the Exchange Act and any
other securities laws or regulations in connection with the repurchase of
Securities pursuant to this Section 4.08.  To the extent that the provisions of
any securities laws or regulations conflict with provisions of this Section
4.08, the Company shall be required to comply with the applicable securities
laws and regulations and shall not be deemed to have breached its obligations
under this Section 4.08 by virtue thereof.

          (e)  In the event that, at the time of a Change of Control, the terms
of the Bank Indebtedness restrict or prohibit the repurchase of Securities
pursuant to this Section 4.08, then, prior to the mailing of the notice to
holders of Securities as provided in the immediately following paragraph, but in
any event within 30 days following any Change of Control, the Company shall be
required to:

          (1) repay in full all Bank Indebtedness; or

          (2) obtain the requisite consent under the agreements governing such
     Bank Indebtedness to permit the repurchase of the Securities as required by
     this Section 4.08.

          SECTION 4.09.  Compliance Certificate.  The Company shall deliver to
                         -----------------------
the Trustee within 120 days after the end of each fiscal year of the Company an
Officers' Certificate
<PAGE>

                                                                              47

stating that in the course of the performance by the signers of their duties as
Officers of the Company they would normally have knowledge of any Default and
whether or not the signers know of any Default that occurred during such period.
If they do, the certificate shall describe the Default, its status and what
action the Company is taking or proposes to take with respect thereto. The
Company also shall comply with Section 314(a)(4) of the TIA (including the
making of all representations and warranties mandated thereby).

          SECTION 4.10.  Further Instruments and Acts.  Upon request of the
                         -----------------------------
Trustee, the Company shall execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

          SECTION 4.11.  Future Subsidiary Guarantors.  The Company shall cause
                         -----------------------------
(1) each Domestic Restricted Subsidiary that Incurs Indebtedness and (2) each
Foreign Restricted Subsidiary that Incurs Material Indebtedness to become a
Subsidiary Guarantor, and, if applicable, execute and deliver to the Trustee a
supplemental indenture in the form set forth in Exhibit C pursuant to which such
Restricted Subsidiary will guarantee payment of the Securities; provided that
                                                                --------
the Company shall not cause any Special Purpose Subsidiary to become a
Subsidiary Guarantor unless such Special Purpose Subsidiary Incurs Indebtedness
other than Indebtedness in respect of the Credit Agreement (or any Refinancing
Indebtedness Incurred to Refinance such Indebtedness) or FCC Debt; provided
                                                                   --------
further that in the event that a Subsidiary Guarantor no longer has outstanding
-------
any Indebtedness (in the case of a Domestic Restricted Subsidiary) or Material
Indebtedness (in the case of a Foreign Restricted Subsidiary), the Subsidiary
Guarantee of that Subsidiary Guarantor shall terminate.  Each Subsidiary
Guarantee will be limited to an amount not to exceed the maximum amount that can
be guaranteed by that Restricted Subsidiary without rendering the Subsidiary
Guarantee, as it relates to such Restricted Subsidiary, voidable under
applicable law relating to fraudulent conveyance or fraudulent transfer or
similar laws affecting the rights of creditors generally.

          SECTION 4.12.  Limitation on Activities of the Company and the
                         -----------------------------------------------
Restricted Subsidiaries.  The Company shall not, and shall not permit any
------------------------
Restricted Subsidiary to, engage in any business other than a Permitted
Business, except to such extent as is not material to the Company and its
Restricted Subsidiaries, taken as a whole.

          SECTION 4.13.  Limitation on Designations of Unrestricted
                         ------------------------------------------
Subsidiaries. (a) The Company may designate any Subsidiary of the Company (other
-------------
than an Ineligible Subsidiary) as an "Unrestricted Subsidiary" under this
Indenture (a "Designation") only if:

          (1) no Default or Event of Default shall have occurred and be
     continuing at the time of or after giving effect to such Designation;

          (2) the Company would be permitted under this Indenture to make an
     Investment at the time of Designation (assuming the effectiveness of such
     Designation) in an amount (the "Designation Amount") equal to the Fair
     Market Value of the aggregate amount of its Investments in such Subsidiary
     on such date; and

          (3) except in the case of a Subsidiary of the Company in which an
     Investment is being made pursuant to, and as permitted by, paragraph (c) of
     Section 4.04, the Company
<PAGE>

                                                                              48

     would be permitted to Incur $1.00 of additional Indebtedness pursuant to
     clause (a)(1) of Section 4.03 at the time of Designation (assuming the
     effectiveness of such Designation).

          (b)  In the event of any such Designation, the Company shall be deemed
to have made an Investment constituting a Restricted Payment pursuant to Section
4.04 for all purposes of this Indenture in the Designation Amount.

          (c)  The Company may revoke any Designation of a Subsidiary as an
Unrestricted Subsidiary (a "Revocation"), whereupon such Subsidiary shall then
constitute a Restricted Subsidiary, if no Default shall have occurred and be
continuing at the time of and after giving effect to such Revocation.  In the
event of any such Revocation, the Company shall be deemed to continue to have a
permanent Investment in an Unrestricted Subsidiary constituting a Restricted
Payment pursuant Section 4.04 for all purposes under this Indenture in an amount
(if positive) equal to:

          (1) the Fair Market Value of the aggregate amount of the Company's
     Investments in such Subsidiary at the time of such Revocation; less

          (2) the portion (proportionate to the Company's equity interest in
     such Subsidiary) of the Fair Market Value of the net assets of such
     Subsidiary at the time of such Revocation.

          (d)  All Designations and Revocations must be evidenced by a
resolution of the board of directors of the Company delivered to the Trustee
certifying compliance with the foregoing provisions.

           SECTION 4.14.  Limitation on Layered Indebtedness.  The Company shall
                          -----------------------------------
not:

          (1) directly or indirectly Incur any Indebtedness that by its terms
     would expressly rank senior in right of payment to the Securities and rank
     subordinate in right of payment to any other Indebtedness of the Company;
     or

          (2) cause or permit any Subsidiary Guarantor to, and no Subsidiary
     Guarantor shall, directly or indirectly, Incur any Indebtedness that by its
     terms would expressly rank senior in right of payment to the Subsidiary
     Guarantee of such Subsidiary Guarantor and rank subordinate in right of
     payment to any other Indebtedness of such Subsidiary Guarantor;

provided that no Indebtedness shall be deemed to be subordinated solely by
--------
virtue of being unsecured.
<PAGE>

                                                                              49

                                   ARTICLE 5

                               Successor Company
                               -----------------

          SECTION 5.01.   Merger, Consolidation and Certain Sales of Assets.
                          --------------------------------------------------
(a)  The Company shall not consolidate or merge with or into any Person, or
sell, assign, lease, convey or otherwise dispose of (or cause or permit any
Restricted Subsidiary to consolidate or merge with or into any Person, or to
sell, assign, lease, convey or otherwise dispose of) all or substantially all of
the Company's assets (determined on a consolidated basis for the Company and the
Restricted Subsidiaries), whether as an entirety or substantially an entirety in
one transaction or a series of related transactions, including by way of
liquidation or dissolution, to any Person unless, in each such case:

          (1) the entity formed by or surviving any such consolidation or merger
     (if other than the Company or such Restricted Subsidiary, as the case may
     be), or to which such sale, assignment, lease, conveyance or other
     disposition shall have been made (the "Surviving Entity"), is a corporation
     organized and existing under the laws of the United States, any state
     thereof or the District of Columbia;

          (2) the Surviving Entity assumes by supplemental indenture all of the
     obligations of the Company on the Securities and under this Indenture;

          (3) immediately after giving effect to such transaction and the use of
     any net proceeds therefrom on a pro forma basis, the Company or the
     Surviving Entity, as the case may be, could Incur at least $1.00 of
     Indebtedness pursuant to clause (1) of Section 4.03; provided, however that
                                                          --------  -------
     this clause (3) shall not apply in the case of a merger between Tritel PCS,
     Inc. (or any successor entity) and the Company;

          (4) immediately after giving effect to such transaction and treating
     any Indebtedness which becomes an obligation of the Company or any of its
     Restricted Subsidiaries as a result of such transactions as having been
     Incurred by the Company or such Restricted Subsidiary, as the case may be,
     at the time of the transaction, no Default or Event of Default shall have
     occurred and be continuing; and

          (5) the Company delivers to the Trustee an Officers' Certificate and
     an Opinion of Counsel, each stating that such merger, consolidation or sale
     of assets and such supplemental indenture, if any, comply with this
     Indenture.

          (b)  The Company shall not permit any Subsidiary Guarantor to
consolidate or merge with or into any Person, or sell, assign, lease, convey or
otherwise dispose of all or substantially all of such Subsidiary Guarantor's
assets, whether as an entirety or substantially an entirety in one transaction
or a series of related transactions, including by way of liquidation or
dissolution, to any Person unless, in each such case:

          (1) the entity formed by or surviving any such consolidation or merger
     (if other than such Subsidiary Guarantor), or to which such sale,
     assignment, lease, conveyance or other disposition shall have been made, is
     a corporation organized and existing under the laws of the United States,
     any state thereof or the District of Columbia;
<PAGE>

                                                                              50

          (2) such corporation assumes by supplemental indenture all of the
     obligations of the Subsidiary Guarantor, if any, under its Subsidiary
     Guarantee;

          (3) immediately after giving effect to such transaction and treating
     any Indebtedness which becomes an obligation of such Subsidiary Guarantor
     as a result of such transactions as having been Incurred by such Subsidiary
     Guarantor at the time of the transaction, no Default or Event of Default
     shall have occurred and be continuing; and

          (4) the Company delivers to the Trustee an Officers' Certificate and
     an Opinion of Counsel, each stating that such merger, consolidation or sale
     of assets and such supplemental indenture, if any, comply with this
     Indenture.

          (c) The provisions of Section 5.01(a) and 5.01(b) shall not apply to
any merger of a Restricted Subsidiary with or into the Company or a Wholly Owned
Subsidiary, the release of any Subsidiary Guarantor in accordance with the terms
of its Subsidiary Guarantee and this Indenture in connection with any
transaction complying with the provisions of Section 4.06 or the Merger.

                                   ARTICLE 6

                             Defaults and Remedies
                             ---------------------

           SECTION 6.01.  Events of Default.  An Event of Default occurs under
                          ------------------
this Indenture if:

          (1) the Company defaults in any payment of interest on any Security
     when due and payable, whether or not such payment shall be prohibited by
     Article 10, continued for 30 days;

          (2) the Company defaults in the payment of the principal of any
     Security when due and payable at its Stated Maturity, upon required
     redemption or repurchase, upon declaration or otherwise, whether or not
     such payment shall be prohibited by Article 10;

          (3) the Company fails to comply with its obligations under Section
     5.01;

          (4) the Company fails to comply for 30 days after notice with any of
     its obligations under Section 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08,
     4.11, 4.12, 4.13 or 4.14  (in each case, other than a failure to purchase
     Securities when required under Section 4.06 or 4.08);

          (5) the Company fails to comply for 60 days after notice with its
     other agreements contained in this Indenture or the Securities;

          (6) the Company or any Significant Subsidiary fails to pay any
     Indebtedness within any applicable grace period after final maturity or the
     acceleration of any such
<PAGE>

                                                                              51

     Indebtedness by the holders thereof because of a default if the total
     amount of such Indebtedness unpaid or accelerated exceeds $15,000,000 or
     its foreign currency equivalent (the "cross acceleration provision") and
     such failure continues for 10 days after receipt of the notice specified
     below;

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

               (A) commences a voluntary case;

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

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

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

          (8) a court of competent jurisdiction renders a final judgment or
     decree (not subject to appeal) for the payment of money in excess of
     $15,000,000 or its foreign currency equivalent at the time it is entered
     against the Company or a Significant Subsidiary and such judgment or decree
     is not discharged, waived or stayed if:

               (A) an enforcement proceeding thereon is commenced by any
          creditor; or

               (B) such judgment or decree remains outstanding for a period of
          60 days following such judgment and is not discharged, waived or
          stayed (the "judgment default provision");

          (9) any Subsidiary Guarantee ceases to be in full force and effect
     (except as contemplated by the terms thereof) or any Subsidiary Guarantor
     or Person acting by or on behalf of such Subsidiary Guarantor denies or
     disaffirms such Subsidiary Guarantor's obligations under this Indenture or
     any Subsidiary Guarantee and such Default continues for 10 days after
     receipt of the notice specified below;

          (10) the failure by the Company and its Restricted Subsidiaries,
     collectively, in any material respect to obtain or acquire any Capital
     Stock or assets being obtained or acquired pursuant to or in connection
     with the transactions contemplated by the Merger Agreement, including
     licenses or any rights thereunder, of Airadigm Communications, Inc. or
     Indus, Inc., to the extent that Holdings or any of its Subsidiaries obtains
     or acquires any such Capital Stock or assets, and such failure continues
     for 30 days after receipt of the notice specified below;

          (11) any action taken or failed to be taken by Holdings or the Company
     after the execution of the New Network Membership License Agreement, the
     New Intercarrier Roamer Service Agreement or the New Roaming Administration
     Service Agreement by Holdings or the Company, if the result of such action
     or failure to take such action shall
<PAGE>

                                                                              52

     be that the Company and its Restricted Subsidiaries, collectively, in any
     material respect, fail to obtain and enjoy rights and benefits
     substantially similar to those they would have enjoyed were they a party to
     (a) the New Network Membership License Agreement with regard to their
     covered license areas on the date of the Indenture, after giving effect to
     the AT&T Wireless Services Contribution and AT&T Wireless Exchange, until
     July 17, 2005 and (b) the New Intercarrier Roamer Service Agreement or the
     New Roaming Administration Service Agreement; provided that such rights and
     benefits shall include, without limitation, their pro rata share of
     consideration received from a total or partial disposition of such rights
     and benefits under the New Network Membership License Agreement, the New
     Intercarrier Roamer Service Agreement or the New Roaming Administration
     Service Agreement, as applicable, and such action or failure to take such
     action continues for 30 days after receipt of the notice specified below;
     or

          (12) the making by the Company and its Restricted Subsidiaries,
     collectively, of payments, directly or indirectly, to third parties with
     respect to the New Network Membership License Agreement, the New
     Intercarrier Roamer Service Agreement or the New Roaming Administration
     Service Agreement in excess of their pro rata share of any payments
     required to be made by Holdings.

          The foregoing shall constitute Events of Default whatever the reason
for any such Event of Default and whether it is voluntary or involuntary or is
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body.

          A Default under clause (4), (5), (6), (10), (11) or (12) shall not
constitute an Event of Default until the Trustee or the holders of at least 25%
in aggregate principal amount of the outstanding Securities notify the Company
of the Default and the Company does not cure such Default within the time
specified in clauses (4), (5), (6), (10), (11) or (12) after receipt of such
notice. Such notice must specify the Default, demand that it be remedied and
state that such notice is a "Notice of Default".

          SECTION 6.02.  Acceleration.  If an Event of Default (other than an
                         -------------
Event of Default specified in clause (7) of Section 6.01 with respect to the
Company) occurs and is continuing, the Trustee by notice to the Company, or the
Holders of at least 25% in aggregate principal amount of the outstanding
Securities by notice to the Company, may declare the principal of and accrued
but unpaid interest on all the Securities to be due and payable.  Upon such a
declaration, such principal and interest shall be due and payable immediately.
If an Event of Default specified in clause (7) of Section 6.01 with respect to
the Company occurs, the principal of and interest on all the Securities shall
ipso facto become and be immediately due and payable without any declaration or
---- -----
other act on the part of the Trustee or any Securityholders. The Holders of a
majority in aggregate principal amount of the outstanding Securities by notice
to the Trustee may rescind an acceleration and its consequences if the
rescission would not conflict with any judgment or decree and if all existing
Events of Default have been cured or waived except nonpayment of principal or
interest that has become due solely because of acceleration.  No such rescission
shall affect any subsequent Default or impair any right consequent thereto.
<PAGE>

                                                                              53

          SECTION 6.03.  Other Remedies.  If an Event of Default occurs and is
                         ---------------
continuing, the Trustee may pursue any available remedy to collect the payment
of principal of or interest on the Securities or to enforce the performance of
any provision of the Securities or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any
of the Securities or does not produce any of them in the proceeding.  A delay or
omission by the Trustee or any Securityholder in exercising any right or remedy
accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default.  No remedy is
exclusive of any other remedy.  All available remedies are cumulative.

          SECTION 6.04.  Waiver of Past Defaults.  The Holders of a majority in
                         ------------------------
principal amount of the Securities by notice to the Trustee may waive an
existing Default and its consequences except (i) a Default in the payment of the
principal amount of, or interest on a Security or (ii) a Default arising from
the failure to redeem or purchase any Security when required pursuant to the
terms of this Indenture or (iii) a Default in respect of a provision that under
Section 9.02 cannot be amended without the consent of each Securityholder
affected. When a Default is waived, it is deemed cured, but no such waiver shall
extend to any subsequent or other Default or impair any consequent right.

          SECTION 6.05.  Control by Majority.  The Holders of a majority in
                         --------------------
principal amount of the Securities may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. However, the Trustee may
refuse to follow any direction that conflicts with law or this Indenture or,
subject to Section 7.01, that the Trustee determines is unduly prejudicial to
the rights of other Securityholders or would involve the Trustee in personal
liability; provided, however, that the Trustee may take any other action deemed
           --------  -------
proper by the Trustee that is not inconsistent with such direction.  Prior to
taking any action hereunder, the Trustee shall be entitled to indemnification
satisfactory to it in its sole discretion against all losses and expenses caused
by taking or not taking such action.

          SECTION 6.06.  Limitation on Suits.  Except to enforce the right to
                         --------------------
receive payment of principal, premium (if any) or interest when due, no
Securityholder may pursue any remedy with respect to this Indenture or the
Securities unless:

          (1) the Holder gives to the Trustee written notice stating that an
     Event of Default is continuing;

          (2) the Holders of at least 25% in principal amount of the Securities
     make a written request to the Trustee to pursue the remedy;

          (3) such Holder or Holders offer to the Trustee security or indemnity
     reasonably satisfactory to the Trustee against any loss, liability or
     expense;

          (4) the Trustee does not comply with the request within 60 days after
     receipt of the request and the offer of security or indemnity; and
<PAGE>

                                                                              54

          (5) the Holders of a majority in principal amount of the Securities do
     not give the Trustee a direction inconsistent with the request during such
     60-day period.

          A Securityholder may not use this Indenture to prejudice the rights of
another Securityholder or to obtain a preference or priority over another
Securityholder.

          SECTION 6.07.  Rights of Holders To Receive Payment.  Notwithstanding
                         -------------------------------------
any other provision of this Indenture, the right of any Holder to receive
payment of principal of and liquidated damages and interest on the Securities
held by such Holder, on or after the respective due dates expressed in the
Securities, or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder.

          SECTION 6.08.  Collection Suit by Trustee.  If an Event of Default
                         ---------------------------
specified in clause (1) or (2) of Section 6.01 occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount then due and owing (together with
interest on any unpaid interest to the extent lawful) and the amounts provided
for in Section 7.07.

          SECTION 6.09.  Trustee May File Proofs of Claim.  The Trustee may file
                         ---------------------------------
such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee and the Securityholders
allowed in any judicial proceedings relative to the Company, any Subsidiary or
Subsidiary Guarantor, their creditors or their property and, unless prohibited
by law or applicable regulations, may vote on behalf of the Holders in any
election of a trustee in bankruptcy or other Person performing similar
functions, and any Custodian in any such judicial proceeding is hereby
authorized by each Holder to make payments to the Trustee and, in the event that
the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and its counsel, and any other amounts due the Trustee under Section 7.07.

          SECTION 6.10.  Priorities.  If the Trustee collects any money or
                         -----------
property pursuant to this Article 6, it shall pay out the money or property in
the following order:

          FIRST:  to the Trustee for amounts due under Section 7.07;

          SECOND:  to holders of Senior Indebtedness of the Company to the
     extent required by Article 10;

          THIRD:  to Securityholders for amounts due and unpaid on the
     Securities for principal and interest, ratably, and any liquidated damages
     without preference or priority of any kind, according to the amounts due
     and payable on the Securities for principal, any liquidated damages and
     interest, respectively; and

          FOURTH:  to the Company.

          The Trustee may fix a record date and payment date for any payment to
Securityholders pursuant to this Section.  At least 15 days before such record
date, the Trustee
<PAGE>

                                                                              55

shall mail to each Securityholder and the Company a notice that states the
record date, the payment date and amount to be paid.

          SECTION 6.11.  Undertaking for Costs.  In any suit for the enforcement
                         ----------------------
of any right or remedy under this Indenture or in any suit against the Trustee
for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys' fees, against any party litigant in the
suit, having due regard to the merits and good faith of the claims or defenses
made by the party litigant.  This Section 6.11 does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of
more than 10% in principal amount of the Securities.

          SECTION 6.12.  Waiver of Stay or Extension Laws.  Neither the Company
                         ---------------------------------
nor any Subsidiary Guarantor (to the extent it may lawfully do so) shall at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, which may affect the covenants or the performance
of this Indenture; and the Company and each Subsidiary Guarantor (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law, and shall not hinder, delay or impede the execution of any power
herein granted to the Trustee, but shall suffer and permit the execution of
every such power as though no such law had been enacted.

                                   ARTICLE 7

                                    Trustee
                                    -------

          SECTION 7.01.  Duties of Trustee.  (a)  If an Event of Default has
                         ------------------
occurred and is continuing, the Trustee shall exercise the rights and powers
vested in it by this Indenture and use the same degree of care and skill in
their exercise as a prudent Person would exercise or use under the circumstances
in the conduct of such Person's own affairs.

          (b)  Except during the continuance of an Event of Default:

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

          (2) in the absence of bad faith on its part, the Trustee may
     conclusively rely, as to the truth of the statements and the correctness of
     the opinions expressed therein, upon certificates or opinions furnished to
     the Trustee and conforming to the requirements of this Indenture.  However,
     the Trustee shall examine the certificates and opinions to determine
     whether or not they conform to the requirements of this Indenture.

          (c)  The Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own wilful misconduct,
except that:

          (1) this paragraph does not limit the effect of paragraph (b) of this
     Section;
<PAGE>

                                                                              56

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

          (3) the Trustee shall not be liable with respect to any action it
     takes or omits to take in good faith in accordance with a direction
     received by it pursuant to Section 6.05.

          (d)  Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01.

          (e)  The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.

          (f)  Money held in trust by the Trustee need not be segregated from
other funds except to the extent required by law.

          (g)  No provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

          (h)  Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 7.01 and to the provisions of the TIA.

          SECTION 7.02.  Rights of Trustee. (a)  The Trustee may conclusively
                         ------------------
rely and shall be fully protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture or other paper or document
believed to be genuine and to have been signed or presented by the proper party
or parties.

          (b)  Before the Trustee acts or refrains from acting, it may require
an Officers' Certificate or an Opinion of Counsel.  The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on the
Officers' Certificate or Opinion of Counsel.

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

          (d)  The Trustee shall not be liable for any action it takes or omits
to take in good faith which it believes to be authorized or within its rights or
powers; provided, however, that the Trustee's conduct does not constitute wilful
        --------  -------
misconduct or negligence.

          (e)  The Trustee may consult with counsel, and the advice or opinion
of counsel with respect to legal matters relating to this Indenture and the
Securities shall be full and complete
<PAGE>

                                                                              57

authorization and protection from liability in respect to any action taken,
omitted or suffered by it hereunder in good faith and in accordance with the
advice or opinion of such counsel.

          (f)  The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, debenture,
note or other paper or document unless requested in writing to do so by the
Holders of not less than a majority in principal amount of the Securities at the
time outstanding, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney.

          (g)  The Trustee shall not be accountable for the use by the Company
of the proceeds of the Securities.

          SECTION 7.03.  Individual Rights of Trustee.  The Trustee in its
                         -----------------------------
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company or its Affiliates with the same rights
it would have if it were not Trustee.  Any Paying Agent, Registrar or co-paying
agent may do the same with like rights.  However, the Trustee must comply with
Sections 7.10 and 7.11.

          SECTION 7.04.  Trustee's Disclaimer.  The Trustee shall not be
                         ---------------------
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Securities, it shall not be accountable for the Company's
use of the proceeds from the Securities, and it shall not be responsible for any
statement of the Company in this Indenture or in any document issued in
connection with the sale of the Securities or in the Securities other than the
Trustee's certificate of authentication.

          SECTION 7.05.  Notice of Defaults.  If a Default occurs and is
                         -------------------
continuing and if it is actually known to a Trust Officer, the Trustee shall
mail to each Securityholder notice of the Default within the earlier of 90 days
after it occurs or 30 days after it actually becomes known to a Trust Officer.
Except in the case of a Default in payment of principal of or interest on any
Security (including payments pursuant to the mandatory redemption provisions of
such Security, if any), the Trustee may withhold the notice if and so long as a
committee of its Trust Officers in good faith determines that withholding the
notice is in the interests of Securityholders.

          SECTION 7.06.  Reports by Trustee to Holders.  As promptly as
                         ------------------------------
practicable after each March 1 beginning with the March 1 following the date of
this Indenture, and in any event prior to May 1 in each year, the Trustee shall
mail to each Securityholder a brief report dated as of May 1 that complies with
Section 313(a) of the TIA.  The Trustee shall also comply with Section 313(b) of
the TIA.

          A copy of each report at the time of its mailing to Securityholders
shall be filed with the Commission and each stock exchange (if any) on which the
Securities are listed.  The Company agrees to notify promptly the Trustee in
writing whenever the Securities become listed on any stock exchange and of any
delisting thereof.
<PAGE>

                                                                              58

          SECTION 7.07.  Compensation and Indemnity.  The Company shall pay to
                         ---------------------------
the Trustee from time to time reasonable compensation for its services.  The
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust.  The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its services.
Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee's agents, counsel, accountants and
experts.  The Company and each Subsidiary Guarantor, jointly and severally shall
indemnify the Trustee, its directors, officers, employees and agents against any
and all loss, liability or expense (including reasonable attorneys' fees and
expenses) incurred by or in connection with the administration of this trust and
the performance of its duties hereunder.  The Trustee shall notify the Company
of any claim for which it may seek indemnity promptly upon obtaining actual
knowledge thereof; provided, however, that any failure so to notify the Company
                   --------  -------
shall not relieve the Company or any Subsidiary Guarantor of its indemnity
obligations hereunder.  The Company shall defend the claim and the indemnified
party shall provide reasonable cooperation at the Company's expense in the
defense.  Such indemnified parties may have separate counsel and the Company and
the Subsidiary Guarantors, as applicable shall pay the fees and expenses of such
counsel; provided, however, that the Company shall not be required to pay such
         --------  -------
fees and expenses if it assumes such indemnified parties' defense and, in such
indemnified parties' reasonable judgment, there is no conflict of interest
between the Company and the Subsidiary Guarantor, as applicable, and such
parties in connection with such defense.  The Company need not reimburse any
expense or indemnify against any loss, liability or expense incurred by an
indemnified party through such party's own wilful misconduct, negligence or bad
faith.

          To secure the Company's payment obligations in this Section 7.07, the
Trustee shall have a lien prior to the Securities on all money or property held
or collected by the Trustee other than money or property held in trust to pay
principal of and interest and any liquidated damages on particular Securities.

          The Company's payment obligations pursuant to this Section 7.07 shall
survive the satisfaction or discharge of this Indenture, any rejection or
termination of this Indenture under any Bankruptcy Law or the resignation or
removal of the Trustee.  When the Trustee incurs expenses after the occurrence
of a Default specified in clause (7) or (8) of Section 6.01 with respect to the
Company, the expenses are intended to constitute expenses of administration
under the Bankruptcy Law.

          SECTION 7.08.  Replacement of Trustee.  The Trustee may resign at any
                         -----------------------
time by so notifying the Company.  The Holders of a majority in principal amount
of the Securities may remove the Trustee by so notifying the Trustee and may
appoint a successor Trustee.  The Company shall remove the Trustee if:

          (1) the Trustee fails to comply with Section 7.10;

          (2) the Trustee is adjudged bankrupt or insolvent;

          (3) a receiver or other public officer takes charge of the Trustee or
     its property;

          (4) the Trustee otherwise becomes incapable of acting; or
<PAGE>

                                                                              59

          (5) the Trustee increases its fees (exclusive of fees for
          extraordinary services) by more than 10% in any twelve month period.

          If the Trustee resigns, is removed by the Company or by the Holders of
a majority in principal amount of the Securities and such Holders do not
reasonably promptly appoint a successor Trustee, or if a vacancy exists in the
office of Trustee for any reason (the Trustee in such event being referred to
herein as the retiring Trustee), the Company shall promptly appoint a successor
Trustee.

          A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company.  Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture.  The successor Trustee shall mail a notice of its
succession to Securityholders.  The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien
provided for in Section 7.07.

          If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee or the Holders of
10% in principal amount of the Securities may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

          If the Trustee fails to comply with Section 7.10, any Securityholder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

          Notwithstanding the replacement of the Trustee pursuant to this
Section, the Company's obligations under Section 7.07 shall continue for the
benefit of the retiring Trustee.

          SECTION 7.09.  Successor Trustee by Merger.  If the Trustee
                         ----------------------------
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee.

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

          SECTION 7.10.  Eligibility; Disqualification.  The Trustee shall at
                         ------------------------------
all times satisfy the requirements of Section 310(a) of the TIA.  The Trustee
shall have a combined capital and surplus of at least $100,000,000 as set forth
in its most recent published annual report of condition.  The Trustee shall
comply with Section 3.01(b) of the TIA; provided, however, that there shall be
                                        --------  -------
excluded from the operation of Section 3.01(b)(1) of the TIA any indenture or
<PAGE>

                                                                              60

indentures under which other securities or certificates of interest or
participation in other securities of the Company are outstanding if the
requirements for such exclusion set forth in Section 3.01(b)(1) of the TIA are
met.

          SECTION 7.11.  Preferential Collection of Claims Against Company.  The
                         --------------------------------------------------
Trustee shall comply with Section 311(a) of the TIA, excluding any creditor
relationship listed in Section 311(b) of the TIA.  A Trustee who has resigned or
been removed shall be subject to Section 311(a) of the TIA to the extent
indicated.

          SECTION 7.12.  Trustee Acting as Paying Agent or Registrar.  In the
                         --------------------------------------------
event that the Trustee is also acting as a Paying Agent or Registrar hereunder,
the rights and protections afforded to the Trustee pursuant to this Article 7
shall also be afforded to such Paying Agent or Registrar.

                                   ARTICLE 8

                       Discharge of Indenture; Defeasance
                       ----------------------------------

          SECTION 8.01.  Discharge of Liability on Securities; Defeasance.  (a)
                         -------------------------------------------------
When (i) the Company delivers to the Trustee all outstanding Securities (other
than Securities replaced pursuant to Section 2.07) for cancelation or (ii) all
outstanding Securities have become due and payable, whether at maturity or as a
result of the mailing of a notice of redemption pursuant to Article 3, and the
Company irrevocably deposits with the Trustee funds or U.S. Government
Obligations on which payment of principal and interest when due will be
sufficient to pay at maturity or upon redemption all outstanding Securities,
including interest thereon to maturity or such redemption date (other than
Securities replaced pursuant to Section 2.07), and if in either case the Company
pays all other sums payable hereunder by the Company, then this Indenture shall,
subject to Section 8.01(c), cease to be of further effect.  The Trustee shall
acknowledge satisfaction and discharge of this Indenture on demand of the
Company accompanied by an Officers' Certificate and an Opinion of Counsel and at
the cost and expense of the Company.

          (b)  Subject to Sections 8.01(c) and 8.02, the Company at any time may
terminate (i) all of its obligations under the Securities and this Indenture
("legal defeasance option") or (ii) its obligations under Sections 4.02, 4.03,
4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13 and 4.14 and the
operation of Section 5.01(a)(3),  5.01(a)(4), 5.01(a)(5), 6.01(4), 6.01(5),
6.01(6), 6.01(7) (with respect to Significant Subsidiaries of the Company only),
6.01(8) (with respect to Significant Subsidiaries of the Company only),
6.01(10), 6.01(11) and 6.01(12) ("covenant defeasance option").  The Company may
exercise its legal defeasance option notwithstanding its prior exercise of its
covenant defeasance option.  In the event that the Company terminates all of its
obligations under the Securities and this Indenture by exercising its legal
defeasance option, the obligations under the Subsidiary Guarantees shall each be
terminated simultaneously with the termination of such obligations.

          If the Company exercises its legal defeasance option, payment of the
Securities may not be accelerated because of an Event of Default.  If the
Company exercises its covenant defeasance option, payment of the Securities may
not be accelerated because of an Event of Default specified in Section 6.01(4),
6.01(5), 6.01(6), 6.01(7) (with respect to Significant
<PAGE>

                                                                              61

Subsidiaries of the Company only), 6.01(8) (with respect to Significant
Subsidiaries of the Company only), 6.01(9), 6.01(10), 6.01(11) and 6.01(12)
because of the failure of the Company to comply with clauses (3), (4) and (5) of
Section 5.01(a).

          Upon satisfaction of the conditions set forth herein and upon request
of the Company, the Trustee shall acknowledge in writing the discharge of those
obligations that the Company terminates.

          (c)  Notwithstanding clauses (a) and (b) above, the Company's
obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 7.07, 7.08 and
in this Article 8 shall survive until the Securities have been paid in full.
Thereafter, the Company's obligations in Sections 7.07, 8.04 and 8.05 shall
survive.

          SECTION 8.02.  Conditions to Defeasance.  The Company may exercise its
                         -------------------------
legal defeasance option or its covenant defeasance option only if:

          (1) the Company irrevocably deposits in trust with the Trustee money
     or U.S. Government Obligations for the payment of principal, premium (if
     any) and interest on the Securities to maturity or redemption, as the case
     may be;

          (2) the Company delivers to the Trustee a certificate from a
     nationally recognized firm of independent accountants expressing their
     opinion that the payments of principal and interest when due and without
     reinvestment on the deposited U.S. Government Obligations plus any
     deposited money without investment will provide cash at such times and in
     such amounts as will be sufficient to pay principal and interest when due
     on all the Securities to maturity or redemption, as the case may be;

          (3) 123 days pass after the deposit is made and during the 123-day
     period no Default specified in clause (7) or (8) of Section 6.01 with
     respect to the Company occurs which is continuing at the end of the period;

          (4) the deposit does not constitute a default under any other
     agreement binding on the Company and is not prohibited by Article 10;

          (5) the Company delivers to the Trustee an Opinion of Counsel to the
     effect that the trust resulting from the deposit does not constitute, or is
     qualified as, a regulated investment company under the Investment Company
     Act of 1940;

          (6) in the case of the legal defeasance option, the Company shall have
     delivered to the Trustee an Opinion of Counsel stating that (i) the Company
     has received from, or there has been published by, the Internal Revenue
     Service a ruling, or (ii) since the date of 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 of Counsel shall confirm that,
     the Securityholders will not recognize income, gain or loss for Federal
     income tax purposes as a result of such defeasance and will be subject to
     Federal income tax on the same amounts, in the same manner and at the same
     times as would have been the case if such defeasance had not occurred;
<PAGE>

                                                                              62

          (7) in the case of the covenant defeasance option, the Company shall
     have delivered to the Trustee an Opinion of Counsel to the effect that the
     Securityholders will not recognize income, gain or loss for Federal income
     tax purposes as a result of such covenant defeasance and will be subject to
     Federal income tax on the same amounts, in the same manner and at the same
     times as would have been the case if such covenant defeasance had not
     occurred; and

          (8) the Company delivers to the Trustee an Officers' Certificate and
     an Opinion of Counsel, each stating that all conditions precedent to the
     defeasance and discharge of the Securities as contemplated by this Article
     8 have been complied with.

          Before or after a deposit, the Company may make arrangements
satisfactory to the Trustee for the redemption of Securities at a future date in
accordance with Article 3.

          SECTION 8.03.  Application of Trust Money.  The Trustee shall hold in
                         ---------------------------
trust money or U.S. Government Obligations deposited with it pursuant to this
Article 8.  It shall apply the deposited money and the money from U.S.
Government Obligations through the Paying Agent and in accordance with this
Indenture to the payment of principal of and interest on the Securities.  Money
and securities so held in trust are not subject to Article 10.

          SECTION 8.04.  Repayment to Company.  The Trustee and the Paying Agent
                         ---------------------
shall promptly turn over to the Company upon request any excess money or
securities held by them at any time.

          Subject to any applicable abandoned property law, the Trustee and the
Paying Agent shall pay to the Company upon written request any money held by
them for the payment of principal or interest that remains unclaimed for two
years, and, thereafter, Securityholders entitled to the money must look to the
Company for payment as general creditors.

          SECTION 8.05.  Indemnity for Government Obligations.  The Company
                         -------------------------------------
shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against deposited U.S. Government Obligations or the
principal and interest received on such U.S. Government Obligations.

          SECTION 8.06.  Reinstatement.  If the Trustee or Paying Agent is
                         --------------
unable to apply any money or U.S. Government Obligations in accordance with this
Article 8 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company's obligations under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to this Article 8 until such time as the Trustee
or Paying Agent is permitted to apply all such money or U.S. Government
Obligations in accordance with this Article 8; provided, however, that, if the
                                               --------  -------
Company has made any payment of interest on or principal of any Securities
because of the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Securities to receive such payment from the
money or U.S. Government Obligations held by the Trustee or Paying Agent.
<PAGE>

                                                                              63

                                   ARTICLE 9

                                   Amendments
                                   ----------

          SECTION 9.01.  Without Consent of Holders.   (a)  Without the consent
                         ---------------------------
of any Holder of Securities, the Company, the Subsidiary Guarantors and the
Trustee may amend this Indenture to:

          (1) cure any ambiguity, omission, defect or inconsistency;

          (2) comply with Article 5;

          (3) provide for uncertificated Securities in addition to, or in place
     of, certificated Securities; provided, however, that the uncertificated
                                  --------  -------
     Securities are issued in registered form for purposes of Section 163(f) of
     the Code, or in a manner such that the uncertificated Securities are
     described in Section 163(f)(2)(B) of the Code;

          (4) make any change in Article 10 or Article 12 that would limit or
     terminate the benefits available to any holder of Senior Indebtedness of
     the Company (or any Representative thereof) under Article 10 or Article 12;

          (5) add additional guarantees with respect to the Securities;

          (6) secure the Securities;

          (7) add to the covenants of the Company for the benefit of the
     Securityholders;

          (8) surrender any right or power herein conferred upon the Company;

          (9) make any change that does not adversely affect the rights of any
     Securityholder;

          (10) provide for the issuance of the Exchange Securities or Private
     Exchange Securities, subject to the provisions of this Indenture; or

          (11) comply with any requirement of the Commission in connection with
     the qualification of this Indenture under the TIA.

          (b)  No amendment may be made under this Section 9.01, that adversely
affects the rights under Article 10 or Article 12 of any holder of Senior
Indebtedness of the Company then outstanding unless the holders of such Senior
Indebtedness (or any group or representative thereof authorized to give a
consent) consent to such change.

          (c)  After an amendment under this Section 9.01 becomes effective, the
Company shall mail to Securityholders a notice briefly describing such
amendment. The failure to give such notice to all Securityholders, or any defect
therein, shall not impair or affect the validity of the amendment.
<PAGE>

                                                                              64

          SECTION 9.02.  With Consent of Holders.  The Company, the Subsidiary
                         ------------------------
Guarantors and the Trustee may amend this Indenture or the Securities without
notice to any Securityholder but with the written consent of the Holders of a
majority in aggregate principal amount of the Securities then outstanding
(including consents obtained in connection with a tender offer or exchange for
the Securities).  However, without the consent of each Securityholder affected,
an amendment may not:

          (1)  reduce the amount of Securities whose Holders must consent to an
     amendment;

          (2) reduce the rate of, or extend the time for payment of, interest or
     any liquidated damages on any Security;

          (3) reduce the principal of, or extend the Stated Maturity of, any
     Security;

          (4) reduce the premium payable upon the redemption of any Security or
     change the time at which any Security may be redeemed in accordance with
     Article 3;

          (5) make any Security payable in money other than that stated in the
     Security;

          (6) impair the right of any Holder of Securities to receive payment of
     principal of and interest or any liquidated damages on such Holder's
     Securities on or after the due dates therefor or to institute suit for the
     enforcement of any payment on or with respect to such Holder's Securities;
     or

          (7) make any change in the amendment provisions which require the
     consent of each Holder of Securities or in the waiver provisions; and

          (b) without the consent of the holders of 75% in aggregate principal
amount of the Notes then outstanding, no amendment may:

          (1) make any change to the subrdination provisions of this Indenture
     that adversely affects the rights of any holder of Notes; or

          (2) modify the Subsidiary Guarantee in any manner adverse to the
     holders of Notes.

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

          After an amendment under this Section 9.02 becomes effective, the
Company shall mail to Securityholders a notice briefly describing such
amendment.  The failure to give such notice to all Securityholders, or any
defect therein, shall not impair or affect the validity of an amendment under
this Section 9.02.

          SECTION 9.03.  Compliance with Trust Indenture Act.  Every amendment
                         ------------------------------------
to this Indenture or the Securities shall comply with the TIA as then in effect.
<PAGE>

                                                                              65

          SECTION 9.04.  Revocation and Effect of Consents and Waivers.  A
                         ----------------------------------------------
consent to an amendment or a waiver by a Holder of a Security shall bind the
Holder and every subsequent Holder of that Security or portion of the Security
that evidences the same debt as the consenting Holder's Security, even if
notation of the consent or waiver is not made on the Security. However, any such
Holder or subsequent Holder may revoke the consent or waiver as to such Holder's
Security or portion of the Security if the Trustee receives the notice of
revocation before the date on which the Trustee receives an Officers'
Certificate from the Company certifying that the requisite number of consents
have been received.  After an amendment or waiver becomes effective, it shall
bind every Securityholder.  An amendment or waiver becomes effective upon the
(i) receipt by the Company or the Trustee of the requisite number of consents,
(ii) satisfaction of conditions to effectiveness as set forth in this Indenture
and any indenture supplemental hereto containing such amendment or waiver and
(iii) execution of such amendment or waiver (or supplemental indenture) by the
Company and the Trustee.

          The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Securityholders entitled to give their consent or
take any other action described above or required or permitted to be taken
pursuant to this Indenture.  If a record date is fixed, then notwithstanding the
immediately preceding paragraph, those Persons who were Securityholders at such
record date (or their duly designated proxies), and only those Persons, shall be
entitled to give such consent or to revoke any consent previously given or to
take any such action, whether or not such Persons continue to be Holders after
such record date.  No such consent shall be valid or effective for more than 120
days after such record date.

          SECTION 9.05.  Notation on or Exchange of Securities.  If an amendment
                         --------------------------------------
changes the terms of a Security, the Trustee may require the Holder of the
Security to deliver it to the Trustee.  The Trustee may place an appropriate
notation on the Security regarding the changed terms and return it to the
Holder.  Alternatively, if the Company or the Trustee so determines, the Company
in exchange for the Security shall issue and the Trustee shall authenticate a
new Security that reflects the changed terms.  Failure to make the appropriate
notation or to issue a new Security shall not affect the validity of such
amendment.

          SECTION 9.06.  Trustee To Sign Amendments.  The Trustee shall sign any
                         ---------------------------
amendment authorized pursuant to this Article 9 if the amendment does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may but need not sign it.  In signing such amendment the
Trustee shall be entitled to receive indemnity reasonably satisfactory to it and
to receive, and (subject to Section 7.01) shall be fully protected in relying
upon, an Officers' Certificate and an Opinion of Counsel stating that such
amendment is authorized or permitted by this Indenture and that such amendment
is the legal, valid and binding obligation of the Company and the Subsidiary
Guarantors enforceable against them in accordance with its terms, subject to
customary exceptions, and complies with the provisions hereof (including Section
9.03).

          SECTION 9.07.  Payment for Consent.  Neither the Company nor any
                         --------------------
Affiliate of the Company shall, directly or indirectly, pay or cause to be paid
any consideration, whether by way of interest, fee or otherwise, to any Holder
for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture or the Securities unless such consideration is
offered to be paid to all Holders that so consent, waive or agree to amend
<PAGE>

                                                                              66

in the time frame set forth in solicitation documents relating to such consent,
waiver or agreement.

