Document:

<PAGE>

                                                                    EXHIBIT 4(m)

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

                                  $300,000,000

                           FIFTH AMENDED AND RESTATED
                                CREDIT AGREEMENT

                           Dated as of August 3, 2004

                                      Among

                             CMS ENERGY CORPORATION
                                  as a Borrower

                             CMS ENTERPRISES COMPANY
                                  as a Borrower

                             THE BANKS NAMED HEREIN
                                    as Banks

                               CITICORP USA, INC.
                  as Administrative Agent and Collateral Agent

                       WACHOVIA BANK, NATIONAL ASSOCIATION
                              as Syndication Agent

                                       and

                                  BANK ONE, NA
                              BARCLAYS BANK PLC AND
                         UNION BANK OF CALIFORNIA, N.A.
                             as Documentation Agents

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

                          CITIGROUP GLOBAL MARKETS INC.
                        AND WACHOVIA CAPITAL MARKETS LLC
                 as Joint Book Managers and Joint Lead Arrangers

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                        Page
<S>                                                                            <C>
                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

SECTION 1.01. Certain Defined Terms .........................................   2
SECTION 1.02. Computation of Time Periods; Construction. ....................  22
SECTION 1.03. Accounting Terms ..............................................  22

                                   ARTICLE II
             COMMITMENTS, LOANS, FEES, PREPAYMENTS AND OUTSTANDINGS

SECTION 2.01. Making Loans ..................................................  23
SECTION 2.02. Fees ..........................................................  23
SECTION 2.03. Commitments; Mandatory Prepayments ............................  24
SECTION 2.04. Computations of Outstandings ..................................  25

                                   ARTICLE III
                                      LOANS

SECTION 3.01. Loans .........................................................  25
SECTION 3.02. Conversion of Loans ...........................................  26
SECTION 3.03. Interest Periods ..............................................  26
SECTION 3.04. Other Terms Relating to the Making and Conversion of Loans ....  27
SECTION 3.05. Repayment of Loans; Interest ..................................  29

                                   ARTICLE IV
                                LETTERS OF CREDIT

SECTION 4.01. Issuing Banks .................................................  29
SECTION 4.02. Letters of Credit. ............................................  30
SECTION 4.03. Issuing Bank Fees .............................................  31
SECTION 4.04. Reimbursement to Issuing Banks ................................  31
SECTION 4.05. Obligations Absolute ..........................................  32
SECTION 4.06. Indemnification; Liability of Issuing Banks and the Lenders ...  33
SECTION 4.07. Currency Equivalents ..........................................  34
SECTION 4.08. Judgement Currency ............................................  34
SECTION 4.09. Cash Collateral Agreement .....................................  35
SECTION 4.10. Court Order ...................................................  35

                                    ARTICLE V
                   PAYMENTS, COMPUTATIONS AND YIELD PROTECTION

SECTION 5.01. Payments and Computations. ....................................  35
SECTION 5.02. Interest Rate Determination ...................................  37
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>                                                                            <C>
SECTION 5.03. Prepayments ...................................................  37
SECTION 5.04. Yield Protection. .............................................  38
SECTION 5.05. Sharing of Payments, Etc ......................................  40
SECTION 5.06. Taxes .........................................................  40
SECTION 5.07. Apportionment of Payments. ....................................  41
SECTION 5.08. Proceeds of Collateral ........................................  43

                                   ARTICLE VI
                              CONDITIONS PRECEDENT

SECTION 6.01. Conditions Precedent to the Effectiveness of this Agreement ...  43
SECTION 6.02. Conditions Precedent to Each Extension of Credit ..............  46
SECTION 6.03. Conditions Precedent to Certain Extensions of Credit ..........  47
SECTION 6.04. Reliance on Certificates ......................................  47

                                   ARTICLE VII
                         REPRESENTATIONS AND WARRANTIES

SECTION 7.01. Representations and Warranties of the Borrowers ...............  47

                                  ARTICLE VIII
                           COVENANTS OF THE BORROWERS

SECTION 8.01. Affirmative Covenants .........................................  52
SECTION 8.02. Negative Covenants ............................................  54
SECTION 8.03. Reporting Obligations .........................................  63

                                   ARTICLE IX
                                    DEFAULTS

SECTION 9.01. Events of Default .............................................  66
SECTION 9.02. Remedies ......................................................  68

                                    ARTICLE X
                                   THE AGENTS

SECTION 10.01. Authorization and Action .....................................  69
SECTION 10.02. Indemnification ..............................................  71
SECTION 10.03. Concerning the Collateral and the Loan Documents .............  72
SECTION 10.04. Release of Guarantors ........................................  73

                                   ARTICLE XI
                                  MISCELLANEOUS

SECTION 11.01. Amendments, Etc ..............................................  73
SECTION 11.02. Notices, Etc .................................................  74
SECTION 11.03. No Waiver of Remedies ........................................  74
SECTION 11.04. Costs, Expenses and Indemnification. .........................  75
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                            <C>
SECTION 11.05. Right of Set-off .............................................  76
SECTION 11.06. Binding Effect ...............................................  76
SECTION 11.07. Assignments and Participation ................................  77
SECTION 11.08. Confidentiality ..............................................  79
SECTION 11.09. Waiver of Jury Trial .........................................  80
SECTION 11.10. GOVERNING LAW; SUBMISSION TO JURISDICTION ....................  80
SECTION 11.11. Relation of the Parties; No Beneficiary ......................  81
SECTION 11.12. Execution in Counterparts ....................................  81
SECTION 11.13. Survival of Agreement ........................................  81
SECTION 11.14. Platform .....................................................  81
SECTION 11.15. USA Patriot Act ..............................................  83

                                   ARTICLE XII
                             CO-BORROWER PROVISIONS

SECTION 12.01. Appointment ..................................................  83
SECTION 12.02. Separate Actions .............................................  84
SECTION 12.03. Obligations Absolute and Unconditional .......................  84
SECTION 12.04. Waivers and Acknowledgements. ................................  84
SECTION 12.05. Contribution Among Borrowers. ................................  85
SECTION 12.06. Subrogation; Reinstatement ...................................  86
SECTION 12.07. Subordination ................................................  86

                                  ARTICLE XIII
           NO NOVATION; REFERENCES TO THIS AGREEMENT IN LOAN DOCUMENTS

SECTION 13.01. No Novation ..................................................  87
SECTION 13.02. References to This Agreement In Loan Documents ...............  87
</TABLE>

                                       iii
<PAGE>

Exhibits

EXHIBIT A     - Form of Notice of Borrowing
EXHIBIT B     - Form of Notice of Conversion
EXHIBIT C     - Form of Opinion of Belinda Foxworth, Esq., counsel to the
                Borrowers
EXHIBIT D     - Form of Opinion of Skadden, Arps, Slate, Meagher & Flom LLP,
                special counsel to the Borrowers
EXHIBIT E     - Form of Compliance Schedule
EXHIBIT F     - Form of Lender Assignment
EXHIBIT G     - Terms of Subordination (Junior Subordinated Debt)
EXHIBIT H     - Terms of Subordination (Guaranty of Hybrid Preferred Securities)
EXHIBIT I     - Form of Amended and Restated Guaranty
EXHIBIT J     - Form of Third Amended and Restated Pledge and Security Agreement
                (Company)
EXHIBIT K     - Form of Pledge and Security Agreement (Enterprises and Grantors)
EXHIBIT L     - AIG Pledge Agreement
EXHIBIT M     - Intercreditor Agreement
EXHIBIT N     - Form of Cash Collateral Account Agreement

Schedules

COMMITMENT
SCHEDULE
SCHEDULE I      Certain Debt
SCHEDULE II     Pledged Ownership Interests
SCHEDULE III    Transitional Letters of Credit

ATTACHMENT A    Reaffirmation

                                       iv
<PAGE>

                   FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

                           Dated as of August 3, 2004

      THIS FIFTH AMENDED AND RESTATED CREDIT AGREEMENT (the "AGREEMENT") is made
by and among:

      (i)   CMS Energy Corporation, a Michigan corporation (the "COMPANY"),

      (ii)  CMS Enterprises Company, a Michigan corporation ("ENTERPRISES" and,
            together with the Company, the "BORROWERS"),

      (iii) the banks (the "BANKS") listed on the signature pages hereof and the
            other Lenders (as hereinafter defined) from time to time party
            hereto,

      (iv)  Citicorp USA, Inc. ("CUSA"), as administrative agent (the
            "ADMINISTRATIVE AGENT") for the Lenders hereunder and as collateral
            agent (the "COLLATERAL AGENT") for the Lenders hereunder, and

      (v)   Wachovia Bank, National Association, as syndication agent (the
            "SYNDICATION AGENT"), and Bank One, NA, Barclays Bank PLC and Union
            Bank of California, N.A., as documentation agents (the
            "DOCUMENTATION AGENTS").

                             PRELIMINARY STATEMENTS

      The Borrowers have requested that the Banks amend and restate the Existing
Credit Agreement (as hereafter defined) to provide the credit facility
hereinafter described in the amount and on the terms and conditions set forth
herein. The Banks have so agreed on the terms and conditions set forth herein,
and the Agents have agreed to act as agents for the Lenders and the Issuing
Banks on such terms and conditions.

      The parties hereto acknowledge and agree that neither Consumers (as
hereinafter defined) nor any of its Subsidiaries (as hereinafter defined) will
be a party to, or will in any way be bound by any provision of, this Agreement
or any other Loan Document (as hereinafter defined), and that no Loan Document
will be enforceable against Consumers or any of its Subsidiaries or their
respective assets.

      Accordingly, the parties hereto agree as follows:

                                       1
<PAGE>

                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

      SECTION 1.01. CERTAIN DEFINED TERMS. As used in this Agreement, the
following terms shall have the following meanings:

            "ABR", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Alternate Base Rate.

            "ABR LOAN" means a Loan that bears interest as provided in Section
3.05(b)(i).

            "ACCOUNTING CHANGE" is defined in Section 1.03.

            "ADJUSTED LIBO RATE" means, for each Interest Period for each
Eurodollar Rate Loan made as part of the same Borrowing, an interest rate per
annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the
LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

            "ADMINISTRATIVE QUESTIONNAIRE" means an Administrative Questionnaire
in a form supplied by the Administrative Agent.

            "AFFILIATE" means, with respect to any Person, any other Person
directly or indirectly controlling (including but not limited to all directors
and officers of such Person), controlled by, or under direct or indirect common
control with such Person. A Person shall be deemed to control another entity if
such Person possesses, directly or indirectly, the power to direct or cause the
direction of the management and policies of such entity, whether through the
ownership of voting securities, by contract, or otherwise.

            "AGENT" means, as the context may require, the Administrative Agent,
the Collateral Agent, the Syndication Agent or the Documentation Agents, and
"Agents" means any or all of the foregoing.