                                   ARTICLE 10

                                 Subordination
                                 -------------

          SECTION 10.01.  Agreement To Subordinate.  The Company agrees, and
                          -------------------------
each Securityholder by accepting a Security agrees, that the Indebtedness
evidenced by the Securities is subordinated in right of payment, to the extent
and in the manner provided in this Article 10, to the prior payment in full of
all Senior Indebtedness of the Company and that the subordination is for the
benefit of and enforceable by the holders of such Senior Indebtedness.  The
Securities shall in all respects rank pari passu with all other Senior
                                      ---- -----
Subordinated Indebtedness of the Company, including the Discount Notes, and only
Indebtedness of the Company that is Senior Indebtedness of the Company shall
rank senior to the Securities in accordance with the provisions set forth
herein.  For purposes of this Article 10, the Indebtedness evidenced by the
Securities shall be deemed to include the liquidated damages payable pursuant to
the provisions set forth in the Securities and the Registration Agreement.  All
provisions of this Article 10 shall be subject to Section 10.12.

          SECTION 10.02.  Liquidation, Dissolution, Bankruptcy.  Upon any
                          -------------------------------------
payment or distribution of the assets of the Company to creditors upon a total
or partial liquidation or a total or partial dissolution of the Company or in a
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Company or its property:

          (1) holders of Senior Indebtedness of the Company shall be entitled to
     receive payment in full of such Senior Indebtedness before Securityholders
     shall be entitled to receive any payment of principal of or interest on the
     Securities; and

          (2) until the Senior Indebtedness of the Company is paid in full, any
     payment or distribution to which Securityholders would be entitled but for
     this Article 10 shall be made to holders of such Senior Indebtedness as
     their interests may appear, except that Securityholders may receive shares
     of stock and any debt securities that are subordinated to such Senior
     Indebtedness to at least the same extent as the Securities.

          SECTION 10.03.  Default on Senior Indebtedness.  The Company may not
                          -------------------------------
pay the principal of, premium (if any) or interest on the Securities or make any
deposit pursuant to Section 8.01 and may not otherwise repurchase, redeem or
otherwise retire any Securities (collectively, "pay the Securities") if (i) any
Designated Senior Indebtedness of the Company is not paid when due or (ii) any
other default on such Designated Senior Indebtedness occurs and the maturity of
such Designated Senior Indebtedness is accelerated in accordance with its terms
unless, in either case, (x) the default has been cured or waived and any such
acceleration has been rescinded or (y) such Designated Senior Indebtedness has
been paid in full; provided, however, that the Company may pay the Securities
                   --------  -------
without regard to the foregoing if the Company and the Trustee receive written
notice approving such payment from the Representative of such Designated Senior
Indebtedness with respect to which either of the events set forth in clause (i)
or (ii) of this sentence has occurred and is continuing.  During the continuance
of any default (other than a default described in clause (i) or (ii) of the
preceding
<PAGE>

                                                                              67

sentence) with respect to any Designated Senior Indebtedness of the Company
pursuant to which the maturity thereof may be accelerated immediately without
further notice (except such notice as may be required to effect such
acceleration) or the expiration of any applicable grace periods, the Company may
not pay the Securities for a period (a "Payment Blockage Period") commencing
upon the receipt by the Trustee (with a copy to the Company) of written notice
(a "Blockage Notice") of such default from the Representative of such Designated
Senior Indebtedness specifying an election to effect a Payment Blockage Period
and ending 179 days thereafter (or earlier if such Payment Blockage Period is
terminated (i) by written notice to the Trustee and the Company from the Person
or Persons who gave such Blockage Notice, (ii) by repayment in full of such
Designated Senior Indebtedness or (iii) because the default giving rise to such
Blockage Notice is no longer continuing). Notwithstanding the provisions
described in the immediately preceding sentence (but subject to the provisions
contained in the first sentence of this Section 10.03), unless the holders of
such Designated Senior Indebtedness or the Representative of such holders shall
have accelerated the maturity of such Designated Senior Indebtedness, the
Company may resume payments on the Securities after the end of such Payment
Blockage Period. Not more than one Blockage Notice may be given in any
consecutive 360-day period, irrespective of the number of defaults with respect
to Designated Senior Indebtedness during such period; provided, however, that if
                                                      --------  -------
any Blockage Notice within such 360-day period is given by or on behalf of any
holders of Designated Senior Indebtedness other than the Bank Indebtedness, the
Representative of the Bank Indebtedness may give another Blockage Notice within
such period; provided further, however, that in no event may the total number of
             ----------------  -------
days during which any Payment Blockage Period or Periods is in effect exceed 179
days in the aggregate during any 360 consecutive day period.  For purposes of
this Section 10.03, no default or event of default that existed or was
continuing on the date of the commencement of any Payment Blockage Period with
respect to the Designated Senior Indebtedness initiating such Payment Blockage
Period shall be, or be made, the basis of the commencement of a subsequent
Payment Blockage Period by the Representative of such Designated Senior
Indebtedness, whether or not within a period of 360 consecutive days, unless
such default or event of default shall have been cured or waived for a period of
not less than 90 consecutive days.

          SECTION 10.04.  Acceleration of Payment of Securities.  If payment of
                          --------------------------------------
the Securities is accelerated because of an Event of Default, the Company or the
Trustee shall promptly notify the holders of the Designated Senior Indebtedness
of the Company (or their Representative) of the acceleration.  If any Designated
Senior Indebtedness of the Company is outstanding, the Company may not pay the
Securities until five Business Days after such holders or the Representative of
such Designated Senior Indebtedness receive notice of such acceleration and,
thereafter, may pay the Securities only if this Article 10 otherwise permits
payment at that time.

          SECTION 10.05.  When Distribution Must Be Paid Over.  If a
                          ------------------------------------
distribution is made to Securityholders that because of this Article 10 should
not have been made to them, the Securityholders who receive the distribution
shall hold it in trust for holders of Senior Indebtedness of the Company and pay
it over to them as their interests may appear.

          SECTION 10.06.  Subrogation.  After all Senior Indebtedness of the
                          ------------
Company is paid in full and until the Securities are paid in full,
Securityholders shall be subrogated to the rights of holders of such Senior
Indebtedness to receive distributions applicable to Senior
<PAGE>

                                                                              68

Indebtedness. A distribution made under this Article 10 to holders of such
Senior Indebtedness which otherwise would have been made to Securityholders is
not, as between the Company and Securityholders, a payment by the Company on
such Senior Indebtedness.

          SECTION 10.07.  Relative Rights.  This Article 10 defines the relative
                          ----------------
rights of Securityholders and holders of Senior Indebtedness of the Company.
Nothing in this Indenture shall:

          (1) impair, as between the Company and Securityholders, the obligation
     of the Company, which is absolute and unconditional, to pay principal of
     and interest on and liquidated damages in respect of, the Securities in
     accordance with their terms; or

          (2) prevent the Trustee or any Securityholder from exercising its
     available remedies upon a Default, subject to the rights of holders of
     Senior Indebtedness of the Company to receive distributions otherwise
     payable to Securityholders.

          SECTION 10.08.  Subordination May Not Be Impaired by Company.  No
                          ---------------------------------------------
right of any holder of Senior Indebtedness of the Company to enforce the
subordination of the Indebtedness evidenced by the Securities shall be impaired
by any act or failure to act by the Company or by its failure to comply with
this Indenture.

          SECTION 10.09.  Rights of Trustee and Paying Agent.  Notwithstanding
                          -----------------------------------
Section 10.03, the Trustee or Paying Agent may continue to make payments on the
Securities and shall not be charged with knowledge of the existence of facts
that would prohibit the making of any such payments unless, not less than two
Business Days prior to the date of such payment, a Trust Officer of the Trustee
receives notice satisfactory to it that payments may not be made under this
Article 10.  The Company, the Registrar, the Paying Agent, a Representative or a
holder of Senior Indebtedness of the Company may give the notice; provided,
                                                                  --------
however, that, if an issue of Senior Indebtedness of the Company has a
-------
Representative, only the Representative may give the notice.

          The Trustee in its individual or any other capacity may hold Senior
Indebtedness of the Company with the same rights it would have if it were not
Trustee.  The Registrar and the Paying Agent may do the same with like rights.
The Trustee shall be entitled to all the rights set forth in this Article 10
with respect to any Senior Indebtedness of the Company which may at any time be
held by it, to the same extent as any other holder of such Senior Indebtedness;
and nothing in Article 7 shall deprive the Trustee of any of its rights as such
holder.  Nothing in this Article 10 shall apply to claims of, or payments to,
the Trustee under or pursuant to Section 7.07.

          SECTION 10.10.  Distribution or Notice to Representative.  Whenever a
                          -----------------------------------------
distribution is to be made or a notice given to holders of Senior Indebtedness
of the Company, the distribution may be made and the notice given to their
Representative (if any).

          SECTION 10.11.  Article 10 Not To Prevent Events of Default or Limit
                          ----------------------------------------------------
Right To Accelerate.  The failure to make a payment pursuant to the Securities
--------------------
by reason of any provision in this Article 10 shall not be construed as
preventing the occurrence of a Default.
<PAGE>

                                                                              69

Nothing in this Article 10 shall have any effect on the right of the
Securityholders or the Trustee to accelerate the maturity of the Securities.

          SECTION 10.12.  Trust Moneys Not Subordinated.  Notwithstanding
                          ------------------------------
anything contained herein to the contrary, payments from money or the proceeds
of U.S. Government Obligations held in trust under Article 8 by the Trustee for
the payment of principal of and interest on the Securities shall not be
subordinated to the prior payment of any Senior Indebtedness of the Company or
subject to the restrictions set forth in this Article 10, and none of the
Securityholders shall be obligated to pay over any such amount to the Company or
any holder of Senior Indebtedness of the Company or any other creditor of the
Company.

          SECTION 10.13.  Trustee Entitled To Rely.  Upon any payment or
                          -------------------------
distribution pursuant to this Article 10, the Trustee and the Securityholders
shall be entitled to rely conclusively (i) upon any order or decree of a court
of competent jurisdiction in which any proceedings of the nature referred to in
Section 10.02 are pending, (ii) upon a certificate of the liquidating trustee or
agent or other Person making such payment or distribution to the Trustee or to
the Securityholders or (iii) upon the Representatives for the holders of Senior
Indebtedness of the Company for the purpose of ascertaining the Persons entitled
to participate in such payment or distribution, the holders of such Senior
Indebtedness and other Indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article 10.  In the event that the Trustee
determines, in good faith, that evidence is required with respect to the right
of any Person as a holder of Senior Indebtedness of the Company to participate
in any payment or distribution pursuant to this Article 10, the Trustee may
request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of such Senior Indebtedness held by such Person, the
extent to which such Person is entitled to participate in such payment or
distribution and other facts pertinent to the rights of such Person under this
Article 10, and, if such evidence is not furnished, the Trustee may defer any
payment to such Person pending judicial determination as to the right of such
Person to receive such payment.  The provisions of Sections 7.01 and 7.02 shall
be applicable to all actions or omissions of actions by the Trustee pursuant to
this Article 10.

          SECTION 10.14.  Trustee To Effectuate Subordination.  Each
                          ------------------------------------
Securityholder by accepting a Security authorizes and directs the Trustee on his
behalf to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination between the Securityholders and the holders of
Senior Indebtedness of the Company as provided in this Article 10 and appoints
the Trustee as attorney-in-fact for any and all such purposes.

          SECTION 10.15.  Trustee Not Fiduciary for Holders of Senior
                          -------------------------------------------
Indebtedness. The Trustee shall not be deemed to owe any fiduciary duty to the
-------------
holders of Senior Indebtedness of the Company and shall not be liable to any
such holders if it shall mistakenly pay over or distribute to Securityholders or
the Company or any other Person, money or assets to which any holders of Senior
Indebtedness of the Company shall be entitled by virtue of this Article 10 or
otherwise.

          SECTION 10.16.  Reliance by Holders of Senior Indebtedness on
                          ---------------------------------------------
Subordination Provisions.  Each Securityholder by accepting a Security
-------------------------
acknowledges and agrees that the foregoing subordination provisions are, and are
intended to be, an inducement and a
<PAGE>

                                                                              70

consideration to each holder of any Senior Indebtedness of the Company, whether
such Senior Indebtedness was created or acquired before or after the issuance of
the Securities, to acquire and continue to hold, or to continue to hold, such
Senior Indebtedness and such holder of such Senior Indebtedness shall be deemed
conclusively to have relied on such subordination provisions in acquiring and
continuing to hold, or in continuing to hold, such Senior Indebtedness.

          SECTION 10.17.  Trustee's Compensation Not Prejudiced.  Nothing in
                          --------------------------------------
this Article shall apply to amounts due to the Trustee pursuant to other
sections of this Indenture.

          SECTION 10.18.  Defeasance.  The terms of this Article 10 shall not
                          -----------
apply to payments from money or the proceeds of U.S. Government Obligations held
in trust by the Trustee for the payment of principal of and interest on the
Securities pursuant to the provisions described in Section 8.03.

                                   ARTICLE 11

                             Subsidiary Guarantees
                             ---------------------

          SECTION 11.01.  Subsidiary Guarantees.  Each Subsidiary Guarantor
                          ----------------------
hereby jointly and severally irrevocably and unconditionally guarantees, as a
primary obligor and not merely as a surety, to each Holder and to the Trustee
and its successors and assigns (a) the full and punctual payment when due,
whether at Stated Maturity, by acceleration, by redemption or otherwise, of all
obligations of the Company under this Indenture (including obligations to the
Trustee) and the Securities, whether for payment of principal of, interest on or
liquidated damages in respect of, the Securities and all other monetary
obligations of the Company under this Indenture and the Securities and (b) the
full and punctual performance within applicable grace periods of all other
obligations of the Company whether for expenses, indemnification or otherwise
under this Indenture and the Securities (all the foregoing being hereinafter
collectively called the "Guaranteed Obligations").  Each Subsidiary Guarantor
further agrees that the Guaranteed Obligations may be extended or renewed, in
whole or in part, without notice or further assent from each such Subsidiary
Guarantor, and that each such Subsidiary Guarantor shall remain bound under this
Article 11 notwithstanding any extension or renewal of any Guaranteed
Obligation.

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

                                                                              71

guarantor of the Guaranteed Obligations; or (f) any change in the ownership of
such Subsidiary Guarantor, except as provided in Section 11.02(b).

          Each Subsidiary Guarantor hereby waives any right to which it may be
entitled to have its obligations hereunder divided among the Subsidiary
Guarantors, such that such Subsidiary Guarantor's obligations would be less than
the full amount claimed.  Each Subsidiary Guarantor hereby waives any right to
which it may be entitled to have the assets of the Company first be used and
depleted as payment of the Company's or such Subsidiary Guarantor's obligations
hereunder prior to any amounts being claimed from or paid by such Subsidiary
Guarantor hereunder.  Each Subsidiary Guarantor hereby waives any right to which
it may be entitled to require that the Company be sued prior to an action being
initiated against such Subsidiary Guarantor.

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

          The Subsidiary Guarantee of each Subsidiary Guarantor is, to the
extent and in the manner set forth in Article 12, subordinated and subject in
right of payment to the prior payment in full of the principal of and premium,
if any, and interest on all Senior Indebtedness of the relevant Subsidiary
Guarantor and is made subject to such provisions of this Indenture.

          Except as expressly set forth in Sections 8.01(b), 11.02 and 11.06,
the obligations of each Subsidiary Guarantor hereunder shall not be subject to
any reduction, limitation, impairment or termination for any reason, including
any claim of waiver, release, surrender, alteration or compromise, and shall not
be subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever or by reason of the invalidity, illegality or unenforceability of the
Guaranteed Obligations or otherwise.  Without limiting the generality of the
foregoing, the obligations of each Subsidiary Guarantor herein shall not be
discharged or impaired or otherwise affected by the failure of any Holder or the
Trustee to assert any claim or demand or to enforce any remedy under this
Indenture, the Securities or any other agreement, by any waiver or modification
of any thereof, by any default, failure or delay, wilful or otherwise, in the
performance of the obligations, or by any other act or thing or omission or
delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of any Subsidiary Guarantor or would otherwise operate as a
discharge of any Subsidiary Guarantor as a matter of law or equity.

          Each Subsidiary Guarantor agrees that its Subsidiary Guarantee shall
remain in full force and effect until payment in full of all the Guaranteed
Obligations (except as otherwise provided in Section 8.01(b)).  Each Subsidiary
Guarantor further agrees that its Subsidiary Guarantee herein shall continue to
be effective or be reinstated, as the case may be, if at any time payment, or
any part thereof, of principal of or interest on any Guaranteed Obligation is
rescinded or must otherwise be restored by any Holder or the Trustee upon the
bankruptcy or reorganization of the Company or otherwise.

          In furtherance of the foregoing and not in limitation of any other
right which any Holder or the Trustee has at law or in equity against any
Subsidiary Guarantor by virtue hereof,
<PAGE>

                                                                              72

upon the failure of the Company to pay the principal of or interest on any
Guaranteed Obligation when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, or to perform or comply
with any other Guaranteed Obligation, each Subsidiary Guarantor hereby promises
to and shall, upon receipt of written demand by the Trustee, forthwith pay, or
cause to be paid, in cash, to the Holders or the Trustee an amount equal to the
sum of (i) the unpaid principal amount of such Guaranteed Obligations, (ii)
accrued and unpaid interest on such Guaranteed Obligations (but only to the
extent not prohibited by law) and (iii) all other monetary obligations of the
Company to the Holders and the Trustee.

          Each Subsidiary Guarantor agrees that it shall not be entitled to any
right of subrogation in relation to the Holders in respect of any Guaranteed
Obligations guaranteed hereby until payment in full of all Guaranteed
Obligations and all obligations to which the Guaranteed Obligations are
subordinated as provided in Article 12.  Each Subsidiary Guarantor further
agrees that, as between it, on the one hand, and the Holders and the Trustee, on
the other hand, (x) the maturity of the Guaranteed Obligations guaranteed hereby
may be accelerated as provided in Article 6 for the purposes of any Subsidiary
Guarantee herein, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the Guaranteed Obligations guaranteed
hereby, and (y) in the event of any declaration of acceleration of such
Guaranteed Obligations as provided in Article 6, such Guaranteed Obligations
(whether or not due and payable) shall forthwith become due and payable by such
Subsidiary Guarantor for the purposes of this Section 11.01.

          Each Subsidiary Guarantor also agrees to pay any and all costs and
expenses (including reasonable attorneys' fees and expenses) incurred by the
Trustee or any Holder in enforcing any rights under this Section 11.01.

          Upon request of the Trustee, each Subsidiary Guarantor shall execute
and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of this
Indenture.

          SECTION 11.02.  Limitation on Liability.  (a)  Any term or provision
                          ------------------------
of this Indenture to the contrary notwithstanding, the maximum, aggregate amount
of the Guaranteed Obligations guaranteed hereunder by any Subsidiary Guarantor
shall not exceed the maximum amount that can be hereby guaranteed without
rendering this Indenture, as it relates to such Subsidiary Guarantor, voidable
under applicable law relating to fraudulent conveyance or fraudulent transfer or
similar laws affecting the rights of creditors generally.

          (b)  A Subsidiary Guarantee as to any Subsidiary Guarantor shall
terminate and be of no further force or effect and such Subsidiary Guarantor
shall be deemed to be released from all obligations under this Article 11 upon
(i) the merger or consolidation of such Subsidiary Guarantor with or into any
Person other than the Company or a Subsidiary or Affiliate of the Company where
such Subsidiary Guarantor is not the surviving entity of such consolidation or
merger or (ii) the sale by the Company or any Subsidiary of the Company (or any
pledgee of the Company) of a majority of the Capital Stock of such Subsidiary
Guarantor, where, after such sale, such Subsidiary Guarantor is no longer a
Subsidiary of the Company; provided, however, that each such merger,
                           --------  -------
consolidation or sale (or, in the case of a sale by such a pledgee, the
disposition of the proceeds of such sale) shall comply with Section 4.06 and
Section 5.01(b).  At
<PAGE>

                                                                              73

the written request of the Company, the Trustee shall execute and deliver an
appropriate instrument evidencing such release.

          SECTION 11.03.  Successors and Assigns.  This Article 11 shall be
                          -----------------------
binding upon each Subsidiary Guarantor and its successors and assigns and shall
inure to the benefit of the successors and assigns of the Trustee and the
Holders and, in the event of any transfer or assignment of rights by any Holder
or the Trustee, the rights and privileges conferred upon that party in this
Indenture and in the Securities shall automatically extend to and be vested in
such transferee or assignee, all subject to the terms and conditions of this
Indenture.

          SECTION 11.04.  No Waiver.  Neither a failure nor a delay on the part
                          ----------
of either the Trustee or the Holders in exercising any right, power or privilege
under this Article 11 shall operate as a waiver thereof, nor shall a single or
partial exercise thereof preclude any other or further exercise of any right,
power or privilege.  The rights, remedies and benefits of the Trustee and the
Holders herein expressly specified are cumulative and not exclusive of any other
rights, remedies or benefits which either may have under this Article 11 at law,
in equity, by statute or otherwise.

          SECTION 11.05.  Modification.  No modification, amendment or waiver of
                          -------------
any provision of this Article 11, nor the consent to any departure by any
Subsidiary Guarantor therefrom, shall in any event be effective unless the same
shall be in writing and signed by the Trustee, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given.  No notice to or demand on any Subsidiary Guarantor in any case shall
entitle such Subsidiary Guarantor to any other or further notice or demand in
the same, similar or other circumstances.

          SECTION 11.06.  Execution of Supplemental Indenture for Future
                          ----------------------------------------------
Subsidiary Guarantors.  Each Subsidiary which is required to become a Subsidiary
----------------------
Guarantor pursuant to Section 4.11 shall promptly execute and deliver to the
Trustee a supplemental indenture in the form of Exhibit C hereto pursuant to
which such Subsidiary shall become a Subsidiary Guarantor under this Article 11
and shall guarantee the Guaranteed Obligations.  Concurrently with the execution
and delivery of such supplemental indenture, the Company shall deliver to the
Trustee an Opinion of Counsel and an Officers' Certificate to the effect that
such supplemental indenture has been duly authorized, executed and delivered by
such Subsidiary and that, subject to the application of bankruptcy, insolvency,
moratorium, fraudulent conveyance or transfer and other similar laws relating to
creditors' rights generally and to the principles of equity, whether considered
in a proceeding at law or in equity, the Subsidiary Guarantee of such Subsidiary
Guarantor is a legal, valid and binding obligation of such Subsidiary Guarantor,
enforceable against such Subsidiary Guarantor in accordance with its terms.
<PAGE>

                                                                              74

                                   ARTICLE 12

                   Subordination of the Subsidiary Guarantees
                   ------------------------------------------

          SECTION 12.01.  Agreement To Subordinate.  Each Subsidiary Guarantor
                          -------------------------
agrees, and each Securityholder by accepting a Security agrees, that the
obligations of a Subsidiary Guarantor hereunder are subordinated in right of
payment, to the extent and in the manner provided in this Article 12, to the
prior payment in full of all Senior Indebtedness of such Subsidiary Guarantor
and that the subordination is for the benefit of and enforceable by the holders
of such Senior Indebtedness of such Subsidiary Guarantor.  The obligations
hereunder with respect to a Subsidiary Guarantor shall in all respects rank pari
                                                                            ----
passu with all other Senior Subordinated Indebtedness of such Subsidiary
-----
Guarantor and shall rank senior to all existing and future Subordinated
Obligations of such Subsidiary Guarantor; and only Indebtedness of such
Subsidiary Guarantor that is Senior Indebtedness of such Subsidiary Guarantor
shall rank senior to the obligations of such Subsidiary Guarantor in accordance
with the provisions set forth herein.

          SECTION 12.02.  Liquidation, Dissolution, Bankruptcy.  Upon any
                          -------------------------------------
payment or distribution of the assets of a Subsidiary Guarantor to creditors
upon a total or partial liquidation or a total or partial dissolution of such
Subsidiary Guarantor or in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to such Subsidiary Guarantor and its
properties:

          (1) holders of Senior Indebtedness of such Subsidiary Guarantor shall
     be entitled to receive payment in full of such Senior Indebtedness before
     Securityholders shall be entitled to receive any payment pursuant to any
     Guaranteed Obligations from such Subsidiary Guarantor; and

          (2) until the Senior Indebtedness of such Subsidiary Guarantor is paid
     in full, any payment or distribution to which Securityholders would be
     entitled but for this Article 12 shall be made to holders of such Senior
     Indebtedness as their respective interests may appear, except that
     Securityholders may receive shares of stock and any debt securities that
     are subordinated to such Senior Indebtedness to at least the same extent as
     the Guarantees.

          SECTION 12.03.  Default on Designated Senior Indebtedness of a
                          ----------------------------------------------
Subsidiary Guarantor.  A Subsidiary Guarantor may not make any payment pursuant
---------------------
to any of the Guaranteed Obligations or repurchase, redeem or otherwise retire
any Securities (collectively, "pay its Guarantee") if (i) any Designated Senior
Indebtedness of such Subsidiary Guarantor is not paid when due or (ii) any other
default on Designated Senior Indebtedness of such Subsidiary Guarantor occurs
and the maturity of such Designated Senior Indebtedness is accelerated in
accordance with its terms unless, in either case, (x) the default has been cured
or waived and any such acceleration has been rescinded or (y) such Designated
Senior Indebtedness has been paid in full; provided, however, that such
                                           --------  -------
Subsidiary Guarantor may pay its Guarantee without regard to the foregoing if
such Subsidiary Guarantor and the Trustee receive written notice approving such
payment from the Representative of the holders of such Designated Senior
Indebtedness with respect to which either of the events in clause (i) or (ii) of
this sentence has occurred and is continuing.  During the continuance of any
default (other than a default described in clause (i) or
<PAGE>

                                                                              75

(ii) of the preceding sentence) with respect to any Designated Senior
Indebtedness of a Subsidiary Guarantor pursuant to which the maturity thereof
may be accelerated immediately without further notice (except such notice as may
be required to effect such acceleration) or the expiration of any applicable
grace periods, such Subsidiary Guarantor may not pay its Guarantee for a Payment
Blockage Period commencing upon the receipt by the Trustee (with a copy to such
Subsidiary Guarantor and the Company) of a Blockage Notice of such default from
the Representative of the holders of the Designated Senior Indebtedness of such
Subsidiary Guarantor specifying an election to effect a Payment Blockage Period
and ending 179 days thereafter (or earlier if such Payment Blockage Period is
terminated (i) by written notice to the Trustee (with a copy to such Subsidiary
Guarantor and the Company) from the Person or Persons who gave such Blockage
Notice, (ii) because such Designated Senior Indebtedness has been repaid in full
or (iii) because the default giving rise to such Blockage Notice is no longer
continuing). Notwithstanding the provisions described in the immediately
preceding sentence (but subject to the provisions contained in the first
sentence of this Section 12.03), unless the holders of such Designated Senior
Indebtedness or the Representative of such holders shall have accelerated the
maturity of such Designated Senior Indebtedness, such Subsidiary Guarantor may
resume paying its Guarantee after such Payment Blockage Period, including any
missed payments. Not more than one Blockage Notice may be given with respect to
a Subsidiary Guarantor in any consecutive 360-day period, irrespective of the
number of defaults with respect to Designated Senior Indebtedness of such
Subsidiary Guarantor during such period.

          SECTION 12.04.  Demand for Payment.  If payment of the Securities is
                          -------------------
accelerated because of an Event of Default and a demand for payment is made on a
Subsidiary Guarantor pursuant to Article 11, the Trustee shall promptly notify
the holders of the Designated Senior Indebtedness of such Subsidiary Guarantor
(or the Representative of such holders) of such demand.  If any Designated
Senior Indebtedness of such Subsidiary Guarantor is outstanding, such Subsidiary
Guarantor may not pay its Guarantee until five Business Days after such holders
or the Representative of the holders of the Designated Senior Indebtedness of
such Subsidiary Guarantor receive notice of such demand and, thereafter, may pay
its Guarantee only if this Article 12 otherwise permits payment at that time.

          SECTION 12.05.  When Distribution Must Be Paid Over.  If a payment or
                          ------------------------------------
distribution is made to Securityholders that because of this Article 12 should
not have been made to them, the Securityholders who receive the payment or
distribution shall hold such payment or distribution in trust for holders of the
Senior Indebtedness of the relevant Subsidiary Guarantor and pay it over to them
as their respective interests may appear.

          SECTION 12.06.  Subrogation.  After all Senior Indebtedness of a
                          ------------
Subsidiary Guarantor is paid in full and until the Securities are paid in full
in cash, Securityholders shall be subrogated to the rights of holders of Senior
Indebtedness of such Subsidiary Guarantor to receive distributions applicable to
Designated Senior Indebtedness of such Subsidiary Guarantor. A distribution made
under this Article 12 to holders of Senior Indebtedness of such Subsidiary
Guarantor which otherwise would have been made to Securityholders is not, as
between such Subsidiary Guarantor and Securityholders, a payment by such
Subsidiary Guarantor on Senior Indebtedness of such Subsidiary Guarantor.
<PAGE>

                                                                              76

          SECTION 12.07.  Relative Rights.  This Article 12 defines the relative
                          ----------------
rights of Securityholders and holders of Senior Indebtedness of a Subsidiary
Guarantor.  Nothing in this Indenture shall:

          (1) impair, as between a Subsidiary Guarantor and Securityholders, the
     obligation of a Subsidiary Guarantor which is absolute and unconditional,
     to make payments with respect to the Guaranteed Obligations to the extent
     set forth in Article 11; or

          (2) prevent the Trustee or any Securityholder from exercising its
     available remedies upon a default by a Subsidiary Guarantor under its
     obligations with respect to the Guaranteed Obligations, subject to the
     rights of holders of Senior Indebtedness of such Subsidiary Guarantor to
     receive distributions otherwise payable to Securityholders.

          SECTION 12.08.  Subordination May Not Be Impaired by a Subsidiary
                          -------------------------------------------------
Guarantor.  No right of any holder of Senior Indebtedness of a Subsidiary
----------
Guarantor to enforce the subordination of the obligations of such Subsidiary
Guarantor hereunder shall be impaired by any act or failure to act by such
Subsidiary Guarantor or by its failure to comply with this Indenture.

          SECTION 12.09.  Rights of Trustee and Paying Agent.  Notwithstanding
                          -----------------------------------
Section 12.03, the Trustee or the Paying Agent may continue to make payments on
the Securities and shall not be charged with knowledge of the existence of facts
that would prohibit the making of any such payments unless, not less than two
Business Days prior to the date of such payment, a Trust Officer of the Trustee
receives notice satisfactory to it that payments may not be made under this
Article 12.  A Subsidiary Guarantor, the Registrar or co-registrar, the Paying
Agent, a Representative or a holder of Senior Indebtedness of a Subsidiary
Guarantor may give the notice; provided, however, that if an issue of Senior
                               --------  -------
Indebtedness of a Subsidiary Guarantor has a Representative, only the
Representative may give the notice.

          The Trustee in its individual or any other capacity may hold Senior
Indebtedness of a Subsidiary Guarantor with the same rights it would have if it
were not Trustee.  The Registrar and co-registrar and the Paying Agent may do
the same with like rights.  The Trustee shall be entitled to all the rights set
forth in this Article 12 with respect to any Senior Indebtedness of a Subsidiary
Guarantor which may at any time be held by it, to the same extent as any other
holder of Senior Indebtedness of such Subsidiary Guarantor; and nothing in
Article 7 shall deprive the Trustee of any of its rights as such holder.
Nothing in this Article 12 shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 7.07.

          SECTION 12.10.  Distribution or Notice to Representative.  Whenever a
                          -----------------------------------------
distribution is to be made or a notice given to holders of Senior Indebtedness
of a Subsidiary Guarantor, the distribution may be made and the notice given to
their Representative (if any).

          SECTION 12.11.  Article 12 Not To Prevent Events of Default or Limit
                          ----------------------------------------------------
Right To Accelerate.  The failure of a Subsidiary Guarantor to make a payment on
--------------------
any of its obligations by reason of any provision in this Article 12 shall not
be construed as preventing the occurrence of a default by such Subsidiary
Guarantor under such obligations.  Nothing in this
<PAGE>

                                                                              77

Article 12 shall have any effect on the right of the Securityholders or the
Trustee to make a demand for payment on a Subsidiary Guarantor pursuant to
Article 11.

          SECTION 12.12.  Trustee Entitled To Rely.  Upon any payment or
                          -------------------------
distribution pursuant to this Article 12, the Trustee and the Securityholders
shall be entitled to rely conclusively (i) upon any order or decree of a court
of competent jurisdiction in which any proceedings of the nature referred to in
Section 12.02 are pending, (ii) upon a certificate of the liquidating trustee or
agent or other Person making such payment or distribution to the Trustee or to
the Securityholders or (iii) upon the Representatives for the holders of Senior
Indebtedness of a Subsidiary Guarantor for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders of
the Senior Indebtedness of a Subsidiary Guarantor and other Indebtedness of a
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 12. In the event that the Trustee determines, in good faith, that
evidence is required with respect to the right of any Person as a holder of
Senior Indebtedness of a Subsidiary Guarantor to participate in any payment or
distribution pursuant to this Article 12, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of Senior Indebtedness of such Subsidiary Guarantor held by such Person, the
extent to which such Person is entitled to participate in such payment or
distribution and other facts pertinent to the rights of such Person under this
Article 12, and, if such evidence is not furnished, the Trustee may defer any
payment to such Person pending judicial determination as to the right of such
Person to receive such payment.  The provisions of Sections 7.01 and 7.02 shall
be applicable to all actions or omissions of actions by the Trustee pursuant to
this Article 12.

          SECTION 12.13.  Trustee To Effectuate Subordination.  Each
                          ------------------------------------
Securityholder by accepting a Security authorizes and directs the Trustee on his
or her behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination between the Securityholders and the
holders of Senior Indebtedness of each of the Subsidiary Guarantors as provided
in this Article 12 and appoints the Trustee as attorney-in-fact for any and all
such purposes.

          SECTION 12.14.  Trustee Not Fiduciary for Holders of Senior
                          -------------------------------------------
Indebtedness of a Subsidiary Guarantor.  The Trustee shall not be deemed to owe
---------------------------------------
any fiduciary duty to the holders of Senior Indebtedness of a Subsidiary
Guarantor and shall not be liable to any such holders if it shall mistakenly pay
over or distribute to Securityholders or the relevant Subsidiary Guarantor or
any other Person, money or assets to which any holders of Senior Indebtedness of
such Subsidiary Guarantor shall be entitled by virtue of this Article 12 or
otherwise.

          SECTION 12.15.  Reliance by Holders of Senior Indebtedness of a
                          -----------------------------------------------
Subsidiary Guarantor on Subordination Provisions.  Each Securityholder by
-------------------------------------------------
accepting a Security acknowledges and agrees that the foregoing subordination
provisions are, and are intended to be, an inducement and a consideration to
each holder of any Senior Indebtedness of a Subsidiary Guarantor, whether such
Senior Indebtedness was created or acquired before or after the issuance of the
Securities, to acquire and continue to hold, or to continue to hold, such Senior
Indebtedness and such holder of Senior Indebtedness shall be deemed conclusively
to have relied on such subordination provisions in acquiring and continuing to
hold, or in continuing to hold, such Senior Indebtedness.
<PAGE>

                                                                              78

          SECTION 12.16.  Defeasance.  The terms of this Article 12 shall not
                          -----------
apply to payments from money or the proceeds of U.S. Government Obligations held
in trust by the Trustee for the payment of principal of and interest on the
Securities pursuant to the provisions described in Section 8.03.

                                   ARTICLE 13

                           Satisfaction and Discharge
                           --------------------------

          SECTION 13.01. Satisfaction and Discharge of Indenture. This Indenture
                         ---------------------------------------
shall be discharged and shall cease to be of further effect (except as to
surviving rights of registration of transfer or exchange of Securities as
expressly provided for herein) as to all outstanding Securities hereunder, and
the Trustee, upon Company Request and at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when

          (a) either (1) all such Securities theretofore authenticated and
delivered (other than lost, stolen or destroyed Securities which have been
replaced or paid as provided in Section 2.07) have been delivered to the Trustee
for cancellation; or (2) all Securities not theretofore delivered to the Trustee
for cancellation (x) have become due and payable, (y) will become due and
payable at their Stated Maturity within one year, or (z) 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 or any Subsidiary Guarantor has
irrevocably deposited or caused to be deposited with the Trustee as trust funds
in trust an amount in United States dollars or direct obligations of, or
obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America (or by any agency thereof to the
extent such obligations are backed by the full faith and credit of the United
States of America), in each case maturing prior to the date the Securities have
become due and payable, the Stated Maturity of the Securities or the relevant
redemption date for the Notes, as the case may be, sufficient to pay and
discharge the entire Indebtedness on the Securities not theretofore delivered to
the Trustee for cancellation, including the principal of, premium, if any, and
accrued interest at maturity, Stated Maturity or redemption date;

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

          (c) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that (i) all conditions precedent herein
relating to the satisfaction and discharge hereof have been complied with and
(ii) such satisfaction and discharge will not result in a breach or violation
of, or constitute a default under, this Indenture or any other material
agreement or instrument to which the Company, any Subsidiary Guarantor or any
Subsidiary is a party or by which the Company, any Subsidiary Guarantor or any
of the Company's Subsidiaries is bound.

          Notwithstanding the satisfaction and discharge hereof, the obligations
of the Company to the Trustee under Section 7.07 and, if United States dollars
shall have been
<PAGE>

                                                                              79

deposited with the Trustee pursuant to subclause (2) of subsection (a) of this
Section 13.01, the obligations of the Trustee under Section 13.02 shall survive.

          SECTION 13.02. Application of Trust Money. Subject to the provisions
                         --------------------------
of the last paragraph of Section 2.04, all United States dollars deposited with
the Trustee pursuant to Section 13.1 shall be held in trust and applied by it,
in accordance with the provisions of the Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal of, premium, if any, and interest on, the
Securities for whose payment such United States dollars have been deposited with
the Trustee.

                                   ARTICLE 14

                                 Miscellaneous
                                 -------------

          SECTION 14.01.  Trust Indenture Act Controls.  If any provision of
                          -----------------------------
this Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision
shall control.

          SECTION 14.02.  Notices.  Any notice or communication shall be in
                          --------
writing and delivered in person or mailed by first-class mail addressed as
follows:

                    if to the Company:

                    TeleCorp PCS, Inc.
                    1010 N. Glebe Road, Suite 800
                    Arlington, VA  22201
                    (703) 236-1100

                    Attention of:  Thomas H. Sullivan, Esq.

                    if to the Trustee:

                    Bankers Trust Company
                    Corporate Trust  and Agency Services
                    Four Albany Street
                    New York, NY 10006
                    (212) 250-6657

                    Attention of:  Corporate Market Services

          The Company or the Trustee by notice to the other may designate
additional or different addresses for subsequent notices or communications.
<PAGE>

                                                                              80

          Any notice or communication mailed to a Securityholder shall be mailed
to the Securityholder at the Securityholder's address as it appears on the
registration books of the Registrar and shall be sufficiently given if so mailed
within the time prescribed.

          Failure to mail a notice or communication to a Securityholder or any
defect in it shall not affect its sufficiency with respect to other
Securityholders.  If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.

          SECTION 14.03.  Communication by Holders with Other Holders.
                          --------------------------------------------
Securityholders may communicate pursuant to Section 312(b) of the TIA with other
Securityholders with respect to their rights under this Indenture or the
Securities.  The Company, the Trustee, the Registrar and anyone else shall have
the protection of Section 312(c) of the TIA.

          SECTION 14.04.  Certificate and Opinion as to Conditions Precedent.
                          ---------------------------------------------------
Upon any request or application by the Company to the Trustee to take or refrain
from taking any action under this Indenture, the Company shall furnish to the
Trustee:

          (1) an Officers' Certificate in form and substance reasonably
     satisfactory to the Trustee stating that, in the opinion of the signers,
     all conditions precedent, if any, provided for in this Indenture relating
     to the proposed action have been complied with; and

          (2) an Opinion of Counsel in form and substance reasonably
     satisfactory to the Trustee stating that, in the opinion of such counsel,
     all such conditions precedent have been complied with.

          SECTION 14.05.  Statements Required in Certificate or Opinion.  Each
                          ----------------------------------------------
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

          (1) a statement that the individual making such certificate or opinion
     has read such covenant or condition;

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

          (3) a statement that, in the opinion of such individual, he has made
     such examination or investigation as is necessary to enable him to express
     an informed opinion as to whether or not such covenant or condition has
     been complied with; and

          (4) a statement as to whether or not, in the opinion of such
     individual, such covenant or condition has been complied with.

          SECTION 14.06.  When Securities Disregarded.  In determining whether
                          ----------------------------
the Holders of the required principal amount of Securities have concurred in any
direction, waiver
<PAGE>

                                                                              81

or consent, Securities owned by the Company, any Subsidiary Guarantor or by any
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any Subsidiary Guarantor shall be
disregarded and deemed not to be outstanding, except that, for the purpose of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Securities which the Trustee knows are so
owned shall be so disregarded. Subject to the foregoing, only Securities
outstanding at the time shall be considered in any such determination.

          SECTION 14.07.  Rules by Trustee, Paying Agent and Registrar.  The
                          ---------------------------------------------
Trustee may make reasonable rules for action by or a meeting of Securityholders.
The Registrar and the Paying Agent may make reasonable rules for their
functions.

          SECTION 14.08.  Legal Holidays.  If a payment date is a Legal Holiday,
                          ---------------
payment shall be made on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period.  If a regular record
date is a Legal Holiday, the record date shall not be affected.

          SECTION 14.09.  GOVERNING LAW.  THIS INDENTURE AND THE SECURITIES
                          --------------
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW
TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

          SECTION 14.10.  No Recourse Against Others.  A director, officer,
                          ---------------------------
employee or stockholder, as such, of the Company shall not have any liability
for any obligations of the Company under the Securities or this Indenture or for
any claim based on, in respect of or by reason of such obligations or their
creation.  By accepting a Security, each Securityholder shall waive and release
all such liability.  The waiver and release shall be part of the consideration
for the issue of the Securities.

          SECTION 14.11.  Successors.  All agreements of the Company and each
                          -----------
Subsidiary Guarantor in this Indenture and the Securities shall bind its
successors.  All agreements of the Trustee in this Indenture shall bind its
successors.

          SECTION 14.12.  Multiple Originals.  The parties may sign any number
                          -------------------
of copies of this Indenture.  Each signed copy shall be an original, but all of
them together represent the same agreement.  One signed copy is enough to prove
this Indenture.

          SECTION 14.13.  Table of Contents; Headings.  The table of contents,
                          ----------------------------
cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not intended
to be considered a part hereof and shall not modify or restrict any of the terms
or provisions hereof.
<PAGE>

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

                              TELECORP PCS, INC.,

                                by
                                  -------------------------------------
                                  Name:  Thomas H. Sullivan
                                  Title: Executive Vice President
                                         and Chief Financial Officer

                              TELECORP COMMUNICATIONS, INC.,

                                by
                                  -------------------------------------
                                  Name:  Thomas H. Sullivan
                                  Title: President, Treasurer and Secretary

                              BANKERS TRUST COMPANY, as Trustee,

                                by
                                  -------------------------------------
                                  Name:
                                  Title:
<PAGE>

                                                                      APPENDIX A

                  PROVISIONS RELATING TO /INITIAL SECURITIES,
                  -------------------------------------------
                          PRIVATE EXCHANGE SECURITIES
                          ---------------------------
                            AND EXCHANGE SECURITIES
                            -----------------------

     1.  Definitions
         -----------

     1.1  Definitions
          -----------

     For the purposes of this Appendix A the following terms will have the
meanings indicated below:

          "Applicable Procedures" means, with respect to any transfer or
transaction involving a Regulation S Global Security or beneficial interest
therein, the rules and procedures of the Depositary for such Global Security,
Euroclear and Cedel, in each case to the extent applicable to such transaction
and as in effect from time to time.

          "Cedel" means Cedel Bank, S.A., or any successor securities clearing
agency.

          "Definitive Security" means a certificated Initial Security or
Exchange Security (bearing the Restricted Securities Legend if the transfer of
such Security is restricted by applicable law) that does not include the Global
Securities Legend.

          "Depositary" means The Depository Trust Company, its nominees and
their respective successors.

          "Euroclear" means the Euroclear Clearance System or any successor
securities clearing agency.

          "Global Securities Legend" means the legend set forth under that
caption in Exhibit A to this Indenture.

          "IAI" means an institutional "accredited investor" as described in
Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

          "Initial Purchasers" means Chase Securities Inc., Lehman Brothers
Inc., and Deutsche Bank Securities Inc.