            "AIG PLEDGE AGREEMENT" means that certain Pledge and Security
Agreement, dated as of January 8, 2003, by and among Enterprises and the other
grantors parties thereto in favor of American Home Assurance Company, as
collateral agent, a copy of which is attached hereto as Exhibit L, as amended,
restated, supplemented or otherwise modified from time to time.

            "ALTERNATE BASE RATE" means, for any day, a rate per annum equal to
the highest of (a) the Prime Rate in effect on such day, (b) 1/2 of one percent
above the CD Rate, and (c) the Federal Funds Effective Rate in effect on such
day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the
Prime Rate, the CD Rate or the Federal Funds Effective Rate shall be effective
from and including the effective date of such change in the Prime Rate, CD Rate
or the Federal Funds Effective Rate, respectively.

            "ALTERNATIVE CURRENCY" means euro and Indian Rupees; provided, that
if with respect to any of the foregoing currencies (x) currency control or other
exchange regulations are

                                       2
<PAGE>

imposed in the country in which such currency is issued with the result that
different types of such currency are introduced, (y) such currency is, in the
determination of the Administrative Agent, no longer readily available or freely
traded or (z) in the determination of the Administrative Agent, a Dollar
Equivalent of such currency is not readily calculable, the Administrative Agent
shall promptly notify the Lenders and the Company, and such currency shall no
longer be an Alternative Currency until such time as all of the Lenders agree to
reinstate such currency as an Alternative Currency.

            "APPLICABLE LENDING OFFICE" means, with respect to each Lender, at
the address specified for such Lender on its signature page to this Agreement or
in the Lender Assignment pursuant to which it became a Lender, as applicable, or
at any office, branch, subsidiary or affiliate of such Lender specified in a
notice received by the Administrative Agent and the Borrowers from such Lender.

            "APPLICABLE MARGIN" means, on any date of determination with respect
to any Loans, the per annum rate specified in the table below for such Loans:

<TABLE>
<CAPTION>
                         Applicable Margin
                         -----------------
<S>                      <C>
ABR Loans                      1.75%
Eurodollar Rate Loans          2.75%
</TABLE>

            "APPLICABLE RATE" means:

            (i) in the case of each ABR Loan, a rate per annum equal at all
      times to the sum of the Alternate Base Rate in effect from time to time
      plus the Applicable Margin; and

            (ii) in the case of each Eurodollar Rate Loan comprising part of the
      same Borrowing, a rate per annum during each Interest Period equal at all
      times to the sum of the Adjusted LIBO Rate for such Interest Period plus
      the Applicable Margin.

            "ARRANGERS" means Citigroup Global Markets Inc. and Wachovia Capital
Markets LLC.

            "AVAILABLE COMMITMENT" means, for each Lender on any day, the unused
portion of such Lender's Commitment, computed after giving effect to all
Extensions of Credit or prepayments to be made on such day and the application
of proceeds therefrom. " AVAILABLE COMMITMENTS" means the aggregate of the
Lenders' Available Commitments.

            "BANKRUPTCY CODE" means Title 11 of the United States Code (11
U.S.C. Sections 101 et seq.), as amended from time to time, and any successor
statute.

            "BOARD" means the Board of Governors of the Federal Reserve System
of the United States of America.

                                       3
<PAGE>

            "BORROWING" means a borrowing consisting of Loans of the same Type,
having the same Interest Period and made or Converted on the same day by the
Lenders, ratably in accordance with their respective Percentages. Any Borrowing
consisting of Loans of a particular Type may be referred to as being a Borrowing
of such "TYPE". All Loans to the same Borrower of the same Type, having the same
Interest Period and made or Converted on the same day shall be deemed a single
Borrowing hereunder until repaid or next Converted.

            "BUSINESS DAY" means a day of the year on which banks are not
required or authorized to close in New York City or Detroit, Michigan, and, if
the applicable Business Day relates to any Eurodollar Rate Loan, on which
dealings are carried on in the London interbank market and, if the applicable
Business Day relates to any Letter of Credit, a day of the year on which banks
are not required or authorized to close in the principal place of business of
the related Issuing Bank.

            "CASH COLLATERAL ACCOUNT" means the "Account" as defined in the Cash
Collateral Agreement.

            "CASH COLLATERAL AGREEMENT" means that certain Cash Collateral
Agreement, dated as of August 3, 2004, between the Borrowers, the Administrative
Agent and the Collateral Agent, for the benefit of the Lenders, substantially in
the form of Exhibit N, as amended, restated, supplemented or otherwise modified
from time to time.

            "CASH COLLATERAL REQUIRED AMOUNT" means, as of any date of
determination, the difference of (i) one hundred five percent (105%) of the
Dollar Equivalent of the aggregate LC Outstandings at such time in respect of
undrawn Letters of Credit less (y) the amount of cash on deposit in the Cash
Collateral Account at such time which is free and clear of all rights and claims
of third parties and has not been applied against the Obligations.

            "CASH DIVIDEND INCOME" means, for any period, the amount of all cash
dividends received by the Company from its Subsidiaries during such period that
are paid out of the net income or loss (without giving effect to: any
extraordinary gains in excess of $25,000,000, the amount of any write-off or
write-down of assets, including, without limitation, write-offs or write-downs
related to the sale of assets, impairment of assets and loss on contracts, in
each case in accordance with GAAP consistently applied, and up to $200,000,000
of other non-cash write-offs) of such Subsidiaries during such period.

            "CD RATE" means the latest three-week moving average of secondary
market morning offering rates in the United States for three-month certificates
of deposit of major United States money market banks, such three-week moving
average being determined weekly on each Monday (or, if such day is not a
Business Day, on the next succeeding Business Day) for the three-week period
ending on the previous Friday by Citibank on the basis of such rates reported by
certificate of deposit dealers to and published by the Federal Reserve Bank of
New York or, if such publication shall be suspended or terminated, on the basis
of quotations for such rates received by Citibank from three New York
certificate of deposit dealers of recognized standing selected by Citibank, in
either case, adjusted to the nearest 1/16 of one percent or, if there is no
nearest 1/16 of one percent, to the next higher 1/16 of one percent.

                                       4
<PAGE>

            "CHANGE OF CONTROL" means (a) any "person" or "group" within the
meaning of Sections 13(d) and 14(d)(2) of the Exchange Act shall become the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act) of more
than 50% of the then outstanding voting capital stock of the Company, or (b) the
majority of the board of directors of the Company shall fail to consist of
Continuing Directors, or (c) a consolidation or merger of the Company shall
occur after which the holders of the outstanding voting capital stock of the
Company immediately prior thereto hold less than 50% of the outstanding voting
capital stock of the surviving entity, or (d) more than 50% of the outstanding
voting capital stock of the Company shall be transferred to any entity of which
the Company owns less than 50% of the outstanding voting capital stock or (e)
the Company shall cease to own, directly or indirectly, 80% of the outstanding
capital stock of Enterprises.

            "CITIBANK" means Citibank, N.A., a national banking association.

            "CITIGROUP PARTIES" means Citibank, CUSA, Citigroup Global Markets
Inc. and each of their respective Affiliates, and each of their respective
officers, directors, employees, agents, advisors, and representatives.

            "CLOSING DATE" means August 3, 2004.

            "CMS ERM" means CMS Energy Resource Management Company (formerly
known as CMS Marketing, Services and Trading Company), a Michigan corporation,
all of whose capital stock is on the Closing Date owned by Enterprises and its
permitted successors.

            "CMS GENERATION" means CMS Generation Co., a Michigan corporation,
all of whose common stock is on the Closing Date owned by Enterprises and its
permitted successors.

            "COLLATERAL" means all property and interests in property now owned
or hereafter acquired by any Loan Party upon which a Lien is granted under any
of the Loan Documents, including, without limitation, all "Collateral" under
(and as defined in) the Cash Collateral Agreement.

            "COMMITMENT" means, for each Lender, the obligation of such Lender
to make Loans to the Borrowers and to participate in Extensions of Credit
resulting from the issuance (or extension, modification or amendment) of any
Letter of Credit in an aggregate amount no greater than the amount set forth
opposite such Lender's name on the Commitment Schedule under the heading
"Commitment" or, if such Lender has entered into one or more Lender Assignments,
set forth for such Lender in the Register maintained by the Administrative Agent
pursuant to Section 11.07(h), in each case as such amount may be modified from
time to time pursuant to Section 2.03. " COMMITMENTS" means the total of the
Lenders' Commitments hereunder. As of the Closing Date the aggregate of all of
the Lenders' Commitments equals $300,000,000.

            "COMMITMENT FEE MARGIN" means a per annum rate equal to 0.50%.

            "COMMITMENT SCHEDULE" means the Schedule identifying each Lender's
Commitment as of the Closing Date attached hereto and identified as such.

                                       5
<PAGE>

            "COMMITMENT TERMINATION DATE" means the earlier of (i) the Maturity
Date and (ii) the date of termination or reduction in whole of the Commitments
pursuant to Section 2.03 or 9.02.

            "COMMUNICATIONS" is defined in Section 11.14.

            "COMPANY INTEREST EXPENSE" means at any date, the total interest
expense in respect of Debt of the Company for the four calendar quarters
immediately preceding such date, including, without duplication, (i) interest
expense attributable to capital leases, (ii) amortization of debt discount,
(iii) capitalized interest, (iv) cash and noncash payments, (v) commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers' acceptance financing, (vi) net costs under interest rate swap, "cap",
"collar" or other hedging agreements (including amortization of discount) and
(vii) interest expense in respect of obligations of Persons deemed to be Debt of
the Company under clause (ix) of the definition of Debt, provided, however that
Company Interest Expense shall exclude (1) any costs (including, without
limitation, any prepayment or option premium or expenses incurred in connection
with the Company's (i) reset put securities due July 1, 2003 or (ii) debt
securities due January 15, 2005) otherwise included in interest expense
recognized on early retirement of debt and (2) any interest or dividends paid on
Hybrid Preferred Securities.

            "CONFIDENTIAL INFORMATION" has the meaning assigned to that term in
Section 11.08.