          "Private Exchange" means an offer by the Company, pursuant to the
Registration Agreement, to issue and deliver to certain purchasers, in exchange
for the Initial Securities held by such purchasers as part of their initial
distribution, a like aggregate principal amount of Private Exchange Securities.

          "Private Exchange Securities" means the Securities of the Company
issued in exchange for Initial Securities pursuant to this Indenture in
connection with the Private Exchange pursuant to the Registration Agreement.
<PAGE>

          "Purchase Agreement" means the Purchase Agreement dated April 20,
1999, among the Company, the Subsidiary Guarantor and the Initial Purchasers.

          "QIB" means a "qualified institutional buyer" as defined in Rule 144A.

          "Registered Exchange Offer" means the offer by the Company, pursuant
to the Registration Agreement, to certain Holders of Initial Securities, to
issue and deliver to such Holders, in exchange for their Initial Securities, a
like aggregate principal amount of Exchange Securities registered under the
Securities Act.

          "Registration Agreement" means the Exchange and Registration Rights
Agreement dated April 23, 1999 , among the Company, the Subsidiary Guarantor and
the Initial Purchasers.

          "Regulation S" means Regulation S under the Securities Act.

          "Regulation S Securities" means all Initial Securities offered and
sold outside the United States in reliance on Regulation S.

          "Restricted Period," with respect to any Securities, means the period
of 40 consecutive days beginning on and including the later of (i) the day on
which such Securities are first offered to persons other than distributors (as
defined in Regulation S under the Securities Act) in reliance on Regulation S
and (ii) the Issue Date with respect to such Securities.

          "Restricted Securities Legend" means the legend set forth in Section
2.3(e)(i) herein.

          "Rule 501" means Rule 501(a)(1), (2), (3) or (7) under the Securities
Act.

          "Rule 144A" means Rule 144A under the Securities Act.

          "Rule 144A Securities" means all Initial Securities offered and sold
to QIBs in reliance on Rule 144A.

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

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

          "Shelf Registration Statement" means a registration statement filed by
the Company in connection with the offer and sale of Initial Securities pursuant
to the Registration Agreement.

          "Transfer Restricted Securities" means Definitive Securities and any
other Securities that bear or are required to bear the Restricted Securities
Legend.
<PAGE>

                                                                               3

     1.2  Other Definitions
          -----------------

     Term:                                         Defined in Section:
     ----                                          ------------------

"Agent Members".........................................2.1(b)
"IAI Global Security"...................................2.1(a)
"Global Security".......................................2.1(a)
"Regulation S Global Security"..........................2.1(a)
"Rule 144A Global Security".............................2.1(a)

    2.  The Securities
        --------------

    2.1  Form and Dating
         ---------------

          The Initial Securities issued on the date hereof will be (i) offered
and sold by the Company pursuant to the Purchase Agreement and (ii) resold,
initially only to (A) QIBs in reliance on Rule 144A and (B) Persons other than
U.S. Persons (as defined in Regulation S) in reliance on Regulation S.  Such
Initial Securities may thereafter be transferred to, among others, QIBs,
purchasers in reliance on Regulation S and, except as set forth below, IAIs in
accordance with Rule 501.

          (a)  Global Securities.  Rule 144A Securities shall be issued
               ------------------
initially in the form of one or more permanent global Securities in definitive,
fully registered form (collectively, the "Rule 144A Global Security") and
Regulation S Securities shall be issued initially in the form of one or more
global Securities (collectively, the "Regulation S Global Security"), in each
case without interest coupons and bearing the Global Securities Legend and
Restricted Securities Legend, which shall be deposited on behalf of the
purchasers of the Securities represented thereby with the Securities Custodian,
and registered in the name of the Depositary or a nominee of the Depositary,
duly executed by the Company and authenticated by the Trustee as provided in
this Indenture.  One or more global securities in definitive, fully registered
form without interest coupons and bearing the Global Securities Legend and the
Restricted Securities Legend (collectively, the "IAI Global Security") shall
also be issued on the date of this Indenture, deposited with the Securities
Custodian, and registered in the name of the Depositary or a nominee of the
Depositary, duly executed by the Company and authenticated by the Trustee as
provided in this Indenture to accommodate transfers of beneficial interests in
the Securities to IAIs subsequent to the initial distribution.  Beneficial
ownership interests in the Regulation S Global Security shall not be
exchangeable for interests in the Rule 144A Global Security, the IAI Global
Security or any other Security without a Restricted Securities Legend until the
expiration of the Restricted Period.  The Rule 144A Global Security, the IAI
Global Security and the Regulation S Global Security are each referred to herein
as a "Global Security" and are collectively referred to herein as "Global
Securities."  The aggregate principal amount of the Global Securities may from
time to time be increased or decreased by adjustments made on the records of the
Trustee and the Depositary or its nominee as hereinafter provided.

          (b)  Book-Entry Provisions.  This Section 2.1(b) shall apply only to a
               ----------------------
Global Security deposited with or on behalf of the Depositary.
<PAGE>

                                                                               4

          The Company shall execute and the Trustee shall, in accordance with
this Section 2.1(b) and pursuant to an order of the Company, authenticate and
deliver initially one or more Global Securities that (a) shall be registered in
the name of the Depositary for such Global Security or Global Securities or the
nominee of such Depositary and (b) shall be delivered by the Trustee to such
Depositary or pursuant to such Depositary's instructions or held by the Trustee
as Securities Custodian.

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

          (c)  Definitive Securities.  Except as provided in Section 2.3 or 2.4,
               ----------------------
owners of beneficial interests in Global Securities will not be entitled to
receive physical delivery of certificated Securities.

    2.2  Authentication.  The Trustee shall authenticate and make available for
         ---------------
delivery upon a written order of the Company signed by two Officers (1) Initial
Securities for original issue on the date hereof in an aggregate principal
amount of $450,000,000 and (2) the (A) Exchange Securities for issue only in a
Registered Exchange Offer and (B) Private Exchange Securities for issue only a
Private Exchange, in the case of each of (A) and (B) pursuant to the
Registration Agreement and for a like principal amount of Initial Securities
exchanged pursuant thereto.  Such order shall specify the amount of the
Securities to be authenticated, the date on which the original issue of
Securities is to be authenticated and whether the Securities are to be Initial
Securities, Exchange Securities or Private Exchange Securities.  The aggregate
principal amount of Securities outstanding at any time may not exceed
$450,000,000 except as provided in Section 2.07 of this Indenture.

    2.3  Transfer and Exchange.  (a)  Transfer and Exchange of Definitive
         ----------------------       -----------------------------------
Securities.  When Definitive Securities are presented to the Registrar with a
-----------
request:

          (x)  to register the transfer of such Definitive Securities; or

          (y)  to exchange such Definitive Securities for an equal principal
    amount of Definitive Securities of other authorized denominations,
<PAGE>

                                                                               5

the Registrar shall register the transfer or make the exchange as requested if
its reasonable requirements for such transaction are met; provided, however,
                                                          --------  -------
that the Definitive Securities surrendered for transfer or exchange:

          (i)  shall be duly endorsed or accompanied by a written instrument of
    transfer in form reasonably satisfactory to the Company and the Registrar,
    duly executed by the Holder thereof or his attorney duly authorized in
    writing; and

          (ii)  are accompanied by the following additional information and
    documents, as applicable:

           (A)  if such Definitive Securities are being delivered to the
         Registrar by a Holder for registration in the name of such Holder,
         without transfer, a certification from such Holder to that effect (in
         the form set forth on the reverse side of the Initial Security); or

           (B)  if such Definitive Securities are being transferred to the
         Company, a certification to that effect (in the form set forth on the
         reverse side of the Initial Security); or

           (C)  if such Definitive Securities are being transferred pursuant to
         an exemption from registration in accordance with Rule 144 under the
         Securities Act or in reliance upon another exemption from the
         registration requirements of the Securities Act, (i) a certification to
         that effect (in the form set forth on the reverse side of the Initial
         Security) and (ii) if the Company so requests, an opinion of counsel or
         other evidence reasonably satisfactory to it as to the compliance with
         the restrictions set forth in the legend set forth in Section
         2.3(e)(i).

          (b)  Restrictions on Transfer of a Definitive Security for a
               -------------------------------------------------------
Beneficial Interest in a Global Security.  A Definitive Security may not be
-----------------------------------------
exchanged for a beneficial interest in a Global Security except upon
satisfaction of the requirements set forth below.  Upon receipt by the Trustee
of a Definitive Security, duly endorsed or accompanied by a written instrument
of transfer in form reasonably satisfactory to the Company and the Registrar,
together with:

          (i)  certification (in the form set forth on the reverse side of the
    Initial Security) that such Definitive Security is being transferred (A) to
    a QIB in accordance with Rule 144A, (B) to an IAI that has furnished to the
    Trustee a signed letter substantially in the form of Exhibit D or (C)
    outside the United States in an offshore transaction within the meaning of
    Regulation S and in compliance with Rule 904 under the Securities Act; and

          (ii)  written instructions directing the Trustee to make, or to direct
    the Securities Custodian to make, an adjustment on its books and records
    with respect to such Global Security to reflect an increase in the aggregate
    principal amount of the Securities represented by the Global Security, such
    instructions to contain information regarding the Depositary account to be
    credited with such increase,
<PAGE>

                                                                               6

then the Trustee shall cancel such Definitive Security and cause, or direct the
Securities Custodian to cause, in accordance with the standing instructions and
procedures existing between the Depositary and the Securities Custodian, the
aggregate principal amount of Securities represented by the Global Security to
be increased by the aggregate principal amount of the Definitive Security to be
exchanged and shall credit or cause to be credited to the account of the Person
specified in such instructions a beneficial interest in the Global Security
equal to the principal amount of the Definitive Security so canceled.  If no
Global Securities are then outstanding and the Global Security has not been
previously exchanged for certificated securities pursuant to Section 2.4, the
Company shall issue and the Trustee shall authenticate, upon written order of
the Company in the form of an Officers' Certificate, a new Global Security in
the appropriate principal amount.

          (c)  Transfer and Exchange of Global Securities.  (i)  The transfer
               -------------------------------------------
and exchange of Global Securities or beneficial interests therein shall be
effected through the Depositary, in accordance with this Indenture (including
applicable restrictions on transfer set forth herein, if any) and the procedures
of the Depositary therefor.  A transferor of a beneficial interest in a Global
Security shall deliver a written order given in accordance with the Depositary's
procedures containing information regarding the participant account of the
Depositary to be credited with a beneficial interest in such Global Security or
another Global Security and such account shall be credited in accordance with
such order with a beneficial interest in the applicable Global Security and the
account of the Person making the transfer shall be debited by an amount equal to
the beneficial interest in the Global Security being transferred.  Transfers by
an owner of a beneficial interest in the Rule 144A Global Security or the IAI
Global Security to a transferee who takes delivery of such interest through the
Regulation S Global Security, whether before or after the expiration of the
Restricted Period, shall be made only upon receipt by the Trustee of a
certification from the transferor to the effect that such transfer is being made
in accordance with Regulation S or (if available) Rule 144 under the Securities
Act and that, if such transfer is being made prior to the expiration of the
Restricted Period, the interest transferred shall be held immediately thereafter
through Euroclear or Cedel.  In the case of a transfer of a beneficial interest
in either the Regulation S Global Security or the Rule 144A Global Security for
an interest in the IAI Global Security, the transferee must furnish a signed
letter substantially in the form of Exhibit D to the Trustee.

          (ii)  If the proposed transfer is a transfer of a beneficial interest
    in one Global Security to a beneficial interest in another Global Security,
    the Registrar shall reflect on its books and records the date and an
    increase in the principal amount of the Global Security to which such
    interest is being transferred in an amount equal to the principal amount of
    the interest to be so transferred, and the Registrar shall reflect on its
    books and records the date and a corresponding decrease in the principal
    amount of Global Security from which such interest is being transferred.

          (iii)  Notwithstanding any other provisions of this Appendix (other
    than the provisions set forth in Section 2.4), a Global Security may not be
    transferred as a whole except by the Depositary to a nominee of the
    Depositary or by a nominee of the Depositary to the Depositary or another
    nominee of the Depositary or by the Depositary or any such nominee to a
    successor Depositary or a nominee of such successor Depositary.
<PAGE>

                                                                               7

          (iv)  In the event that a Global Security is exchanged for Definitive
    Securities pursuant to Section 2.4 prior to the consummation of the
    Registered Exchange Offer or the effectiveness of the Shelf Registration
    Statement with respect to such Securities, such Securities may be exchanged
    only in accordance with such procedures as are substantially consistent with
    the provisions of this Section 2.3 (including the certification requirements
    set forth on the reverse of the Initial Securities intended to ensure that
    such transfers comply with Rule 144A, Regulation S or such other applicable
    exemption from registration under the Securities Act, as the case may be)
    and such other procedures as may from time to time be adopted by the
    Company.

          (d)  Restrictions on Transfer of Regulation S Global Security. (i)
               ---------------------------------------------------------
Prior to the expiration of the Restricted Period, interests in the Regulation S
Global Security may only be held through Euroclear or Cedel.  During the
Restricted Period, beneficial ownership interests in the Regulation S Global
Security may only be sold, pledged or transferred through Euroclear or Cedel in
accordance with the Applicable Procedures and only (A) to the Company, (B) so
long as such security is eligible for resale pursuant to Rule 144A, to a person
whom the selling holder reasonably believes is a QIB that purchases for its own
account or for the account of a QIB to whom notice is given that the resale,
pledge or transfer is being made in reliance on Rule 144A, (C) in an offshore
transaction in accordance with Regulation S, (D) pursuant to an exemption from
registration under the Securities Act provided by Rule 144 (if applicable) under
the Securities Act, (E) to an IAI purchasing for its own account, or for the
account of such an IAI, in a minimum principal amount of Securities of $250,000
or (F) pursuant to an effective registration statement under the Securities Act,
in each case in accordance with any applicable securities laws of any state of
the United States.  Prior to the expiration of the Restricted Period, transfers
by an owner of a beneficial interest in the Regulation S Global Security to a
transferee who takes delivery of such interest through the Rule 144A Global
Security or the IAI Global Security shall be made only in accordance with
Applicable Procedures and upon receipt by the Trustee of a written certification
from the transferor of the beneficial interest in the form provided on the
reverse of the Initial Security to the effect that such transfer is being made
to (i) a person whom the transferor reasonably believes is a QIB within the
meaning of Rule 144A in a transaction meeting the requirements of Rule 144A or
(ii) an IAI purchasing for its own account, or for the account of such an IAI,
in a minimum principal amount of the Securities of $250,000.  Such written
certification shall no longer be required after the expiration of the Restricted
Period.  In the case of a transfer of a beneficial interest in the Regulation S
Global Security for an interest in the IAI Global Security, the transferee must
furnish a signed letter substantially in the form of Exhibit D to the Trustee.

          (ii)  Upon the expiration of the Restricted Period, beneficial
    ownership interests in the Regulation S Global Security shall be
    transferable in accordance with applicable law and the other terms of this
    Indenture.
<PAGE>

                                                                               8

          (e)  Legend.
               -------

          (i)  Except as permitted by the following paragraphs (ii), (iii) or
    (iv), each Security certificate evidencing the Global Securities and the
    Definitive Securities (and all Securities issued in exchange therefor or in
    substitution thereof) shall bear a legend in substantially the following
    form (each defined term in the legend being defined as such for purposes of
    the legend only):

          "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR
OTHER JURISDICTION.  NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION
HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION."

          THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE
RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS
AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION
S UNDER THE SECURITIES ACT, (E) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING
OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN
INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A
MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES
AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION
IN VIOLATION OF THE SECURITIES ACT OR (F) PURSUANT TO ANY OTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.
THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE."
<PAGE>

                                                                               9

Each Security evidencing a Global Security offered and sold to QIBs pursuant to
Rule 144A shall bear a legend in substantially the following form

    "EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS
SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER."

Each Definitive Security shall bear the following additional legend:

    "IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR
AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER
AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE
FOREGOING RESTRICTIONS."

          (ii)  Upon any sale or transfer of a Transfer Restricted Security that
    is a Definitive Security, the Registrar shall permit the Holder thereof to
    exchange such Transfer Restricted Security for a Definitive Security that
    does not bear the legends set forth above and rescind any restriction on the
    transfer of such Transfer Restricted Security if the Holder certifies in
    writing to the Registrar that its request for such exchange was made in
    reliance on Rule 144 (such certification to be in the form set forth on the
    reverse of the Initial Security).

          (iii)  After a transfer of any Initial Securities or Private Exchange
    Securities during the period of the effectiveness of a Shelf Registration
    Statement with respect to such Initial Securities or Private Exchange
    Securities, as the case may be, all requirements pertaining to the
    Restricted Securities Legend on such Initial Securities or such Private
    Exchange Securities shall cease to apply and the requirements that any such
    Initial Securities or such Private Exchange Securities be issued in global
    form shall continue to apply.

          (iv)  Upon the consummation of a Registered Exchange Offer with
    respect to the Initial Securities pursuant to which Holders of such Initial
    Securities are offered Exchange Securities in exchange for their Initial
    Securities, all requirements pertaining to Initial Securities that Initial
    Securities be issued in global form shall continue to apply, and Exchange
    Securities in global form without the Restricted Securities Legend shall be
    available to Holders that exchange such Initial Securities in such
    Registered Exchange Offer.

          (v)  Upon the consummation of a Private Exchange with respect to the
    Initial Securities pursuant to which Holders of such Initial Securities are
    offered Private Exchange Securities in exchange for their Initial
    Securities, all requirements pertaining to such Initial Securities that
    Initial Securities be issued in global form shall continue to apply, and
    Private Exchange Securities in global form with the Restricted Securities
    Legend shall be available to Holders that exchange such Initial Securities
    in such Private Exchange.
<PAGE>

                                                                              10

          (vi)  Upon a sale or transfer after the expiration of the Restricted
    Period of any Initial Security acquired pursuant to Regulation S, all
    requirements that such Initial Security bear the Restricted Securities
    Legend shall cease to apply and the requirements requiring any such Initial
    Security be issued in global form shall continue to apply.

          (f)  Cancelation or Adjustment of Global Security.  At such time as
               ---------------------------------------------
all beneficial interests in a Global Security have either been exchanged for
Definitive Securities, transferred, redeemed, repurchased or canceled, such
Global Security shall be returned by the Depositary to the Trustee for
cancelation or retained and canceled by the Trustee.  At any time prior to such
cancelation, if any beneficial interest in a Global Security is exchanged for
Definitive Securities, transferred in exchange for an interest in another Global
Security, redeemed, repurchased or canceled, the principal amount of Securities
represented by such Global Security shall be reduced and an adjustment shall be
made on the books and records of the Trustee (if it is then the Securities
Custodian for such Global Security) with respect to such Global Security, by the
Trustee or the Securities Custodian, to reflect such reduction.

          (g)  Obligations with Respect to Transfers and Exchanges of
               ----------------------------------------- ------------
Securities.
-----------

          (i)  To permit registrations of transfers and exchanges, the Company
    shall execute and the Trustee shall authenticate, Definitive Securities and
    Global Securities at the Registrar's request.

          (ii) No service charge shall be made for any registration of transfer
    or exchange, but the Company may require payment of a sum sufficient to
    cover any transfer tax, assessments, or similar governmental charge payable
    in connection therewith (other than any such transfer taxes, assessments or
    similar governmental charge payable upon exchange or transfer pursuant to
    Sections 3.06, 4.06, 4.08 and 9.05 of the Indenture).

          (iii)  Prior to the due presentation for registration of transfer of
    any Security, the Company, the Trustee, the Paying Agent or the Registrar
    may deem and treat the person in whose name a Security is registered as the
    absolute owner of such Security for the purpose of receiving payment of
    principal of and interest on such Security and for all other purposes
    whatsoever, whether or not such Security is overdue, and none of the
    Company, the Trustee, the Paying Agent or the Registrar  shall be affected
    by notice to the contrary.

          (iv)  The Company shall not be required to make and the Registrar need
    not register transfers or exchanges of Securities selected for redemption
    (except, in the case of Securities to be redeemed in part, the portion
    thereof not to be redeemed) or any Securities for a period of 15 days before
    a selection of Securities to be redeemed.

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

                                                                              11

          (h)  No Obligation of the Trustee.
               -----------------------------

          (i)  The Trustee shall have no responsibility or obligation to any
    beneficial owner of a Global Security, a member of, or a participant in the
    Depositary or any other Person with respect to the accuracy of the records
    of the Depositary or its nominee or of any participant or member thereof,
    with respect to any ownership interest in the Securities or with respect to
    the delivery to any participant, member, beneficial owner or other Person
    (other than the Depositary) of any notice (including any notice of
    redemption or repurchase) or the payment of any amount, under or with
    respect to such Securities.  All notices and communications to be given to
    the Holders and all payments to be made to Holders under the Securities
    shall be given or made only to the registered Holders (which shall be the
    Depositary or its nominee in the case of a Global Security).  The rights of
    beneficial owners in any Global Security shall be exercised only through the
    Depositary subject to the applicable rules and procedures of the Depositary.
    The Trustee may rely and shall be fully protected in relying upon
    information furnished by the Depositary with respect to its members,
    participants and any beneficial owners.

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

    2.4  Definitive Securities
         ---------------------

          (a)  A Global Security deposited with the Depositary or with the
Trustee as Securities Custodian pursuant to Section 2.1 shall be transferred to
the beneficial owners thereof in the form of Definitive Securities in an
aggregate principal amount equal to the principal amount of such Global
Security, in exchange for such Global Security, only if such transfer complies
with Section 2.3 and (i) the Depositary notifies the Company that it is
unwilling or unable to continue as a Depositary for such Global Security or if
at any time the Depositary ceases to be a "clearing agency" registered under the
Exchange Act, and a successor depositary is not appointed by the Company within
90 days of such notice, or (ii) an Event of Default has occurred and is
continuing or (iii) the Company, in its sole discretion, notifies the Trustee in
writing that it elects to cause the issuance of certificated Securities under
this Indenture.

          (b)  Any Global Security that is transferable to the beneficial owners
thereof pursuant to this Section 2.4 shall be surrendered by the Depositary to
the Trustee, to be so transferred, in whole or from time to time in part,
without charge, and the Trustee shall authenticate and deliver, upon such
transfer of each portion of such Global Security, an equal aggregate principal
amount of Definitive Securities of authorized denominations.  Any portion of a
Global Security transferred pursuant to this Section 2.4 shall be executed,
authenticated and delivered only in denominations of $1,000 of principal amount
and any integral multiple thereof and registered in such names as the Depositary
shall direct.  Any certificated Initial Security in
<PAGE>

                                                                              12

the form of a Definitive Security delivered in exchange for an interest in the
Global Security shall, except as otherwise provided by Section 2.3(e), bear the
Restricted Securities Legend.

          (c)  Subject to the provisions of Section 2.4(b), the registered
Holder of a Global Security may grant proxies and otherwise authorize any
Person, including Agent Members and Persons that may hold interests through
Agent Members, to take any action which a Holder is entitled to take under this
Indenture or the Securities.

          (d)  In the event of the occurrence of any of the events specified in
Section 2.4(a)(i), (ii) or (iii), the Company will promptly make available to
the Trustee a reasonable supply of Definitive Securities in fully registered
form without interest coupons.
<PAGE>

                                                                       EXHIBIT A

                      [FORM OF FACE OF INITIAL SECURITY]

                          [Global Securities Legend]

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW
YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.

                        [Restricted Securities Legend]

          THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR
OTHER JURISDICTION.  NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION
HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

          EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF
THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

          THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE
RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE
<PAGE>

                                                                               2

SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT ("RULE 144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS
AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION
S UNDER THE SECURITIES ACT, (E) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING
OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN
INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A
MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES
AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION
IN VIOLATION OF THE SECURITIES ACT OR (F) PURSUANT TO ANY OTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.
THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE.

                      [Legend for Definitive Securities]

    IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR
    AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER
    AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE
    FOREGOING RESTRICTIONS."
<PAGE>

No. _________                                                         $_________

                    10 5/8% Senior Subordinated Note due 2010

                                                             CUSIP No. _________

          TeleCorp PCS, Inc., a Delaware corporation, promises to pay to Cede &
Co., or registered assigns, the principal sum listed on the Schedule of
Increases or Decreases in Global Security attached hereto on July 15, 2010.

          Interest Payment Dates: January 15 and July 15.

          Record Dates:  January 1 and July 1.
<PAGE>

                                                                               2

          Additional provisions of this Security are set forth on the other side
of this Security.

          IN WITNESS WHEREOF, the parties have caused this instrument to be duly
executed.

                              TELECORP PCS, INC.,

                               by
                                  ----------------------------------------------
                                  Name:
                                  Title:

                               by
                                  ----------------------------------------------
                                  Name:
                                  Title:

Dated:

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

BANKERS TRUST COMPANY,
as Trustee, certifies that this is one of
the Securities referred to in the Indenture.

By:
   -------------------------
     Authorized Signatory
<PAGE>

                                                                               3
                  [FORM OF REVERSE SIDE OF INITIAL SECURITY]

                    10 5/8% Senior Subordinated Note due 2010

1.  Interest
    --------

          (a) TeleCorp PCS, Inc., a Delaware corporation (such corporation, and
its successors and assigns under the Indenture hereinafter referred to, being
herein called the "Company"), promises to pay interest on the principal amount
of this Security at the rate per annum shown above.  The Company shall pay
interest semiannually on January 15 and July 15 of each year commencing on
January 15, 2001. Interest on the Securities shall accrue from the most recent
date to which interest has been paid or, if no interest has been paid or duly
provided for, from July 14, 2000 until the principal hereof is due.  Interest
shall be computed on the basis of a 360-day year of twelve 30-day months.  The
Company shall pay cash interest on overdue principal at the rate borne by the
Securities plus 1% per annum, and it shall pay interest on overdue installments
of interest at the same rate to the extent lawful.

          (b) Liquidated Damages.  The holder of this Security is entitled to
              ------------------
the benefits of an Exchange and Registration Rights Agreement, dated as of July
14, 2000, among the Company, TeleCorp Communications, Inc. (the "Subsidiary
Guarantor") and the Initial Purchasers named therein (the "Registration
Agreement").  Capitalized terms used in this paragraph (b) but not defined
herein have the meanings assigned to them in the Registration Agreement.  If (i)
the Shelf Registration Statement or Exchange Offer Registration Statement, as
applicable under the Registration Agreement, is not filed with the Commission on
or prior to 60 days after the Issue Date, (ii) the Exchange Offer Registration
Statement or the Shelf Registration Statement, as the case may be, is not
declared effective within 180 days after the Issue Date, (iii) the Registered
Exchange Offer is not consummated on or prior to 210 days after the Issue Date,
or (iv) the Shelf Registration Statement is filed and declared effective within
180 days after the Issue Date but shall thereafter cease to be effective (at any
time that the Company is obligated to maintain the effectiveness thereof)
without being succeeded within 45 days by an additional Registration Statement
filed and declared effective (each such event referred to in clauses (i) through
(iv), a "Registration Default"), the Company shall pay liquidated damages to
each holder of Transfer Restricted Securities, during the period of such
Registration Default, in an amount equal to $0.192 per week per $1,000 of
principal amount of the Securities constituting Transfer Restricted Securities
held by such holder until the applicable Registration Statement is filed or
declared effective, the Registered Exchange Offer is consummated or the Shelf
Registration Statement again becomes effective, as the case may be.  All accrued
liquidated damages shall be paid to holders in the same manner as interest
payments on the Securities on semi-annual payment dates which correspond to
interest payment dates for the Securities. Following the cure of all
Registration Defaults, the accrual of liquidated damages shall cease. The
Trustee shall have no responsibility with respect to the determination of the
amount of any such liquidated damages.  For purposes of the foregoing, "Transfer
Restricted Securities" means (i) each Initial Security until the date on which
such Initial Security has been exchanged for a freely transferable Exchange
Security in the Registered Exchange Offer, (ii) each Initial Security or Private
Exchange Security until the date on which such Initial Security or Private
Exchange Security has been effectively registered under the Securities Act and
disposed of in accordance with a Shelf Registration Statement or (iii) each
Initial Security or Private Exchange Security until the date on which such
Initial Security
<PAGE>

                                                                               4

or Private Exchange Security is distributed to the public pursuant to Rule 144
under the Securities Act or is saleable pursuant to Rule 144(k) under the
Securities Act.

2.  Method of Payment
    -----------------

          The Company shall pay interest on the Securities (except defaulted
interest) to the Persons who are registered holders of Securities at the close
of business on the January 1 or July 1 next preceding the interest payment date
even if Securities are canceled after the record date and on or before the
interest payment date.  Holders must surrender Securities to a Paying Agent to
collect principal payments.  The Company shall pay principal, premium,
liquidated damages and interest in money of the United States of America that at
the time of payment is legal tender for payment of public and private debts.
Payments in respect of the Securities represented by a Global Security
(including principal, premium, liquidated damages and interest) shall be made by
wire transfer of immediately available funds to the accounts specified by The
Depository Trust Company.  The Company will make all payments in respect of a
certificated Security (including principal, premium and interest), by mailing a
check to the registered address of each Holder thereof; provided, however, that
                                                        --------  -------
payments on the Securities may also be made, in the case of a Holder of at least
$1,000,000 aggregate principal amount of Securities, by wire transfer to a U.S.
dollar account maintained by the payee with a bank in the United States if such
Holder elects payment by wire transfer by giving written notice to the Trustee
or the Paying Agent to such effect designating such account no later than 30
days immediately preceding the relevant due date for payment (or such other date
as the Trustee may accept in its discretion).

3.  Paying Agent and Registrar
    --------------------------

          Initially, Bankers Trust Company, a New York banking corporation (the
"Trustee"), will act as Paying Agent and Registrar.  The Company may appoint and
change any Paying Agent, Registrar or co-registrar without notice.  The Company
or any of its domestically incorporated Wholly Owned Subsidiaries may act as
Paying Agent, Registrar or co-registrar.

4.  Indenture
    ---------

          The Company issued the Securities under an Indenture dated as of July
14, 2000, (the "Indenture"), among the Company, the Subsidiary Guarantor and the
Trustee.  The terms of the Securities include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of 1939
(15 U.S.C. (S)(S) 77aaa-77bbbb) as in effect on the date of the Indenture (the
    ------
"TIA").  Terms defined in the Indenture and not defined herein have the meanings
ascribed thereto in the Indenture.  The Securities are subject to all terms and
provisions of the Indenture, and Securityholders are referred to the Indenture
and the TIA for a statement of such terms and provisions.

          The Securities are senior subordinated unsecured obligations of the
Company limited to $450,000,000 aggregate principal amount at any one time
outstanding (subject to Sections 2.01 and 2.08 of the Indenture).  This Security
is one of the Initial Securities referred to in the Indenture.  The Securities
include the Initial Securities and any Exchange Securities and Private Exchange
Securities issued in exchange for Initial Securities.  The Initial Securities,
the Exchange Securities and the Private Exchange Securities are treated as a
single class of securities under the Indenture.  The Indenture imposes certain
limitations on the ability of the Company and
<PAGE>

                                                                               5

its Restricted Subsidiaries to, among other things, make certain Investments and
other Restricted Payments, pay dividends and other distributions, Incur
Indebtedness, enter into consensual restrictions upon the payment of certain
dividends and distributions by Restricted Subsidiaries, enter into or permit
certain transactions with Affiliates Asset Dispositions. The Indenture also
imposes limitations on the ability of the Company to consolidate or merge with
or into any other Person or convey, transfer or lease all or substantially all
of the property of the Company.

          To guarantee the due and punctual payment of the principal and
interest on the Securities and all other amounts payable by the Company under
the Indenture and the Securities when and as the same shall be due and payable,
whether , by acceleration or otherwise, according to the terms of the Securities
and the Indenture, the Subsidiary Guarantors jointly and severally,
unconditionally guarantee the Guaranteed Obligations on a senior subordinated
basis pursuant to the terms of the Indenture.

5.  Optional Redemption
    -------------------

          Except as set forth in the following paragraph, the Securities will
not be redeemable at the option of the Company prior to July 15, 2005.
Thereafter,  the Securities will be redeemable at the option of the Company, in
whole or in part, on not less than 30 nor more than 60 days' prior notice, at
the following redemption prices (expressed as percentages of principal  amount
), plus accrued and unpaid interest, if any, to the redemption  date (subject to
the right of holders of record on the relevant record date to receive interest,
if any, due on the relevant interest payment date), if redeemed during the 12-
month period commencing on July 15 of the years set forth below:

<TABLE>
<CAPTION>
                                                                      Redemption
          Year                                                           Price
          ----------------------------------------------------------------------
          <S>                                                         <C>
          2005                                                          105.313%
          2006                                                          103.542%
          2007                                                          101.771%
          2008 and thereafter                                           100.000%
          </TABLE>

          In addition, at any time and from time to time prior to July 15, 2003,
the Company  may redeem up to a maximum of 35% of the original aggregate
principal amount of the Securities with the proceeds of one or more Equity
Offerings (1) by the Company or (2) by Holdings to the extent that the proceeds
thereof are contributed to the Company, at a redemption price equal to 110.625%
of the principal amount on the redemption date; provided, however, that, after
                                                --------  -------
giving effect to any such redemption at least 65% of the original aggregate
principal amount of the Securities remains outstanding. In addition, any such
redemption shall be made within 180 days of such Equity Offering upon not less
than 30 nor more than 60 days' notice mailed to each holder of Securities being
redeemed and otherwise in accordance with the procedures set forth in the
Indenture.

          At any time on or prior to July 15, 2005, the Securities may be
redeemed as a whole but not in part at the option of the Company upon the
occurrence of a Change of Control, upon not less than 30 or more than 60 days'
prior notice (but in no event may any such redemption
<PAGE>

                                                                               6

occur more than 90 days after the occurrence of such Change of Control) mailed
by first-class mail to each Holder's registered address, at a redemption price
equal to 100% of the principal amount thereof plus the Applicable Premium as of,
and accrued but unpaid interest, if any, to, the redemption date, subject to the
right of Holders on the relevant record date to receive interest due on the
relevant interest payment date.

          "Applicable Premium" means with respect to a Security at any
redemption date, the greater of (i) 1.0% of the principal amount of such
Security or (ii) the excess of (A) the present value of (1) the redemption price
of such Security at July 15, 2005 (such redemption price being set forth in the
table above) plus (2) all required interest payments due on such Security
through July 15, 2005, computed using a discount rate equal to the Treasury Rate
plus 50 basis points, over (B) the then-outstanding principal amount of such
Security.

          "Treasury Rate" means the yield to maturity at the time of computation
of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H. 15(519)
which has become publicly available at least two Business Days prior to the
redemption date (or, if such Statistical Release is no longer published, any
publicly available source or similar market data) most nearly equal to the
period from the redemption date to July 15, 2005; provided, however, that if the
                                                  --------  -------
period from the redemption date to July 15, 2005 is not equal to the constant
maturity of a United States Treasury security for which a weekly average yield
is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average yields
of United States Treasury securities for which such yields are given, except
that if the period from the redemption date to July 15, 2005 is less than one
year, the weekly average yield on actually traded United States Treasury
securities adjusted to a constant maturity of one year shall be used.

6.  Sinking Fund
    ------------

          The Securities are not subject to any sinking fund.

7.  Notice of Redemption
    --------------------

          Notice of redemption will be mailed by first-class mail at least 30
days but not more than 60 days before the redemption date to each Holder of
Securities to be redeemed at his or her registered address.  Securities in
denominations larger than $1,000 of principal amount may be redeemed in part but
only in whole multiples of $1,000 of principal amount.  If money sufficient to
pay the redemption price of and accrued and unpaid interest and liquidated
damages, if any, on all Securities (or portions thereof) to be redeemed on the
redemption date is deposited with the Paying Agent on or before the redemption
date and certain other conditions are satisfied, on and after such date interest
ceases to accrue on such Securities (or such portions thereof) called for
redemption.
<PAGE>

                                                                               7

8.  Repurchase of Securities at the Option of Holders upon Change of Control
    ------------------------------------------------------------------------

          Upon a Change of Control, each Holder of Securities will have the
right, subject to certain conditions specified in the Indenture, to require the
Company to repurchase all or any part of such holder's Securities at a purchase
price in cash equal to 101% of the principal amount on the Purchase Date, plus
accrued and unpaid interest, if any, to the Purchase Date (subject to the right
of Holders of record on the relevant record date to receive interest due on the
relevant interest payment date), as provided in, and subject to the terms of,
the Indenture.

9.  Subordination
    -------------

          The Securities are subordinated to Senior Indebtedness, as defined in
the Indenture. To the extent provided in the Indenture, Senior Indebtedness must
be paid before the Securities may be paid. The Company and each Subsidiary
Guarantor agrees, and each Securityholder by accepting a Security agrees, to the
subordination provisions contained in the Indenture and authorizes the Trustee
to give it effect and appoints the Trustee as attorney-in-fact for such purpose.

10.  Denominations; Transfer; Exchange
     ---------------------------------

          The Securities are in registered form without coupons in denominations
of $1,000 and whole multiples of $1,000.  A Holder may transfer or exchange
Securities in accordance with the Indenture.  Upon any transfer or exchange, the
Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements or transfer documents and to pay any taxes required by
law or permitted by the Indenture.  The Registrar need not register the transfer
of or exchange any Securities selected for redemption (except, in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed)
or to transfer or exchange any Securities for a period of 15 days prior to a
selection of Securities to be redeemed.

11.  Persons Deemed Owners
     ---------------------

          The registered Holder of this Security may be treated as the owner of
it for all purposes.

12.  Unclaimed Money
     ---------------

          If money for the payment of principal or interest remains unclaimed
for two years, the Trustee or Paying Agent shall pay the money back to the
Company at its written request unless an abandoned property law designates
another Person.  After any such payment, Holders entitled to the money must look
only to the Company and not to the Trustee for payment.

13.  Discharge and Defeasance
     ------------------------

          Subject to certain conditions, the Company at any time may terminate
some of or all its obligations under the Securities and the Indenture if the
Company deposits with the Trustee money or U.S. Government Obligations for the
payment of principal and interest on the Securities to redemption or maturity,
as the case may be.
<PAGE>

                                                                               8

14.  Amendment, Waiver
     -----------------

          Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the Securities may be amended without prior notice to any
Securityholder but with the written consent of the Holders of at least a
majority in aggregate principal amount of the outstanding Securities and (ii)
any default or noncompliance with any provision may be waived with the written
consent of the Holders of at least a majority in principal amount of the
outstanding Securities. Subject to certain exceptions set forth in the
Indenture, without the consent of any Holder of Securities, the Company and the
Trustee may amend the Indenture or the Securities (i) to cure any ambiguity,
omission, defect or inconsistency; (ii) to comply with Article 5 of the
Indenture; (iii) to provide for uncertificated Securities in addition to or in
place of certificated Securities (provided that the uncertificated Securities
are issued in registered form for purposes of Section 163(f) of the Code, or in
a manner such that the uncertificated Securities are described in Section
163(f)(2)(B) of the Code); (iv) to add Subsidiary Guarantees with respect to the
Securities; (v) to secure the Securities; (vi) to add additional covenants or to
surrender rights and powers conferred on the Company; (vii) to comply with the
requirements of the Commission in order to effect or maintain the qualification
of the Indenture under the TIA; (viii) to make any change that does not
adversely affect the rights of any Securityholder; (ix) to make any change in
the subordination provisions of the Indenture that would limit or terminate the
benefits available to any holder of Senior Indebtedness of the Company (or any
representative thereof) under such subordination provisions; or (x) to provide
for the issuance of the Exchange Securities or Private Exchange Securities.

15.  Defaults and Remedies
     ---------------------

          If an Event of Default occurs (other than an Event of Default relating
to certain events of bankruptcy, insolvency or reorganization of the Company)
and is continuing, the Trustee or the Holders of at least 25% in principal
amount of the outstanding Securities may declare the principal of and accrued
but unpaid interest on all the Securities to be due and payable.  If an Event of
Default relating to certain events of bankruptcy, insolvency or reorganization
of the Company occurs, the principal of and interest on all the Securities shall
become immediately due and payable without any declaration or other act on the
part of the Trustee or any Holders.  Under certain circumstances, the Holders of
a majority in principal amount of the outstanding Securities may rescind any
such acceleration with respect to the Securities and its consequences.

          If an Event of Default occurs and is continuing, the Trustee shall be
under no obligation to exercise any of the rights or powers under the Indenture
at the request or direction of any of the Holders unless such Holders have
offered to the Trustee reasonable indemnity or security against any loss,
liability or expense.  Except to enforce the right to receive payment of
principal, premium (if any) or interest when due, no Holder may pursue any
remedy with respect to the Indenture or the Securities unless (i) such Holder
has previously given the Trustee notice that an Event of Default is continuing,
(ii) Holders of at least 25% in principal amount of the outstanding Securities
have requested the Trustee in writing to pursue the remedy, (iii) such Holders
have offered the Trustee reasonable security or indemnity against any loss,
liability or expense, (iv) the Trustee has not complied with such request within
60 days after the receipt of the request and the offer of security or indemnity
and (v) the Holders of a majority in principal amount of the outstanding
Securities have not given the Trustee a direction inconsistent with such request
within such 60-day period.  Subject to certain restrictions, the Holders of a
majority in principal amount of the outstanding Securities are given the right
to direct the time, method and place of
<PAGE>

                                                                               9

conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. The Trustee, however,
may refuse to follow any direction that conflicts with law or the Indenture or
that the Trustee determines is unduly prejudicial to the rights of any other
Holder or that would involve the Trustee in personal liability. Prior to taking
any action under the Indenture, the Trustee shall be entitled to indemnification
satisfactory to it in its sole discretion against all losses and expenses caused
by taking or not taking such action.

16.  Trustee Dealings with the Company
     ---------------------------------

          Subject to certain limitations imposed by the TIA,  the Trustee under
the Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

17.  No Recourse Against Others
     --------------------------

          A director, officer, employee or stockholder, as such, of the Company
or any Subsidiary Guarantor shall not have any liability for any obligations of
the Company under the Securities or the Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation.  By accepting a
Security, each Securityholder waives and releases all such liability.  The
waiver and release are part of the consideration for the issue of the
Securities.

18.  Authentication
     --------------

          This Security shall not be valid until an authorized signatory of the
Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.

19.  Abbreviations
     -------------

          Customary abbreviations may be used in the name of a Securityholder or
an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with rights of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

20.  Governing Law
     -------------

          THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.
<PAGE>

                                                                              10

21.  CUSIP Numbers
     -------------

          Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Securities and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Securityholders.  No representation is
made as to the accuracy of such numbers either as printed on the Securities or
as contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

22.  Holders' Compliance with Registration Agreement.
     ------------------------------------------------

          Each Holder of a Security, by acceptance hereof, acknowledges and
agrees to the provisions of the Registration Agreement, including, without
limitation, the obligations of the Holders with respect to a registration and
the indemnification of the Company to the extent provided therein.

          The Company will furnish to any Holder of Securities upon written
request and without charge to the Holder a copy of the Indenture which has in it
the text of this Security.
<PAGE>

                                                                              11

                                ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

______________________________________________________________________
         (Print or type assignee's name, address and zip code)

______________________________________________________________________
             (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably appoint __________________________ agent to transfer this
Security on the books of the Company. The agent may substitute another to act
for him.

Date: ______________________ Your Signature: __________________________

_______________________________________________________________________
 Sign exactly as your name appears on the other side of this Security.
<PAGE>

                                                                              12

         CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION OF
                        TRANSFER RESTRICTED SECURITIES

This certificate relates to $_________ principal amount of Securities held in
(check applicable space) ____ book-entry or _____ definitive form by the
undersigned.

The undersigned (check one box below):

[_]    has requested the Trustee by written order to deliver in exchange for its
       beneficial interest in the Global Security held by the Depositary a
       Security or Securities in definitive, registered form of authorized
       denominations and an aggregate principal amount equal to its beneficial
       interest in such Global Security (or the portion thereof indicated
       above);

[_]    has requested the Trustee by written order to exchange or register the
       transfer of a Security or Securities.