            "CONSOLIDATED DEBT" means, without duplication, as determined on a
consolidated basis in accordance with GAAP, at any date of determination, the
sum of the aggregate Debt of the Company plus the aggregate debt (as such term
is construed in accordance with GAAP) of the Consolidated Subsidiaries;
provided, however, that:

            (a) Consolidated Debt shall not include any Support Obligation
      described in clause (iv) or (v) of the definition thereof if such Support
      Obligation or the primary obligation so supported is not fixed or
      conclusively determined or is not otherwise reasonably quantifiable as of
      the date of determination;

            (b) Consolidated Debt shall not include (i) any Junior Subordinated
      Debt owned by any Hybrid Preferred Securities Subsidiary or (ii) any
      guaranty by the Company of payments with respect to any Hybrid Preferred
      Securities, provided that such guaranty is subordinated to the rights of
      the Lenders and Issuing Banks hereunder and under the other Loan Documents
      pursuant to terms of subordination substantially similar to those set
      forth in Exhibit H, or pursuant to other terms and conditions satisfactory
      to the Required Lenders;

            (c) Consolidated Debt shall not include any debt issued by the
      Company that shall be (i) subordinated to the Obligations of the Loan
      Parties on terms acceptable to the Administrative Agent and (ii) required
      to be converted only into non-redeemable common stock of the Company;

            (d) with respect to any Support Obligations provided by the Company
      in connection with a purchase or sale by CMS ERM or its Subsidiaries of
      natural gas,

                                       6
<PAGE>

      natural gas liquids, gas condensates, electricity, oil, propane, coal, any
      other commodity, weather derivatives or any derivative instrument with
      respect to any commodity with any other Person (a "COUNTERPARTY"),
      Consolidated Debt shall include only the excess, if any, of (A) the
      aggregate amount of any Support Obligations provided by the Company in
      respect of CMS ERM's or any of its Subsidiary's obligations under any such
      purchase or sale transaction (a " COVERING TRANSACTION") entered into by
      CMS ERM or any of its Subsidiaries in connection with such purchase or
      sale over (B) the aggregate amount of (i) any Support Obligations provided
      by the direct or indirect parent company of such Counterparty (the
      "COUNTERPARTY GUARANTOR") and (ii) any irrevocable letter of credit
      provided by any financial institution for the account of such Counterparty
      or Counterparty Guarantor, in each case for the benefit of CMS ERM or any
      of its Subsidiaries in support of such Counterparty's payment obligations
      to CMS ERM or such Subsidiary arising from such purchase or sale,
      provided, that (x) the senior, unsecured, non-credit enhanced indebtedness
      of such Counterparty Guarantor or such financial institution (as the case
      may be) is rated BBB- (or its equivalent) or higher by any two of S&P,
      Fitch and Moody's, provided, that in the event that such Counterparty
      Guarantor has no such rated indebtedness, Dun & Bradstreet Inc. has rated
      such Counterparty Guarantor at least investment grade, (y) no default by
      such Counterparty Guarantor in respect of any such Support Obligations
      provided by such Counterparty Guarantor has occurred and is continuing and
      (z) such Counterparty Guarantor is not the Company or any Affiliate of the
      Company or any of its Subsidiaries;

            (e) Consolidated Debt shall not include any Project Finance Debt of
      the Company or any Consolidated Subsidiary; and

            (f) Consolidated Debt shall not include the principal amount of any
      Securitized Bonds.

            "CONSOLIDATED EBITDA" means, with reference to any period, the
pretax operating income of the Company and its Subsidiaries ("PRETAX OPERATING
INCOME") for such period plus, to the extent deducted in determining Pretax
Operating Income (without duplication), (i) depreciation, depletion and
amortization, and (ii) any non-cash write-offs and write-downs contained in the
Company's Pretax Operating Income, including, without limitation, write-offs or
write-downs related to the sale of assets, impairment of assets and loss on
contracts, in each case in accordance with GAAP consistently applied, all
calculated for the Company and its Subsidiaries on a consolidated basis for such
period; provided, however, that Consolidated EBITDA shall not include any
operating income attributable to that portion of the revenues of Consumers
dedicated to the repayment of the Securitized Bonds.

            "CONSOLIDATED SUBSIDIARY" means any Subsidiary whose accounts are or
are required to be consolidated with the accounts of the Company in accordance
with GAAP.

            "CONSUMERS" means Consumers Energy Company, a Michigan corporation,
all of whose common stock is on the Closing Date owned by the Company.

                                       7
<PAGE>

            "CONSUMERS CREDIT FACILITY" means, collectively, Consumer's existing
(i) $140,000,000 term loan facility and (ii) $500,000,000 revolving loan
facility, as in effect on the date hereof.

            "CONSUMERS DIVIDEND RESTRICTION" means any restriction enacted or
imposed after October 1, 1992 upon the ability of Consumers to pay cash
dividends to the Company in respect of Consumers' capital stock, whether such
restriction is imposed by statute, regulation, decisions or rulings by the
Michigan Public Service Commission or the Federal Energy Regulatory Commission
(or any successor agency or agencies), final judgments of any court of competent
jurisdiction, indentures, agreements, contracts or restrictions to which
Consumers is a party or by which it is bound or otherwise; provided, that no
restriction on such dividends existing on October 1, 1992 shall be a Consumers
Dividend Restriction at any time; provided, further, that any such restriction
enacted or imposed by the Michigan Public Service Commission limiting such
dividends to an amount not less than $190,000,000 during any twelvemonth period
shall not be a Consumers Dividend Restriction at any time.

            "CONTINUING DIRECTOR" means, as of any date of determination, any
member of the board of directors of the Company who (a) was a member of such
board of directors on the Closing Date, or (b) was nominated for election or
elected to such board of directors with the approval of the Continuing Directors
who were members of such board of directors at the time of such nomination or
election; provided that an individual who is so elected or nominated in
connection with a merger, consolidation, acquisition or similar transaction
shall not be a Continuing Director unless such individual was a Continuing
Director prior thereto.

            "CONVERSION", "CONVERT " or "CONVERTED" refers to a conversion of
Loans of one Type into Loans of another Type, or to the selection of a new, or
the renewal of the same, Interest Period for Loans, as the case may be, pursuant
to Section 3.02 or 3.03.

            "DEBT" means, for any Person, without duplication, any and all
indebtedness, liabilities and other monetary obligations of such Person (whether
for principal, interest, fees, costs, expenses or otherwise, and whether
contingent or otherwise) (i) for borrowed money or evidenced by bonds,
debentures, notes or other similar instruments, (ii) to pay the deferred
purchase price of property or services (except trade accounts payable arising in
the ordinary course of business which are not overdue), (iii) as lessee under
leases which shall have been or should be, in accordance with GAAP, recorded as
capital leases, (iv) under reimbursement or similar agreements with respect to
letters of credit issued thereunder (except reimbursement obligations and
letters of credit that are cash collateralized), (v) under any interest rate
swap, "cap", "collar" or other hedging agreements; provided, however, for
purposes of the calculation of Debt for this clause (v) only, the actual amount
of Debt of such Person shall be determined on a net basis to the extent such
agreements permit such amounts to be calculated on a net basis, (vi) to pay rent
or other amounts under leases entered into in connection with sale and leaseback
transactions involving assets of such Person being sold in connection therewith,
(vii) arising from any accumulated funding deficiency (as defined in Section
412(a) of the Internal Revenue Code of 1986, as amended) for a Plan, (viii)
arising in connection with any withdrawal liability under ERISA to any
Multiemployer Plan and (ix) arising from (A) direct or indirect guaranties in
respect of, and obligations to purchase or otherwise acquire, or otherwise to
warrant or hold harmless, pursuant to a legally binding agreement, a creditor
against loss in respect of, Debt of

                                       8
<PAGE>

others referred to in clauses (i) through (viii) above and (B) other guaranty or
similar financial obligations in respect of the performance of others, including
Support Obligations. Notwithstanding the foregoing, solely for purposes of the
calculation required under Section 8.01(j)(ii), Debt shall not include any
Junior Subordinated Debt issued by the Company and owned by any Hybrid Preferred
Securities Subsidiary.

            "DEFAULT" means an event that, with the giving of notice or lapse of
time or both, would constitute an Event of Default.

            "DEFAULT RATE" means a rate per annum equal at all times to (i) in
the case of any amount of principal of any Loan that is not paid when due, 2%
per annum above the Applicable Rate required to be paid on such Loan immediately
prior to the date on which such amount became due, and (ii) in the case of any
amount of interest, fees or other amounts payable hereunder that is not paid
when due, 2% per annum above the Applicable Rate for an ABR Loan in effect from
time to time.

            "DISCLOSED MATTERS" is defined in Section 7.01(f).

            "DIVIDEND COVERAGE RATIO" means, at any date, the ratio of (i) Pro
Forma Dividend Amounts to (ii) Company Interest Expense.

            "DOLLAR EQUIVALENT" means, as to Dollars, the amount thereof, and as
to any Alternative Currency, the Dollar equivalent of such Alternative Currency
as determined by the Administrative Agent in accordance with the provisions of
Section 4.07.

            "DOLLARS" and the sign "$" each means the lawful currency of the
United States.

            "ELIGIBLE BANK" means any state or federally chartered bank or any
state-licensed foreign bank branch or agency.

            "ENTERPRISES" means CMS Enterprises Company, a Michigan corporation,
all of whose common stock is on the Closing Date owned by the Company and its
permitted successors.

            "ENTERPRISES CREDIT AGREEMENT" means that certain $150,000,000
Credit Agreement, dated as of July 12, 2002, by and among Enterprises, as
borrower, the Borrower, the lenders from time to time parties thereto, and
Citicorp USA, Inc., as administrative agent and as collateral agent, which
agreement has been paid in full and terminated.

            "ENVIRONMENTAL LAWS" means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any governmental agency or
authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, release or threatened release of any
Hazardous Substance or to health and safety matters.

            "ENVIRONMENTAL LIABILITY" means any liability, contingent or
otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of the Company or any of its
Subsidiaries directly or indirectly resulting from or based upon (a)

                                       9
<PAGE>

violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Substances, (c)
exposure to any Hazardous Substances, (d) the release or threatened release of
any Hazardous Substances into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

            "EQUITY DISTRIBUTIONS" means, for any period, the aggregate amount
of cash received by the Company from its Subsidiaries during such period that
are paid out of proceeds from the sale of common equity of Subsidiaries of the
Company.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time.

            "ERISA AFFILIATE" means, with respect to any Person, any trade or
business (whether or not incorporated) that is a member of a commonly controlled
trade or business under Sections 414(b), (c), (m) and (o) of the Internal
Revenue Code of 1986, as amended.

            "EURO" means the euro referred to in Council Regulation (EC) No.
1103/97 dated June 17, 1997 passed by the Counsel of the European Union, or if
different, the lawful currency of the member states of the European Union that
participate in the third stage of the Economic and Monetary Union.

            "EURO SUBLIMIT" means $40,000,000.

            "EURODOLLAR", when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate.

            "EURODOLLAR RATE LOAN" means a Loan that bears interest as provided
in Section 3.05(b)(ii).

            "EVENT OF DEFAULT" is defined in Section 9.01.

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

            "EXISTING CREDIT AGREEMENT" means that certain $190,000,000 Fourth
Amended and Restated Credit Agreement, dated as of December 8, 2003, among the
Borrowers, the lenders from time to time parties thereto, and CUSA, as
administrative agent and as collateral agent, as the same may have been amended,
restated, supplemented or otherwise modified from time to time.