In connection with any transfer of any of the Securities evidenced by this
certificate occurring prior to the expiration of the period referred to in Rule
144(k) under the Securities Act, the undersigned confirms that such Securities
are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

     (1)  [_]   to the Company; or

     (2)  [_]   pursuant to an effective registration statement under the
                Securities Act of 1933; or

     (3)  [_]   inside the United States to a "qualified institutional buyer"
                (as defined in Rule 144A under the Securities Act of 1933) that
                purchases for its own account or for the account of a qualified
                institutional buyer to whom notice is given that such transfer
                is being made in reliance on Rule 144A, in each case pursuant to
                and in compliance with Rule 144A under the Securities Act of
                1933; or

     (4)  [_]   outside the United States in an offshore transaction within the
                meaning of Regulation S under the Securities Act in compliance
                with Rule 904 under the Securities Act of 1933; or

     (5)  [_]   to an institutional "accredited investor" (as defined in Rule
                501(a)(1), (2), (3) or (7) under the Securities Act of 1933)
                that has furnished to the Trustee a signed letter containing
                certain representations and agreements; or

     (6)  [_]   pursuant to another available exemption from registration
                provided by Rule 144 under the Securities Act of 1933.
<PAGE>

                                                                              13

     Unless one of the boxes is checked, the Trustee will refuse to register any
     of the Securities evidenced by this certificate in the name of any Person
     other than the registered holder thereof; provided, however, that if box
                                               --------  -------
     (4), (5) or (6) is checked, the Trustee may require, prior to registering
     any such transfer of the Securities, such legal opinions, certifications
     and other information as the Company has reasonably requested to confirm
     that such transfer is being made pursuant to an exemption from, or in a
     transaction not subject to, the registration requirements of the Securities
     Act of 1933.

                                           __________________________
                                           Your Signature

Signature Guarantee:

Date: ________________________             __________________________
Signature must be guaranteed               Signature of Signature
by a participant in a                          Guarantee
recognized signature guaranty
medallion program or other
signature guarantor acceptable
to the Trustee

_____________________________________________________________________

             TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

          The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the undersigned's foregoing representations in order to claim the exemption
from registration provided by Rule 144A.

Dated: ________________             ______________________________
                                    NOTICE: To be executed by
                                            an executive officer
<PAGE>

                                                                              14

                     [TO BE ATTACHED TO GLOBAL SECURITIES]

             SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

          The initial principal amount of this Global Security is $ ..  The
following increases or decreases in this Global Security have been made:

<TABLE>
<CAPTION>
<S>         <C>                         <C>                         <C>                          <C>
Date of     Amount of decrease in       Amount of increase in       Principal Amount of this     Signature of authorized
Exchange    Principal Amount of this    Principal Amount of this    Global Security following    signatory of Trustee or
            Global Security             Global Security             such decrease or increase    Securities Custodian
</TABLE>
<PAGE>

                                                                              15

                      OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Company
pursuant to Section 4.06 (Asset Disposition) or 4.08 (Change of Control) of the
Indenture, check the box:

     Asset Disposition [_]                              Change of Control [_]

          If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.06 or 4.08 of the Indenture, state the
principal amount: $___________

Date: __________________ Your Signature: ____________________________________
                                          (Sign exactly as your name appears
                                           on the other side of the Security)

Signature Guarantee: ________________________________________________________
                     Signature must be guaranteed by a participant in a
                     recognized signature guaranty medallion program or
                     other signature guarantor acceptable to the Trustee
<PAGE>

                                                                       EXHIBIT B

                      [FORM OF FACE OF EXCHANGE SECURITY]

No. _________                                                         $_________

                    10 5/8% Senior Subordinated Note due 2010

                                                             CUSIP No. _________

          TeleCorp PCS, Inc., a Delaware corporation, promises to pay to Cede &
Co., or registered assigns, the principal sum listed on the Schedule of
Increases or Decreases in Global Security attached hereto on July 15, 2010.

          Interest Payment Dates:  January 15 and July 15

          Record Dates:  January 1 and July 1
<PAGE>

                                                                               2

          Additional provisions of this Security are set forth on the other side
of this Security.

          IN WITNESS WHEREOF, the parties have caused this instrument to be duly
executed.

                                   TELECORP PCS, INC.,

                                    by
                                       _________________________________________
                                       Name:
                                       Title:

                                    by
                                       _________________________________________
                                       Name:
                                       Title:

Dated:

TRUSTEE'S CERTIFICATE OF
     AUTHENTICATION

BANKERS TRUST COMPANY,
as Trustee, certifies that this is one of
the Securities referred to in the Indenture.

 by ________________________________________
         Authorized Signatory
<PAGE>

                                                                               3

                  [FORM OF REVERSE SIDE OF EXCHANGE SECURITY]

                    10 5/8% Senior Subordinated Note due 2010

1.  Interest.
    --------

          TeleCorp PCS, Inc., a Delaware corporation (such corporation, and its
successors and assigns under the Indenture hereinafter referred to, being herein
called the "Company"), promises to pay interest on the principal amount of this
Security at the rate per annum shown above.  The Company shall pay interest
semiannually on January 15 or July 15 of each year. Interest on the Securities
shall accrue from the most recent date to which interest has been paid or, if no
interest has been paid or duly provided for, from July 14, 2000 until the
principal hereof is due.  Interest shall be computed on the basis of a 360-day
year of twelve 30-day months.  The Company shall pay cash interest on overdue
principal at the rate borne by the Securities plus 1% per annum, and it shall
pay interest on overdue installments of interest at the same rate to the extent
lawful.

2.  Method of Payment
    -----------------

          The Company shall pay interest on the Securities (except defaulted
interest) to the Persons who are registered holders of Securities at the close
of business on the January 1 or July 1 next preceding the interest payment date
even if Securities are canceled after the record date and on or before the
interest payment date.  Holders must surrender Securities to a Paying Agent to
collect principal payments.  The Company shall pay principal, premium and
interest in money of the United States of America that at the time of payment is
legal tender for payment of public and private debts.  Payments in respect of
the Securities represented by a Global Security (including principal, premium
and interest) shall be made by wire transfer of immediately available funds to
the accounts specified by The Depository Trust Company.  The Company will make
all payments in respect of a certificated Security (including principal, premium
and interest), by mailing a check to the registered address of each Holder
thereof; provided, however, that payments on the Securities may also be made, in
         --------  -------
the case of a Holder of at least $1,000,000 aggregate principal amount of
Securities, by wire transfer to a U.S. dollar account maintained by the payee
with a bank in the United States if such Holder elects payment by wire transfer
by giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than 30 days immediately preceding the
relevant due date for payment (or such other date as the Trustee may accept in
its discretion).

3.  Paying Agent and Registrar
    --------------------------

          Initially, Bankers Trust Company, a New York banking corporation (the
"Trustee"), will act as Paying Agent and Registrar.  The Company may appoint and
change any Paying Agent, Registrar or co-registrar without notice.  The Company
or any of its domestically incorporated Wholly Owned Subsidiaries may act as
Paying Agent, Registrar or co-registrar.
<PAGE>

                                                                               4

4.  Indenture
    ---------

          The Company issued the Securities under an Indenture dated as of July
14, 2000 (the "Indenture"), among the Company, the Subsidiary Guarantor and the
Trustee.  The terms of the Securities include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of 1939
(15 U.S.C. (S)(S) 77aaa-77bbbb) as in effect on the date of the Indenture (the
    ------
"TIA").  Terms defined in the Indenture and not defined herein have the meanings
ascribed thereto in the Indenture.  The Securities are subject to all terms and
provisions of the Indenture, and Securityholders are referred to the Indenture
and the TIA for a statement of such terms and provisions.

          The Securities are senior subordinated unsecured obligations of the
Company limited to $450,000,000 principal amount at any one time outstanding
(subject to Sections 2.01 and 2.08 of the Indenture).  This Security is one of
the Initial Securities referred to in the Indenture.  The Securities include the
Original Securities and any Exchange Securities and Private Exchange Securities
issued in exchange for the Initial Securities pursuant to the Indenture.  The
Initial Securities, the Exchange Securities and the Private Exchange Securities
are treated as a single class of securities under the Indenture.  The Indenture
imposes certain limitations on the ability of the Company and its Restricted
Subsidiaries to, among other things, make certain Investments and other
Restricted Payments, pay dividends and other distributions, Incur Indebtedness,
enter into consensual restrictions upon the payment of certain dividends and
distributions by Restricted Subsidiaries, enter into or permit certain
transactions with Affiliates, and make Asset Dispositions.  The Indenture also
imposes limitations on the ability of the Company to consolidate or merge with
or into any other Person or convey, transfer or lease all or substantially all
of the property of the Company.

          To guarantee the due and punctual payment of the principal and
interest, if any, on the Securities and all other amounts payable by the Company
under the Indenture and the Securities when and as the same shall be due and
payable, whether , by acceleration or otherwise, according to the terms of the
Securities and the Indenture, the Subsidiary Guarantors have, jointly and
severally, unconditionally guaranteed the Guaranteed Obligations on a senior
subordinated basis pursuant to the terms of the Indenture.
<PAGE>

                                                                               5

5.  Optional Redemption
    -------------------

          Except as set forth in the following paragraph, the Securities will
not be redeemable at the option of the Company prior to July 15, 2005.
Thereafter, the Securities will be redeemable at the option of the Company, in
whole or in part, on not less than 30 nor more than 60 days' prior notice, at
the following redemption prices (expressed as percentages of principal amount),
plus accrued and unpaid interest, if any, to the redemption date (subject to the
right of holders of record on the relevant record date to receive interest, if
any, due on the relevant interest payment date), if redeemed during the 12-month
period commencing on July 15 of the years set forth below:

          <TABLE>
          <CAPTION>
          Year                                                        Redemption
                                                                         Price
          ----------------------------------------------------------------------

          <S>                                                         <C>
          2005                                                         105.313%
          2006                                                         103.542%
          2007                                                         101.771%
          2008 and thereafter                                          100.000%
          </TABLE>

          In addition, at any time and from time to time prior to July 15, 2003,
the Company may redeem up to a maximum of 35% of the original aggregate
principal amount of the Securities with the proceeds of one or more Equity
Offerings (1) by the Company or (2) by Holdings to the extent that the proceeds
thereof are contributed to the Company, at a redemption price equal to 110.625%
of the principal amount on the redemption date; provided, however, that, after
                                                --------  -------
giving effect to any such redemption at least 65% of the original aggregate
principal amount of the Securities remains outstanding. In addition, any such
redemption shall be made within 180 days of such Equity Offering upon not less
than 30 nor more than 60 days' notice mailed to each holder of Securities being
redeemed and otherwise in accordance with the procedures set forth in the
Indenture.

          At any time on or prior to July 15, 2005, the Securities may be
redeemed as a whole but not in part at the option of the Company upon the
occurrence of a Change of Control, upon not less than 30 or more than 60 days'
prior notice (but in no event may any such redemption occur more than 90 days
after the occurrence of such Change of Control) mailed by first-class mail to
each Holder's registered address, at a redemption price equal to 100% of the
principal amount thereof plus the Applicable Premium as of, and accrued but
unpaid interest, if any, to, the redemption date, subject to the right of
Holders on the relevant record date to receive interest due on the relevant
interest payment date.

          "Applicable Premium" means with respect to a Security at any
redemption date, the greater of (i) 1.0% of the principal amount of such
Security or (ii) the excess of (A) the present value of (1) the redemption price
of such Security at July 15, 2005 (such redemption price being set forth in the
table above) plus (2) all required interest payments due on such Security
through July 15, 2005, computed using a discount rate equal to the Treasury Rate
plus 50 basis points, over (B) the then-outstanding principal amount of such
Security.
<PAGE>

                                                                               6

          "Treasury Rate" means the yield to maturity at the time of computation
of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H. 15(519)
which has become publicly available at least two Business Days prior to the
redemption date (or, if such Statistical Release is no longer published, any
publicly available source or similar market data) most nearly equal to the
period from the redemption date to July 15, 2005; provided, however, that if the
                                                  --------  -------
period from the redemption date to July 15, 2005 is not equal to the constant
maturity of a United States Treasury security for which a weekly average yield
is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average yields
of United States Treasury securities for which such yields are given, except
that if the period from the redemption date to July 15, 2005 is less than one
year, the weekly average yield on actually traded United States Treasury
securities adjusted to a constant maturity of one year shall be used.

6.  Sinking Fund
    ------------

          The Securities are not subject to any sinking fund.

7.  Notice of Redemption
    --------------------

          Notice of redemption will be mailed by first-class mail at least 30
days but not more than 60 days before the redemption date to each Holder of
Securities to be redeemed at his or her registered address.  Securities in
denominations larger than $1,000 of principal amount may be redeemed in part but
only in whole multiples of $1,000 of principal amount.  If money sufficient to
pay the redemption price of and accrued and unpaid interest and liquidated
damages, if any, on all Securities (or portions thereof) to be redeemed on the
redemption date is deposited with the Paying Agent on or before the redemption
date and certain other conditions are satisfied, on and after such date interest
ceases to accrue on such Securities (or such portions thereof) called for
redemption.

8.  Repurchase of Securities at the Option of Holders upon Change of Control
    ------------------------------------------------------------------------

          Upon a Change of Control, each Holder of Securities will have the
right, subject to certain conditions specified in the Indenture, to require the
Company to repurchase all or any part of such holder's Securities at a purchase
price in cash equal to 101% of the principal amount on the Purchase Date, plus
accrued and unpaid interest, if any, to the Purchase Date (subject to the right
of Holders of record on the relevant record date to receive interest due on the
relevant interest payment date), as provided in, and subject to the terms of,
the Indenture.

9.  Subordination
    -------------

          The Securities are subordinated to Senior Indebtedness, as defined in
the Indenture. To the extent provided in the Indenture, Senior Indebtedness must
be paid before the Securities may be paid. The Company and each Subsidiary
Guarantor agrees, and each Securityholder by accepting a Security agrees, to the
subordination provisions contained in the Indenture and authorizes the Trustee
to give it effect and appoints the Trustee as attorney-in-fact for such purpose.
<PAGE>

                                                                               7

10.  Denominations; Transfer; Exchange
     ---------------------------------

          The Securities are in registered form without coupons in denominations
of $1,000 and whole multiples of $1,000 of principal amount. A Holder may
transfer or exchange Securities in accordance with the Indenture. Upon any
transfer or exchange, the Registrar and the Trustee may require a Holder, among
other things, to furnish appropriate endorsements or transfer documents and to
pay any taxes required by law or permitted by the Indenture. The Registrar need
not register the transfer of or exchange any Securities selected for redemption
(except, in the case of a Security to be redeemed in part, the portion of the
Security not to be redeemed) or to transfer or exchange any Securities for a
period of 15 days prior to a selection of Securities to be redeemed or 15 days
before an interest payment date.

11.  Persons Deemed Owners
     ---------------------

          The registered Holder of this Security may be treated as the owner of
it for all purposes.

12.  Unclaimed Money
     ---------------

          If money for the payment of principal or interest remains unclaimed
for two years, the Trustee or Paying Agent shall pay the money back to the
Company at its written request unless an abandoned property law designates
another Person.  After any such payment, Holders entitled to the money must look
only to the Company and not to the Trustee for payment.

13.  Discharge and Defeasance
     ------------------------

          Subject to certain conditions, the Company at any time may terminate
some of or all its obligations under the Securities and the Indenture if the
Company deposits with the Trustee money or U.S. Government Obligations for the
payment of principal and interest on the Securities to redemption or maturity,
as the case may be.
<PAGE>

                                                                               8

14.  Amendment, Waiver
     -----------------

          Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the Securities may be amended without prior notice to any
Securityholder but with the written consent of the Holders of at least a
majority in aggregate principal amount of the outstanding Securities and (ii)
any default or noncompliance with any provision may be waived with the written
consent of the Holders of at least a majority in principal amount of the
outstanding Securities. Subject to certain exceptions set forth in the
Indenture, without the consent of any Holder of Securities, the Company and the
Trustee may amend the Indenture or the Securities (i) to cure any ambiguity,
omission, defect or inconsistency; (ii) to comply with Article 5 of the
Indenture; (iii) to provide for uncertificated Securities in addition to or in
place of certificated Securities, (provided that the uncertificated Securities
are issued in registered form for purposes of Section 163(f) of the Code, or in
a manner such that the uncertificated Securities are described in Section
163(f)(2)(B) of the Code); (iv) to add Subsidiary Guarantees with respect to the
Securities; (v) to secure the Securities; (vi) to add additional covenants or to
surrender rights and powers conferred on the Company; (vii) to comply with the
requirements of the Commission in order to effect or maintain the qualification
of the Indenture under the TIA; (viii) to make any change that does not
adversely affect the rights of any Securityholder; (ix) to make any change in
the subordination provisions of the Indenture that would limit or terminate the
benefits available to any holder of Senior Indebtedness of the Company (or any
representative thereof) under such subordination provisions; or (x) to provide
for the issuance of the Exchange Securities or Private Exchange Securities.

15.  Defaults and Remedies
     ---------------------

          If an Event of Default occurs (other than an Event of Default relating
to certain events of bankruptcy, insolvency or reorganization of the Company)
and is continuing, the Trustee or the Holders of at least 25% in principal
amount of the outstanding Securities may declare the principal of and accrued
but unpaid interest on all the Securities to be due and payable.  If an Event of
Default relating to certain events of bankruptcy, insolvency or reorganization
of the Company occurs, the principal of and interest on all the Securities shall
become immediately due and payable without any declaration or other act on the
part of the Trustee or any Holders.  Under certain circumstances, the Holders of
a majority in principal amount of the outstanding Securities may rescind any
such acceleration with respect to the Securities and its consequences.

          If an Event of Default occurs and is continuing, the Trustee shall be
under no obligation to exercise any of the rights or powers under the Indenture
at the request or direction of any of the Holders unless such Holders have
offered to the Trustee reasonable indemnity or security against any loss,
liability or expense.  Except to enforce the right to receive payment of
principal, premium (if any) or interest when due, no Holder may pursue any
remedy with respect to the Indenture or the Securities unless (i) such Holder
has previously given the Trustee notice that an Event of Default is continuing,
(ii) Holders of at least 25% in principal amount of the outstanding Securities
have requested the Trustee in writing to pursue the remedy, (iii) such Holders
have offered the Trustee reasonable security or indemnity against any loss,
liability or expense, (iv) the Trustee has not complied with such request within
60 days after the receipt of the request and the offer of security or indemnity
and (v) the Holders of a majority in principal amount of the outstanding
Securities have not given the Trustee a direction inconsistent with such request
within such 60-day period.  Subject to certain restrictions, the Holders of a
majority in principal amount of the outstanding Securities are given the right
to direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the
Trustee.  The Trustee, however, may refuse to follow any direction that
<PAGE>

                                                                               9

conflicts with law or the Indenture or that the Trustee determines is unduly
prejudicial to the rights of any other Holder or that would involve the Trustee
in personal liability. Prior to taking any action under the Indenture, the
Trustee shall be entitled to indemnification satisfactory to it in its sole
discretion against all losses and expenses caused by taking or not taking such
action.

16.  Trustee Dealings with the Company
     ---------------------------------

          Subject to certain limitations imposed by the TIA,  the Trustee under
the Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

17.  No Recourse Against Others
     --------------------------

          A director, officer, employee or stockholder, as such, of the Company
or any Subsidiary Guarantor shall not have any liability for any obligations of
the Company under the Securities or the Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation.  By accepting a
Security, each Securityholder waives and releases all such liability.  The
waiver and release are part of the consideration for the issue of the
Securities.

18.  Authentication
     --------------

          This Security shall not be valid until an authorized signatory of the
Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.

19.  Abbreviations
     -------------

          Customary abbreviations may be used in the name of a Securityholder or
an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with rights of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

20.  Governing Law
     -------------

          THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.
<PAGE>

                                                                              10

21.  CUSIP Numbers
     -------------

          Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Securities and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Securityholders.  No representation is
made as to the accuracy of such numbers either as printed on the Securities or
as contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

          The Company will furnish to any Holder of Securities upon written
request and without charge to the Holder a copy of the Indenture which has in it
the text of this Security.
<PAGE>

                                                                              11

                                ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to:

______________________________________________________________________
         (Print or type assignee's name, address and zip code)

______________________________________________________________________
             (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably appoint _________________ agent to transfer this Security on
the books of the Company.  The agent may substitute another to act for him.

Date: _____________________ Your Signature: __________________________

______________________________________________________________________
Sign exactly as your name appears on the other side of this Security.  Signature
must be guaranteed by a participant in a recognized signature guaranty medallion
program or other signature guarantor acceptable to the Trustee.
<PAGE>

                                                                              12

                      OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Company
pursuant to Section 4.06 (Asset Sale) or 4.08 (Change of Control) of the
Indenture, check the box:

                       Asset Sale [_]     Change of Control [_]

          If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.06 or 4.08 of the Indenture, state the amount:

$___________________

Date: ______________   Your Signature: _________________________________________
                                          (Sign exactly as your name appears
                                           on the other side of the Security)

Signature Guarantee: ___________________________________________________________
                     Signature must be guaranteed by a participant in a
                     recognized signature Guaranty medallion program or
                     other signature guarantor acceptable to the Trustee.
<PAGE>

                                                                       EXHIBIT C

                        FORM OF SUPPLEMENTAL INDENTURE

                            SUPPLEMENTAL INDENTURE (this "Supplemental
                       Indenture") dated as of    , among [GUARANTOR] (the "New
                       Guarantor"), a subsidiary of TELECORP PCS, INC. (or its
                       successor), a Delaware corporation (the "Company"),
                       TELECORP COMMUNICATIONS INC. and BANKERS TRUST COMPANY, a
                       New York corporation banking, as trustee under the
                       indenture referred to below (the "Trustee").

                             W I T N E S S E T H :

          WHEREAS the Company and TeleCorp Communications, Inc. (the "Existing
Guarantor") have heretofore executed and delivered to the Trustee an Indenture
(the "Indenture") dated as of July 14, 2000, providing for the issuance of an
aggregate principal amount of up to $450,000,000 of 10 5/8% Senior Subordinated
Notes due 2010 (the "Securities");

          WHEREAS Section 4.11 of the Indenture provides that under certain
circumstances the Company is required to cause the New Guarantor to execute and
deliver to the Trustee a supplemental indenture pursuant to which the New
Guarantor shall unconditionally guarantee all the Company's obligations under
the Securities pursuant to a Subsidiary Guarantee on the terms and conditions
set forth herein; and

          WHEREAS pursuant to Section 9.01 of the Indenture, the Trustee, the
Company and the Existing Guarantor are authorized to execute and deliver this
Supplemental Indenture;

          NOW THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt of which is hereby acknowledged, the New
Guarantor, the Company, the Existing Guarantor and the Trustee mutually covenant
and agree for the equal and ratable benefit of the holders of the Securities as
follows:

          1.  Agreement to Guarantee.  The New Guarantor hereby agrees, jointly
              -----------------------
and severally with the Existing Guarantor, to unconditionally guarantee the
Company's obligations under the Securities on the terms and subject to the
conditions set forth in Article 10 of the Indenture and to be bound by all other
applicable provisions of the Indenture and the Securities.

          2.  Ratification of Indenture; Supplemental Indentures Part of
              ----------------------------------------------------------
Indenture.  Except as expressly amended hereby, the Indenture is in all respects
----------
ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect.  This Supplemental Indenture shall form a
part of the Indenture for all purposes, and every holder of Securities
heretofore or hereafter authenticated and delivered shall be bound hereby.
<PAGE>

          3.  Governing Law.  THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY,
              --------------
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

          4.  Trustee Makes No Representation.  The Trustee makes no
              --------------------------------
representation as to the validity or sufficiency of this Supplemental Indenture.

          5.  Counterparts.  The parties may sign any number of copies of this
              -------------
Supplemental Indenture.  Each signed copy shall be an original, but all of them
together represent the same agreement.

          6.  Effect of Headings.  The Section headings herein are for
              -------------------
convenience only and shall not effect the construction thereof.

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

                                        [NEW GUARANTOR],

                                         by
                                            __________________________________
                                            Name:
                                            Title:

                                        TELECORP PCS, INC.,

                                         by
                                            __________________________________
                                            Name:
                                            Title:

                                        TELECORP COMMUNICATIONS,
                                        INC.,

                                            __________________________________
                                            Name:
                                            Title:

                                        BANKERS TRUST COMPANY, as Trustee,

                                         by
                                            __________________________________
                                            Name:
                                            Title:
<PAGE>

                                                                       EXHIBIT D

                                    Form of
                      Transferee Letter of Representation

TeleCorp PCS, Inc.

In care of
Bankers Trust Company
One Bankers Trust Plaza
130 Liberty Street
New York, New York  10006

Ladies and Gentlemen:

     This certificate is delivered to request a transfer of $    principal
amount of the 10 5/8% Senior Subordinated Notes due 2010 (the "Securities") of
TeleCorp PCS, Inc. (the "TeleCorp").

     Upon transfer, the Notes would be registered in the name of the new
beneficial owner as follows:

Name:________________________

Address:_____________________

Taxpayer ID Number:__________

     The undersigned represents and warrants to you that:

     1. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the
"Securities Act")), purchasing for our own account or for the account of such an
institutional "accredited investor" at least $250,000 principal amount of the
Securities, and we are acquiring the Securities not with a view to, or for offer
or sale in connection with, any distribution in violation of the Securities Act.
We have such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of our investment in the Securities,
and we invest in or purchase securities similar to the Securities in the normal
course of our business.  We, and any accounts for which we are acting, are each
able to bear the economic risk of our or its investment.
<PAGE>

                                                                               2

     2.  We understand that the Securities have not been registered under the
Securities Act and, unless so registered, may not be sold except as permitted in
the following sentence.  We agree on our own behalf and on behalf of any
investor account for which we are purchasing the Securities to offer, sell or
otherwise transfer such Securities prior to the date that is two years after the
later of the date of original issue and the last date on which TeleCorp or any
affiliate of TeleCorp was the owner of such Securities (or any predecessor
thereto) (the "Resale Restriction Termination Date") only (a) to TeleCorp, (b)
pursuant to a registration statement that has been declared effective under the
Securities Act, (c) in a transaction complying with the requirements of Rule
144A under the Securities Act ("Rule 144A"), to a person we reasonably believe
is a qualified institutional buyer under Rule 144A (a "QIB") that is purchasing
for its own account or for the account of a QIB and to whom notice is given that
the transfer is being made in reliance on Rule 144A, (d) in an offshore
transaction within the meaning of, and in compliance with, Regulation S under
the Securities Act, (e) to an institutional "accredited investor" within the
meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is
purchasing for its own account or for the account of such an institutional
"accredited investor", in each case in a minimum principal amount of Securities
of $250,000, or (f) pursuant to any other available exemption from the
registration requirements of the Securities Act, subject in each of the
foregoing cases to any requirement of law that the disposition of our property
or the property of such investor account or accounts be at all times within our
or their control and in compliance with any applicable state securities laws.
The foregoing restrictions on resale will not apply subsequent to the Resale
Restriction Termination Date.  If any resale or other transfer of the Securities
is proposed to be made pursuant to clause (e) above prior to the Resale
Restriction Termination Date, the transferor shall deliver a letter from the
transferee substantially in the form of this letter to TeleCorp and the Trustee,
which shall provide, among other things, that the transferee is an institutional
"accredited investor" within the meaning of Rule 501(a)(1), (2), (3) or (7)
under the Securities Act and that it is acquiring such Securities for investment
purposes and not for distribution in violation of the Securities Act.  Each
purchaser acknowledges that TeleCorp and the Trustee reserve the right prior to
the offer, sale or other transfer prior to the Resale Restriction Termination
Date of the Securities pursuant to clause (d), (e) or (f) above to require the
delivery of an opinion of counsel, certifications or other information
satisfactory to TeleCorp and the Trustee.

                                 TRANSFEREE: _______________

                                 by: _______________________<PAGE>   1
                                                                     EXHIBIT 4.3

                        GOLDEN WEST FINANCIAL CORPORATION

                                       TO

                                [NAME OF TRUSTEE]

                                     TRUSTEE

                                SUBORDINATED DEBT

                                    INDENTURE

                         DATED AS OF __________________

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                         Page
                                                                                         ----
<S>               <C>                                                                    <C>
ARTICLE I         Definitions and Other Provisions of General Application...................1

        Section 101.  Definitions...........................................................1

        Section 102.  Compliance Certificates and Opinions.................................10

        Section 103.  Form of Documents Delivered to Trustee...............................10

        Section 104.  Acts of Holders......................................................11

        Section 105.  Notices, Etc., to Trustee and Company................................12

        Section 106.  Notice to Holders of Securities; Waiver..............................13

        Section 107.  Language of Notices, Etc.............................................14

        Section 108.  Conflict with Trust Indenture Act....................................14

        Section 109.  Effect of Headings and Table of Contents.............................14

        Section 110.  Successors and Assigns...............................................14

        Section 111.  Separability Clause..................................................14

        Section 112.  Benefits of Indenture................................................14

        Section 113.  Governing Law........................................................14

        Section 114.  Legal Holidays.......................................................15

ARTICLE II        Security Forms...........................................................15

        Section 201.  Forms Generally......................................................15

        Section 202.  Form of Trustee's Certificate of Authentication......................16

        Section 203.  Securities in Global Form............................................16

ARTICLE III       The Securities...........................................................17

        Section 301.  Amount Unlimited; Issuable in Series.................................17

        Section 302.  Denominations........................................................19

        Section 303.  Execution, Authentication, Delivery and Dating.......................20

        Section 304.  Temporary Securities; Exchange of Temporary Securities...............21

        Section 305.  Registration, Registration of Transfer and Exchange..................23

        Section 306.  Mutilated, Destroyed, Lost and Stolen Securities and Coupons.........26

        Section 307.  Payment of Interest; Interest Rights Preserved.......................27

        Section 308.  Persons Deemed Owners................................................28

        Section 309.  Cancellation.........................................................29

        Section 310.  Computation of Interest..............................................29

ARTICLE IV        Satisfaction and Discharge...............................................29
</TABLE>

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
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<S>               <C>                                                                    <C>
        Section 401.  Satisfaction and Discharge of Indenture..............................29

        Section 402.  Application of Trust Money...........................................31

ARTICLE V         Remedies.................................................................31

        Section 501.  Events of Default....................................................31

        Section 502.  Acceleration of Maturity, Rescission and Annulment...................31

        Section 503.  Collection of Indebtedness and Suits for Enforcement by Trustee......32

        Section 504.  Trustee May File Proofs of Claim.....................................34

        Section 505.  Trustee May Enforce Claims Without Possession of Securities or
                      Coupons..............................................................34

        Section 506.  Application of Money or Property Collected...........................35

        Section 507.  Limitation on Suits..................................................36

        Section 508.  Unconditional Right of Holders to Receive Principal, Premium
                      and Interest and to Exchange Securities for Capital Securities.......36

        Section 509.  Restoration of Rights and Remedies...................................37

        Section 510.  Rights and Remedies Cumulative.......................................37

        Section 511.  Delay or Omission Not Waiver.........................................37

        Section 512.  Control by Holders of Securities.....................................37

        Section 513.  Waiver of Past Defaults..............................................38

        Section 514.  Undertaking for Costs................................................38

        Section 515.  Waiver of Stay or Extension Laws.....................................38

ARTICLE VI        The Trustee..............................................................39

        Section 601.  Certain Duties and Responsibilities..................................39

        Section 602.  Notice of Defaults...................................................40

        Section 603.  Certain Rights of Trustee............................................40

        Section 604.  Not Responsible for Recitals or Issuance of Securities...............41

        Section 605.  May Hold Securities..................................................42

        Section 606.  Money Held in Trust..................................................42

        Section 607.  Compensation and Reimbursement.......................................42

        Section 608.  Disqualification; Conflicting Interests..............................43

        Section 609.  Corporate Trustee Required; Eligibility..............................48

        Section 610.  Resignation and Removal; Appointment of  Successor...................49
</TABLE>

                                      -ii-
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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
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                                                                                         ----
<S>               <C>                                                                    <C>
        Section 611.  Acceptance of Appointment by Successor...............................51

        Section 612.  Merger, Conversion, Consolidation or Succession to Business..........52

        Section 613.  Preferential Collection of Claims Against Company....................52

        Section 614.  Appointment of Authenticating Agent..................................55

ARTICLE VII       Holders' Lists and Reports by Trustee and Company........................57

        Section 701.  Company to Furnish Trustee Names and Addresses of  Holders...........57

        Section 702.  Preservation of Information; Communications to Holders...............58

        Section 703.  Reports by Trustee...................................................59

        Section 704.  Reports by Company...................................................61

ARTICLE VIII      Consolidation, Merger, Conveyance or Transfer............................61

        Section 801.  Company May Consolidate, etc., Only on Certain Terms.................61

        Section 802.  Successor Substituted................................................62

ARTICLE IX        Supplemental Indentures..................................................62

        Section 901.  Supplemental Indentures Without Consent of Holders...................62

        Section 902.  Supplemental Indentures with Consent of Holders......................64

        Section 903.  Execution of Supplemental Indentures.................................65

        Section 904.  Effect of Supplemental Indentures....................................65

        Section 905.  Conformity with Trust Indenture Act..................................66

        Section 906.  Reference in Securities to Supplemental Indentures...................66

ARTICLE X         Covenants................................................................66

        Section 1001. Payment of Principal, Premium and Interest...........................66

        Section 1002. Maintenance of Office or Agency......................................66

        Section 1003. Money for Securities Payments to Be Held in Trust....................67

        Section 1004. Officers' Certificate................................................69

        Section 1005. Additional Amounts...................................................69

        Section 1006. Reserved.............................................................70

        Section 1007. Reserved.............................................................70

        Section 1008. Reserved.............................................................70

ARTICLE XI        Redemption of Securities.................................................70

        Section 1101. Applicability of Article.............................................70

        Section 1102. Election to Redeem; Notice to Trustee................................70
</TABLE>

                                      -iii-
<PAGE>   5

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                         Page
                                                                                         ----
<S>               <C>                                                                    <C>
        Section 1103. Selection by Trustee of Securities to Be Redeemed....................71

        Section 1104. Notice of Redemption.................................................71

        Section 1105. Deposit of Redemption Price..........................................72

        Section 1106. Securities Payable on Redemption Date................................72

        Section 1107. Securities Redeemed in Part..........................................73

ARTICLE XII       Sinking Funds............................................................73

        Section 1201. Applicability of Article.............................................73

        Section 1202. Satisfaction of Sinking Fund Payments with Securities................74
        Section 1203. Redemption of Securities for Sinking Fund............................74

ARTICLE XIII      Meetings of Holders of Securities........................................74

        Section 1301. Purposes for Which Meetings May Be Called............................74

        Section 1302. Call, Notice and Place of Meetings...................................74

        Section 1303. Persons Entitled to Vote at Meetings.................................75

        Section 1304. Quorum; Action.......................................................75

        Section 1305. Determination of Voting Rights; Conduct and Adjournment of
                      Meetings.............................................................76

        Section 1306. Counting Votes and Recording Action of Meetings......................77

ARTICLE XIV       Defeasance...............................................................77

        Section 1401. Applicability of Article; Company's Option to Effect Defeasance......77

        Section 1402. Defeasance and Discharge.............................................78

        Section 1403. Reserved.............................................................78

        Section 1404. Conditions to Defeasance.............................................78

        Section 1405. Deposited Money and U.S. Government Obligations to Be Held in
                      Trust; Other Miscellaneous Provisions................................80

ARTICLE XV        Subordination of Securities..............................................80

        Section 1501. Securities Subordinate to Senior Indebtedness........................80

        Section 1502. Rights of Holders of Senior Indebtedness Not Impaired................82

        Section 1503. Trustee Authorized to Effectuate Subordination.......................82

        Section 1504. Trustee May Hold Senior Indebtedness.................................82
</TABLE>

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
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<S>               <C>                                                                    <C>
        Section 1505. Trustee and Holders of Securities May Rely on Certificate of
                      Liquidating Agent; Trustee May Require Further Evidence as to
                      Ownership of Senior Indebtedness; Trustee Not Fiduciary to
                      Holders of Senior Indebtedness.......................................82

        Section 1506. Permitted Payments...................................................83

        Section 1507. Trustee Not Charged with Knowledge of Prohibition....................83

        Section 1508. Securities to Rank Pari Passu With Existing Subordinated
                      Indebtedness; Payment of Proceeds in Certain Cases...................83

ARTICLE XVI       Repayment at the Option of Securityholders...............................84

        Section 1601. Applicability of Article.............................................84

        Section 1602. Repayment of Securities..............................................84

        Section 1603. Exercise of Option; Notice...........................................84

        Section 1604. Securities Payable on the Repayment Date.............................85

        Section 1701. Applicability of Article.............................................86

        Section 1702. Exchange of Capital Securities for Securities at  Stated
                      Maturity.............................................................86

        Section 1703. Right of Early Exchange of Capital Securities  for Securities........87

        Section 1704. Notices of Exchange..................................................87

        Section 1705. Rights and Duties of Holders of Securities to be  Exchanged
                      for Capital Securities...............................................89

        Section 1706. Election to Exchange.................................................91

        Section 1707. Deposit of Exchange Price............................................91

        Section 1708. Securities Due on Exchange Date; Securities  Exchanged in Part.......91

        Section 1709. Form of Capital Security Election Form...............................92

        Section 1710. Fractional Capital Securities........................................92

        Section 1711. Company to Obtain Governmental and  Regulatory Approvals.............92

        Section 1712. Taxes on Exchange....................................................93

        Section 1713. Covenants as to Capital Securities and Secondary Offering............93

        Section 1714. Provision in Case of Consolidation, Merger  or Transfer of
                      Assets...............................................................94

        Section 1715. Responsibility of Trustee............................................94

        Section 1716. Revocation of Obligation to Exchange Capital Securities for
                      Securities...........................................................94

ARTICLE XVIII     Available Funds..........................................................95

        Section 1801. Applicability of Article.............................................95
</TABLE>

                                       -v-
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<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

                                                                                         Page
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<S>               <C>                                                                    <C>
        Section 1802. Redemption of Primary Capital Securities with Available Funds........95

        Section 1803. Payment of Primary Capital Securities with Available Funds...........95

        Section 1804. Covenant to Generate Available Funds.................................96

        Section 1805. Revocation of Obligations............................................96

ARTICLE XIX       Immunity of Incorporators, Stockholders, Officers and Directors..........97

        Section 1901. Exemption from Individual Liability..................................97
</TABLE>

Note: This table of contents shall not, for any purpose, be deemed to be a part
      of the Indenture

                                      -vi-
<PAGE>   8

               INDENTURE, dated as of ____________, between Golden West
Financial Corporation, a corporation duly organized and existing under the laws
of the State of Delaware (herein called the "Company"), having its principal
office at 1901 Harrison Street, Oakland, California 94612, and
________________________, Trustee (herein called the "Trustee").

                             RECITALS OF THE COMPANY

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

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

               NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                   ARTICLE I

                        Definitions and Other Provisions
                             of General Application

Section 101.   Definitions.

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

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

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

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

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

<PAGE>   9

               Certain terms, used principally in Article Six, are defined in
that Article.

               "Act", when used with respect to any Holder of a Security, has
the meaning specified in Section 104.

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

               "Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.

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

               "Available Funds" means, subject to the proviso below, such
amounts, if any, as the Company, at its option, has in accordance with and
within the meaning of applicable regulations or other criteria, if any, of the
Primary Federal Regulator, dedicated to the retirement or redemption of
Securities of a series designated as Primary Capital Securities and which
represent only (i) the net dollar proceeds of the sale from time to time of
authorized but not previously issued Capital Securities, (ii) the market value
(as determined by the Company) of Capital Securities issued from time to time in
exchange for property or services or issued to finance acquisitions, including
acquisitions of business entities, less the expenses incurred to effect such
exchange or issuance, and (iii) other funds which the regulations or other
criteria of the Primary Federal Regulator then permit to be utilized for the
retirement or redemption of a series of securities designated as Primary Capital
Securities; provided that (x) in the case of funds referred to in clauses (i)
and (ii), the Company had denominated such proceeds or funds as Available Funds
on its books and records in the manner required by the Primary Federal Regulator
and (y) there shall be deducted from Available Funds an amount equal to any
Available Funds used to repay or redeem a series of Primary Capital Securities.
In the event that the Company's then Primary Federal Regulator has no applicable
regulations, Available Funds shall include any funds of the Company.

               "Bearer Security" means any Security established pursuant to
Section 201 which is payable to bearer including, without limitation, unless the
context otherwise indicates, a Security in global bearer form.

               "Board of Directors" means the board of directors of the Company,
the executive committee or any other committee of such board duly authorized to
act hereunder.

                                       2
<PAGE>   10

               "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", when used with respect to any Place of Payment or
any other particular location referred to in this Indenture or in the
Securities, means each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in that Place of Payment are authorized
or obligated by law or executive order to close.

               "Capital Securities" means any securities issued by the Company
which consist of any one of the following: (i) Common Stock or (ii) Perpetual
Preferred Stock. Capital Securities may have such terms, rights and preferences
as may be determined by the Company.

               "Capital Security Election Form" means a form substantially in
the form included in Section 1709.

               "Clearstream" means Clearstream Banking, societe anonyme.

               "Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Securities Exchange Act of
1934, or, if at any time after the execution 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 Depositary" has the meaning specified in Section 304.

               "Common Stock" means any stock of any class of the Company which
has no preference in respect of dividends or of amounts payable in the event of
any voluntary or involuntary liquidation, dissolution or winding up of the
Company and which is not subject to redemption by the Company.

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

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

               "Corporate Trust Office" means the principal office of the
Trustee in New York, New York, at which at any particular time its corporate
trust business shall be administered, which office at the date of original
execution of this Indenture is located at
[_________________________________], Attention:
[__________________________].

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

                                       3
<PAGE>   11

               "coupon" means any interest coupon appertaining to a Bearer
Security.

               "Default" has the meaning specified in Section 503.

               "Defaulted Interest" has the meaning specified in Section 307.

               "Debt" of any Person means, at any date, the principal of and
premium, if any, and interest on (i) all indebtedness of such Person (including
indebtedness of others guaranteed by such Person), whether outstanding on the
date of this Indenture or thereafter created, incurred or assumed, which is (A)
for money borrowed, whether or not evidenced by bonds, debentures, notes or
other written instruments or (B) evidenced by a note or similar instrument given
in connection with the acquisition of any businesses, properties or assets of
any kind, (ii) obligations of, or any such obligations guaranteed by, such
Person as lessee under leases required to be capitalized on the balance sheet of
the lessee under generally accepted accounting principles and leases of property
or assets made as part of any sale and lease-back transaction to which such
Person is a party, (iii) obligations of such Person under letters of credit,
(iv) any indebtedness of such Person under or other obligations of such Person
to make payment pursuant to the terms of commodity contracts, interest rate and
currency swap agreements, cap, floor and collar agreements, currency spot and
forward contracts, and other similar agreements or arrangements designed to
protect against fluctuations in currency exchange or interest rates and (v)
amendments, renewals, extensions, modifications and refundings of any such
indebtedness or obligation."

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

               "Equivalent Principal Terms" has the meaning specified in Section
1102.

               "Euroclear" means Morgan Guaranty Trust Company of New York,
Brussels Office, as operator of the Euroclear System.

               "Event of Default" has the meaning specified in Section 501.

               "Exchange Agent" means the Person or Persons appointed by the
Company to give notices and to exchange Securities of any series for Capital
Securities as specified in Article Seventeen.

               "Exchange Date", when used with respect to the Securities of any
series, means any date on which such Securities are to be exchanged for Capital
Securities pursuant to this Indenture.

               "Exchange Price", when used with respect to any Security of any
series to be exchanged for Capital Securities, means the amount of Capital
Securities for which such Security is to be exchanged pursuant to this Indenture
or the aggregate sale price of such Capital Securities in the Secondary Offering
for such Security, as the case may be.

                                       4
<PAGE>   12

               "Existing Subordinated Indebtedness" means, unless otherwise
determined with respect to any series of Securities pursuant to Section 301, the
obligations of the Company pursuant to its 10-1/4% Subordinated Notes due
December 1, 2000, 10-1/4% Subordinated Notes due May 15, 1997, 9.15%
Subordinated Notes due May 23, 1998, 8-5/8% Subordinated Notes due August 30,
1998, 7-7/8% Subordinated Notes due January 15, 2002, 8-3/8% Subordinated Notes
due April 15, 2002, and 7-1/4% Subordinated Notes due August 15, 2002.

               "Global Exchange Date" has the meaning specified in Section 304.

               "Holder", when used with respect to any Security, means in the
case of a Registered Security the Person in whose name the Security is
registered in the Security Register and in the case of a Bearer Security the
bearer thereof and, when used with respect to any coupon, means the bearer
thereof.

               "Indenture" means this instrument as originally executed or as it
may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms of particular series of Securities established as
contemplated by Section 301.