            "EXTENSION OF CREDIT" means (i) the making of a Borrowing (including
any Conversion), (ii) the issuance of a Letter of Credit, or (iii) the amendment
of any Letter of Credit having the effect of extending the stated termination
date thereof, increasing the LC Outstandings thereunder, or otherwise altering
any of the material terms or conditions thereof.

            "FAIR MARKET VALUE" means, with respect to any asset, the value of
the consideration obtainable in a sale of such asset in the open market,
assuming a sale by a willing

                                       10
<PAGE>

seller to a willing purchaser dealing at arm's length and arranged in an orderly
manner over a reasonable period of time, each having reasonable knowledge of the
nature and characteristics of such asset, neither being under any compulsion to
act, and, if in excess of $50,000,000, as determined in good faith by the Board
of Directors of the Company.

            "FEDERAL FUNDS EFFECTIVE RATE" means, for any day, the weighted
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

            "FEE LETTERS" is defined in Section 2.02(b).

            "FITCH" means Fitch, Inc. or any successor thereto.

            "FOREIGN LENDER" means any Lender that is organized under the laws
of a jurisdiction other than that in which the Borrowers are located. For
purposes of this definition, the United States of America, each State thereof
and the District of Columbia shall be deemed to constitute a single
jurisdiction.

            "FOREIGN SUBSIDIARY" is defined in Section 8.01(l).

            "GAAP" is defined in Section 1.03.

            "GOVERNMENTAL APPROVAL" means any authorization, consent, approval,
license, permit, certificate, exemption of, or filing or registration with, any
governmental authority or other legal or regulatory body, required in connection
with (i) the execution, delivery, or performance of any Loan Document by any
Loan Party, (ii) the grant and perfection of any Lien in favor of the Collateral
Agent contemplated by the Loan Documents, or (iii) the exercise by any Agent (on
behalf of the Lenders) of any right or remedy provided for under the Loan
Documents.

            "GRANTING LENDER" is defined in Section 11.07(f).

            "GRANTOR(s)" means each Guarantor and each of the following
Subsidiaries of Enterprises: CMS Capital, L.L.C., a Michigan limited liability
company, CMS Electric & Gas, L.L.C. (formerly known as CMS Electric and Gas
Company), a Michigan limited liability company, CMS ERM, CMS International
Ventures, L.L.C., a Michigan limited liability company, Dearborn Industrial
Energy, L.L.C., a Michigan limited liability company, Dearborn Industrial
Generation, L.L.C., a Michigan limited liability company, and CMS Generation
Michigan Power L.L.C., a Michigan limited liability company.

            "GUARANTOR" means CMS Generation, CMS Gas Transmission Company, a
Michigan corporation, and each other Restricted Subsidiary that has delivered,
or shall be obligated to deliver, a guaranty under and pursuant to the terms of
Section 8.01(l).

                                       11
<PAGE>

            "GUARANTY" means that certain Amended and Restated Guaranty (and any
and all supplements thereto) executed from time to time by each Guarantor in
favor of the Collateral Agent for the benefit of itself and the Lenders, in
substantially the form of Exhibit I attached hereto, as amended, restated,
supplemented or otherwise modified from time to time.

            "HAZARDOUS SUBSTANCE" means any waste, substance, or material
identified as hazardous, dangerous or toxic by any office, agency, department,
commission, board, bureau, or instrumentality of the United States or of the
State or locality in which the same is located having or exercising jurisdiction
over such waste, substance or material.

            "HYBRID PREFERRED SECURITIES" means any preferred securities issued
by a Hybrid Preferred Securities Subsidiary, where such preferred securities
have the following characteristics:

            (i) such Hybrid Preferred Securities Subsidiary lends substantially
      all of the proceeds from the issuance of such preferred securities to the
      Company or a wholly-owned direct or indirect Subsidiary of the Company in
      exchange for Junior Subordinated Debt issued by the Company or such
      wholly-owned direct or indirect Subsidiary, respectively;

            (ii) such preferred securities contain terms providing for the
      deferral of interest payments corresponding to provisions providing for
      the deferral of interest payments on the Junior Subordinated Debt; and

            (iii) the Company or a wholly-owned direct or indirect Subsidiary of
      the Company (as the case may be) makes periodic interest payments on the
      Junior Subordinated Debt, which interest payments are in turn used by the
      Hybrid Preferred Securities Subsidiary to make corresponding payments to
      the holders of the preferred securities.

            "HYBRID PREFERRED SECURITIES SUBSIDIARY" means any Delaware
statutory trust (or similar entity) (i) all of the common equity interest of
which is owned (either directly or indirectly through one or more wholly-owned
Subsidiaries of the Company or Consumers) at all times by the Company or a
wholly-owned direct or indirect Subsidiary of the Company, (ii) that has been
formed for the purpose of issuing Hybrid Preferred Securities and (iii)
substantially all of the assets of which consist at all times solely of Junior
Subordinated Debt issued by the Company or a wholly-owned direct or indirect
Subsidiary of the Company (as the case may be) and payments made from time to
time on such Junior Subordinated Debt.

            "INDEMNIFIED PERSON" is defined in Section 11.04(b).