               "interest", when used with respect to an Original Issue Discount
Security which by its terms bears interest only after Maturity, means interest
payable after Maturity and, when used with respect to a Security which provides
for the payment of additional amounts pursuant to Section 1005, includes such
additional amounts.

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

               "Junior Subordinated Indebtedness" means all Debt of the Company
which is subordinate and junior in right with respect to the general assets of
the Company to all other Debt of the Company (including without limitation
Senior Indebtedness and Subordinated Indebtedness).

               "Market Value" of any Capital Securities issued on any Exchange
Date for Securities of any series shall be the sale price of such Capital
Securities which are sold in the Secondary Offering for the Securities of such
series. In the event no such Secondary Offering takes place, the Market Value of
such Capital Securities shall be the average of their fair value on such
Exchange Date for Securities of such series as determined by three independent
nationally recognized investment banking firms selected by the Company.

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

               "Officers' Certificate" means a certificate signed by the
Chairman of the Board, a Vice Chairman, the President or a Vice President, and
by the Treasurer, an Assistant Treasurer, the Controller, an Assistant
Controller, the Secretary or an Assistant Secretary of the Company, and
delivered to the Trustee.

                                       5
<PAGE>   13

               "Opinion of Counsel" means a written opinion of counsel, who may
(except as otherwise expressly provided in this Indenture) be counsel for the
Company. Each such Opinion of Counsel shall contain the statements set forth in
Section 102.

               "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 502.

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

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

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

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

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities of any one or more series have
given any request, demand, authorization, direction, notice, consent or waiver
hereunder or whether a quorum is present at a meeting of Holders of Securities
(i) the principal amount of an Original Issue Discount Security that shall be
deemed to be Outstanding shall be the amount of the principal thereof that would
be due and payable as of the date of such determination upon acceleration of the
Maturity thereof pursuant to Section 502, (ii) the principal amount of a
Security denominated in a foreign currency or a composite currency shall be the
U.S. dollar equivalent, determined on the date of original issuance of such
Security by the Company in good faith, of the principal amount of such Security
(or, in the case of an Original Issue Discount Security, the U.S. dollar
equivalent, determined on the date of original issuance of such Security, of the
amount determined as provided in (i) above), of such Security, and (iii)
Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and
deemed not to be Outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver or upon any such determination as to the
presence of a quorum, only Securities which a Responsible Officer in the
Corporate Trust Office of the Trustee knows to be so owned

                                       6
<PAGE>   14

shall be so disregarded. Securities so owned which have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor.

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

               "Perpetual Preferred Stock" means any stock of any class of the
Company which has a preference over Common Stock in respect of dividends or of
amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Company and which is not mandatorily redeemable
or repayable, or redeemable or repayable at the option of the Holder, otherwise
than in shares of Common Stock or Perpetual Preferred Stock of another class or
series or with the proceeds of the sale of Common Stock or Perpetual Preferred
Stock.

               "Person" means any individual, corporation, partnership, joint
venture, trust, unincorporated organization or government or any agency or
political subdivision thereof.

               "Place of Payment", when used with respect to the Securities of
any series, means the place or places where, subject to the provisions of
Section 1002, the principal of and any premium and interest on the Securities of
that series are payable as specified as contemplated by Section 301 or any place
where the Securities of such series are exchangeable for Capital Securities as
specified pursuant to Section 301.

               "Predecessor Security" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 306 in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Security or a Security to which a
mutilated, destroyed, lost or stolen coupon appertains shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security or
the Security to which the mutilated, destroyed, lost or stolen coupon
appertains, as the case may be.

               "Primary Capital Securities" shall mean any series of Securities
subject to Article Seventeen or Section 1804 and designated as such pursuant to
Section 301 hereof.

               "Primary Federal Regulator" means the primary United States
federal regulator of the Company (which at the date of this Indenture is the
Office of Thrift Supervision), or any successor body or institution.

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

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

                                       7
<PAGE>   15

               "Registered Security" means any Security established pursuant to
Section 201 which is registered in the Security Register, including, without
limitation, unless the context otherwise indicates, a Security in global form.

               "Regular Record Date" for the interest payable on any Interest
Payment Date on the Registered Securities of any series means the date specified
for that purpose as contemplated by Section 301.

               "Repayment Date", when used with respect to any Security to be
repaid upon exercise of an option for repayment by the Holder, means the date
fixed for such repayment by or pursuant to this Indenture.

               "Repayment Price", when used with respect to any Security to be
repaid upon exercise of an option for repayment by the Holder, means the price
at which it is to be repaid pursuant to this Indenture.

               "Responsible Officer", when used with respect to the Trustee,
shall mean any officer assigned to the [________________________________] (or
any successor group of the Trustee) including any managing director, vice
president, assistant vice president, assistant secretary, assistant treasurer or
any other officer or assistant officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
having direct responsibility for the administration of this Indenture, and also
means, with respect to a particular matter, any other officer to whom such
matter is referred because of his knowledge of and familiarity with the
particular subject.

               "Secondary Offering", when used with respect to the Securities of
any series, means the offering and sale by the Company of Capital Securities for
the account of Holders of Securities of such series who elect to receive cash
and not Capital Securities on the Exchange Date for such series.

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

               "Security Register" has the meaning specified in Section 305.

               "Security Registrar" means the Person appointed by the Company to
register Registered Securities and transfers of Registered Securities as
provided in Section 305. Initially, the Trustee is the Security Registrar for
the Securities.

               "Senior Indebtedness" means all Debt of the Company except Junior
Subordinated Indebtedness and Subordinated Indebtedness.

               "Special Record Date" for the payment of any Defaulted Interest
on the Registered Securities of any series means a date fixed by the Company
pursuant to Section 307.

               "Stated Maturity", when used with respect to any Security or any
installment of principal thereof or interest thereon, means the date specified
in such Security or a coupon

                                       8
<PAGE>   16

representing such installment of interest as the fixed date on which the
principal of such Security or such installment of principal or interest is due
and payable.

               "Subordinated Indebtedness" means all Debt of the Company, other
than Junior Subordinated Indebtedness, which is subordinate and junior in right
with respect to the general assets of the Company to Senior Indebtedness and
shall include (i) the Securities, (ii) any Debt on a parity with any of the
Securities and (iii) Existing Subordinated Indebtedness.

               "Subsidiary" means a corporation a majority of the outstanding
Voting Stock of which is owned, directly or indirectly, by the Company or by one
or more Subsidiaries, or by the Company and one or more Subsidiaries.

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

               "Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended by the Trust Indenture Reform Act of 1990 and as in force at the date as
of which this instrument was executed, except as provided in Section 905.

               "United States" means the United States of America (including the
States and the District of Columbia) and its possessions.

               "United States Alien" means any Person who, for United States
federal income tax purposes, is a foreign corporation, a non-resident alien
individual, a non-resident alien fiduciary of a foreign estate or trust, or a
foreign partnership one or more of the members of which is, for United States
federal income tax purposes, a foreign corporation, a non-resident alien
individual or a non-resident alien fiduciary of a foreign estate or trust.

               "United States Person" means a citizen or resident of the United
States, a corporation, partnership or other entity created or organized in or
under the laws of the United States and an estate or trust the income of which
is subject to United States federal income taxation regardless of its source.

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

                                       9
<PAGE>   17

custodian in respect of the U.S. Government Obligation or the specific payment
of interest on or principal of the U.S. Government Obligation evidenced by such
depository receipt.

               "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".

               "Voting Stock" means outstanding shares of capital stock having
voting power for the election of directors, whether at all times or only so long
as no senior class of stock has such voting power because of default in
dividends or other default.

Section 102.   Compliance Certificates and Opinions.

               Except as otherwise expressly provided by this Indenture, upon
any application or request by the Company to the Trustee to take any action or
refrain from taking any action under any provision of this Indenture, the
Company shall furnish to the Trustee an Officers' Certificate stating that all
conditions precedent or covenants, if any, 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 or covenants, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

               Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than certificates
provided pursuant to Section 704(4)) shall include:

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

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

               (3)    a statement that, in the opinion of each such individual,
        he has made such examination or investigation as is necessary to enable
        him to express an informed opinion as to whether or not such covenant or
        condition has been complied with; and

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

Section 103.   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

                                       10
<PAGE>   18

and one or more other such Persons as to other matters, and any such Person may
certify or give an opinion as to such matters in one or several documents.

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

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

Section 104.   Acts of Holders.

               (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. If Securities of a series are issuable as Bearer
Securities, any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders of such series may, alternatively, be embodied in and evidenced by the
record of Holders of Securities of such series voting in favor thereof, either
in person or by proxies duly appointed in writing, at any meeting of Holders of
Securities of such series duly called and held in accordance with the provisions
of Article Thirteen, or a combination of such instruments and any such record.
Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments or record or both are delivered to
the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments and any such record (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Act" of the
Holders signing such instrument or instruments and so voting at any such
meeting. Proof of execution of any such instrument or of a writing appointing
any such agent, or of the holding by any Person of a Security, shall be
sufficient for any purpose of this Indenture and (subject to Section 601)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section. The record of any meeting of Holders of Securities
shall be proved in the manner provided in Section 1306.

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

                                       11
<PAGE>   19

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 principal amount and serial numbers of Registered
Securities held by any Person, and the date of holding the same, shall be proved
by the Security Register.

               (d)    The principal amount and serial numbers of Bearer
Securities held by any Person, and the date of holding the same, may be proved
by the production of such Bearer Securities or by a certificate executed, as
depositary, by any trust company, bank, banker or other depositary, wherever
situated, if such certificate shall be deemed by the Trustee to be satisfactory,
showing that at the date therein mentioned such Person had on deposit with such
depositary, or exhibited to it, the Bearer Securities therein described; or such
facts may be proved by the certificate or affidavit of the Person holding such
Bearer Securities, if such certificate or affidavit is deemed by the Trustee to
be satisfactory. The Trustee and the Company may assume that such ownership of
any Bearer Security continues until (1) another certificate or affidavit bearing
a later date issued in respect of the same Bearer Security is produced, or (2)
such Bearer Security is produced to the Trustee by some other Person, or (3)
such Bearer Security is surrendered in exchange for a Registered Security, or
(4) such Bearer Security is no longer Outstanding. The principal amount and
serial numbers of Bearer Securities held by any Person, and the date of holding
the same, may also be proved in any other manner which the Trustee deems
sufficient.

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

               (f)    The Company may set a record date for purposes of
determining the identity of Holders of Registered Securities of any series
entitled to vote or consent to any action by vote or consent authorized or
permitted by Section 512 or Section 513. Such record date shall be the later of
30 days prior to the first solicitation of such consent or the date of the most
recent list of Holders of such Securities furnished to the Trustee pursuant to
Section 701 prior to such solicitation.

Section 105.   Notices, Etc., to Trustee and Company.

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

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

               (2)    the Company by the Trustee or by any Holder shall be
        sufficient for every purpose hereunder (unless otherwise herein
        expressly provided) if in writing and mailed,

                                       12
<PAGE>   20

        first-class postage prepaid (or by guaranteed overnight delivery), to
        the Company addressed to it at the address of its principal office
        specified in the first paragraph of this instrument, to the attention of
        its Secretary, or at any other address previously furnished in writing
        to the Trustee by the Company.

Section 106.   Notice to Holders of Securities; Waiver.

               Except as otherwise expressly provided herein, where this
Indenture provides for notice to Holders of Securities of any event,

               (1)    such notice shall be sufficiently given to Holders of
        Registered Securities if in writing and mailed, first-class postage
        prepaid, to each Holder of a Registered Security affected by such event,
        at the address of such Holder as it appears in the Security Register,
        not later than the latest date, and not earlier than the earliest date,
        prescribed for the giving of such notice; and

               (2)    such notice shall be sufficiently given to Holders of
        Bearer Securities if published on a Business Day in an Authorized
        Newspaper in The City of New York and in such other city or cities as
        may be specified in such Securities, at least twice, each such
        publication to be not earlier than the earliest date, and not later than
        the latest date, prescribed for the giving of such notice.

               In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice to
Holders of Registered Securities by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient notification
for every purpose hereunder. In any case where notice to Holders of Registered
Securities is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder of a Registered
Security shall affect the sufficiency of such notice with respect to other
Holders of Registered Securities or the sufficiency of any notice to Holders of
Bearer Securities given as provided herein.

               In case by reason of the suspension of publication of any
Authorized Newspaper or Authorized Newspapers or by reason of any other cause it
shall be impracticable to publish any notice to Holders of Bearer Securities as
provided above, then such notification to Holders of Bearer Securities as shall
be given with the approval of the Trustee shall constitute sufficient notice to
such Holders for every purpose hereunder. Neither the failure to give notice by
publication to Holders of Bearer Securities as provided above, nor any defect in
any notice so published, shall affect the sufficiency of any notice mailed to
Holders of Registered Securities given as provided herein.

               Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders of Securities shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

                                       13
<PAGE>   21

Section 107.   Language of Notices, Etc.

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

Section 108.   Conflict with Trust Indenture Act.

               If any provision hereof limits, qualifies or conflicts with the
duties imposed by any of Sections 310 to 317, inclusive, of the Trust Indenture
Act through operation of Section 318(c) of the Trust Indenture Act, the duties
imposed upon the Trustee by the Trust Indenture Act will control. The parties
hereto further agree that in the case of any duty of the Trustee detailed herein
that relates to a specific subject matter covered by the Trust Indenture Act and
is set forth herein in a different manner than in the Trust Indenture Act (which
manner does not limit, qualify or conflict with the duties imposed by the Trust
Indenture Act but is susceptible to the interpretation that it imposes an
additional duty on the Trustee), the Trustee shall only be required to comply
with the requirements of the Trust Indenture Act with respect to that particular
subject matter and shall have no additional contractual duties.

Section 109.   Effect of Headings and Table of Contents.

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

Section 110.   Successors and Assigns.

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

Section 111.   Separability Clause.

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

Section 112.   Benefits of Indenture.

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

Section 113.   Governing Law.

               This Indenture and the Securities and coupons shall be governed
by and construed in accordance with the laws of the State of California.

                                       14
<PAGE>   22

Section 114.   Legal Holidays.

               Except as specified pursuant to Section 301, in any case where
any Interest Payment Date, Redemption Date, Repayment 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 or
coupons other than a provision in the Securities of any series which
specifically states that such provision shall apply in lieu of this Section)
payment of interest or principal and any premium 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, Redemption Date or Repayment Date, or at the Stated Maturity,
provided that no interest shall accrue on the amount so payable for the period
from and after such Interest Payment Date, Redemption Date, Repayment Date or
Stated Maturity, as the case may be.

                                   ARTICLE II

                                 Security Forms

Section 201.   Forms Generally.

               The Registered Securities, if any, of each series and the Bearer
Securities, if any, of each series and related coupons shall be in such form
(including temporary or permanent global form) as shall be established by or
pursuant to a Board Resolution or in one or more indentures supplemental hereto,
in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or as may, consistently herewith, be determined by the
officers executing such Securities or coupons, as evidenced by their execution
of the Securities or coupons. Any such legends or endorsements placed on such
Securities by the Company after the execution of the Securities or coupons shall
be delivered in writing to the Trustee by the Company. If temporary Securities
of any series are issued in global form as permitted by Section 304, the form
thereof shall be established as provided in the preceding sentence. If the forms
of Securities or coupons of any series are established by action taken pursuant
to a Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 303 for the authentication and delivery of such
Securities (or any such temporary global Security) or coupons.

               Unless otherwise specified as contemplated by Section 301, Bearer
Securities other than Bearer Securities in temporary or permanent global form
shall have interest coupons attached.

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

                                       15
<PAGE>   23

Section 202.   Form of Trustee's Certificate of Authentication.

               The Trustee's certificate of authentication shall be in
substantially the following form:

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

                                       [NAME OF TRUSTEE], as Trustee

                                       By ______________________________________
                                                   Authorized Signatory

Section 203.   Securities in Global Form.

               If Securities of a series are issuable in global form, as
specified by Section 301, then, notwithstanding clause (10) of Section 301 and
the provisions of Section 302, any such Security shall represent such of the
Outstanding Securities of such series as shall be specified therein and may
provide that it shall represent the aggregate amount of Outstanding Securities
from time to time endorsed thereon and that the aggregate amount of Outstanding
Securities represented thereby may from time to time be reduced to reflect
exchanges. Any endorsement of a Security in global form to reflect the amount,
or any increase or decrease in the amount, of Outstanding Securities represented
thereby shall be made by the Trustee in such manner and upon instructions given
by such Person or Persons as shall be specified therein or in the Company Order
to be delivered to the Trustee pursuant to Section 303 or Section 304. Subject
to the provisions of Section 303 and, if applicable, Section 304, the Trustee
shall deliver and redeliver any Security in global form in the manner and upon
instructions given by the Person or Persons specified therein or in the
applicable Company Order. If a Company Order pursuant to Section 303 or Section
304 has been, or simultaneously is, delivered, any instructions by the Company
with respect to endorsement or delivery or redelivery of a Security in global
form shall be in writing but need not comply with Section 102 and need not be
accompanied by an Opinion of Counsel.

               The provisions of the last sentence of Section 303 shall apply to
any Security represented by a Security in global form if such Security was never
issued and sold by the Company and the Company delivers to the Trustee the
Security in global form together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel)
with regard to the reduction in the principal amount of Securities represented
thereby, together with the written statement contemplated by the last sentence
of Section 303.

               Notwithstanding the provisions of Section 307, unless otherwise
specified as contemplated by Section 301, payment of principal of and any
premium and interest on any Security in permanent global form shall be made to
the Holder thereof.

                                       16
<PAGE>   24

               Notwithstanding the provisions of Section 308 and except as
provided in the preceding paragraph, unless otherwise specified as contemplated
by Section 301, the Company, the Trustee and any agent of the Company and the
Trustee shall treat a Person as the Holder of such principal amount of
Outstanding Securities represented by a permanent global Security as shall be
specified in a written statement of the Holder of such permanent global Security
which is produced to the Trustee by such Holder.

                                  ARTICLE III

                                 The Securities

Section 301.   Amount Unlimited; Issuable in Series.

               The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited.

               The Securities may be issued in one or more series. There shall
be established in or pursuant to a Board Resolution and, subject to Section 303,
set forth, or determined in the manner provided, in an Officers' Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series:

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

               (2)    any limit upon the aggregate principal amount of the
        Securities of the series which may be authenticated and delivered under
        this Indenture (except for Securities authenticated and delivered upon
        registration of transfer of, or in exchange for, or in lieu of, other
        Securities of the series pursuant to Section 304, 305, 306, 906, 1107 or
        1603 and except for any Securities which, pursuant to Section 303, are
        deemed never to have been authenticated and delivered hereunder);

               (3)    whether Securities of the series are to be issuable as
        Registered Securities, Bearer Securities or both, whether Securities of
        the series are to be issuable with or without coupons or both, whether
        any Securities of the series are to be issuable initially in temporary
        global form and whether any Securities of the series are to be issuable
        in permanent global form and the circumstances under which such
        Securities may be issued, delivered or exchanged, if other than in the
        manner provided in this Article Three, and the name of any Common
        Depositary, or depositary, as the case may be, for such global Security;

               (4)    (i) the manner in which or the Person to whom any interest
        on any Registered Security of the series shall be payable, if other than
        the Person in whose name that Security (or one or more Predecessor
        Securities) is registered at the close of business on the Regular Record
        Date for such interest, (ii) the manner in which, or the Person to whom,
        any interest on any Bearer Security of the series shall be payable, if
        otherwise than upon presentation and surrender of the coupons
        appertaining thereto as they severally mature, and (iii) the extent to
        which, or the manner in which, any interest

                                       17
<PAGE>   25

        payable on a global Security will be paid in any case if other than in
        the manner provided in this Article Three or Section 1002;

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

               (6)    the rate or rates at which the Securities of the series
        shall bear interest, if any, or the formula pursuant to which such rate
        or rates shall be determined, the date or dates from which any such
        interest shall accrue, the Interest Payment Dates on which any such
        interest shall be payable and the Regular Record Date for any interest
        payable on any Registered Securities on any Interest Payment Date;

               (7)    the place or places where, subject to the provisions of
        Sections 1002 and 114, the principal of and any premium and interest on
        Securities of the series shall be payable, any Registered Securities of
        the series may be surrendered for registration of transfer, Securities
        of the series may be surrendered for exchange, notices and demands to or
        upon the Company in respect of the Securities of the series and this
        Indenture may be served and where notice to Holders pursuant to Section
        106 will be published;

               (8)    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
        and/or repaid in whole or in part, at the option of the Holders;

               (9)    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 shall be redeemed or
        purchased, in whole or in part, pursuant to such obligation;

               (10)   the denominations in which any Registered Securities of
        the series shall be issuable, if other than the denominations provided
        in Section 302, and the denomination or denominations in which any
        Bearer Securities of the series shall be issuable, if other than the
        denominations provided in Section 302;

               (11)   the currency or currencies, including composite
        currencies, in which payment of the principal of and any premium and
        interest on the Securities of the series shall be payable if other than
        the currency of the United States of America and the agency or
        organization responsible for overseeing such composite currency and
        other terms and conditions with respect thereto;

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

                                       18
<PAGE>   26

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

               (14)   if other than the principal amount thereof, the portion of
        the principal amount of any Securities of the series which shall be
        payable upon declaration of acceleration of the Maturity thereof
        pursuant to Section 502;

               (15)   whether such Securities constitute Primary Capital
        Securities, and, if so, whether Article Seventeen or Section 1804
        applies;

               (16)   if applicable, the place or places at which, the period or
        periods within which, the price or prices at which and the terms and
        conditions upon which Securities shall be exchangeable for Capital
        Securities of the Company, which terms and conditions shall not be
        inconsistent with Article Seventeen unless otherwise provided pursuant
        to this Section 301;

               (17)   any covenant of the Company to designate Available Funds
        for the repayment of the Securities and the terms and conditions of such
        Available Funds, which terms and conditions shall not be inconsistent
        with Section 1804 unless otherwise provided pursuant to this Section
        301;

               (18)   if Section 1402 shall not apply to the Securities of the
        series;

               (19)   the Person who shall be the Security Registrar, if other
        than the Trustee, the Person who shall be the initial Paying Agent and
        the Person who shall be the initial Common Depositary or the depositary,
        as the case may be, and any provisions for the appointment of a
        successor Common Depositary or depositary; and

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

               All Securities of any one series, and the coupons appertaining to
any Bearer Securities of such series, shall be substantially identical except,
in the case of Registered Securities, as to denomination and except as may
otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 303) set forth in the Officers' Certificate referred to
above or in any such indenture supplemental hereto.

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

Section 302.   Denominations.

               Unless otherwise provided as contemplated by Section 301 with
respect to any series of Securities, any Registered Securities of a series shall
be issuable in denominations of

                                       19
<PAGE>   27

$1,000 and any integral multiple thereof and any Bearer Securities of a series
shall be issuable in the denomination of $5,000.

Section 303.   Execution, Authentication, Delivery and Dating.

               The Securities shall be executed on behalf of the Company by its
Chairman of the Board, Chief Executive Officer, President or a Vice President,
under its corporate seal reproduced thereon attested by its Secretary or an
Assistant Secretary. The signature of any of these officers on the Securities
may be manual or facsimile. Coupons shall bear the facsimile signature of the
Treasurer or any Assistant Treasurer of the Company.

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

               At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Securities of any series,
together with any coupons appertaining thereto, executed by the Company to the
Trustee for authentication, together with a Company Order for the authentication
and delivery of such Securities, and the Trustee in accordance with the Company
Order shall authenticate and deliver such Securities; provided, however, that,
in connection with its original issuance, no Bearer Security shall be mailed or
otherwise delivered to any location in the United States; and provided, further,
that, a Bearer Security other than a temporary global Bearer Security may be
delivered in connection with its original issuance only if the Company or its
agent shall have received the certification required pursuant to Section 304
relating to the exchange of the temporary global Security for definitive Bearer
Securities, unless the certification shall have been provided earlier pursuant
to Section 304 relating to the payment of interest, and only if the Company has
no reason to know that the certification is false. Except as permitted by
Section 306, the Trustee shall not authenticate and deliver any Bearer Security
unless all appurtenant coupons for interest then matured have been detached and
cancelled.

               If the forms or terms of the Securities of the series and any
related coupons have been established in or pursuant to one or more Board
Resolutions as permitted by Sections 201 and 301, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an Opinion of
Counsel stating:

               (a)    if the forms of such Securities and any coupons have been
established by or pursuant to Board Resolution as permitted by Section 201, that
such forms have been established in conformity with the provisions of this
Indenture;

               (b)    if the terms of such Securities and any coupons have been
established by or pursuant to Board Resolution as permitted by Section 301, that
such terms have been established in conformity with the provisions of this
Indenture; and

                                       20
<PAGE>   28

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

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

               Notwithstanding the provisions of Section 301 and of the
preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Officers'
Certificate otherwise required pursuant to Section 301 or the Company Order and
Opinion of Counsel otherwise required pursuant to such preceding paragraph at or
prior to the time of authentication of each Security of such series if such
documents are delivered at or prior to the authentication upon original issuance
of the first Security of such series.

               Each Registered Security shall be dated the date of its
authentication; and each Bearer Security shall be dated as of the date of
original issuance of the first Security of such series to be issued.

               No Security or coupon shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such
Security a certificate of authentication substantially in the form provided for
herein executed by the Trustee by manual signature, and such certificate upon
any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. Notwithstanding
the foregoing, if any Security shall have been duly 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 309
together with a written statement (which need not comply with Section 102 and
need not be accompanied by an Opinion of Counsel) stating that such Security has
never been issued and sold by the Company, for all purposes of this Indenture
such Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits of this Indenture.

Section 304.   Temporary Securities; Exchange of Temporary Securities.

               Pending the preparation of definitive Securities of any series,
the Company may execute, and upon Company Order the Trustee shall authenticate
and deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued, in registered form or, if authorized, in bearer form with one or
more coupons or without coupons, and with such appropriate insertions,
omissions, substitutions and other variations as the officers executing such
Securities may determine, as evidenced by their execution of such Securities. In
the case of any series issuable as Bearer Securities, such temporary Securities
may be in global form.

                                       21
<PAGE>   29

               Except in the case of temporary Securities in global form (which
shall be exchanged in accordance with the provisions of the following
paragraphs), if temporary Securities of any series are issued, the Company will
cause definitive Securities of that series to be prepared without unreasonable
delay. After the preparation of definitive Securities of such series, the
temporary Securities of such series shall be exchangeable for definitive
Securities of such series upon surrender of the temporary Securities of such
series at the office or agency of the Company maintained pursuant to Section
1002 in a Place of Payment for such series for the purpose of exchanges of
Securities of such series, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities of any series (accompanied
by any unmatured coupons appertaining thereto) the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a like aggregate
principal amount of definitive Securities of the same series and of like tenor
of authorized denominations; provided, however, that no definitive Bearer
Security shall be delivered in exchange for a temporary Registered Security; and
provided, further, that a definitive Bearer Security shall be delivered in
exchange for a temporary Bearer Security only in compliance with the conditions
pertaining to the original issuance of Bearer Securities set forth in Section
303.

               Unless otherwise specified as contemplated by Section 301, if
temporary Securities of any series are issued in global form, any such temporary
global Security shall be delivered to the office of a depositary or common
depositary chosen by Euroclear and Clearstream (the "Common Depositary"), for
the benefit of Euroclear and Clearstream for credit to the respective accounts
of the beneficial owners of such Securities (or to such other accounts as they
may direct).

               Without unnecessary delay but in any event not later than the
date specified in, or determined pursuant to the terms of, any such temporary
global Security (the "Global Exchange Date"), the Company shall deliver to the
Trustee Securities, in aggregate principal amount equal to the principal amount
of such temporary global Security, executed by the Company. On or after the
Global Exchange Date such temporary global Security shall be surrendered by the
Common Depositary to the Trustee, as the Company's agent for such purpose, to be
exchanged, in whole or from time to time in part, for Securities, without charge
and the Trustee shall authenticate and deliver, in exchange for each portion of
such temporary global Security, an equal aggregate principal amount of
Securities of the same series of authorized denominations and of like tenor as
the portion of such temporary global Security to be exchanged. The Securities to
be delivered in exchange for any such temporary global Security shall be
definitive Bearer Securities, definitive Registered Securities or all or a
portion of a permanent global Security or any combination thereof, as specified
as contemplated by Section 301, and, if any combination thereof is so specified,
as requested by the beneficial owner thereof; provided, however, that, in the
case of the exchange of the temporary global Security for definitive Bearer
Securities (including a permanent global Bearer Security), upon such
presentation by the Common Depositary, such temporary global Security shall be
accompanied by a certificate dated not earlier than the Global Exchange Date and
signed by Euroclear as to the portion of such temporary global Security held for
its account then to be exchanged and a certificate dated not earlier than the
Global Exchange Date and signed by Clearstream as to the portion of such
temporary global Security held for its account then to be exchanged, each in the
form set forth in Exhibit A.3 to this Indenture, unless the certificate(s) shall
have been provided earlier pursuant to this Section 304 relating to the payment
of interest, and provided, further, that definitive Bearer

                                       22
<PAGE>   30

Securities (including a permanent global Bearer Security) shall be delivered in
exchange for a portion of a temporary global Security only in compliance with
the requirements of Section 303 pertaining to the original issuance of Bearer
Securities.

               The interest of a beneficial owner of Securities of a series in a
temporary global Security shall be exchanged for definitive Securities or an
interest in a permanent global Security of the same series and of like tenor on
or after the Global Exchange Date when the account holder instructs Euroclear or
Clearstream, as the case may be, to request such exchange on his behalf and in
the case of the exchange of the temporary global Security for definitive Bearer
Securities (including a permanent global Bearer Security), unless the
certificate(s) shall have been provided earlier pursuant to this Section 304
relating to the payment of interest, the account holder shall deliver to
Euroclear or Clearstream, as the case may be, a certificate in the form set
forth in Exhibit A.1 and, if applicable, Exhibit A.2 to this Indenture, dated no
earlier than 15 days prior to the Global Exchange Date, copies of which
certificate shall be available from the offices of Euroclear and Clearstream,
the Trustee, any Authenticating Agent appointed for such series of Securities
and each Paying Agent. Unless otherwise specified in such temporary global
Security, any such exchange shall be made free of charge to the beneficial
owners of such temporary global Security, except that a Person receiving
definitive Securities must bear the cost of insurance, postage, transportation
and the like in the event that such Person does not take delivery of such
definitive Securities in person at the offices of Euroclear or Clearstream.
Definitive Securities in bearer form to be delivered in exchange for any portion
of a temporary global Security shall be delivered only outside the United
States.

               Until exchanged in full as hereinabove provided, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of the same series and of like
tenor authenticated and delivered hereunder, except that interest payable on a
temporary global Security shall be payable to Euroclear and Clearstream on any
Interest Payment Date only if there has been delivered by Euroclear and
Clearstream to the Trustee a certificate or certificates in the form set forth
in Exhibit A.3 to this Indenture dated no earlier than the first Interest
Payment Date, and only if the Company has no reason to know that the
certification is false for credit without further interest on or after such
Interest Payment Date to the respective accounts of the Persons who are the
beneficial owners of such temporary global Security on such Interest Payment
Date and who have each delivered to Euroclear or Clearstream, as the case may
be, a certificate in the form set forth in Exhibit A.1 and, if applicable,
Exhibit A.2 to this Indenture dated no earlier than 15 days prior to the first
Interest Payment Date.

Section 305.   Registration, Registration of Transfer and Exchange.

               The Company shall cause to be kept at an office or agency to be
maintained by the Company in accordance with Section 1002 a register (being the
combined register of the Security Registrar and all transfer agents designated
pursuant to Section 1002 for the purpose of registration of transfer of
Securities and sometimes collectively referred to as the "Security Register") in
which, subject to such reasonable regulations as it may prescribe, the Company
shall provide for the registration of Registered Securities and the registration
of transfers of Registered Securities.

                                       23
<PAGE>   31

               Upon surrender for registration of transfer of any Registered
Security of any series at the office or agency of the Company maintained
pursuant to Section 1002 for such purpose in a Place of Payment for such series,
the Company shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new Registered
Securities of the same series of any authorized denominations and of a like
aggregate principal amount and tenor.

               At the option of the Holder, Registered Securities of any series
may be exchanged for other Registered Securities of the same series in any
authorized denominations and of a like aggregate principal amount and tenor,
upon surrender of the Securities to be exchanged at any such office or agency.
Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which
the Holder making the exchange is entitled to receive. Bearer Securities may not
be issued in exchange for Registered Securities.

               At the option of the Holder, Registered Securities of any series
may be issued in exchange for Bearer Securities of the same series in any
authorized denominations and of a like aggregate principal amount and tenor,
upon surrender of the Bearer Securities to be exchanged at any such office or
agency, with all unmatured coupons and all matured coupons in default thereto
appertaining. If the Holder of a Bearer Security is unable to produce any such
unmatured coupon or coupons or matured coupon or coupons in default, such
exchange may be effected if the Bearer Securities are accompanied by payment in
funds acceptable to the Company in an amount equal to the face amount of such
missing coupon or coupons, or the surrender of such missing coupon or coupons
may be waived by the Company and the Trustee if there is furnished to them such
security or indemnity as they may require to save each of them and any Paying
Agent harmless. If thereafter the Holder of such Security shall surrender to any
Paying Agent any such missing coupon in respect of which such a payment shall
have been made, such Holder shall be entitled to receive the amount of such
payment; provided, however, that, except as otherwise provided in Section 1002,
interest represented by coupons shall be payable only upon presentation and
surrender of those coupons at an office or agency located outside the United
States. Notwithstanding the foregoing, in case a Bearer Security of any series
is surrendered at any such office or agency in exchange for a Registered
Security of the same series and like tenor after the close of business at such
office or agency on (i) any Regular Record Date and before the opening of
business at such office or agency on the relevant Interest Payment Date, or (ii)
any Special Record Date and before the opening of business at such office or
agency on the related proposed date for payment of Defaulted Interest, such
Bearer Security shall be surrendered without the coupon relating to such
Interest Payment Date or proposed date for payment, as the case may be, and
interest or Defaulted Interest, as the case may be, will not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in
respect of the Registered Security issued in exchange for such Bearer Security,
but will be payable only to the Holder of such coupon when due in accordance
with the provisions of this Indenture.

               Whenever any Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver, the
Securities which the Holder making the exchange is entitled to receive.

                                       24
<PAGE>   32

               Notwithstanding the foregoing, except as otherwise specified as
contemplated by Section 301, any permanent global Security shall be exchangeable
only as provided in this paragraph. In the case of permanent global Bearer
Securities and in the case of permanent global Registered Securities if the
beneficial owners of interests in a permanent global Registered Security are
entitled to exchange such interests for Securities of such series and of like
tenor and principal amount of another authorized form and denomination, as
specified as contemplated by Section 301, then without unnecessary delay but in
any event not later than the earliest date on which such interests may be so
exchanged, the Company shall deliver to the Trustee definitive Securities in
aggregate principal amount equal to the principal amount of such permanent
global Security, executed by the Company. On or after the earliest date on which
such interests may be so exchanged, such permanent global Security shall be
surrendered by the depositary with respect thereto to the Trustee, as the
Company's agent for such purpose, to be exchanged, in whole or from time to time
in part, for definitive Securities without charge and the Trustee shall
authenticate and deliver, in exchange for each portion of such permanent global
Security, an equal aggregate principal amount of definitive Securities of the
same series of authorized denominations and of like tenor as the portion of such
permanent global Security to be exchanged which in the case of a permanent
global Bearer Security, unless the Securities of the series are not issuable
both as Bearer Securities and as Registered Securities, as specified as
contemplated by Section 301, shall be in the form of Bearer Securities or
Registered Securities, or any combination thereof, as shall be specified by the
beneficial owner thereof; provided, however, that no such exchanges may occur
during a period beginning at the opening of business 15 days before any
selection of Securities of that series to be redeemed and ending on the relevant
Redemption Date; and provided, further, that no definitive Bearer Security shall
be mailed or otherwise delivered to any location in the United States. If a
Registered Security is issued in exchange for any portion of a permanent global
Security after the close of business at the office or agency where such exchange
occurs on (i) any Regular Record Date and before the opening of business at such
office or agency on the relevant Interest Payment Date, or (ii) any Special
Record Date and the opening of business at such office or agency on the related
proposed date for payment of Defaulted Interest, interest or Defaulted Interest,
as the case may be, will not be payable on such Interest Payment Date or
proposed date for payment, as the case may be, in respect of such Registered
Security, but will be payable on such Interest Payment Date or proposed date for
payment as the case may be, only to the Person to whom interest in respect of
such portion of such permanent global Security is payable in accordance with the
provisions of this Indenture.

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

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

                                       25
<PAGE>   33

               No service charge shall be made for any registration of transfer
or exchange of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 304, 906, 1107 or 1604 not involving any
transfer.

               The Company shall not be required to (i) issue, register the
transfer of or exchange Securities of any series during a period beginning at
the opening of business 15 days before (A) if Securities of the series are
issuable only as Registered Securities, the day of the mailing of the relevant
notice of redemption and ending at the close of business on the day for such
mailing and (B) if Securities of the series are issuable as either Bearer
Securities or Registered Securities, the earlier of the day of the first
publication of the relevant notice of redemption or the mailing of the relevant
notice of redemption and ending at the close of business on such earlier day, or
(ii) register the transfer of or exchange any Registered Security so selected
for redemption, in whole or in part, except the unredeemed portion of any
Registered Security being redeemed in part, or (iii) exchange any Bearer
Security so selected for redemption except that such a Bearer Security may be
exchanged for a Registered Security or coupon, as the case may be, of the same
series and like tenor, provided that such Registered Security shall be
simultaneously surrendered for redemption.

Section 306.   Mutilated, Destroyed, Lost and Stolen Securities and Coupons.

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

               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
or coupon 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 of the Company or the Trustee that such Security or coupon has been
acquired by a bona fide purchaser, the Company shall execute and upon its
request the Trustee shall authenticate and deliver, in lieu of any such
destroyed, lost or stolen Security or in exchange for the Security to which a
destroyed, lost or stolen coupon appertains (with all appurtenant coupons not
destroyed, lost or stolen), a new Security of the same series and of like tenor
and principal amount and bearing a number not contemporaneously outstanding,
with coupons corresponding to the coupons, if any, appertaining to such
destroyed, lost or stolen Security or to the Security to which such destroyed,
lost or stolen coupon appertains.

               In case any such mutilated, destroyed, lost or stolen Security or
coupon 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 or coupon;
provided, however, that principal of and any premium and interest on Bearer
Securities shall, except as otherwise provided in Section 1002, be payable only
at an office or agency located outside the United States and unless

                                       26
<PAGE>   34

otherwise specified as contemplated by Section 301, any interest on Bearer
Securities shall be payable only upon presentation and surrender of the coupons
appertaining thereto.

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

               Every new Security of any series, with its coupons, if any,
issued pursuant to this Section in lieu of any destroyed, lost or stolen
Security, or in exchange for a Security to which a destroyed, lost or stolen
coupon appertains, shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security
and its coupons, if any, or the destroyed, lost or stolen coupon shall be at any
time enforceable by anyone, and any such new Security and coupons, if any, shall
be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that series and of like tenor and their
coupons, if any, duly issued hereunder.

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

Section 307.   Payment of Interest; Interest Rights Preserved.

               Unless otherwise provided as contemplated by Section 301 with
respect to any series of Securities, interest on any Registered Security which
is payable, and is punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest. Unless otherwise provided as contemplated by
Section 301 with respect to any series of Securities, at the option of the
Company, payment of interest on any Registered Security may be made by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register or by wire transfer to an account designated by
such Person pursuant to an arrangement that is satisfactory to the Trustee and
the Company. In the event that payments shall be made by wire transfer, the
Company shall arrange by 10:00 a.m. New York time on the Interest Payment Date
for the wire transfer of money in immediately available funds to the Trustee or
Paying Agent. The Trustee shall not be responsible or held liable for any loss
resulting from a failure of the federal funds wire system or any other
occurrence beyond its control in connection with wire transfers made pursuant to
this Section.

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

               (1)    The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Registered Securities of such series
(or their respective

                                       27
<PAGE>   35

        Predecessor Securities) are registered at the close of business on a
        Special Record Date for the payment of such Defaulted Interest, which
        shall be fixed in the following manner. The Company shall notify the
        Trustee in writing of the amount of Defaulted Interest proposed to be
        paid on each Registered Security of such series and the date of the
        proposed payment, and at the same time the Company shall deposit with
        the Trustee an amount of money equal to the aggregate amount proposed to
        be paid in respect of such Defaulted Interest or shall make arrangements
        satisfactory to the Trustee for such deposit prior to the date of the
        proposed payment, such money when deposited to be held in trust for the
        benefit of the Persons entitled to such Defaulted Interest as in this
        Clause provided. At the same time the Company shall fix a Special Record
        Date for the payment of such Defaulted Interest which shall be not more
        than 15 days and not less than 10 days prior to the date of the proposed
        payment and not less than 10 days after the receipt by the Trustee of
        the notice of the proposed payment. Upon receipt of written notice of
        such Special Record Date from the Company the Trustee, in the name and
        at the expense of the Company, shall cause notice of the proposed
        payment of such Defaulted Interest and the Special Record Date therefor
        to be mailed, first-class postage prepaid, to each Holder of Registered
        Securities of such series at the address of such Holder as it appears in
        the Security Register, not less than 10 days prior to such Special
        Record Date. Notice of the proposed payment of such Defaulted Interest
        and the Special Record Date therefor having been so mailed, such
        Defaulted Interest shall be paid to the Persons in whose names the
        Registered Securities of such series (or their respective Predecessor
        Securities) are registered at the close of business on such Special
        Record Date and shall no longer be payable pursuant to the following
        Clause (2).

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

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

Section 308.   Persons Deemed Owners.

               Prior to due presentment of a Registered Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name such Registered Security is
registered as the owner of such Registered Security for the purpose of receiving
payment of principal of and any premium and (subject to Sections 305 and 307)
any interest on such Security and for all other purposes whatsoever, whether or
not such Security be overdue, and neither the Company, the Trustee nor any agent
of the Company or the Trustee shall be affected by notice to the contrary.

                                       28
<PAGE>   36

               Title to any Bearer Security and any coupons appertaining thereto
shall pass by delivery. The Company, the Trustee and any agent of the Company or
the Trustee may treat the bearer of any Bearer Security and the bearer of any
coupon as the absolute owner of such Security or coupon for the purpose of
receiving payment thereof or on account thereof and for all other purposes
whatsoever, whether or not such Security or coupon be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

               None of the Company, the Trustee, any Paying Agent or the
Security Registrar will have any responsibility or liability for any aspect of
the records relating to or payments made on account of beneficial ownership
interests of a Security issued in global form or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.

Section 309.   Cancellation.

               All Securities and coupons surrendered for payment, redemption,
repayment, registration of transfer or exchange or for credit against any
sinking fund payment shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee. All Securities and coupons so delivered shall be
promptly cancelled by the Trustee. 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 Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the Company
has not issued and sold, and all Securities so delivered shall be promptly
cancelled by the Trustee. No Securities shall be authenticated in lieu of or in
exchange for any Securities cancelled as provided in this Section, except as
expressly permitted by this Indenture. All cancelled Securities and coupons held
by the Trustee shall be destroyed and the Trustee shall furnish to the Company a
certificate with respect to such destruction.

Section 310.   Computation of Interest.

               Except as otherwise specified as contemplated by Section 301 for
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.

                                   ARTICLE IV

                           Satisfaction and Discharge

Section 401.   Satisfaction and Discharge of Indenture.

               This Indenture shall upon Company Request cease to be of further
effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for, and any right to receive
additional amounts, as provided in Section 1005), and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

               (1)    either

                                       29
<PAGE>   37

               (A)    all Securities theretofore authenticated and delivered and
        all coupons, if any, appertaining thereto (other than (i) coupons
        appertaining to Bearer Securities surrendered in exchange for Registered
        Securities and maturing after such exchange, whose surrender is not
        required or has been waived as provided in Section 305, (ii) Securities
        and coupons which have been destroyed, lost or stolen and which have
        been replaced or paid as provided in Section 306, (iii) coupons
        appertaining to Securities called for redemption and maturing after the
        relevant Redemption Date, whose surrender has been waived as provided in
        Section 1106, and (iv) Securities and coupons for whose payment money
        has theretofore been deposited in trust or segregated and held in trust
        by the Company and thereafter repaid to the Company or discharged from
        such trust, as provided in Section 1003) have been delivered to the
        Trustee for cancellation; or

               (B)    all such Securities and, in the case of (i) or (ii) below,
        any coupons appertaining thereto not theretofore delivered to the
        Trustee for cancellation

                      (i)    have become due and payable, or

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

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

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

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

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

               Notwithstanding the satisfaction and discharge of this Indenture,
the obligations of the Company to the Trustee under Sections 607 and 1005 and
the penultimate paragraph of Section 1405, the obligations of the Company to the
Holders of any Securities of any series which are repayable by the Company at
the option of such Holders in accordance with Article Sixteen, the obligations
of the Trustee to any Authenticating Agent under Section 614 and, if money shall
have been deposited with the Trustee pursuant to Clause (1)(B) of this Section,
the obligations of the Trustee under Section 402 and the last paragraph of
Section 1003 shall survive.

                                       30
<PAGE>   38

Section 402.   Application of Trust Money.

               Subject to the provisions of the last paragraph of Section 1003,
all money deposited with the Trustee pursuant to Section 401 shall be held in
trust and applied by it, in accordance with the provisions of the Securities,
the coupons and this Indenture, to the payment, either directly or through any
Paying Agent (including the 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; but such money need not be segregated from other funds except to the
extent required by law.

                                   ARTICLE V

                                    Remedies

Section 501.   Events of Default.

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

               (1) - (5) Reserved;

               (6)    the entry of a decree or order for relief in respect of
        the Company by a court having jurisdiction in the premises in an
        involuntary case under the federal bankruptcy laws, as now or hereafter
        constituted, or any other applicable federal or state bankruptcy,
        insolvency or other similar law, or appointing a receiver, liquidator,
        assignee, trustee, custodian or sequestrator (or other similar official)
        of the Company or substantially all of its assets (other than
        appointment of a conservator with respect to any depository institution
        Subsidiary of the Company insured by the Federal Deposit Insurance
        Corporation or any successor agency), or ordering the winding up or
        liquidation of its affairs, and the continuance of any such decree or
        order unstayed and in effect for a period of 60 consecutive days; or

               (7)    the commencement by the Company of a voluntary case under
        the federal bankruptcy laws, as now or hereafter constituted, or any
        other applicable federal or state bankruptcy, insolvency or similar law,
        or the consent by the Company to the appointment of or taking possession
        by a receiver, liquidator, assignee, trustee, custodian or sequestrator
        (or other similar official) of the Company or substantially all of its
        assets (other than appointment of a conservator with respect to any
        depository institution Subsidiary of the Company insured by the Federal
        Deposit Insurance Corporation or any successor agency), or the making by
        it of any assignment for the benefit of creditors.

Section 502.   Acceleration of Maturity, Rescission and Annulment.

               If an Event of Default shall occur and be continuing with respect
to Securities of any series, then in every such case the Trustee or the Holders
of not less than 25% in aggregate

                                       31
<PAGE>   39

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 and all accrued but unpaid interest on
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) and
interest shall become immediately due and payable. Upon payment of such amount,
all obligations of the Company in respect of payment of the principal of and
interest on the Securities of that series, shall terminate.

               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 provided, the Holders of a majority in principal amount of the
Outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if

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

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

               (B)    the principal of and any premium on any Securities of that
        series which have become due otherwise than by such declaration of
        acceleration, including the delivery of any Capital Securities required
        to be delivered, 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, its agents and counsel; and

               (2)    all Events of Default with respect to Securities of that
        series, other than the non-payment of the principal of Securities of
        that series which have become due solely by such declaration of
        acceleration, have been cured or waived as provided in Section 513.

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

Section 503.   Collection of Indebtedness and Suits for Enforcement by Trustee.

               The Company covenants that if

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

                                       32
<PAGE>   40

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

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

               (4)    default is made in any required designation of Available
        Funds;

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

               If the Company fails to pay such amounts, including the delivery
of any Capital Securities then required to be delivered forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust, may
institute a judicial proceeding for the collection of the sums so due and unpaid
and delivery of Capital Securities, may prosecute such proceeding to judgment or
final decree and may enforce the same against the Company or any other obligor
upon such Securities and coupons and collect the moneys adjudged or decreed to
be payable in the manner provided by law out of the property of the Company or
any other obligor upon such Securities and coupons, wherever situated.

               Default, wherever used herein with respect to Securities of any
series, means unless otherwise specified pursuant to Section 301, any one of the
following events (whatever the reason for such Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

               (A)    an Event of Default with respect to that series specified
        in Section 501; or

               (B)    any of the events referred to in subsections 503(1)
        through (4) above; or

               (C)    default is made in the performance, or breach, of any
        covenant or warranty of the Company in this Indenture (other than a
        covenant or warranty a default in whose performance or whose breach is
        elsewhere in this paragraph specifically dealt with or which has been
        expressly included in this Indenture solely for the benefit of series of
        Securities other than such series), and such default or breach continues
        for a period of 60 days after there has been given, by registered or
        certified mail, to the Company by the Trustee or to the Company and the
        Trustee by the Holders of at least 15% in principal amount of the
        Outstanding Securities of such 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; and

                                       33
<PAGE>   41

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

Section 504.   Trustee May File Proofs of Claim.

               In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceedings or any voluntary or involuntary case under the
federal bankruptcy laws, as now or hereafter constituted, relative to the
Company or any other obligor upon the Securities of any series or any related
coupons or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of any overdue principal or interest) shall be
entitled and empowered, by intervention in such proceeding or otherwise,

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

               (ii)   to collect and receive any moneys or other property
        payable or deliverable on any such claims and to distribute the same;

and any receiver, assignee, trustee, liquidator, custodian, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder of Securities and coupons 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 of Securities and coupons, to pay to the Trustee any
amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

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

Section 505.   Trustee May Enforce Claims Without Possession of Securities or
               Coupons.

               All rights of action and claims under this Indenture or the
Securities or coupons may be prosecuted and enforced by the Trustee without the
possession of any of the Securities or coupons or the production thereof in any
proceeding relating thereto, and any such proceeding

                                       34
<PAGE>   42

instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders
of the Securities and coupons in respect of which such judgment has been
recovered.

Section 506.   Application of Money or Property Collected.

               Any money or property collected by the Trustee pursuant to this
Article shall be applied in the following order, at the date or dates fixed by
the Trustee and, in case of the distribution of such money or property on
account of principal or any premium or interest, upon presentation of the
Securities or coupons, or both, as the case may be, 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 607;

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

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

               In any case where Securities are Outstanding which are
denominated in more than one currency, or in a composite currency and at least
one other currency, and the Trustee is directed to make ratable payments under
this Section to Holders of such Securities, the Trustee shall (to the fullest
extent permitted by law) calculate the amount of such payments as follows: (i)
as of the day the Trustee collects an amount under this Article, the Trustee
shall, as to each Holder of a Security to whom an amount is due and payable
under this Section which is denominated in a foreign currency or a composite
currency, determine that amount of U.S. Dollars that would be obtained for the
amount owing such Holder, using the rate of exchange at which in accordance with
normal banking procedures the Trustee could purchase in The City of New York
U.S. Dollars with such amount owing; (ii) calculate the sum of all U.S. Dollar
amounts determined under (i) and add thereto any amounts due and payable in U.S.
Dollars; and (iii) using the individual amounts determined in (i) or any
individual amounts due and payable in U.S. Dollars, as the case may be, as a
numerator and the sum calculated in (ii) as a denominator, calculate as to each
Holder of a Security to whom an amount is owed under this Section the fraction
of the amount collected under this Article payable to such Holder. Any expenses
incurred by the Trustee in actually converting amounts owing Holders of
Securities denominated in a currency or composite currency other than that in
which any amount is collected under this Article shall be likewise (in
accordance with this paragraph) borne ratably by all Holders of Securities to
whom amounts are payable under this Section.

               To the fullest extent allowed under applicable law, if for the
purpose of obtaining judgment against the Company in any court it is necessary
to convert the sum due in respect of

                                       35
<PAGE>   43

the principal of, or any premium or interest on the Securities of any series
(the "Required Currency") into a currency in which a judgment will be rendered
(the "Judgment Currency"), the rate of exchange used shall be the rate at which
in accordance with normal banking procedures the Trustee could purchase in The
City of New York the Required Currency with the Judgment Currency on the New
York Business Day preceding that on which final judgment is given. The Company
shall not be liable for any shortfall nor shall it benefit from any windfall in
payments to Holders of Securities under this Section caused by a change in
exchange rates between the time the amount of a judgment against it is
calculated as above and the time the Trustee converts the Judgment Currency into
the Required Currency to make payments under this Section to Holders of
Securities, but payment of such judgment shall discharge all amounts owed by the
Company on the claim or claims underlying such judgment.

Section 507.   Limitation on Suits.

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

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

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

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

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

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

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

Section 508.   Unconditional Right of Holders to Receive Principal, Premium and
               Interest and to Exchange Securities for Capital Securities.

               Notwithstanding any other provision in this Indenture, the Holder
of any Security or coupon shall have the right, which is absolute and
unconditional, to receive payment of the principal of and any premium and
(subject to Sections 305 and 307) any interest on such Security or payment of
such coupon on the Stated Maturity or Maturities expressed in such Security or

                                       36
<PAGE>   44

coupon (or, in the case of redemption or repayment, on the Redemption Date or
the Repayment Date, as the case may be), to have the Security exchanged for
Capital Securities pursuant to Article Seventeen and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without
the consent of such Holder.

Section 509.   Restoration of Rights and Remedies.

               If the Trustee or any Holder of a Security or coupon 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 of Securities and coupons shall be restored severally
and respectively to their former positions hereunder and thereafter all rights
and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

Section 510.   Rights and Remedies Cumulative.

               Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities or coupons in the
last paragraph of Section 306, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders of Securities or coupons is intended
to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

Section 511.   Delay or Omission Not Waiver.

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

Section 512.   Control by Holders of Securities.

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

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

               (2)    subject to the provisions of Section 601, the Trustee
        shall have the right to decline to follow any such direction if the
        Trustee in good faith shall, by a Responsible Officer or Responsible
        Officers of the Trustee, determine that the proceeding so directed

                                       37
<PAGE>   45

        would be unjustly prejudicial to the Holders of Securities of such
        series not joining in any such direction, and

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

Section 513.   Waiver of Past Defaults.

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

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

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

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

Section 514.   Undertaking for Costs.

               All parties to this Indenture agree, and each Holder of any
Security or coupon by his acceptance thereof shall be deemed to have agreed,
that any court may in its discretion require, in any suit for the enforcement of
any right or remedy under this Indenture, or in any suit against the Trustee for
any action taken, suffered or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder or group of Holders holding in the
aggregate more than 10% in principal amount of the Outstanding Securities of any
series, or to any suit instituted by any Holder of any Security or coupon for
the enforcement of the payment of the principal of or any premium or interest on
any Security or the payment of any coupon on or after the Stated Maturity or
Maturities expressed in such Security or coupon (or, in the case of redemption
or repayment, on or after the Redemption Date or Repayment Date, as the case may
be).

Section 515.   Waiver of Stay or Extension Laws.

               The Company covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company (to the

                                       38
<PAGE>   46

extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law and covenants that it will not hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.

                                   ARTICLE VI

                                   The Trustee

Section 601.   Certain Duties and Responsibilities.

               (a)    Except during the continuance of a 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 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 the accuracy of the information contained
        therein.

               (b)    In case a 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 their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
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 wilful 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 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

                                       39
<PAGE>   47

               (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, if it shall have reasonable
        grounds for believing that repayment of such funds or adequate indemnity
        against such risk or liability is not reasonably assured to it.

               (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 602.   Notice of Defaults.

               Within 90 days after the occurrence of any default hereunder with
respect to the Securities of any series the Trustee shall transmit to all
Holders of Securities of such series in the manner and to the extent provided in
Section 703(c), notice of such default hereunder known to the Trustee, unless
such default shall have been cured or waived; provided, however, that, except in
the case of a default in the payment of the principal of or any premium or
interest on any Security of such series or in the payment of any sinking fund
installment or the delivery of Capital Securities with respect to Securities of
such series, the Trustee shall be protected in withholding such notice if and so
long as the board of directors, the executive committee or a trust committee of
directors or Responsible Officers of the Trustee in good faith determines that
the withholding of such notice is in the interest of the Holders of Securities
of such series. For the purpose of this Section, the term "default" means any
event which is, or after notice or lapse of time or both would become, a Default
with respect to Securities of such series.

Section 603.   Certain Rights of Trustee.

               Subject to the provisions of Section 601:

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

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

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

               (d)    before the Trustee acts or refrains from acting, the
Trustee may consult with counsel and the written advice of such counsel or any
Opinion of Counsel shall be full and

                                       40
<PAGE>   48

complete authorization and protection in respect of any action taken, suffered
or omitted by it hereunder in good faith and in reliance thereon;

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

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

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

               (h)    the Trustee shall not be liable for any action taken 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; and

               (i)    in no event shall the Trustee be liable for the selection
of investments or for investment losses incurred thereon; the Trustee shall have
no liability in respect of losses incurred as a result of the liquidation of any
such investment prior to its stated maturity or the failure of the party
directing such investment to provide timely written investment directions; the
Trustee shall have no obligation to invest or reinvest any amounts held
hereunder in the absence of such written investment directions.

In the event that the Trustee is also acting as Paying Agent, Security
Registrar, Exchange Agent or transfer agent hereunder, the rights and
protections afforded to the Trustee pursuant to this Article Six shall also be
afforded to such Paying Agent, Security Registrar, Exchange Agent or transfer
agent.

Section 604.   Not Responsible for Recitals or Issuance of Securities.

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

                                       41
<PAGE>   49

under and in accordance with any provision of this Indenture or (iii)
responsible for the use or application of any money received by any Paying Agent
other than the Trustee.

Section 605.   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 coupons and,
subject to Sections 608 and 613, 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 606.   Money Held in Trust.

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

Section 607.   Compensation and Reimbursement.

               The Company agrees

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

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

               (3)    to indemnify the Trustee in its individual capacity and as
        Trustee, and each of its officers, directors, attorneys-in-fact and
        agents for, and to hold it harmless against, any loss, claim, liability
        or expense incurred without negligence or bad faith on its part, arising
        out of or in connection with the acceptance or administration of the
        trust or trusts hereunder, including the costs and expenses of defending
        itself against any claim or liability in connection with the exercise or
        performance of any of its powers or duties hereunder.

               The foregoing provisions shall survive any resignation or removal
of the Trustee.

               As security for the performance of the obligations of the Company
under this Section the Trustee shall have a lien prior to the Securities upon
all property and funds held or collected by the Trustee as such, except funds
held in trust for the benefit of the Holders of particular Securities. Such lien
shall survive the satisfaction and discharge of this Indenture and,

                                       42
<PAGE>   50

to the extent permitted by law, any rejection or termination of this Indenture
under any federal or state bankruptcy law.

               To the fullest extent permitted by law, when the Trustee incurs
reasonable expenses or renders services in connection with an Event of Default
specified in Section 501(6) or (7), the Holders of the Securities of any series,
by their acceptance of such Securities, agree that such reasonable expenses and
the compensation for such services are intended to constitute expenses of
administration under any applicable bankruptcy law.

Section 608.   Disqualification; Conflicting Interests.

               (a)    If the Trustee has or shall acquire any conflicting
interest, as defined in this Section, with respect to the Securities of any
series then, within 90 days after ascertaining that it has such conflicting
interest, and if the Default, but exclusive of any period of grace or
requirement of notice, to which such conflicting interest relates has not been
cured or duly waived or otherwise eliminated before the end of such 90-day
period, the Trustee shall either eliminate such conflicting interest or, except
as otherwise provided below in this Section, resign with respect to the
Securities of that series in the manner and with the effect hereinafter
specified in this Article and the Company shall take prompt steps to have a
successor appointed in the manner provided herein.

               (b)    (1) If the Trustee shall fail to comply with the
provisions of Subsection (a) of this Section with respect to the Securities of
any series, the Trustee shall, within 10 days after the expiration of such
90-day period, transmit, in the manner and to the extent provided in Section
703(c), to all Holders of Securities of that series notice of such failure.

                      (2) Subject to the provisions of Section 514, unless the
Trustee's duty to resign is stayed as provided in Subsection (f) of this
Section, any Holder who has been a bona fide Holder of Securities of any series
referred to in Subsection (a) of this Section 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 such Trustee, and the appointment of a
successor, if such Trustee fails, after written request thereof by such Holder
to comply with the provisions of Subsection (a) of this Section.

               (c)    For the purposes of this Section, the Trustee shall be
deemed to have a conflicting interest with respect to the Securities of any
series if a Default, but exclusive of any period of grace or any requirement of
notice, has occurred with respect to the Securities of that series and

               (1)    the Trustee is trustee under this Indenture with respect
        to the Outstanding Securities of any series other than that series or is
        trustee under another indenture under which any other securities, or
        certificates of interest or participation in any other securities, of
        the Company are outstanding, unless such other indenture is a collateral
        trust indenture under which the only collateral consists of Securities
        issued under this Indenture, provided that there shall be excluded from
        the operation of this paragraph, (A) this Indenture with respect to the
        Securities of any series other than that series and (B)

                                       43
<PAGE>   51

        any other indenture or indentures under which other securities, or
        certificates of interest or participation in other securities, of the
        Company are outstanding and

                      (i)    this Indenture and such other indenture or
               indentures (and all series of securities issuable thereunder)
               are wholly unsecured and rank equally and such other indenture
               or indentures are hereafter qualified under the Trust Indenture
               Act, unless the Commission shall have found and declared by
               order pursuant to Section 305(b) or Section 307(c) of the Trust
               Indenture Act that differences exist between the provisions of
               this Indenture with respect to Securities of that series and one
               or more other series or the provisions of such other indenture
               or indentures which are so likely to involve a material conflict
               of interest as to make it necessary in the public interest or
               for the protection of investors to disqualify the Trustee from
               acting as such under this Indenture with respect to the
               Securities of that series and such other series or under such
               other indenture or indentures, or

                     (ii)   the Company shall have sustained the burden of
               proving, on application to the Commission and after opportunity
               for hearing thereon, that trusteeship under this Indenture with
               respect to the Securities of that series and such other series
               or such other indenture or indentures is not so likely to
               involve a material conflict of interest as to make it necessary
               in the public interest or for the protection of investors to
               disqualify the Trustee from acting as such under this Indenture
               with respect to the Securities of that series and such other
               series or under such other indenture or indentures;

               (2)    the Trustee or any of its directors or executive officers
        is an underwriter for the Company;

               (3)    the Trustee directly or indirectly controls or is directly
        or indirectly controlled by or is under direct or indirect common
        control with an underwriter for the Company;

               (4)    the Trustee or any of its directors or executive officers
        is a director, officer, partner, employee, appointee or representative
        of the Company, or of an underwriter (other than the Trustee itself) for
        the Company who is currently engaged in the business of underwriting,
        except that (i) one individual may be a director or an executive
        officer, or both, of the Trustee and a director or an executive officer,
        or both, of the Company but may not be at the same time an executive
        officer of both the Trustee and the Company; (ii) if and so long as the
        number of directors of the Trustee in office is more than nine, one
        additional individual may be a director or an executive officer, or
        both, of the Trustee and a director of the Company; and (iii) the
        Trustee may be designated by the Company or by any underwriter for the
        Company to act in the capacity of transfer agent, registrar, custodian,
        paying agent, fiscal agent, escrow agent or depositary, or in any other
        similar capacity, or, subject to the provisions of paragraph (1) of this
        Subsection, to act as trustee, whether under an indenture or otherwise;

               (5)    10% or more of the voting securities of the Trustee is
        beneficially owned either by the Company or by any director, partner or
        executive officer thereof, or 20% or

                                       44
<PAGE>   52

        more of such voting securities is beneficially owned, collectively, by
        any two or more of such persons; or 10% or more of the voting securities
        of the Trustee is beneficially owned either by an underwriter for the
        Company or by any director, partner or executive officer thereof, or is
        beneficially owned, collectively, by any two or more such persons;

               (6)    the Trustee is the beneficial owner of, or holds as
        collateral security for an obligation which is in default (as
        hereinafter in this Subsection defined), (i) 5% or more of the voting
        securities, or 10% or more of any other class of security, of the
        Company not including the Securities issued under this Indenture and
        securities issued under any other indenture under which the Trustee is
        also trustee, or (ii) 10% or more of any class of security of an
        underwriter for the Company;

               (7)    the Trustee is the beneficial owner of, or holds as
        collateral security for an obligation which is in default (as
        hereinafter in this Subsection defined), 5% or more of the voting
        securities of any person who, to the knowledge of the Trustee, owns 10%
        or more of the voting securities of, or controls directly or indirectly
        or is under direct or indirect common control with, the Company;

               (8)    the Trustee is the beneficial owner of, or holds as
        collateral security for an obligation which is in default (as
        hereinafter in this Subsection defined), 10% or more of any class of
        security of any person who, to the knowledge of the Trustee, owns 50% or
        more of the voting securities of the Company;

               (9)    the Trustee owns, on the date any Default, but exclusive
        of any period of grace or requirement of notice, has occurred upon the
        Securities of any series or any anniversary of such default while such
        default upon such Securities remains outstanding, in the capacity of
        executor, administrator, testamentary or inter vivos trustee, guardian,
        committee or conservator, or in any other similar capacity, an aggregate
        of 25% or more of the voting securities, or of any class of security, of
        any person, the beneficial ownership of a specified percentage of which
        would have constituted a conflicting interest under paragraph (6), (7)
        or (8) of this Subsection. As to any such securities of which the
        Trustee acquired ownership through becoming executor, administrator or
        testamentary trustee of an estate which included them, the provisions of
        the preceding sentence shall not apply, for a period of not more than
        two years from the date of such acquisition, to the extent that such
        securities included in such estate do not exceed 25% of such voting
        securities or 25% of any such class of security. Promptly after the
        dates of any such default upon the Securities of any series and annually
        in each succeeding year that such default upon such Securities
        continues, the Trustee shall make a check of its holdings of such
        securities in any of the above-mentioned capacities as of such dates. If
        the Company fails to make payment in full of the principal of or any
        premium or interest on any of the Securities when and as the same
        becomes due and payable, and such failure continues for 30 days
        thereafter, the Trustee shall make a prompt check of its holdings of
        such securities in any of the above-mentioned capacities as of the date
        of the expiration of such 30-day period, and after such date,
        notwithstanding the foregoing provisions of this paragraph, all such
        securities so held by the Trustee, with sole or joint control over such
        securities vested in it, shall, but only so long as such failure shall
        continue, be

                                       45
<PAGE>   53

        considered as though beneficially owned by the Trustee for the purposes
        of paragraphs (6), (7) and (8) of this Subsection; or

               (10)   except under the circumstances described in paragraphs
        (1), (3), (4), (5) or (6) of Section 613(b), the Trustee shall be or
        shall become a creditor of the Company.

               For purposes of paragraph (1) of this Subsection, and of Sections
512 and 513, the term "series" means a series, class or group of securities
issuable under an indenture or this Indenture pursuant to whose terms holders of
one such series may vote to direct the trustee, or otherwise take action
pursuant to a vote of such holders, separately from holders of another such
series; provided, that "series" shall not include any series of securities
issuable under an indenture (including any series of Securities issuable under
this Indenture) if all such series rank equally and are wholly unsecured.

               The specification of percentages in paragraphs (5) to (9),
inclusive, of this Subsection shall not be construed as indicating that the
ownership of such percentages of the securities of a person is or is not
necessary or sufficient to constitute direct or indirect control for the
purposes of paragraph (3) or (7) of this Subsection.

               For the purposes of paragraphs (6), (7), (8) and (9) of this
Subsection only, (i) the terms "security" and "securities" shall include only
such securities as are generally known as corporate securities, but shall not
include any note or other evidence of indebtedness issued to evidence an
obligation to repay moneys lent to a person by one or more banks, trust
companies or banking firms, or any certificate of interest or participation in
any such note or evidence of indebtedness; (ii) an obligation shall be deemed to
be "in default" when a default in payment of principal shall have continued for
30 days or more and shall not have been cured; and (iii) the Trustee shall not
be deemed to be the owner or holder of (A) any security which it holds as
collateral security, as trustee or otherwise, for an obligation which is not in
default as defined in clause (ii) above, or (B) any security which it holds as
collateral security under this Indenture, irrespective of any default hereunder,
or (C) any security which it holds as agent for collection, or as custodian,
escrow agent or depositary, or in any similar representative capacity.

               (d)    For the purposes of this Section:

               (1)    The term "underwriter," when used with reference to the
        Company, means every person who, within one year prior to the time as of
        which the determination is made, has purchased from the Company with a
        view to, or has offered or sold for the Company in connection with, the
        distribution of any security of the Company outstanding at such time, or
        has participated or has had a direct or indirect participation in any
        such undertaking, or has participated or has had a participation in the
        direct or indirect underwriting of any such undertaking, but such term
        shall not include a person whose interest was limited to a commission
        from an underwriter or dealer not in excess of the usual and customary
        distributors' or sellers' commission.

               (2)    The term "director" means any director of a corporation or
        any individual performing similar functions with respect to any
        organization, whether incorporated or unincorporated.

                                       46
<PAGE>   54

               (3)    The term "person" means an individual, a corporation, a
        partnership, an association, a joint-stock company, a trust, an
        unincorporated organization or a government or political subdivision
        thereof. As used in this paragraph, the term "trust" shall include only
        a trust where the interest or interests of the beneficiary or
        beneficiaries are evidenced by a security.

               (4)    The term "voting security" means any security presently
        entitling the owner or holder thereof to vote in the direction or
        management of the affairs of a person, or any security issued under or
        pursuant to any trust, agreement or arrangement whereby a trustee or
        trustees or agent or agents for the owner or holder of such security are
        presently entitled to vote in the direction or management of the affairs
        of a person.

               (5)    The term "Company" means any obligor upon the Securities
        of any series or any related coupons.

               (6)    The term "executive officer" means the president, every
        vice president, every trust officer, the cashier, the secretary and the
        treasurer of a corporation, and any individual customarily performing
        similar functions with respect to any organization whether incorporated
        or unincorporated, but shall not include the chairman of the board of
        directors.

               (e)    The percentages of voting securities and other securities
specified in this Section shall be calculated in accordance with the following
provisions:

               (1)    A specified percentage of the voting securities of the
        Trustee, the Company or any other person referred to in this Section
        (each of whom is referred to as a "person" in this paragraph) means such
        amount of the outstanding voting securities of such person as entitles
        the holder or holders thereof to cast such specified percentage of the
        aggregate votes which the holders of all the outstanding voting
        securities of such person are entitled to cast in the direction or
        management of the affairs of such person.

               (2)    A specified percentage of a class of securities of a
        person means such percentage of the aggregate amount of securities of
        the class outstanding.

               (3)    The term "amount," when used in regard to securities,
        means the principal amount if relating to evidences of indebtedness, the
        number of shares if relating to capital shares and the number of units
        if relating to any other kind of security.

               (4)    The term "outstanding" means issued and not held by or for
        the account of the issuer. The following securities shall not be deemed
        outstanding within the meaning of this definition:

                      (i)    securities of an issuer held in a sinking fund
               relating to securities of the issuer of the same class;

                      (ii)   securities of an issuer held in a sinking fund
               relating to another class of securities of the issuer, if the
               obligation evidenced by such other class of securities is not in
               default as to principal or interest or otherwise;

                                       47
<PAGE>   55

                      (iii)  securities pledged by the issuer thereof as
               security for an obligation of the issuer not in default as to
               principal or interest or otherwise; and

                      (iv)   securities held in escrow if placed in escrow by
               the issuer thereof;

        provided, however, that any voting securities of an issuer shall be
        deemed outstanding if any person other than the issuer is entitled to
        exercise the voting rights thereof.

               (5)    A security shall be deemed to be of the same class as
        another security if both securities confer upon the holder or holders
        thereof substantially the same rights and privileges; provided, however,
        that, in the case of secured evidences of indebtedness, all of which are
        issued under a single indenture, differences in the interest rates or
        maturity dates of various series thereof shall not be deemed sufficient
        to constitute such series different classes and provided, further, that,
        in the case of unsecured evidences of indebtedness, differences in the
        interest rates or maturity dates thereof shall not be deemed sufficient
        to constitute them securities of different classes, whether or not they
        are issued under a single indenture.

               (f)    Except in the case of a default in the payment of the
principal of or interest on any Securities of any series, or in the payment of
any sinking or purchase fund installment, the Trustee shall not be required to
resign as provided by this Section if the Trustee shall have sustained the
burden of proving, on application to the Commission and after opportunity for
hearing thereon, that (i) the Default, but exclusive of any period of grace or
requirement of notice, may be cured or waived during a reasonable period and
under the procedures described in such application, and (ii) a stay of the
Trustee's duty to resign will not be inconsistent with the interests of Holders
of such Securities. The filing of such an application shall automatically stay
the performance of the duty to resign until the Commission orders otherwise.

               (g)    If Section 310(b) of the Trust Indenture Act is amended at
any time after the date of this Indenture to change the circumstances under
which a Trustee shall be deemed to have a conflicting interest with respect to
the Securities of any series or to change any of the definitions in connection
therewith, this Section 608 shall be automatically amended to incorporate such
changes, unless such changes would cause any Trustee then acting as Trustee
hereunder with respect to any Outstanding Securities to be deemed to have a
conflicting interest, in which case such changes shall be incorporated herein
only to the extent that such changes (i) would not cause the Trustee to be
deemed to have a conflicting interest or (ii) are required by law.

Section 609.   Corporate Trustee Required; Eligibility.

               There shall at all times be a Trustee hereunder which shall 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 exercise corporate trust powers, having a combined capital and surplus
of at least $5,000,000 and subject to supervision or examination by Federal or
State authority; provided, however, that if Section 310(a) of the Trust
Indenture Act or the rules and regulations of the Commission under the Trust
Indenture Act at any time permit a corporation organized and doing business
under the laws of any other

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<PAGE>   56

jurisdiction to serve as trustee of an indenture qualified under the Trust
Indenture Act, this Section 609 shall be automatically amended to permit a
corporation organized and doing business under the laws of any such other
jurisdiction to serve as Trustee hereunder, provided that such corporation shall
have a combined capital and surplus of at least $5,000,000. If such corporation
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, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. Neither the Company nor any person directly or
indirectly controlling, controlled by or under common control with the Company
may serve as Trustee. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article.

Section 610.   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 shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 611.

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

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

               (d) If at any time:

               (1)    the Trustee shall fail to comply with Section 608 with
        respect to the Securities of any series after written request therefor
        by the Company or by any Holder of a Security of such series who has
        been a bona fide Holder of a Security of such series for at least six
        months, unless the Trustee's duty to resign has been stayed as provided
        in Section 608(f), or

               (2)    the Trustee shall cease to be eligible under Section 609
        and shall fail to resign after written request therefor by the Company
        or by any such Holder, or

               (3)    the Trustee shall become incapable of acting with respect
        to any series of Securities or a decree or order for relief by a court
        having jurisdiction in the premises shall have been entered in respect
        of the Trustee in an involuntary case under the Federal bankruptcy laws,
        as now or hereafter constituted, or any other applicable federal or
        state bankruptcy, insolvency or similar law, or a decree or order by a
        court having jurisdiction in the premises shall have been entered for
        the appointment of a receiver, custodian,

                                       49
<PAGE>   57

        liquidator, assignee, trustee, sequestrator or other similar official of
        the Trustee or its property or affairs, or any public officer shall take
        charge or control of the Trustee or of its property or affairs for the
        purpose of rehabilitation, conservation, winding up or liquidation, or

               (4)    the Trustee shall commence a voluntary case under the
        federal bankruptcy laws, as now or hereafter constituted, or any other
        applicable federal or state bankruptcy, insolvency or similar law or
        shall consent to the appointment of or taking possession by a receiver,
        custodian, liquidator, assignee, trustee, sequestrator (or other similar
        official) of the Trustee or its property or affairs, or shall make an
        assignment for the benefit of creditors, or shall admit in writing its
        inability to pay its debts generally as they become due, or shall take
        corporate action in furtherance of any such action,

then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (ii) subject to Section 514, any
Holder of a Security who has been a bona fide Holder of a Security for at least
six months may, on behalf of himself and all others similarly situated
(including those who have been Holders for less than six months), petition any
court of competent jurisdiction for the removal of the Trustee with respect to
all Securities and the appointment of a successor Trustee or Trustees.

               (e)    If the Trustee shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of Trustee for
any cause, with respect to the Securities of one or more series, the Company, by
a Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being understood that any
such successor Trustee may be appointed with respect to the Securities of one or
more or all of such series and that at any time there shall be only one Trustee
with respect to the Securities of any particular series) and shall comply with
the applicable requirements of Section 611. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section
611, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If
no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Company or the Holders of Securities and accepted
appointment in the manner required by Section 611, any Holder of a Security who
has been a bona fide Holder of a Security of such series for at least six months
may, on behalf of himself and all others similarly situated (including those who
have been Holders for less than six months), or the Trustee may, petition any
court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

               (f)    The Company shall give notice of each resignation and each
removal of the Trustee with respect to the Securities of any series and each
appointment of a successor Trustee with respect to the Securities of any series
in the manner provided in Section 106. Each notice shall include the name of the
successor Trustee with respect to the Securities of such series and the address
of its Corporate Trust Office.

                                       50
<PAGE>   58

Section 611.   Acceptance of Appointment by Successor.

               (a)    In case of the appointment hereunder of a successor
Trustee with respect to all series of Securities, every such successor Trustee
so appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder, subject
nevertheless to its liens, if any, provided for in Section 607.

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

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

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

                                       51
<PAGE>   59

Section 612.   Merger, Conversion, Consolidation or Succession to Business.

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

Section 613.   Preferential Collection of Claims Against Company.

               (a)    Subject to Subsection (b) of this Section, if the Trustee
shall be or shall become a creditor, directly or indirectly, secured or
unsecured, of the Company within three months prior to a default, as defined in
Subsection (c) of this Section, or subsequent to such a default, then, unless
and until such default shall be cured, the Trustee shall set apart and hold in a
special account for the benefit of the Trustee individually, the Holders of the
Securities and coupons and the holders of other indenture securities, as defined
in Subsection (c) of this Section:

               (1)    an amount equal to any and all reductions in the amount
        due and owing upon any claim as such creditor in respect of principal or
        interest, effected after the beginning of such three-month period and
        valid as against the Company and its other creditors, except any such
        reduction resulting from the receipt or disposition of any property
        described in paragraph (2) of this Subsection, or from the exercise of
        any right of set-off which the Trustee could have exercised if a
        voluntary or involuntary case had been commenced in respect of the
        Company under the federal bankruptcy laws, as now or hereafter
        constituted, or any other applicable federal or state bankruptcy,
        insolvency or other similar law upon the date of such default; and

               (2)    all property received by the Trustee in respect of any
        claims as such creditor, either as security therefor, or in satisfaction
        or composition thereof, or otherwise, after the beginning of such three
        months' period, or an amount equal to the proceeds of any such property,
        if disposed of, subject, however, to the rights, if any, of the Company
        and its other creditors in such property or such proceeds.

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

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

                                       52
<PAGE>   60

        to federal bankruptcy laws, as now or hereafter constituted, or any
        other applicable federal or state bankruptcy, insolvency or other
        similar law;

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

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

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

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

               If the Trustee shall be required to account, the funds and
property held in such special account and the proceeds thereof shall be
apportioned among the Trustee, the Holders of Securities and the holders of
other indenture securities in such manner that the Trustee, the Holders of
Securities and the holders of other indenture securities realize, as a result of
payments from such special account and payments of dividends on claims filed
against the Company in bankruptcy or receivership or in proceedings for
reorganization pursuant to the federal bankruptcy laws, as now or hereafter
constituted, or any other applicable federal or state bankruptcy, insolvency or
other similar law, the same percentage of their respective claims, figured
before crediting to the claim of the Trustee anything on account of the receipt
by it from the Company of the funds and property in such special account and
before crediting to the respective claims of the Trustee and the Holders of
Securities and the holders of other indenture securities dividends on claims
filed against the Company in bankruptcy or receivership or in proceedings for
reorganization pursuant to the federal bankruptcy laws, as now or hereafter
constituted, or any other applicable federal or state bankruptcy, insolvency or
other similar law, but after crediting thereon receipts on account of the
indebtedness represented by their respective claims from all sources other than
from such dividends and from the funds and property so held in such special
account. As used in this paragraph, with respect to any claim, the term
"dividends" shall include any distribution with respect to such claim, in
bankruptcy or receivership or proceedings for reorganization pursuant to the
federal bankruptcy laws, as now or hereafter constituted, or any other
applicable federal or state bankruptcy, insolvency or other

                                       53
<PAGE>   61

similar law, whether such distribution is made in cash, securities or other
property, but shall not include any such distribution with respect to the
secured portion, if any, of such claim. The court in which such bankruptcy,
receivership or proceedings for reorganization is pending shall have
jurisdiction (i) to apportion among the Trustee, the Holders of Securities and
the holders of other indenture securities, in accordance with the provisions of
this paragraph, the funds and property held in such special account and proceeds
thereof, or (ii) in lieu of such apportionment, in whole or in part, to give to
the provisions of this paragraph due consideration in determining the fairness
of the distributions to be made to the Trustee and the Holders of Securities and
the holders of other indenture securities with respect to their respective
claims, in which event it shall not be necessary to liquidate or to appraise the
value of any securities or other property held in such special account or as
security for any such claim, or to make a specific allocation of such
distributions as between the secured and unsecured portions of such claims, or
otherwise to apply the provisions of this paragraph as a mathematical formula.

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

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

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

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

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

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

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

               (4)    an indebtedness created as a result of services rendered
        or premises rented; or an indebtedness created as a result of goods or
        securities sold in a cash transaction, as defined in Subsection (c) of
        this Section;

                                       54
<PAGE>   62

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

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

               (c)    For the purposes of this Section only:

               (1)    the term "default" means any failure to make payments in
        full of the principal of or interest on any of the Securities or upon
        the other indenture securities when and as such principal or interest
        becomes due and payable;

               (2)    the term "other indenture securities" means securities
        upon which the Company is an obligor outstanding under any other
        indenture (i) under which the Trustee is also trustee, (ii) which
        contains provisions substantially similar to the provisions of this
        Section, and (iii) under which a default exists at the time of the
        apportionment of the funds and property held in such special account;

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

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

               (5)    the term "Company" means any obligor upon the Securities.

Section 614.   Appointment of Authenticating Agent.

               The Trustee may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to act on
behalf of the Trustee to authenticate Securities of such series issued upon
original issue or upon exchange, registration of transfer or partial redemption
thereof or pursuant to Section 306, and if the Trustee is required to appoint
one or more Authenticating Agents with respect to any series of Securities, to
authenticate Securities of such series upon original issuance and to take such
other actions as are specified in Sections 303, 304, 305, 309, 906, 1107 and
1603, and Securities so authenticated shall be entitled to the benefits of this
Indenture and shall be valid and obligatory for all purposes

                                       55
<PAGE>   63

as if authenticated by the Trustee hereunder. Wherever reference is made in this
Indenture to the authentication and delivery of Securities by the Trustee or the
Trustee's certificate of authentication, such reference shall be deemed to
include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State thereof
or the District of Columbia, or in the case of any Authenticating Agent with
respect to Securities issuable as Bearer Securities, under the laws of any
country in which such Bearer Securities may be offered, authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $1,000,000 and subject to supervision or examination by Federal or
State authority or authority of such country. 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, the combined capital and surplus of such Authenticating Agent
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section,
such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section.

               Any corporation into which an Authenticating Agent may be merged
or converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of such Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further
act on the part of the Trustee or such Authenticating Agent; provided, however,
that the Trustee shall upon such merger, conversion or consolidation notify
Holders of Bearer Securities thereof as provided in Section 106.

               An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof
to such Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall provide notice to the
Holders of the series as to which the Authenticating Agent will serve as
provided in Section 106. Any successor Authenticating Agent upon acceptance of
its appointment hereunder shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

               The Trustee agrees to pay to each Authenticating Agent from time
to time reasonable compensation for its services under this Section, and the
Trustee shall be entitled to be reimbursed for such payments, subject to the
provisions of Section 607.

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<PAGE>   64

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

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

                                            [NAME OF TRUSTEE], as Trustee

                                       By ______________________________________
                                                 As Authenticating Agent

                                       By ______________________________________
                                                  Authorized Signatory

               If all of the Securities of a series may not be originally issued
at one time, and if the Trustee does not have an office capable of
authenticating Securities upon original issuance located in a Place of Payment
where the Company wishes to have Securities of such series authenticated upon
original issuance, the Trustee, if so requested by the Company in writing (which
writing need not comply with Section 102 and need not be accompanied by an
Opinion of Counsel), shall appoint in accordance with this Section an
Authenticating Agent having an office in a Place of Payment designated by the
Company with respect to such series of Securities.

                                  ARTICLE VII

                Holders' Lists and Reports by Trustee and Company

Section 701.   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 later than each April 15 and October 15
        in each year, a list, in such form as the Trustee may reasonably
        require, containing all the information in the possession or control of
        the Company, or any of its Paying Agents other than the Trustee, as to
        the names and addresses of the Holders of Securities of each series for
        which the Trustee acts as Trustee as of a date not more than 15 days
        prior to the time such list is furnished, and

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

excluding from any such list, if the Company so desires, names and addresses
received by the Trustee in its capacity as Security Registrar.

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<PAGE>   65

Section 702.   Preservation of Information; Communications to Holders.

               (a)    The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders of Securities (i)
contained in the most recent list furnished to the Trustee as provided in
Section 701, (ii) received by the Trustee in its capacity as Paying Agent or
Security Registrar and (iii) filed with it within the two preceding years
pursuant to Section 703(c)(2). The Trustee may (i) destroy any list furnished to
it as provided in Section 701 upon receipt of a new list so furnished, (ii)
destroy any information received by it as Paying Agent or Security Registrar
hereunder upon delivering to itself as Trustee, not earlier than April 15 or
October 15, a list containing the names and addresses of the Holders of
Securities obtained from such information since the delivery of the next
previous list, if any, (iii) destroy any list delivered to itself as Trustee
which was compiled from information received by it as Paying Agent or Security
Registrar hereunder upon the receipt of a new list so delivered, and (iv)
destroy not earlier than two years after filing, any information filed with it
pursuant to Section 703(c)(2).

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

               (i)    afford such applicants access to the information preserved
        at the time by the Trustee in accordance with Section 702(a), or

               (ii)   inform such applicants as to the approximate number of
        Holders of Securities of such series or of all Securities, as the case
        may be, whose names and addresses appear in the information preserved at
        the time by the Trustee in accordance with Section 702(a), and as to the
        approximate cost of mailing to such Holders the form of proxy or other
        communication, if any, specified in such application.

               If the Trustee shall elect not to afford such applicants access
to such information, the Trustee shall, upon the written request of such
applicants, mail to each Holder of Securities of such series or of all
Securities, as the case may be, whose name and address appear in the information
preserved at the time by the Trustee in accordance with Section 702(a) a copy of
the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be
mailed and of payment, or provision for the payment, of the reasonable expenses
of mailing, unless within five days after such tender the Trustee shall mail to
such applicants and file with the Commission, together with a copy of the
material to be mailed, a written statement to the effect that, in the opinion of
the Trustee, such mailing would be contrary to the best interest of the Holders
of Securities of such series or of all Securities, as the case may be, or would
be in violation of applicable law. Such written statement shall specify the
basis of such opinion. If the Commission, after opportunity for a

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<PAGE>   66

hearing upon the objections specified in the written statement so filed, shall
enter an order refusing to sustain any of such objections or if, after the entry
of an order sustaining one or more of such objections, the Commission shall
find, after notice and opportunity for hearing, that all the objections so
sustained have been met and shall enter an order so declaring, the Trustee shall
mail copies of such material to all such Holders of Securities with reasonable
promptness after the entry of such order and the renewal of such tender;
otherwise the Trustee shall be relieved of any obligation or duty to such
applicants respecting their application.

               (c)    Every Holder of Securities or coupons, by receiving and
holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Holders of Securities in accordance with Section 702(b),
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material pursuant
to a request made under Section 702(b).

Section 703.   Reports by Trustee.

               (a)    Within 60 days after October 1 of each year commencing
with the year [____], the Trustee shall transmit by mail to all Holders of
Securities of any series for which it acts as the Trustee, as provided in
Subsection (c) of this Section, a brief report dated as of such October 1 with
respect to any of the following events which may have occurred within the
previous twelve months (but if no such event has occurred within such period, no
report need be transmitted):

               (1)    any change to its eligibility under Section 609 and its
        qualifications under Section 608;

               (2)    the creation of or any material change to a relationship
        specified in paragraphs (1) through (10) of paragraphs Section 608(c);

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

               (4)    any change to the amount, interest rate and maturity date
        of all other indebtedness owing by the Company (or by any other obligor
        on the Securities of such series) to the Trustee in its individual
        capacity, on the date of such report, with a brief description of any
        property held as collateral security therefor, except an indebtedness
        based upon a creditor relationship arising in any manner described in
        Section 613(b)(2), (3), (4) or (6);

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<PAGE>   67

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

               (6)    any additional issue of Securities which the Trustee has
        not previously reported; and

               (7)    any action taken by the Trustee in the performance of its
        duties hereunder which it has not previously reported and which in its
        opinion materially affects the Securities, except action in respect of a
        default, notice of which has been or is to be withheld by the Trustee in
        accordance with Section 602;

provided, however, that if the Trust Indenture Act is amended subsequent to the
date hereof to eliminate the requirement of the Trustee's brief report, the
report required by this Section need not be transmitted to any Holders.

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

               (c)    Reports pursuant to this Section shall be transmitted by
mail:

               (1)    to all Holders of Registered Securities, as the names and
        addresses of such Holders appear in the Security Register;

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

               (3)    except in the case of reports pursuant to Subsection (b)
        of this Section, to each Holder of a Security whose name and address is
        preserved at the time by the Trustee, as provided in Section 702(a).

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

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<PAGE>   68

Section 704.   Reports by Company.

               The Company shall:

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

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

               (3)    transmit, within 30 days after the filing thereof with the
        Trustee, to the Holders of Securities, in the manner and to the extent
        provided in Section 703(c) with respect to reports pursuant to Section
        703(a), such summaries of any information, documents and reports
        required to be filed by the Company pursuant to paragraphs (1) and (2)
        of this Section as may be required by rules and regulations prescribed
        from time to time by the Commission; and

               (4)    furnish to the Trustee, not less often than annually, a
        brief certificate from the principal executive officer, principal
        financial officer or principal accounting officer as to his or her
        knowledge of the Company's compliance with all conditions and covenants
        under this Indenture. For purposes of this paragraph, such compliance
        shall be determined without regarding to any period of grace or
        requirement of notice provided under this Indenture.

                                  ARTICLE VIII

                  Consolidation, Merger, Conveyance or Transfer

Section 801.   Company May Consolidate, etc., Only on Certain Terms.

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

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<PAGE>   69

               (1)    the Person formed by such consolidation or into which the
        Company is merged or the Person which acquires by conveyance or transfer
        the properties and assets of the Company substantially as an entirety
        shall be a corporation, partnership or trust organized and existing
        under the laws of the United States of America or any State thereof or
        the District of Columbia, and shall expressly assume, by an indenture
        supplemental hereto, executed and delivered to the Trustee, the due and
        punctual payment of the principal of and any premium and interest
        (including all additional amounts, if any, payable pursuant to Section
        1005) on all the Securities and the performance and observance of every
        covenant of this Indenture on the part of the Company to be performed or
        observed;

               (2)    immediately after giving effect to such transaction, no
        Event of Default, and no event which, after notice or lapse of time or
        both, would become an Event of Default, shall have happened and be
        continuing;

               (3)    the Person formed by such consolidation or into which the
        Company is merged or the Person which acquires by conveyance or transfer
        the properties and assets of the Company substantially as an entirety
        shall waive any right to redeem the Securities under circumstances which
        such Person would be entitled to redeem but the Company would not have
        been so entitled to redeem if such consolidation, merger, conveyance or
        transfer had not occurred; and

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

Section 802.   Successor Substituted.

               Upon any consolidation of the Company with, or merger of the
Company into, any other Person or any conveyance or transfer of the properties
and assets of the Company substantially as an entirety in accordance with
Section 801, the successor Person formed by such consolidation or into which the
Company is merged or to which such conveyance or transfer is made shall succeed
to, and be substituted for, and may exercise every right and power of, the
Company under this Indenture with the same effect as if such successor Person
had been named as the Company herein, and thereafter, the predecessor Person
shall be relieved of all obligations and covenants under this Indenture and the
Securities and coupons.

                                   ARTICLE IX

                             Supplemental Indentures

Section 901.   Supplemental Indentures Without Consent of Holders.

               Without the consent of any Holders of Securities or coupons, 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,
for any of the following purposes:

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<PAGE>   70

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

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

               (3)    to add any additional Events of Default or Defaults (and
        if such Events of Default or Defaults are to be applicable to less than
        all series of Securities, stating that such Events of Default or
        Defaults are expressly being included solely to be applicable to such
        series); or

               (4)    to add to, change or eliminate any of the provisions of
        this Indenture to provide that Bearer Securities may be registrable as
        to principal, to change or eliminate any restrictions on the payment of
        principal of or any premium or interest on Bearer Securities, to permit
        Bearer Securities to be issued in exchange for Registered Securities, to
        permit Bearer Securities to be issued in exchange for Bearer Securities
        of other authorized denominations or to permit or facilitate the
        issuance of Securities in uncertificated form, provided that any such
        action shall not adversely affect the interests of the Holders of
        Securities of any series or any related coupons in any material respect;
        or

               (5)    to change or eliminate any of the provisions of this
        Indenture, provided that any such change or elimination (a) shall become
        effective only when there is no Security Outstanding of any series
        created prior to the execution of such supplemental indenture which is
        entitled to the benefit of such provision or (b) shall not apply to any
        Security Outstanding; or

               (6)    to establish the form or terms of Securities of any series
        and any related coupons as permitted by Sections 201 and 301; or

               (7)    to evidence and provide for the acceptance of appointment
        hereunder by a successor Trustee with respect to the Securities of one
        or more series and to add to or change any of the provisions of this
        Indenture as shall be necessary to provide for or facilitate the
        administration of the trusts hereunder by more than one Trustee,
        pursuant to the requirements of Section 611(b); or

               (8)    to evidence any changes to Section 608, 609 or 703(a)
        resulting from changes in the Trust Indenture Act or the rules and
        regulations of the Commission thereunder expressly contemplated by such
        Sections; or

               (9)    to provide for the terms and conditions upon which
        Securities which qualify as capital under rules, regulations, orders,
        interpretive rulings and guidelines of the Primary Federal Regulator as
        from time to time in effect may be issued and the terms and
        characteristics of any such Securities; provided, however, that any such
        Securities

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        shall be subordinated to Senior Indebtedness of the Company as provided
        in Article Fifteen hereof; and provided, further that no such
        supplemental indenture shall effect any change in any Securities which
        may at the time be Outstanding under this Indenture; or

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

               (11)   to add to or change or eliminate any provision of this
        Indenture as shall be necessary or desirable in accordance with any
        amendments to the Trust Indenture Act, provided such action shall not
        adversely affect the interest of Holders of the Securities of any Series
        or any appurtenant coupons in any material respect.

Section 902.   Supplemental Indentures with Consent of Holders.

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

               (1)    change the Stated Maturity of the principal of, or any
        installment of principal of or interest on, any Security, or reduce the
        principal amount thereof, or the rate of interest thereon or any premium
        payable thereon, or impair the right to the delivery of Capital
        Securities, if any, or change any obligation of the Company to pay
        additional amounts pursuant to Section 1005 (except as contemplated by
        Section 801(1) and permitted by Section 901(1)), or reduce the amount of
        the principal of an Original Issue Discount Security that would be due
        and payable upon a declaration of acceleration of the Maturity thereof
        pursuant to Section 502 or change the coin or currency in which any
        Security or any premium or any interest thereon is payable, or impair
        the right to institute suit for the enforcement of any such payment on
        or after the Stated Maturity thereof (or, in the case of redemption or
        repayment, or on or after the Redemption Date or Repayment Date, as the
        case may be), or

               (2)    reduce the percentage in principal amount of the
        Outstanding Securities of any series, the consent of whose Holders is
        required for any such supplemental indenture, or the consent of whose
        Holders is required for any waiver (of compliance with certain
        provisions of this Indenture or certain defaults hereunder and their
        consequences) provided for in this Indenture, or reduce the requirements
        of Section 1304 for quorum or voting, or

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               (3)    change any obligation of the Company to maintain an office
        or agency in the places and for the purposes specified in Section 1002,
        or

               (4)    modify any of the provisions of this Section or Section
        513, except to increase any such percentage or to provide that certain
        other provisions of this Indenture cannot be modified or waived without
        the consent of the Holder of each Outstanding Security affected thereby;
        provided, however, that this clause shall not be deemed to require the
        consent of any Holder of a Security or coupon with respect to changes in
        the references to "the Trustee" and concomitant changes in this Section,
        or the deletion of this proviso, in accordance with the requirements of
        Sections 611(b) and 901(7), or

               (5)    adversely affect the right to repayment, if any, of the
        Securities of any series at the option of the Holders thereof, or

               (6)    modify the provisions of Article Fifteen with respect to
        subordination in a manner adverse to the Holder of any of the
        Securities.

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

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

Section 903.   Execution of Supplemental Indentures.

               In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Section 601) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture and such supplemental indenture
constitutes the legal, valid and binding obligation of the Company enforceable
in accordance with its terms, subject to customary exceptions. The Trustee may,
but shall not be obligated to, enter into any such supplemental indenture which
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise.

Section 904.   Effect of Supplemental Indentures.

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

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Section 905.   Conformity with Trust Indenture Act.

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

Section 906.   Reference in Securities to Supplemental Indentures.

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

                                   ARTICLE X

                                    Covenants

Section 1001.  Payment of Principal, Premium and Interest.

               The Company covenants and agrees for the benefit of each series
of Securities that it will duly and punctually pay the principal of and any
premium and interest on the Securities of that series in accordance with the
terms of the Securities, any coupons appertaining thereto and this Indenture.
Unless otherwise specified as contemplated by Section 301 with respect to any
series of Securities, any interest due on Bearer Securities on or before
Maturity shall be payable only upon presentation and surrender of the several
coupons for such interest installments as are evidenced thereby as they
severally mature. If Article Seventeen of this Indenture applies to the
Securities of a series, for all purposes of this Indenture, the exchange of
Capital Securities for Securities of such series pursuant to the Indenture,
shall constitute full payment of principal of the Securities of such series
being exchanged on any Exchange Date for Securities of such series, without
prejudice to any Holder's rights pursuant to Section 1713(c).

Section 1002.  Maintenance of Office or Agency.

               If Securities of a series are issuable only as Registered
Securities, the Company will maintain in each Place of Payment for such series
an office or agency where Securities of that series may be presented or
surrendered for payments, 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. If Securities of a series are issuable as Bearer Securities, the
Company will maintain, subject to any laws or regulations applicable thereto, in
a Place of Payment for that series, which is located outside the United States,
an office or agency where Securities of that series and related coupons may be
presented and surrendered for payment (including payment of any additional
amounts payable on Securities of that series pursuant to Section 1005);
provided, however, that if the Securities of that series are listed on The Stock
Exchange of the United Kingdom and the Republic of Ireland, the Luxembourg Stock
Exchange or any other stock exchange located outside the United States and such
stock exchange shall so require, the Company will maintain a

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Paying Agent for the Securities of that series in London, Luxembourg or any
other required city located outside the United States, as the case may be, so
long as the Securities of that series are listed on such exchange. The Company
will give prompt written notice to the Trustee and the Holders of such series of
the location, and any change in the location, of any such office or agency. If
at any time the Company shall fail to maintain any such required office or
agency in respect of any series of Securities or shall fail to furnish the
Trustee with the address thereof, such presentations, and surrenders of
Securities of that series may be made and notices and demands may be made or
served at the Corporate Trust Office of the Trustee.

               Unless otherwise provided as contemplated by Section 301 with
respect to any series of Securities, no payment of principal, premium or
interest on Bearer Securities shall be made at any office or agency of the
Company in the United States or by check mailed to any address in the United
States or by transfer to an account maintained with a bank located in the United
States; provided, however, that, if the Securities of a series are denominated
and payable in Dollars, payment of principal of and any premium and interest on
any Bearer Security (including any additional amounts payable on Securities of
such series pursuant to Section 1005) shall be made at the office of the
Company's Paying Agent in the Borough of Manhattan, The City of New York, if
(but only if) payment in Dollars of the full amount of such principal, premium,
interest or additional amounts, as the case may be, at all offices or agencies
outside the United States maintained for the purpose by the Company in
accordance with this Indenture is illegal or effectively precluded by exchange
controls or other similar restrictions on the full payment or receipt of such
principal, premium, interest or additional amounts, as the case may be, in
Dollars. Unless otherwise provided as contemplated by Section 301 with respect
to any series of Securities, at the option of the Holder of any Bearer Security
or related coupon, payment may be made by check presented or mailed to an
address outside the United States or by transfer to an account maintained by the
payee with a bank located outside the United States.

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

               Unless otherwise provided pursuant to Section 301, the Company
initially appoints the Corporate Trust Office of the Trustee, New York, New York
as its agency for the purposes of the first sentence of this Section.

Section 1003.  Money for Securities Payments to Be Held in Trust.

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

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<PAGE>   75

disposed of as herein provided and will promptly notify the Trustee of its
action or failure so to act.

               Whenever the Company shall have one or more Paying Agents for any
series of Securities, it will, on each due date of the principal of and any
premium or interest on any Securities of that series and any related coupons,
deposit with a Paying Agent a sum sufficient to pay the principal and any
premium or interest so becoming due, such sum to be held in trust for the
benefit of the Persons entitled to such principal, premium or interest, and
(unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee in writing of its action or failure so to act.

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

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

               (2)    give the Trustee notice in writing of any default by the
        Company (or any other obligor upon the Securities of that series or any
        related coupons) in the making of any payment of principal of and any
        premium or interest on the Securities of that series or any related
        coupons; and

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

               The 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 shall be released from all further liability with respect to
such money.

               Any money deposited with the Trustee or any Paying Agent or held
by the Company in trust for the payment of the principal of and any premium or
interest on any Security of any series or any related coupon and remaining
unclaimed for two years after such principal and any premium or interest has
become due and payable shall be paid to the Company on Company Request, or (if
then held by the Company) shall be discharged from such trust; and the Holder of
such Security or any coupon appertaining thereto shall thereafter, as an
unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be

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<PAGE>   76

published once, in an Authorized Newspaper in each Place of Payment, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

Section 1004.  Officers' Certificate.

               The Company will deliver to the Trustee, within 120 days after
the end of each fiscal year, a written statement signed by the President or a
Vice President and by the Treasurer, an Assistant Treasurer, the Controller or
an Assistant Controller of the Company, stating, as to each signer thereof, that

               (1)    a review of the activities of the Company during such year
        and of performance under this Indenture has been made under his
        supervision, and

               (2)    to the best of his knowledge, based on such review, (a)
        the Company has fulfilled all its obligations under this Indenture
        throughout such year, or, if there has been a default in the fulfillment
        of any such obligation, specifying each such default known to him and
        the nature and status thereof, and (b) no event has occurred and is
        continuing which is, or upon notice or lapse of time or both would
        become, a Default, or, if such an event has occurred and is continuing,
        specifying each such event known to him and the nature and status
        thereof.

               The Company will deliver a written notice to the Trustee promptly
after any officer of the Company has knowledge of the occurrence of any event
which with the giving of notice or the lapse of time or both would become a
Default under Section 501.

Section 1005.  Additional Amounts.

               If the Securities of a series provide for the payment of
additional amounts, the Company will pay to the Holder of any Security of such
series or any coupon appertaining thereto additional amounts as provided
therein. Whenever in this Indenture there is mentioned, in any context, the
payment of the principal of or any premium or interest on, or in respect of, any
Security of any series or payment of any related coupon or the net proceeds
received on the sale or exchange of any Security of any series, such mention
shall be deemed to include mention of the payment of additional amounts provided
for in this Section to the extent that, in such context, additional amounts are,
were or would be payable in respect thereof pursuant to the provisions of this
Section and express mention of the payment of additional amounts (if applicable)
in any provisions hereof shall not be construed as excluding additional amounts
in those provisions hereof where such express mention is not made.

               If the Securities of a series provide for the payment of
additional amounts, at least 10 days prior to the first Interest Payment Date
with respect to that series of Securities (or if the Securities of that series
will not bear interest prior to Maturity, the first day on which a payment of
principal and any premium is made), and at least 10 days prior to each date of
payment of principal and any premium or interest if there has been any change
with respect to the matters set forth in the below-mentioned Officers'
Certificate, the Company will furnish the Trustee and the Company's Paying Agent
or Paying Agents, if other than the Trustee, with an Officers'

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<PAGE>   77

Certificate instructing the Trustee and such Paying Agent or Paying Agents
whether such payment of principal of and any premium or interest on the
Securities of that series shall be made to Holders of Securities of that series
or any related coupons who are United States Aliens without withholding for or
on account of any tax, assessment or other governmental charge described in the
Securities of that series. If any such withholding shall be required, then such
Officers' Certificate shall specify by country the amount, if any, required to
be withheld on such payments to such Holders of Securities or coupons and the
Company will pay to the Trustee or such Paying Agent the additional amounts
required by this Section. The Company covenants to indemnify the Trustee and any
Paying Agent for, and to hold them harmless against, any loss, liability or
expense reasonably incurred without negligence or bad faith on their part
arising out of or in connection with actions taken or omitted by any of them in
reliance on any Officers' Certificate furnished pursuant to this Section. The
provisions of this Section 1005 shall survive any removal or resignation of the
Trustee.

Section 1006.  Reserved.

Section 1007.  Reserved.

Section 1008.  Reserved.

                                   ARTICLE XI

                            Redemption of Securities

Section 1101.  Applicability of Article.

               Securities of any series which are redeemable before their Stated
Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 301 for Securities of any series)
in accordance with this Article.

Section 1102.  Election to Redeem; Notice to Trustee.

               The election of the Company to redeem any Securities shall be
evidenced by a Board Resolution. In the case of any redemption at the election
of the Company of less than all the Securities of any series with the same (i)
Stated Maturity, (ii) period or periods within which, price or prices at which
and terms and conditions upon which such Securities may or shall be redeemed or
purchased, in whole or in part, at the option of the Company or pursuant to any
sinking fund or analogous provision or repayable at the option of the Holder and
(iii) rate or rates at which the Securities bear interest, if any, or formula
pursuant to which such rate or rates accrue (collectively, the "Equivalent
Principal Terms"), the Company shall, at least 60 days prior to the Redemption
Date fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee in writing of such Redemption Date and of the
principal amount of Securities of such series and with such Equivalent Principal
Terms to be redeemed. In the case of any redemption of Securities (i) prior to
the expiration of any restriction on such redemption provided in the terms of
such Securities with Equivalent Principal Terms or elsewhere in this Indenture,
or (ii) pursuant to an election of the Company which is subject to a condition
specified

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<PAGE>   78

in the terms of such Securities with Equivalent Principal Terms, the Company
shall furnish the Trustee with an Officers' Certificate evidencing compliance
with such restriction or condition.

Section 1103.  Selection by Trustee of Securities to Be Redeemed.

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

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

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

Section 1104.  Notice of Redemption.

               Notice of redemption shall be given in the manner provided in
Section 106 to the Holders of Securities to be redeemed not less than 30 nor
more than 60 days prior to the Redemption Date. With respect to Registered
Securities, at least two business days before the mailing of notices to the
Holders of the Securities, the Trustee shall also give notice of redemption by
(i) registered or certified mail, postage prepaid, (ii) confirmed facsimile
transmission or (iii) overnight delivery service to all registered securities
depositories then in the business of holding substantial amounts of obligations
of types comprising the Securities to be redeemed (such depositories now being
Depository Trust Company of New York, New York; Midwest Securities Trust Company
of Chicago, Illinois; and Philadelphia Depository Trust Company of Philadelphia,
Pennsylvania).

               All notices of redemption shall state:

               (1)    the Redemption Date,

               (2)    the Redemption Price,

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

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<PAGE>   79

               (4)    that on the Redemption Date the Redemption Price will
        become due and payable upon each such Security to be redeemed and, if
        applicable, that interest thereon will cease to accrue on and after said
        date unless the Company shall default in the payment of the Redemption
        Price plus accrued interest,

               (5)    the place or places where such Securities, together in the
        case of Bearer Securities with all coupons appertaining thereto, if any,
        maturing after the Redemption Date, are to be surrendered for payment of
        the Redemption Price,

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

               (7)    the CUSIP number of the Securities, if any.

               Notice of redemption of Securities to be redeemed at the election
of the Company shall be given by the Company or, at the Company's request, by
the Trustee in the name and at the expense of the Company in which event the
Company shall provide the Trustee with the information required by Clauses (1)
through (7) above.

Section 1105.  Deposit of Redemption Price.

               On or prior to any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an amount
of money in immediately available funds sufficient to pay the Redemption Price
of, and (if accrued interest is to be paid to the Persons surrendering the
relevant Securities for redemption) accrued interest on, all the Securities
which are to be redeemed on that date.

Section 1106.  Securities Payable on Redemption Date.

               Notice of redemption having been given as aforesaid, the
Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified, and from and after such date
(unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest and the coupons
for such interest appertaining to any Bearer Securities so to be redeemed,
except to the extent provided below, shall be void. Upon surrender of any such
Security for redemption in accordance with said notice, together with all
coupons, if any, appertaining thereto maturing after the Redemption Date, such
Security shall be paid by the Company at the Redemption Price, together (if
accrued interest is to be paid to the Persons surrendering the relevant
Securities for redemption) with accrued interest to the Redemption Date;
provided, however, that installments of interest on Bearer Securities whose
Stated Maturity is on or prior to the Redemption Date shall be payable only at
an office or agency located outside the United States (except as otherwise
provided in Section 1002) and, unless otherwise specified as contemplated by
Section 301, only upon presentation and surrender of coupons for such interest,
and provided, further, that, unless otherwise specified as contemplated by
Section 301, installments of interest on Registered Securities whose Stated
Maturity is on or prior to the Redemption Date shall be payable to the Holders
of such Securities, or one or more Predecessor Securities, registered as such at
the close of business on the relevant Record Dates according to their terms and
the provisions of Section 307.

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<PAGE>   80

               If any Bearer Security surrendered for redemption shall not be
accompanied by all appurtenant coupons maturing after the Redemption Date, such
Security may be paid after deducting from the Redemption Price an amount equal
to the face amount of all such missing coupons, or the surrender of such missing
coupon or coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to the Trustee or any Paying Agent any such missing coupon in
respect of which a deduction shall have been made from the Redemption Price,
such Holder shall be entitled to receive the amount so deducted; provided,
however, that interest represented by coupons shall be payable only at an office
or agency located outside the United States (except as otherwise provided in
Section 1002) and, unless otherwise specified as contemplated by Section 301,
only upon presentation and surrender of those coupons.

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

Section 1107.  Securities Redeemed in Part.

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

                                  ARTICLE XII

                                  Sinking Funds

Section 1201.  Applicability of Article.

               The provisions of this Article shall be applicable to any sinking
fund for the retirement of Securities of a series except as otherwise specified
as contemplated by Section 301 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 cash amount of any sinking fund payment may be subject to
reduction as provided in Section 1202. Each sinking fund payment shall be
applied to the redemption of Securities of any series as provided for by the
terms of Securities of such series.

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<PAGE>   81

Section 1202.  Satisfaction of Sinking Fund Payments with Securities.

               The Company (1) may deliver Outstanding Securities of a series
(other than any previously called for redemption), together in the case of any
Bearer Securities of such series with all unmatured coupons appertaining
thereto, and (2) may apply as a credit Securities of a series which have been
redeemed either at the election of the Company pursuant to the terms of such
Securities or through the application of permitted optional sinking fund
payments pursuant to the terms of such Securities, in each case under Clause (1)
or (2) above 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 shall
be received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.

Section 1203.  Redemption of Securities for Sinking Fund.

               Not less than 60 days prior to each sinking fund payment date for
Securities of any series or such shorter period as shall be satisfactory to the
Trustee, the Company will deliver to the Trustee an Officers' Certificate
specifying the amount of the next ensuing sinking fund payment for such
Securities pursuant to the terms of such Securities, the portion thereof, if
any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivering and crediting Securities of that
series pursuant to Section 1202 and will also deliver to the Trustee any
Securities to be so delivered. The Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section
1103 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 1104. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 1106 and 1107.

                                  ARTICLE XIII

                        Meetings of Holders of Securities

Section 1301.  Purposes for Which Meetings May Be Called.

               A meeting of Holders of Securities of any or all series may be
called at any time and from time to time pursuant to this Article to make, give
or take any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be made, given or taken by Holders
of Securities of such series.

Section 1302.  Call, Notice and Place of Meetings.

               (a)    The Trustee may at any time call a meeting of Holders of
Securities of any series for any purpose specified in Section 1301, to be held
at such time and at such place in the Borough of Manhattan, the City of New York
or in London as the Trustee shall determine. Notice of every meeting of Holders
of Securities of any series, setting forth the time and the place of such
meeting and in general terms the action proposed to be taken at such meeting,
shall

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<PAGE>   82

be given, in the manner provided in Section 106, not less than 21 nor more than
180 days prior to the date fixed for the meeting.

               (b)    In case at any time the Company, pursuant to a Board
Resolution, or the Holders of at least 10% in principal amount of the
Outstanding Securities of any series shall have requested the Trustee to call a
meeting of the Holders of Securities of such series for any purpose specified in
Section 1301, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have made the
first publication of the notice of such meeting within 21 days after receipt of
such request or shall not thereafter proceed to cause the meeting to be held as
provided herein, then the Company or the Holders of Securities of such series in
the amount above specified, as the case may be, may determine the time and the
place in the Borough of Manhattan, the City of New York or in London for such
meeting and may call such meeting for such purposes by giving notice thereof as
provided in Subsection (a) of this Section.

Section 1303.  Persons Entitled to Vote at Meetings.

               To be entitled to vote at any meeting of Holders of Securities of
any series, a Person shall be (1) a Holder of one or more Outstanding Securities
of such series, or (2) a Person appointed by an instrument in writing as proxy
for a Holder or Holders of one or more Outstanding Securities of such series by
such Holder or Holders. The only Persons who shall be entitled to be present or
to speak at any meeting of Holders of Securities of any series shall be the
Persons entitled to vote at such meeting and their counsel, any representatives
of the Trustee and its counsel and any representatives of the Company and its
counsel.

Section 1304.  Quorum; Action.

               The Persons entitled to vote a majority in principal amount of
the Outstanding Securities of a series shall constitute a quorum for a meeting
of Holders of Securities of such series; provided, however, that if any action
is to be taken at such meeting with respect to a request, demand, authorization,
direction, notice, consent, waiver or other action which this Indenture or the
Securities of any series expressly provides may be given, made or taken by the
Holders of not less than 66-2/3% in principal amount of the Outstanding
Securities of a series, the Persons entitled to vote 66-2/3% in principal amount
of the Outstanding Securities of such series shall constitute a quorum. In the
absence of a quorum within 30 minutes of the time appointed for any such
meeting, the meeting shall, if convened at the request of Holders of Securities
of such series, be dissolved. In any other case the meeting may be adjourned for
a period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such meeting. In the absence of a quorum at any such
adjourned meeting, such adjourned meeting may be further adjourned for a period
of not less than 10 days as determined by the chairman of the meeting prior to
the adjournment of such adjourned meeting. Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 1302(a), except that
such notice need be given only once not less than five days prior to the date on
which the meeting is scheduled to be reconvened. Notice of the reconvening of an
adjourned meeting shall state expressly the percentage, as provided above, of
the principal amount of the Outstanding Securities of such series which shall
constitute a quorum.

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<PAGE>   83

               Except as limited by the proviso to Section 902, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted by the affirmative vote of the Holders of a
majority in principal amount of the Outstanding Securities of that series;
provided, however, that, except as limited by the proviso to Section 902, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other action which this Indenture or the Securities
of any series expressly provides may be given, made or taken by the Holders of
not less than 66-2/3% in principal amount of the Outstanding Securities of a
series may be adopted at a meeting or an adjourned meeting duly reconvened and
at which a quorum is present as aforesaid only by the affirmative vote of the
Holders of 66-2/3% in principal amount of the Outstanding Securities of that
series; and provided, further, that, except as limited by the proviso to Section
902, any resolution with respect to any request, demand, authorization,
direction, notice, consent, waiver or other action which this Indenture or the
Securities of any series expressly provides may be made, given or taken by the
Holders of a specified percentage, which is less than a majority, in principal
amount of the Outstanding Securities of a series may be adopted at a meeting or
an adjourned meeting duly reconvened and at which a quorum is present as
aforesaid by the affirmative vote of the Holders of such specified percentage in
principal amount of the Outstanding Securities of that series.

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

Section 1305.  Determination of Voting Rights; Conduct and Adjournment of
               Meetings.

               (a)    Notwithstanding any other provisions of this Indenture,
the Trustee may make such reasonable regulations as it may deem advisable for
any meeting of Holders of Securities of a series in regard to proof of the
holding of Securities of such series and of the appointment of proxies and in
regard to the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote,
and such other matters concerning the conduct of the meeting as it shall deem
appropriate. Except as otherwise permitted or required by any such regulations,
the holding of Securities shall be proved in the manner specified in Section 104
and the appointment of any proxy shall be proved in the manner specified in
Section 104 or by having the signature of the person executing the proxy
witnessed or guaranteed by any trust company, bank or banker authorized by
Section 104 to certify to the holding of Bearer Securities. Such regulations may
provide that written instruments appointing proxies, regular on their face, may
be presumed valid and genuine without the proof specified in Section 104 or
other proof.

               (b)    The Trustee shall, by an instrument in writing, appoint a
temporary chairman of the meeting, unless the meeting shall have been called by
the Company or by Holders of Securities as provided in Section 1302(b), in which
case the Company or the Holders of Securities of the series calling the meeting,
as the case may be, shall appoint a temporary chairman. A permanent chairman and
a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities of
such series represented at the meeting.

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<PAGE>   84

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

               (d)    Any meeting of Holders of Securities of any series duly
called pursuant to Section 1302 at which a quorum is present may be adjourned
from time to time by Persons entitled to vote a majority in principal amount of
the Outstanding Securities of such series represented at the meeting; and the
meeting may be held as so adjourned without further notice.

Section 1306.  Counting Votes and Recording Action of Meetings.

               The vote upon any resolution submitted to any meeting of Holders
of Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in duplicate of all votes cast at the meeting. A record, at least in
duplicate of the proceedings of each meeting of Holders of Securities of any
series shall be prepared by the secretary of the meeting and there shall be
attached to such record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that such notice was given as provided in Section 1302 and, if
applicable, Section 1304. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company, and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

                                  ARTICLE XIV

                                   Defeasance

Section 1401.  Applicability of Article; Company's Option to Effect Defeasance.

               Unless the Company elects, pursuant to Section 301, not to permit
the application of defeasance of the Securities of a series under Section 1402,
then the provision of such Section, together with the other provisions of this
Article Fourteen, shall be applicable to the Securities of such series, and the
Company may at its option by Board Resolution, at any time, with respect to the
Securities of such series, elect to have Section 1402 (if applicable) be applied
to the Outstanding Securities of such series upon compliance with the conditions
set forth below in this Article Fourteen.

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<PAGE>   85

Section 1402.  Defeasance and Discharge.

               Upon the Company's exercise of its option to effect a defeasance
of the Securities of a series pursuant to this Section, the Company shall be
deemed to have been discharged from its obligations with respect to the
Outstanding Securities of such series on the date the conditions set forth below
are satisfied (hereinafter, "defeasance"). For this purpose, such defeasance
means that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by the Outstanding Securities of such series and to
have satisfied all its other obligations under such Securities and this
Indenture insofar as such Securities are concerned (and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging the
same), except for the following which shall survive until otherwise terminated
or discharged hereunder: (A) the rights of Holders of Outstanding Securities of
such series to receive, solely from the trust fund described in Section 1404 and
as more fully set forth in such Section, payments in respect of the principal of
and any premium and interest on such Securities when such payments are due, (B)
the Company's obligations with respect to such Securities under Sections 304,
305, 306, 1002 and 1003, (C) the rights, powers, trusts, duties, and immunities
of the Trustee hereunder and (D) this Article Fourteen.

               The provisions for subordination of the Securities set forth in
Article Fifteen hereof are expressly made subject to the provisions for
defeasance set forth in Section 1402 and, anything herein to the contrary
notwithstanding, upon the effectiveness of such defeasance pursuant to Section
1402 with respect to the Securities of any series, such Securities shall
thereupon cease to be so subordinated.

Section 1403.  Reserved.

Section 1404.  Conditions to Defeasance.

               The following shall be the conditions to application of Section
1402 to the Outstanding Securities of a series:

               (1)    The Company shall irrevocably have deposited or caused to
        be deposited with the Trustee (or another trustee satisfying the
        requirements of Section 609 who shall agree to comply with the
        provisions of this Article Fourteen applicable to it) as trust funds in
        trust for the purpose of making the following payments, specifically
        pledged as security for, and dedicated solely to, the benefit of the
        Holders of such Securities, (A) money in an amount, or (B) U.S.
        Government Obligations which through the scheduled payment of principal
        and interest in respect thereof in accordance with their terms will
        provide, not later than one day before the due date of any payment,
        money in immediately available funds in an amount, or (C) a combination
        thereof, sufficient, in the opinion of a nationally recognized firm of
        independent public accountants expressed in a written certification
        thereof delivered to the Trustee, to pay and discharge, and which shall
        be applied by the Trustee (or other qualifying trustee) to pay and
        discharge, (i) the principal of and any premium and each installment of
        principal of and any premium and interest on the Outstanding Securities
        of such series on the Stated Maturity of such principal or installment
        of principal or interest (including any additional amounts that may be
        required pursuant to Section 1005); (ii) any mandatory sinking fund
        payments or

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<PAGE>   86

        analogous payments applicable to the Outstanding Securities of such
        series on the day on which such payments are due and payable in
        accordance with the terms of this Indenture and of such Securities and
        (iii) any amounts that may be payable at the option of the Holder on any
        Repayment Date;

               (2)    Such defeasance shall not cause the Trustee for the
        Securities of such series to have a conflicting interest as defined in
        Section 608 and for purposes of the Trust Indenture Act with respect to
        any securities of the Company;

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

               (4)    Such defeasance shall not cause any Securities of such
        series then listed on any registered national securities exchange under
        the Securities Exchange Act of 1934, as amended, to be delisted;

               (5)    The Company shall have delivered to the Trustee an Opinion
        of Counsel stating that (i) (x) the Company has received from, or there
        has been published by, the Internal Revenue Service a ruling, or (y)
        since the date of this Indenture there has been a change in the
        applicable federal income tax law, in either case to the effect that,
        and based thereon such opinion shall confirm that, the Holders of the
        Outstanding Securities of such series will not recognize income, gain or
        loss for federal income tax purposes as a result of such defeasance and
        will be subject to federal income tax on the same amounts, in the same
        manner and at the same times as would have been the case if such
        defeasance had not occurred and (ii) in the case of Bearer Securities,
        there will be no adverse federal tax consequences to the Holders of such
        Bearer Securities as a result of such defeasance;

               (6)    Reserved;

               (7)    Such defeasance shall be effected in compliance with any
        additional terms, conditions or limitations which may be imposed on the
        Company in connection therewith pursuant to Section 301;

               (8)    The Company shall have delivered to the trustee an
        Officers' Certificate and an Opinion of Counsel, each stating that all
        conditions precedent provided for relating to the defeasance under
        Section 1402 have been complied with; and

               (9)    No Default or event which with notice or lapse of time or
        both would become a Default with respect to the Securities of such
        series shall have occurred and be continuing on the date of such deposit
        or at any time during the period ending on the 91st day after the date
        of such deposit (it being understood that this condition shall not be
        deemed satisfied until the expiration of such period).

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<PAGE>   87

Section 1405.  Deposited Money and U.S. Government Obligations to Be Held in
               Trust; Other Miscellaneous Provisions

               Subject to the provisions of the last paragraph of Section 1003,
all money and U.S. Government Obligations (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee collectively, for
purposes of this Section 1405, the "Trustee") pursuant to Section 1404 in
respect of the Outstanding Securities of such series shall be held in trust and
applied by the Trustee, in accordance with the provisions of such Securities and
this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due
thereon in respect of principal and any premium and interest, but such money
need not be segregated from other funds except to the extent required by law.

               The Company shall pay and indemnify the Trustee against any tax,
fee or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 1404 or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the Holders of the Outstanding Securities of such
series. Such obligation shall survive any removal or resignation of the Trustee.

               Anything in this Article Fourteen to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon Company Request any money or U.S. Government Obligations held by it as
provided in Section 1404 which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect an equivalent defeasance.

                                   ARTICLE XV

                           Subordination of Securities

Section 1501.  Securities Subordinate to Senior Indebtedness.

               (a)    The Company covenants and agrees and each Holder by
acceptance thereof likewise covenants and agrees that anything in this Indenture
or the Securities of any series to the contrary notwithstanding, the payment of
principal, any premium and interest in respect of the Securities of each series
is expressly subordinated to all Senior Indebtedness which may at any time and
from time to time be outstanding and shall rank on a parity with any other
Subordinated Indebtedness which may at any time and from time to time be
outstanding and shall be subordinate by virtue of provisions substantially
similar to those contained in this Article Fifteen.

               (b)    Upon any receivership, insolvency, bankruptcy, assignment
for the benefit of creditors, reorganization, whether or not pursuant to
bankruptcy laws, sale of all or substantially all of the assets (other than
pursuant to Section 801 hereof), dissolution, liquidation or any other
marshaling of the assets and liabilities of the Company, no amount shall be paid
by the Company, in respect of the principal, premium, if any, or interest on the
Securities of any

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<PAGE>   88

series unless and until all Senior Indebtedness shall have been paid in full
together with all interest thereon and all other amounts payable in respect
thereof.

               (c)    In the event of any default in the payment of any Senior
Indebtedness and during the continuance of any such default, no amount shall be
paid by the Company in respect of the principal, premium, if any, or interest on
the Securities of any series.

               (d)    In the event that, notwithstanding the foregoing, any
payment or distribution of any character or any security, whether in cash,
securities or other property (other than securities of the Company or any other
corporation provided for by a plan of reorganization or readjustment the payment
of which is subordinate, at least to the extent provided in these subordination
provisions with respect to the indebtedness evidenced by the Securities of any
series, to the payment of all Senior Indebtedness at the time outstanding and to
any securities issued in respect thereof under any such plan of reorganization
or readjustment), shall be received by the Trustee or any Holder in
contravention of any of the terms hereof such payment or distribution or
security shall be received in trust for the benefit of, and shall be paid over
or delivered and transferred to, the holders of the Senior Indebtedness at the
time outstanding in accordance with the priorities then existing among such
holders for application to the payment of all Senior Indebtedness remaining
unpaid, to the extent necessary to pay all such Senior Indebtedness in full. In
the event of the failure of the Trustee or any Holder to endorse or assign any
such payment, distribution or security, each holder of Senior Indebtedness is
hereby irrevocably authorized to endorse or assign the same.

               (e)    Senior Indebtedness shall not be deemed to have been paid
in full unless the holders thereof shall have received cash, securities or other
property equal to the amount of such Senior Indebtedness then outstanding. Upon
the payment in full of all Senior Indebtedness, the Holders of Securities of
each series shall be subrogated to all rights of any holders of Senior
Indebtedness to receive any further payments or distributions applicable to the
Senior Indebtedness until the indebtedness evidenced by the Securities of such
series shall have been paid in full, and such payments or distributions received
by such Holders, by reason of such subrogation, of cash, securities or other
property which otherwise would be paid or distributed to the holders of Senior
Indebtedness shall, as between the Company and its creditors other than the
holders of Senior Indebtedness, on the one hand, and such Holders, on the other
hand, be deemed to be a payment by the Company on account of Senior Indebtedness
and not on account of the Securities of such series.

               (f)    The provisions of this Article Fifteen are solely for the
purpose of defining the relative rights of the holders of Senior Indebtedness on
the one hand and the Holders of the Securities on the other hand, and nothing
herein shall impair, as between the Company and the Holder of any Security, the
obligation of the Company, which is unconditional and absolute, to pay to the
Holder thereof the principal, premium, if any, and interest thereon in
accordance with its terms, nor shall anything herein prevent the Trustee or the
Holder of a Security from exercising all remedies otherwise permitted by
applicable law or hereunder upon default hereunder, subject to the rights, if
any, under this Article Fifteen of holders of Senior Indebtedness to receive
cash, property or securities, otherwise payable or deliverable to Holders of the
Securities.

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<PAGE>   89

Section 1502.  Rights of Holders of Senior Indebtedness Not Impaired.

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

Section 1503.  Trustee Authorized to Effectuate Subordination.

               Each Holder of Securities of any series, by its acceptance
thereof, authorizes the Trustee in its behalf to take such action as may be
necessary or appropriate to effectuate, as between the holders of Securities and
the Senior Indebtedness the subordination as provided in this Article Fifteen
and appoints the Trustee its attorney-in-fact for any and all such purposes and
irrevocably authorizes the Trustee in its behalf to file a proof of claim for
the whole amount of principal, premium, if any, and interest owing and unpaid in
respect of such Securities.

               Each Holder of Securities of any series, by its acceptance
thereof, waives all notice of the acceptance of the subordination provisions
contained herein and in the Securities of any series by each holder of Senior
Indebtedness, whether now outstanding or hereafter incurred, and waives reliance
by each such holder upon such provisions.

Section 1504.  Trustee May Hold Senior Indebtedness.

               The Trustee shall be entitled to all the rights set forth in this
Article Fifteen in respect of any Senior Indebtedness at any time held by it in
its individual capacity to the same extent as any other holder of Senior
Indebtedness and nothing contained herein shall affect the right of the Trustee
to retain for its own account payments made on Senior Indebtedness held by the
Trustee for its own account.

Section 1505.  Trustee and Holders of Securities May Rely on Certificate
               of Liquidating Agent; Trustee May Require Further Evidence as to
               Ownership of Senior Indebtedness; Trustee Not Fiduciary to
               Holders of Senior Indebtedness.

               Upon any payment or distribution of assets of the Company
referred to in this Article Fifteen, the Trustee and the Holders of the
Securities of any series shall be entitled to rely upon an order or decree made
by any court of competent jurisdiction in which such dissolution or winding up
or liquidation or reorganization or arrangement proceedings are pending or upon
a certificate of the trustee in bankruptcy, receiver, assignee for the benefit
of creditors or other Person making such payment or distribution, delivered to
the Trustee or to the Holders, for the purpose of ascertaining the persons
entitled to participate in such indebtedness of the Company, the amount thereof
or payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article Fifteen. In the absence of any
such bankruptcy trustee, receiver, assignee or other Person, the Trustee shall
be entitled to rely, subject to the provisions of Section 601, upon a written
notice by a Person representing himself to be a holder of Senior Indebtedness
(or a trustee or representative on behalf of such holder) as evidence that such
Person is a holder of such Senior Indebtedness (or is such a trustee or
representative). In

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<PAGE>   90

the event that the Trustee determines, in good faith, that further evidence is
required with respect to the right of any Person as a holder of Senior
Indebtedness to participate in any payments or distributions pursuant to this
Article, the Trustee may request such person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
held by such Person, as to the extent to which such Person is entitled to
participate in such payment or distribution, and as to other facts pertinent to
the rights of such Person under this Article Fifteen, and if such evidence is
not furnished, the Trustee may offer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment. The
Trustee, however, shall not be deemed to owe any fiduciary duty to the holders
of Senior Indebtedness.

Section 1506.  Permitted Payments.

               Nothing contained in this Article or elsewhere in this Indenture,
or in the Securities of any series, shall prevent (a) the Company, at any time
except under the conditions described in Section 1501 from making payments at
any time of principal of and premium, if any, or interest, if any, on Securities
of any series of from depositing with the Trustee or any Paying Agent moneys for
such payments, or (b) the application by the Trustee or any Paying Agent of any
moneys deposited with it under this Indenture to the payment of or on account of
the principal of and premium, if any, or interest, if any, on Securities of any
series to the Holders of Securities of such series entitled thereto if such
payment would not have been prohibited by the provisions of Section 1501 on the
date such moneys were so deposited.

Section 1507.  Trustee Not Charged with Knowledge of Prohibition.

               Anything in this Article or elsewhere in this Indenture contained
to the contrary notwithstanding, the Trustee shall not at any time be charged
with knowledge of the existence of any facts which would prohibit the making of
any payment of money to or by the Trustee and shall be entitled conclusively to
assume that no such facts exist and that no event specified in Section 1501 has
happened, until three Business Days after the Trustee shall have received an
Officers' Certificate to that effect or notice in writing to that effect signed
by or on behalf of the holder or holders, or their representatives, of Senior
Indebtedness who shall have been certified by the Company or otherwise
established to the reasonable satisfaction of the Trustee to be such holder or
holders or representatives or from any trustee under any indenture pursuant to
which such Senior Indebtedness shall be outstanding. The Company shall give
prompt written notice to the Trustee and to the Paying Agent of any facts which
would prohibit the payment of money to or by the Trustee or any Paying Agent.

Section 1508.  Securities to Rank Pari Passu With Existing Subordinated
               Indebtedness; Payment of Proceeds in Certain Cases.

               (a)    Subject to the provisions of this Section and to any
provisions established or determined with respect to Securities of any series
pursuant to Section 301, Securities of any series created on or after January 5,
1993 ("New Securities") shall rank pari passu in right of payment with the
Existing Subordinated Indebtedness, except that the New Securities shall also be
subordinate to any Senior Indebtedness which is not senior indebtedness with
respect to the Existing Subordinated Indebtedness.

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<PAGE>   91

               (b)    Upon the occurrence of any of the events specified in
Section 1501(b), the provisions of that Section and the corresponding provisions
of each indenture or other instrument or document establishing or governing the
terms of any Existing Subordinated Indebtedness shall be given effect on a pro
rata basis to determine the amount of cash, property or securities which may be
payable or deliverable as between the holders of Senior Indebtedness, on the one
hand, and the Holders of New Securities and holders of Existing Subordinated
Indebtedness, on the other hand, except that the New Securities shall also be
subordinate to any Senior Indebtedness which is not senior indebtedness with
respect to the Existing Subordinated Indebtedness.

                                  ARTICLE XVI

                   Repayment at the Option of Securityholders

Section 1601.  Applicability of Article.

               Securities of any series which are repayable at the option of the
Holders thereof before their Stated Maturity shall be repaid in accordance with
their terms and (except as otherwise contemplated by Section 301 for Securities
of such series) in accordance with this Article.

Section 1602.  Repayment of Securities.

               Each Security which is subject to repayment in whole or in part
at the option of the Holder thereof on a Repayment Date shall be repaid at the
applicable Repayment Price together with interest accrued to such Repayment Date
as specified pursuant to Section 301.

Section 1603.  Exercise of Option; Notice.

               Each Holder desiring to exercise his option for repayment shall,
as conditions to such repayment, surrender the Security to be repaid together
with all coupons, if any, appertaining thereto maturing after the Repayment Date
and with written notice of the exercise of such option at any office or agency
of the Company in a Place of Payment, not less than 15 nor more than 30 days
prior to the Repayment Date. Such notice, which shall be irrevocable, shall
identify the Security to be repaid and shall, in the case of a Registered
Security, specify the principal amount of such Security to be repaid, which
shall be not less than the minimum authorized denomination for such Security or
an integral multiple thereof and, in the case of a partial repayment of the
Registered Security the denomination or denominations of the Security or
Securities with Equivalent Principal Terms to be issued to the Holder for the
portion of the principal of the Security surrendered which is not to be repaid.

               Any Registered Security which is to be repaid only in part shall
be surrendered at a Place of Payment therefor (with, if the Company or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or his attorney duly authorized in writing), and the Company shall
execute, and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Registered Security or Securities with
Equivalent Principal Terms of any authorized denomination as requested by such
Holder, in aggregate principal amount

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<PAGE>   92

equal to and in exchange for the unredeemed portion of the principal of the
Security so surrendered.

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

Section 1604.  Securities Payable on the Repayment Date.

               Notice of exercise of the option of repayment having been given
and the Securities so to be repaid having been surrendered as aforesaid, such
Securities shall, on the Repayment Date, become due and payable at the Repayment
Price therein specified and from and after such date (unless the Company shall
default in the payment of the Repayment Price and accrued interest) such
Securities shall cease to bear interest and the coupons for such interest
appertaining to any Bearer Security so to be repaid, except to the extent
provided below, shall be void. Upon surrender of any such Security for repayment
in accordance with Section 1603 together with all coupons, if any, appertaining
thereto maturing after the Repayment Date, such Security shall be paid by the
Company at the Repayment Price, together with accrued interest to the Repayment
Date; provided, however, that installments of interest on Bearer Securities
whose Stated Maturity is on or prior to the Repayment Date shall be payable only
at an office or agency located outside the United States (except as otherwise
provided in Section 1002) and, unless otherwise specified as contemplated by
Section 301, only upon presentation and surrender of coupons for such interest,
and provided, further, that, unless otherwise specified as contemplated by
Section 301, installments of interest on Registered Securities whose Stated
Maturity is on or prior to the Repayment Date shall be payable to the Holders of
such Securities, or one or more Predecessor Securities, registered as such at
the close of business on the relevant Record Dates according to their terms and
the provisions of Section 307.

               On or prior to any Repayment Date, the Company shall deposit with
the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an amount
of money in immediately available funds sufficient to pay the Repayment Price
of, and (if accrued interest is to be paid to the Persons surrendering the
relevant Securities for repayment) accrued interest on, all the Securities which
are to be repaid on that date.

               If any Bearer Security surrendered for repayment shall not be
accompanied by all appurtenant coupons maturing after the Repayment Date, such
Security may be paid after deducting from the Repayment Price an amount equal to
the face amount of all such missing coupons, or the surrender of such missing
coupon or coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to the Trustee or any Paying Agent any such missing coupon in
respect of which a deduction shall have been made from the Repayment Price, such
Holder shall be entitled to receive the amount so deducted; provided, however,
that interest represented by coupons shall be payable only at an office or
agency located outside the United States (except as otherwise

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<PAGE>   93

provided in Section 1002) and, unless otherwise specified as contemplated by
Section 301, only upon presentation and surrender of those coupons.

               If any Security duly surrendered for repayment shall not be so
paid, the principal and any premium shall, until paid, bear interest from the
Repayment Date at the rate prescribed therefor in the Security.

                                  ARTICLE XVII

                  Exchange of Capital Securities For Securities

Section 1701.  Applicability of Article.

               If an Officers' Certificate or supplemental indenture pursuant to
Section 301 provides with respect to Securities of any series designated as
Primary Capital Securities for the exchange of Capital Securities for Securities
of such series at the election of the Company or otherwise, Securities of such
series shall be exchanged for Capital Securities in accordance with their terms
and (except as otherwise specified in such Officers' Certificate or supplemental
indenture) in accordance with this Article.

Section 1702.  Exchange of Capital Securities for Securities at Stated Maturity.

               Subject to the second succeeding paragraph of this Section 1702,
at the Stated Maturity of Securities of any series which may be exchanged
pursuant to this Article, the Company shall exchange Capital Securities with a
Market Value equal to the excess, if any, of (i) the Outstanding principal
amount of such Securities over (ii) the principal amount of such Securities to
be repaid in cash out of Available Funds. Funds representing Available Funds for
payment in cash of such Securities will be paid first to Holders who have not
elected to receive Capital Securities and then to other Holders (in either case
allocated among them in such manner as the Company shall deem appropriate and
fair.)

               The Company shall give notice in the manner provided in Section
106 to Holders of the Securities of any series to be exchanged, the Trustee and
the Exchange Agent as to the type of Capital Securities to be exchanged for the
Securities of such series on the Exchange Date. Such notice shall include the
form of Capital Security Election Form described in Section 1709, shall make the
statements and contain the information included in Section 1704(a), and shall be
given no less than 90 nor more than 120 days prior to the Stated Maturity of
such Securities.

               The Exchange Date for any payment of Securities of each series
may be selected by the Company to be any date between a date 60 days prior to
the Stated Maturity of such Securities and such Stated Maturity, inclusive, and
to be the date of the closing of the Secondary Offering for Securities of such
series. In the event the Company fails to effect such Secondary Offering, the
Exchange Date will be the Stated Maturity of the Securities of such series.

               Notice of each such Exchange Date, together with the amount of
Capital Securities being exchanged for each $1,000 principal amount of
Securities of such series, shall also be given by the Company in the manner
required by Section 1704(b) not less than three Business Days prior to such
Exchange Date.

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<PAGE>   94

               The Company will effect each Secondary Offering such that the
closing of the Secondary Offering will occur on the Exchange Date.

Section 1703.  Right of Early Exchange of Capital Securities  for Securities.

               If applicable to the Securities of any series, the Securities of
any series to be exchanged may be exchanged at the election of the Company, as a
whole or from time to time in part, on any early Exchange Date authorized
pursuant to Section 301 prior to the Stated Maturity thereof for Capital
Securities with a Market Value equal to the excess, if any, of (i) the
Outstanding principal amount of such Securities over (ii) the principal amount
of such Securities to be repaid in cash out of Available Funds. Funds
representing Available Funds for payment in cash of such Securities will be paid
first to Holders who have not elected to receive Capital Securities and then to
other Holders (in either case allocated among them in such manner as the Trustee
shall deem appropriate and fair.)

               The Company shall give notice in the manner provided in Section
106 to Holders of the Securities of any series to be exchanged, the Trustee and
the Exchange Agent not less than 90 days nor more than 120 days prior to any
early Exchange Date for Securities of such series, which notice shall include
the form of Capital Security Election Form described in Section 1709 and make
the statements and contain the information included in Section 1704(a). Notice
of each such early Exchange Date, together with the amount of Capital Securities
being exchanged for each $1,000 principal amount of Securities of such series,
shall also be given by the Company in the manner required by Section 1704(b) not
less than three Business Days prior to such early Exchange Date.

               The Company may at its option accelerate any such Exchange Date
within the 60-day period prior to such Exchange Date by giving notice of such
accelerated Exchange Date, together with the amount of Capital Securities being
exchanged for each $1,000 principal amount of Securities of such series, in the
manner required by Section 1704(b) not less than three Business Days prior to
such accelerated Exchange Date.

               The Company will effect each Secondary Offering such that the
closing of such Secondary Offering will occur on the Exchange Date.

Section 1704.  Notices of Exchange.

               (a)    All notices of exchange subject to this Article Seventeen
shall state:

               (1)    the type of Capital Securities to be exchanged for the
        Securities of such series on the Exchange Date for Securities of such
        series;

               (2)    the proposed Exchange Date and the Company's right to
        accelerate such proposed Exchange Date by up to 60 days, and that the
        Company will give at least three Business Days notice of the actual
        Exchange Date;

               (3)    that each Holder of Securities of such series being
        exchanged will receive on such Exchange Date accrued and unpaid interest
        in cash and may elect to receive on such Exchange Date Capital
        Securities with a Market Value equal to the principal amount

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        of the Securities of such series owned by such Holder. In the absence of
        any such election by the Holder, such Holder will be deemed to have
        received on such Exchange Date Capital Securities having such Market
        Value and to have elected to have such Capital Securities sold for such
        Holder by the Company in the related Secondary Offering for cash
        proceeds, together with Available Funds, to such Holder on such Exchange
        Date equal to the aggregate principal amount of all Securities of such
        series being exchanged owned by such Holder;

               (4)    that on such Exchange Date the Exchange Price will become
        due and payable upon each such Security to be exchanged and that
        interest thereon will cease to accrue on and after said date (unless the
        Company shall default in the payment of the Exchange Price and accrued
        interest);

               (5)    if less than all the Outstanding Securities of any series
        are to be exchanged, the identification (and, in the case of partial
        exchange, the principal amount) of the particular Securities to be
        exchanged;

               (6)    that each Holder for whom Capital Securities are being
        offered in the Secondary Offering shall be deemed to have appointed the
        Company its attorney-in-fact to execute any and all documents and
        agreements the Company deems necessary or appropriate to effect such
        Secondary Offering;

               (7)    that the Company will assume, unless advised to the
        contrary in writing, that the Capital Securities are to be offered for
        the account of the Holder, that such Holder has not held any position,
        office or other material relationship with the Company within three
        years preceding the Secondary Offering, that the Holder owns no other
        Capital Securities, and that after completion of the Secondary Offering
        the Holder will own less than one percent of the class of such Capital
        Securities. If any of these assumptions is not correct, the Holder shall
        promptly so advise the Company;

               (8)    the place or places where such Securities are to be
        surrendered for payment or exchange for Capital Securities;

               (9)    that the holders of Securities of such series who elect to
        receive Capital Securities on the Exchange Date will bear the market
        risk with respect to the value of the Capital Securities to be received
        from the date such Market Value is determined to the Exchange Date; and

               (10)   state that each Holder for whom Capital Securities are to
        be offered in the Secondary Offering agrees to indemnify and hold
        harmless the Company, any other Holder and any underwriter, agent or
        other similar Person from and against any and all losses, claims,
        damages and liabilities resulting from or based upon any untrue
        statement or alleged untrue statement of any material fact contained in
        any notice of exchange, any offering memorandum or selling document or
        registration statement relating to the Secondary Offering, any
        preliminary prospectus or prospectus relating to the Secondary Offering,
        or any amendment thereof or supplement thereto, or resulting from or
        based upon the omission or alleged omission to state therein a material
        fact required to be stated

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<PAGE>   96

        therein or necessary to make the statements therein not misleading, or
        resulting from or based upon the omission or alleged omission to state
        therein a material fact necessary to make the statements therein in
        light of the circumstances under which they were made, not misleading,
        which untrue statement, alleged untrue statement, omission or alleged
        omission is made therein (i) in reliance upon and in conformity with
        written information furnished to the Company by or on behalf of any such
        Holder specifically for use in connection with the preparation thereof
        or (ii) because of such Holder's failure to advise the Company in
        writing that any assumption described in (7) above is incorrect.

               (b)    Each notice of exchange subject to this Section shall be
given by publishing notice of the relevant Exchange Date in an Authorized
Newspaper in each of the City and County of San Francisco and the Borough of
Manhattan, The City of New York. In addition, the Company shall cause such
notice to be given in the manner provided in Section 106 to each Holder of
Securities to be exchanged, and the Company shall forthwith give such notice by
telephone to the Trustee and the Exchange Agent, promptly confirmed in writing.

               (c)    (1) If less than all the Securities of any series are to
be exchanged, the Company shall at least 135 days prior to the related Exchange
Date (unless a shorter period shall be satisfactory to the Trustee) notify the
Trustee of such Exchange Date and of the principal amount of Securities of such
series to be exchanged and the particular Securities to be exchanged shall be
selected not more than 135 days prior to the related Exchange Date by the
Trustee, from the Outstanding Securities of such series not previously
exchanged, by such method as the Company shall deem fair and appropriate and
which may provide for the selection for exchange of portions (equal to the
minimum authorized denomination for Securities of such series or any integral
multiple thereof) of the principal amount of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of
such series.

               (2)    The Trustee shall promptly notify the Company in writing
of the Securities selected for exchange and, in the case of any Securities
selected for partial exchange, the principal amount thereof to be exchanged.

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

Section 1705.  Rights and Duties of Holders of Securities to be Exchanged for
               Capital Securities.

               (a)    Subject to Section 503 and 508, and without prejudice to
the rights pursuant to Section 1713 of Holders of Securities of any series to be
exchanged, no Holder of Securities of such series shall be entitled to receive
any cash from the Company on any Exchange Date at the Stated Maturity of any
Security of such series except from the proceeds of the sale of such Holder's
Capital Securities in the related Secondary Offering or from any Available Funds
and except as provided herein with respect to fractional Capital Securities,
amounts equal to expenses of the sale in the related Secondary Offering of such
Capital Securities, accrued and unpaid interest and acceleration upon an Event
of Default. In the event

                                       89
<PAGE>   97

that the Company does not effect such Secondary Offering, such Holder will
receive Capital Securities with a Market Value equal to the principal amount of
Securities of such series owned by such Holder which are subject to such
exchange and not cash other than in lieu of any fractional Capital Securities
and for accrued and unpaid interest, without prejudice to such Holder's rights
pursuant to Section 1713.

               (b)    Each Holder for whom Capital Securities are being offered
in the Secondary Offering shall be deemed to have appointed the Company its
attorney-in-fact to execute any and all documents and agreements the Company
deems necessary or appropriate to effect such Secondary Offering.

               (c)    Unless advised to the contrary in writing within 30 days
following the notice described in Section 1704(a) by any Holder for whom Capital
Securities are being offered in the Secondary Offering, the Company shall assume
for the purposes of any Secondary Offering that the Capital Securities are to be
offered for the account of such Holder, that such Holder has not held any
position, office or other material relationship with the Company within three
years preceding the Secondary Offering, that such Holder owns no other Capital
Securities, and that after completion of the Secondary Offering such Holder will
own less than one percent of the class of such Capital Securities.

               (d)    Each Holder for whom Capital Securities are being offered
in the Secondary Offering agrees to indemnify and hold harmless the Company, any
other Holder, and any underwriter, agent or other similar Person from and
against any and all losses, claims, damages and liabilities resulting from or
based upon any untrue statement or alleged untrue statement of any material fact
contained in any notice of exchange, any offering memorandum or selling document
or registration statement relating to the Secondary Offering, any preliminary
prospectus or prospectus relating to the Secondary Offering, or any amendment
thereof or supplement thereto, or resulting from or based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, or resulting from or
based upon the omission or alleged omission to state therein a material fact
necessary to make the statements therein in light of the circumstances under
which they were made, not misleading, which untrue statement, alleged untrue
statement, omission or alleged omission is made therein (i) in reliance upon and
in conformity with any written information furnished to the Company by or on
behalf of any such Holder specifically for use in connection with the
preparation thereof or (ii) because of such Holder's failure to advise the
Company in writing that any of the assumptions described in Section 1704(a)(7)
is incorrect.

               (e)    In order to receive Capital Securities on any Exchange
Date for any Security of any series, the Holder of any Security to be exchanged
shall surrender such Security and all coupons, if any (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
of any Registered Security or his attorney duly authorized in writing), to the
Exchange Agent. Except as provided in Section 307, no payment or adjustment
shall be made upon any exchange on account of any interest accrued on any
Securities surrendered for exchange or on account of any dividends or interest
on the Capital Securities issued upon exchange.

                                       90
<PAGE>   98

               (f)    Securities of any series to be exchanged shall be deemed
to have been exchanged on the Exchange Date therefor in accordance with the
foregoing provisions, and at such time the rights of the Holders of such
Securities as Holders shall cease (subject to the provisions of Section 307 and
without prejudice to the rights of Holders of Securities of such series pursuant
to Section 1713), and the Person or Persons entitled to receive the Capital
Securities issuable upon such exchange shall be treated for all purposes as the
record holder or holders of such Capital Securities at such time.

Section 1706.  Election to Exchange.

               The election of the Company to exchange Capital Securities for
Securities pursuant to Section 1703 shall be evidenced by a Board Resolution.

Section 1707.  Deposit of Exchange Price.

               On any Exchange Date for Securities of any series which may be
exchanged, the Company shall deposit with the Trustee or with an Exchange Agent
(or, if the Company is acting as Paying Agent, segregate and hold in trust as
provided in Section 1003) Capital Securities and an amount of money in
immediately available funds which together are sufficient to pay the Exchange
Price of, and (if accrued interest is to be paid to the Persons surrendering the
relevant Securities for exchange) accrued interest on, all the Securities of
such series or portions thereof which are to be exchanged on that date.

Section 1708.  Securities Due on Exchange Date; Securities Exchanged in Part.

               Notice of exchange having been given as aforesaid, the Securities
of any series so to be exchanged shall, on the Exchange Date for such
Securities, become due and payable at the Exchange Price therein specified, and
from and after such date (unless the Company shall default in the payment of the
Exchange Price and accrued interest) Securities of such series to be exchanged
shall cease to bear interest. Upon surrender of any Security of such series for
exchange in accordance with said notice, such Security shall be paid by the
Company at the Exchange Price, together (if accrued interest is to be paid to
the Persons surrendering the relevant Securities for exchange) with accrued
interest to the Exchange Date; provided, however, that if such Exchange Date is
an Interest Payment Date, the interest payable on such date shall be paid to the
Holder of Securities of such series according to the terms of the Securities of
such series and the provisions of Section 307.

               If any Security of any series called for exchange shall not be so
paid or exchanged upon surrender thereof for exchange, the principal shall,
until paid, bear interest from such Exchange Date at the rate or rates
prescribed therefor in such Security.

               Any Security which is to be exchanged only in part shall be
surrendered, together with any coupons (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 of any
Registered Security or his attorney duly authorized in writing) and the Company
shall execute, the Trustee shall authenticate and there shall be delivered to
the Holder of such Security without service charge a new Security or Securities
of the same series, of any

                                       91
<PAGE>   99

authorized denomination as requested by such Holder in aggregate principal
amount equal to and in exchange for the unexchanged portion of principal of the
Security so surrendered.

Section 1709.  Form of Capital Security Election Form.

               The form of Capital Security Election Form shall be substantially
as follows with such additions, deletions or changes thereto as may be approved
by the Company:

                         "CAPITAL SECURITY ELECTION FORM

To:     [Insert name and Address of any Exchange Agent]

               The undersigned Holder of [insert title of Security]
("Securities") of Golden West Financial Corporation hereby elects to receive on
the Exchange Date determined pursuant to the Indenture dated as of
_________________ ("Indenture"), between Golden West Financial Corporation and
[Name of Trustee], Trustee, and referred to in the notice of exchange delivered
to the undersigned with this Capital Security Election Form, Capital Securities
(as defined in the Indenture) equal to the excess, if any, of (i) the
outstanding principal amount of such Securities registered in the name of the
undersigned Holder over (ii) the principal amount of such Securities registered
in the name of the undersigned Holder to be repaid in cash out of Available
Funds (as defined in the Indenture). Unless this Capital Security Election Form
is received by any Exchange Agent named above at an address shown above on or
prior to , 19 , the Holder will be deemed to have elected to participate in the
sale of the Holder's Capital Securities in the Secondary Offering and will
receive cash on the Exchange Date in an amount equal to the principal amount of
all Securities being exchanged owned by the Holder. All terms used herein and
not otherwise defined herein shall have the meanings specified in the Indenture.

Dated: ____________________             ________________________________________
                                                    Name of Holder"

Section 1710.  Fractional Capital Securities.

               No fractional Capital Securities shall be issued upon exchange
for any Securities. If more than one Security of any series shall be surrendered
for exchange at one time by the same Holder, the amount of all Capital
Securities which shall be issuable upon exchange thereof shall be computed on
the basis of the aggregate principal amount of Securities of such series so
surrendered. In lieu of issuing any fractional Capital Security, the Company
shall pay a cash adjustment in respect of such fraction in an amount equal to
the same fraction of the Market Value of the Capital Security.

Section 1711.  Company to Obtain Governmental and  Regulatory Approvals.

               The Company covenants that if any Capital Securities required to
be exchanged for Securities hereunder require registration with or approval of
any governmental authority under any Federal or State law, or any national
securities exchange, before such Capital Securities may be issued, the Company
will in good faith and as expeditiously as possible endeavor to cause such
Capital Securities to be duly registered or approved, as the case may be;
provided, however, that nothing in this Section shall be deemed to affect in any
way the

                                       92
<PAGE>   100

obligation of the Company to exchange Capital Securities for Securities as
provided in this Article.

Section 1712.  Taxes on Exchange.

               The Company will pay any and all transfer, stamp or similar taxes
that may be payable in respect of the issue or delivery of Capital Securities in
exchange for Securities pursuant hereto.

Section 1713.  Covenants as to Capital Securities and Secondary Offering.

               (a)    The Company covenants that it will issue, or cause to be
issued, Capital Securities of the type, in the amounts and at the times required
by this Indenture.

               (b)    The Company covenants that all Capital Securities which
may be issued in exchange for Securities will upon issuance be duly authorized
and validly issued and, if applicable, fully paid and nonassessable.

               (c)    The Company is unconditionally obligated to sell Capital
Securities in each Secondary Offering (and to bear all expenses of each
Secondary Offering, including underwriting discounts and commissions) at the
times and in the manner required by this Indenture unless all Holders have duly
elected to receive Capital Securities on the related Exchange Date or the
Securities are to be paid from sufficient Available Funds.

               (d)    The Company agrees to indemnify and hold harmless in
connection with any Secondary Offering any Holder for the account of whom
Capital Securities are being offered and sold from and against any and all
losses, claims, damages and liabilities resulting from or based upon any untrue
statement or alleged untrue statement of any material fact contained in any
notice of exchange, any offering memorandum or selling document or registration
statement relating to the Secondary Offering, any preliminary prospectus or
prospectus relating to the Secondary Offering, or any amendment thereof or
supplement thereto, or resulting from or based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or resulting from or
based upon the omission or alleged omission to state therein a material fact
necessary to make the statements therein in light of the circumstances under
which they were made, not misleading, or resulting from the Company's failure to
comply with Section 1711 or 1712; provided, however, the Company will not be
liable in any such case to the extent that any such loss, claim, damage, or
liability arises out of or is based upon any such untrue statement, alleged
untrue statement, omission or alleged omission made therein (i) in reliance upon
and in conformity with written information furnished to the Company by or on
behalf of any such Holder specifically for use in connection with the
preparation thereof or (ii) because of such Holder's failure to advise the
Company in writing that any of the assumptions described in Section 1704(a)(7)
is incorrect. In connection with any Secondary Offering, the Company agrees to
obtain appropriate indemnification of any Holder for the account of whom Capital
Securities are being offered and sold in any Secondary Offering from any
underwriter, agent or other similar person.

                                       93
<PAGE>   101

Section 1714.  Provision in Case of Consolidation, Merger or Transfer of Assets.

               In case of any consolidation of the Company with, or merger of
the Company into, any other corporation, partnership or trust (other than a
consolidation or merger in which the Company is the continuing corporation), or
in case of any conveyance or transfer of the properties and assets of the
Company substantially as an entirety, the corporation, partnership or trust
formed by such consolidation or the corporation, partnership or trust into which
the Company shall have been merged or the corporation, partnership or trust
which shall have acquired such assets of the Company, as the case may be, shall
execute and deliver to the Trustee a supplemental indenture providing that the
Holder of each Security then Outstanding shall have the right thereafter to
receive securities of such successor on the Exchange Date for such Security with
a Market Value equal to the principal amount of such Security. The above
provisions of this Section shall similarly apply to successive consolidations,
mergers, conveyances or transfers.

Section 1715.  Responsibility of Trustee.

               The Trustee shall not at any time be under any duty or
responsibility to any holder of Securities of any series to be exchanged to
determine the Market Value of any Capital Securities delivered in exchange for
Securities of such series and may rely on and shall be entitled to receive prior
to any Exchange Date for Securities of such series an Officers' Certificate of
the Company as to the Market Value of the Capital Securities being exchanged for
the Securities of such series and the amount of Capital Securities being
exchanged for each $1,000 principal amount of Securities of such series and that
such Capital Securities qualify as Capital Securities under the definition
thereof contained in the Indenture. The Trustee shall not be accountable with
respect to the validity or value (or the kind or amount) of any Capital
Securities which may at any time be issued or delivered in exchange for any
Security; and the Trustee does not make any representation with respect thereto.
The Trustee shall not be responsible for any failure of the Company to issue,
transfer or deliver any Capital Securities or Capital Security certificates or
other securities or property upon the surrender of any Security for the purpose
of exchange or to comply with any of the covenants of the Company contained in
this Article.

Section 1716.  Revocation of Obligation to Exchange Capital Securities for
               Securities.

               The Company's obligation to exchange Capital Securities for
Securities of any series as provided in Section 1702 and 1703 is absolute and
unconditional provided, however, that such obligation may be revoked at the
option of the Company at any time on not less than 30 days' prior notice given
in the manner provided in Section 106 to the Holders of Securities of such
series, the Trustee and the Exchange Agent, if (i) the Company shall determine
that the Securities of such series will not constitute primary capital of the
Company under applicable regulations, orders or interpretive rulings by the
Primary Federal Regulator, or (ii) the Securities of such series shall cease
being treated as primary capital of the Company by the Primary Federal
Regulator, or (iii) approval of the Primary Federal Regulator is obtained for
such revocation.

               In the event such obligation is revoked

                                       94
<PAGE>   102

               (a)    the Company will pay the Securities of such series in cash
        at 100% of the principal amount thereof, plus (if accrued interest is to
        be paid to the Persons surrendering the Securities for payment) accrued
        interest on the Stated Maturity thereof, and

               (b)    the Company may, on any Redemption Date with respect to
        the Securities of such series, redeem the Securities of such series, in
        whole or in part, for cash at the Redemption Price amount thereof, plus
        (if accrued interest is to be paid to the Persons surrendering the
        Securities for payment) accrued interest to the Redemption Date.

                                 ARTICLE XVIII

                                 Available Funds

Section 1801.  Applicability of Article.

               If any Officers' Certificate or supplemental indenture pursuant
to Section 301 provides that the Securities of any series are designated as
Primary Capital Securities, the provisions of this Article shall apply to the
extent and except as otherwise specified in such Officers' Certificate or
supplemental indenture.

               The Company may, from time to time in its discretion, sell, issue
or exchange Capital Securities for the purpose of generating Available Funds to
be used to pay or redeem Primary Capital Securities. There will be no
segregation of funds representing Available Funds in any account, and the
holders of any series of Primary Capital Securities will have no security
interest in or other claim upon funds representing Available Funds dedicated to
such series of Primary Capital Securities or any investment or earnings thereon
until such time, if any, as such funds representing Available Funds are
deposited with the Trustee or any paying agent for payment in respect of such
series of Primary Capital Securities.

Section 1802.  Redemption of Primary Capital Securities with Available Funds.

               To the extent that the terms of any series of Securities
designated as Primary Capital Securities provide for their redemption in cash by
the Company prior to Stated Maturity, the Company covenants and agrees for the
sole benefit of the Primary Federal Regulator and not for the benefit of the
Trustee or any securityholder that any such redemption shall be made only to the
extent of the amount of Available Funds theretofore dedicated to such series of
Primary Capital Securities.

Section 1803.  Payment of Primary Capital Securities with Available Funds.

               The Company covenants and agrees for the sole benefit of the
Primary Federal Regulator and not for the benefit of the Trustee or any
securityholder that any series of Primary Capital Securities shall be payable at
their Stated Maturity only from Available Funds theretofore dedicated to such
series of Primary Capital Securities and, if Article Seventeen of this Indenture
is applicable such series of Primary Capital Securities, by an exchange of
Capital Securities therefor pursuant to Article Seventeen.

                                       95
<PAGE>   103

Section 1804.  Covenant to Generate Available Funds.

               With respect to any series of Primary Capital Securities which by
its terms requires the designation of Available Funds, the Company covenants and
agrees for the sole benefit of the Primary Federal Regulator and not for the
benefit of the Trustee or any securityholder that:

               (a)    by the time that one-third of the stated term of such
        Securities has passed, the Company will have generated Available Funds
        dedicated to such series of Securities in an aggregate amount equal to
        or greater than one-third of the original aggregate principal amount of
        such series;

               (b)    by the time two-thirds of the stated term of such
        Securities has passed, the Company will have generated Available Funds
        dedicated to such series of Securities in an aggregate principal amount
        equal to or greater than two-thirds of the original aggregate principal
        amount of such series; and

               (c)    by the date that is 60 days prior to the Stated Maturity
        of such Securities, the Company will have generated Available Funds
        dedicated to such series of Securities in an aggregate amount equal to
        or greater than the original aggregate principal amount of such series.

Section 1805.  Revocation of Obligations.

               The Company's obligations under Sections 1802, 1803 and 1804 may
be revoked with respect to any series of Primary Capital Securities at the
option of the Company at any time on not less than 30 days' prior notice given
in the manner provided in Section 106 to the Holders of such series of Primary
Capital Securities and the Trustee, if (i) the Company shall determine that such
series of Primary Capital Securities does not constitute primary capital of the
Company under applicable regulations, orders or interpretive rulings of the
Primary Federal Regulator, or (ii) such series of Primary Capital Securities
shall cease being treated as primary capital of the Company by the Primary
Federal Regulator, or (iii) the Company shall obtain the approval of the Primary
Federal Regulator for such revocation. In the event of any such revocation, the
Company (i) will pay 100% of the principal amount of each such series of Primary
Capital Securities as to which such obligations have been revoked, plus (if
accrued interest is to be paid to the Persons surrendering the Securities for
payment) accrued interest, in cash from any source on the Stated Maturity
thereof and (ii) may, at any time and from time to time when pursuant to its
terms such series of Primary Capital Securities is redeemable, redeem such
series of Primary Capital Securities, in whole or in part, for cash from any
source at the percentage of the principal amount set forth in the terms of such
series of Primary Capital Securities, plus (if accrued interest is to be paid to
the Persons surrendering the Securities for payment) accrued interest to the
redemption date.

                                       96
<PAGE>   104

                                  ARTICLE XIX

                    Immunity of Incorporators, Stockholders,
                             Officers and Directors

Section 1901.  Exemption from Individual Liability.

               No recourse under or upon any obligation, covenant or agreement
of this Indenture, or of any Security, or for any claim based thereon or
otherwise in respect thereof, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor Person, either directly or through the Company,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly
understood that this Indenture and the obligations issued hereunder are solely
corporate obligations, and that no such personal liability whatever shall attach
to, or is or shall be incurred by, the incorporators, stockholders, officers or
directors, as such, of the Company or of any successor Person, or any of them,
because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture
or in any of the Securities or inferred therefrom; and that any and all such
personal liability, either at common law or in equity or by constitution or
statute, of, and any and all such rights and claims against, every such
incorporator, stockholder, officer or director, as such, because of the creation
of the indebtedness hereby authorized, or under or by reason of the obligations,
covenants or agreements contained in this Indenture or in any of the Securities
or implied therefrom, are hereby expressly waived and released as a condition
of, and as a consideration for, the execution of this Indenture and the issue of
such Securities.

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

                                       97
<PAGE>   105

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

                                       GOLDEN WEST FINANCIAL CORPORATION

                                       By ______________________________________
                                       Name:
                                       Title:

Attest: ______________________
Name:
Title:

                                       [NAME OF TRUSTEE]

                                       By ______________________________________
                                       Name:
                                       Title:

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<PAGE>   106

STATE OF CALIFORNIA       )
COUNTY OF ALAMEDA         )  ss.

               On the ____ day of __________, ______, before me, a Notary Public
in and for said County and State, personally appeared _________________, known
to me to be the __________ of Golden West Financial Corporation, one of the
corporations described in and which executed the foregoing instrument, and known
to me to be the person who executed the within instrument on behalf of Golden
West Financial Corporation; that he knows the seal of said corporation; that the
seal affixed to said instrument is such corporate seal; and that he acknowledged
to me that Golden West Financial Corporation executed the within instrument
pursuant to its bylaws or a resolution of its board of directors.

                                  Witness my hand and official seal.

                                  Notary Public in and for said County and State

<PAGE>   107

STATE OF NEW YORK            )
COUNTY OF NEW YORK           )  ss.

               On the ____ day of ________, ______, before me, a Notary Public
in and for said County and State, personally appeared ____________, known to me
to be the _____________ of [Name of Trustee], one of the corporations described
in and which executed the foregoing instrument, and known to me to be the person
who executed the within instrument on behalf of [Name of Trustee]; that he/she
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; and that he/she acknowledged to me that [Name of Trustee]
executed the within instrument pursuant to its bylaws or a resolution of its
board of directors.

                                  Witness my hand and official seal.

                                  Notary Public in and for said County and State

<PAGE>   108

                                    EXHIBIT A

                            (Forms of Certification)

                                   Exhibit A.1

                [Form of Certificate of Beneficial Ownership by a
              Non-United States Person or by Certain Other Persons]

                                   Certificate

                        GOLDEN WEST FINANCIAL CORPORATION

                   [Insert title or sufficient description of
                           Securities to be delivered]

               Reference is hereby made to the Indenture dated as of
___________________ (the "Indenture") between Golden West Financial Corporation
and [Name of Trustee], as trustee (the "Trustee") covering the above-captioned
Securities (the "Securities"). This is to certify that as of the date hereof,
__________________ principal amount of Securities credited to you for our
account (i) is owned by persons that are not United States Persons, as defined
below; (ii) is owned by United States Persons that are (a) foreign branches of
United States financial institutions (as defined in U.S. Treasury Regulations
Section 1.165-12(c)(1)(v)) ("financial institutions") purchasing for their own
account or for resale, or (b) United States Persons who acquired the Securities
through foreign branches of United States financial institutions and who hold
the Securities through such United States financial institutions on the date
hereof (and in either case (a) or (b), each such United States financial
institution encloses herewith a certificate in the form of Exhibit A.2 to the
Indenture); or (iii) is owned by United States or foreign financial institutions
for purposes of resale during the restricted period (as defined in U.S. Treasury
Regulations Section 1.163-5(c)(2)(i)(D)(7)), which United States or foreign
financial institutions described in clause (iii) above (whether or not also
described in clause (i) or (ii)) certify that they have not acquired the
Securities for purposes of resale directly or indirectly to a United States
Person or to a person within the United States or its possessions.

               We undertake to advise you by tested telex followed by written
confirmation if the above statement as to beneficial ownership is not correct on
the earlier of the date of delivery to us of the above-captioned Securities in
bearer form or the first date of payment of interest as to all of such
Securities as then appear in your books as being held for our account. We
understand that this certificate is required in connection with United States
tax laws. We irrevocably authorize you to produce this certificate or a copy
hereof to any interested party in any administrative or legal proceedings with
respect to the matters covered by this certificate. "United States Person" shall
mean a citizen or resident of the United States of America (including the States
and the District of Columbia) (the "United States"), a corporation, partnership
or other entity created or organized in or under the laws of the United States
or an estate or trust the income of which is subject to United States federal
income taxation regardless of its source.

                                      A.1-1
<PAGE>   109

               [This certificate excepts and does not relate to _____________
principal amount of Securities credited to you for our account and to which we
are not now able to make the certification set forth above. We understand that
definitive Securities cannot be delivered and interest cannot be paid until we
are able to so certify with respect to such principal amount of Securities.]*

Dated: _________________

[To be dated on or after_____________________ (the date determined as provided
in the Indenture)]

                                       [Name of Person Entitled to
                                       Receive Bearer Security]

                                       _________________________________________
                                                (Authorized Signatory)

                                       Name: ___________________________________

                                       Title: __________________________________

---------------
* Delete if inappropriate

                                      A.1-2

<PAGE>   110

                                   Exhibit A.2

                       [Form of Certificate of Status as a
            Foreign Branch of a United States Financial Institution]

                                   Certificate

                        GOLDEN WEST FINANCIAL CORPORATION

                     [Insert title or sufficient description
                         of Securities to be delivered]

               Reference is hereby made to the Indenture dated as of
______________ (the "Indenture"), between Golden West Financial Corporation and
[Name of Trustee], as trustee, relating to the offering of the above-captioned
Securities (the "Securities").

               The undersigned represents that it is a branch located outside
the United States of a United States securities clearing organization, bank or
other financial institution (as defined in U.S. Treasury Regulation Section
1.165-12(c)(1)(v)) that holds customers' securities in the ordinary course of
its trade or business and agrees, and authorizes you to advise the issuer or the
issuer's agent, that it will comply with the requirements of Section
165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986 and the
regulations thereunder and is not purchasing for resale directly or indirectly
to a United States Person or to a person within the United States or it
possessions. We undertake to advise you by tested telex followed by written
confirmation if the statement in the immediately preceding sentence is not
correct on the earlier of the date of delivery of the above-captioned Securities
in bearer form or the first date of payment of interest with respect to such of
the Securities as they appear on your books as being held for our account.

               We understand that this certificate is required in connection
with the United States tax laws. We irrevocably authorize you to produce this
certificate or a copy hereof to any interested party in any administrative or
legal proceedings with respect to the matters covered by this certificate.
"United States Person" shall mean a citizen or resident of the United States of
America (including the States and the District of Columbia) (the "United
States"), a corporation, partnership or other entity created or organized in or
under the laws of the United States or an estate or trust the income of which is
subject to United States federal income taxation regardless of its source.

                                      A.2-1
<PAGE>   111

               [This certificate excepts and does not relate to ________________
principal amount of Securities credited to you for our account and to which we
are not now able to make the certification set forth above. We understand that
definitive Securities cannot be delivered and interest cannot be paid until we
are able to so certify with respect to such principal amount of Securities.]*

Dated:

[To be dated on or after _____________________ (the date determined as provided
in the Indenture)]

                                       [Name of Person Entitled to
                                       Receive Bearer Security]

                                       _________________________________________
                                                (Authorized Signatory)

                                       Name: ___________________________________

                                       Title: __________________________________

---------------
* Delete if inappropriate

                                      A.2-2
<PAGE>   112

                                   Exhibit A.3

                  [Form of Certificate to be Given by Euroclear
                and Clearstream, in Connection with the Exchange
                    of All or a Portion of a Temporary Global
                Security or to Obtain Interest Prior to Exchange]

                                   Certificate

                        GOLDEN WEST FINANCIAL CORPORATION

                   [Insert title or sufficient description of
                           Securities to be delivered]

               We refer to that portion, ______________________, of the Global
Security representing the above-captioned issue of securities (the "Securities")
[which is herewith submitted to be exchanged for definitive Securities]* [for
which we are seeking to obtain payment of interest]* (the "Submitted Portion").
This is to certify, pursuant to the Indenture dated as of ________________ (the
"Indenture") between Golden West Financial Corporation and [Name of Trustee], as
trustee (the "Trustee"), that we have received in writing, by tested telex or by
electronic transmission from member organizations with respect to each of the
persons appearing in our records as being entitled to a beneficial interest in
the Submitted Portion a Certificate of Beneficial Ownership by a Non-United
States Person or by Certain Other Persons [and, in some cases, a Certificate of
Status as a Foreign Branch of a United States Financial Institution authorizing
us to inform the issuer or the issuer's agent that it will comply with the
requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of
1986 and the regulations thereunder]* substantially in the form of Exhibit A.1
[and A.2]* to the Indenture.

               [Insert if certificate relates to the delivery of Securities in
bearer form -- We hereby request that you deliver to the office of
______________ in _____________ definitive Securities in bearer form in the
denominations on the attached Schedule A.]*

               We further certify that as of the date hereof we have not
received any notification from any of the persons giving such certificates to
the effect that the statements made by them with respect to any part of the
Submitted Portion are no longer true and cannot be relied on as of the date
hereof.

Dated:

                                       [MORGAN GUARANTY TRUST COMPANY OF
                                       NEW YORK, BRUSSELS OFFICE, as Operator of
                                       the Euroclear System] [Clearstream]

                                       By ______________________________________

* Delete if inappropriate

                                      A.3-1
<PAGE>   113

                        GOLDEN WEST FINANCIAL CORPORATION

                 Reconciliation and tie between Trust Indenture Act of 1939
                           and Indenture, dated as of ____________

<TABLE>
<CAPTION>
               Trust Indenture Act Section                 Indenture Section
               ---------------------------                 -----------------
<S>                                                        <C>
                  Section 310 (a)(1)                           609
                              (a)(2)                           609
                              (a)(3)                           Not Applicable
                              (a)(4)                           Not Applicable
                              (a)(5)                           609
                              (b)                              608, 610
                              (c)                              Not Applicable
                  Section 311 (a)                              613(a)
                              (b)                              613(b)
                              (b)(2)                           703(a)(3), 703(b)
                  Section 312 (a)                              701, 702(a)
                              (b)                              702(b)
                              (c)                              702(c)
                  Section 313 (a)                              703(a)
                              (b)                              703(b)
                              (c)                              703(c)
                              (d)                              703(d)
                  Section 314 (a)                              704
                              (b)                              Not Applicable
                              (c)(1)                           102
                              (c)(2)                           102
                              (c)(3)                           Not Applicable
                              (d)                              Not Applicable
                              (e)                              102
                  Section 315 (a)                              601(a)
                              (b)                              602, 703(a)(7)
                              (c)                              601(b)
                              (d)                              601(c)
                              (d)(1)                           601(a)(1)
                              (d)(2)                           601(c)(2)
                              (d)(3)                           601(c)(3)
                              (e)                              514
                  Section 316 (a)                              101
                              (a)(1)(A)                        104(f), 502, 512
                              (a)(1)(B)                        104(f), 513
                              (a)(2)                           Not Applicable
                              (b)                              508
                              (c)                              104(f)
                  Section 317 (a)(1)                           503
                              (a)(2)                           504
</TABLE>

<PAGE>   114

<TABLE>
<CAPTION>
               Trust Indenture Act Section                 Indenture Section
               ---------------------------                 -----------------
<S>                                                        <C>
                              (b)                              1003
                  Section 318 (a)                              108
                              (c)                              108
</TABLE>

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

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