            "INDENTURE" means that certain Indenture, dated as of September 15,
1992, between the Company and the Trustee, as supplemented by the First
Supplemental Indenture, dated as of October 1, 1992, the Second Supplemental
Indenture, dated as of October 1, 1992, the Third Supplemental Indenture, dated
as of May 6, 1997, the Fourth Supplemental Indenture, dated as of September 26,
1997, the Fifth Supplemental Indenture, dated as of November 4, 1997, the Sixth
Supplemental Indenture, dated as of January 13, 1998, the Seventh Supplemental
Indenture, dated as of January 25, 1999, the Eighth Supplemental Indenture,
dated as of February

                                       12
<PAGE>

3, 1999, the Ninth Supplemental Indenture, dated as of June 22, 1999, the Tenth
Supplemental Indenture, dated as of October 12, 2000, the Eleventh Supplemental
Indenture, dated as of March 29, 2001, and the Twelfth Supplemental Indenture,
dated as of July 2, 2001, as said Indenture may be further amended or otherwise
modified from time to time in accordance with its terms.

            "INDIAN RUPEE" means the lawful currency of India.

            "INDIAN RUPEE SUBLIMIT" means $3,000,000.

            "INTER-BORROWER DEBT" is defined in Section 12.07.

            "INTERCREDITOR AGREEMENT" means that certain Intercreditor and Lien
Subordination Agreement, dated as of January 8, 2003, by and among Citicorp USA,
Inc., as senior collateral agent, American Home Assurance Company, individually
and as junior collateral agent, and St. Paul Fire and Marine Insurance Company,
individually, a copy of which is attached hereto as Exhibit M, as amended,
restated, supplemented or otherwise modified from time to time.

            "INTEREST PERIOD" is defined in Section 3.03.

            "ISSUING BANK" means any Lender designated by the Company in
accordance with Section 4.01(a) as the issuer of a Letter of Credit pursuant to
an Issuing Bank Agreement.

            "ISSUING BANK AGREEMENT" means an agreement between an Issuing Bank
and the applicable Borrower, in form and substance satisfactory to the
Administrative Agent, providing for the issuance of one or more Letters of
Credit, in form and substance satisfactory to the Administrative Agent, in
support of a general corporate activity of such Borrower.

            "JUNIOR SUBORDINATED DEBT" means any unsecured Debt of the Company
or a Subsidiary of the Company (i) issued in exchange for the proceeds of Hybrid
Preferred Securities and (ii) subordinated to the rights of the Lenders
hereunder and under the other Loan Documents pursuant to terms of subordination
substantially similar to those set forth in Exhibit G, or pursuant to other
terms and conditions satisfactory to the Required Lenders.

            "LC PAYMENT NOTICE" is defined in Section 4.04(b).

            "LC OUTSTANDINGS" means, for any Letter of Credit on any date of
determination, the maximum amount available to be drawn under such Letter of
Credit (assuming the satisfaction of all conditions for drawing enumerated
therein) plus any amount which has been drawn on such Letter of Credit which has
neither been reimbursed by a Borrower nor converted into an ABR Loan pursuant to
the terms of Section 4.04.

            "LENDER ASSIGNMENT" is defined in Section 11.07(e).

            "LENDERS" means the Banks listed on the signature pages hereof,
together with their successors and permitted assigns and, if and to the extent
so provided in Section 4.04(c), each Issuing Bank.

                                       13
<PAGE>

            "LETTER OF CREDIT" means (i) a letter of credit issued by an Issuing
Bank pursuant to Section 4.02(a) or (ii) a Transitional Letter of Credit deemed
issued by an Issuing Bank on the Closing Date pursuant to Section 4.02(b), in
each case as such letter of credit may from time to time be amended, modified or
extended in accordance with the terms of this Agreement and the Issuing Bank
Agreement to which it relates.

            "LIBO RATE" means, with respect to any Eurodollar Borrowing for any
Interest Period, the rate appearing on Page 3750 of the Telerate Service (or on
any successor or substitute page of such Service, or any successor to or
substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the "LIBO RATE" with respect to such
Eurodollar Borrowing for such Interest Period shall be the rate at which dollar
deposits of $5,000,000 and for a maturity comparable to such Interest Period are
offered by the principal London office of the Administrative Agent in
immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period.

            "LIEN" means any lien, security interest, or other charge or
encumbrance (including the lien or retained security title of a conditional
vendor) of any kind, or any other type of arrangement intended or having the
effect of conferring upon a creditor a preferential interest upon or with
respect to any of its properties of any character (including capital stock and
other equity interests, intercompany obligations and accounts).

            "LIQUIDITY" means, as of any date, the aggregate of (i) the amount
of Unrestricted Cash held by the Company and its Consolidated Subsidiaries as of
such date and (ii) the unused portion of the Commitments hereunder as of such
date.

            "LOAN" means a loan by a Lender to a Borrower pursuant to Section
2.01, and refers to an ABR Loan or a Eurodollar Rate Loan (each of which shall
be a "TYPE" of Loan). All Loans by a Lender to the same Borrower of the same
Type having the same Interest Period and made or Converted on the same day shall
be deemed to be a single Loan by such Lender until repaid or next Converted.

            "LOAN DOCUMENTS" means this Agreement, any Promissory Notes, the Fee
Letters, the Issuing Bank Agreement(s), the Guaranty, the Pledge Agreements, the
Intercreditor Agreement, the Cash Collateral Agreement and all other agreements,
instruments and documents now or hereafter executed and/or delivered pursuant
hereto or thereto.

            "LOAN PARTY" is defined in Section 6.01(a)(i).

            "MATERIAL ADVERSE CHANGE" means any event, development or
circumstance that has had or could reasonably be expected to have a material
adverse effect on (a) the business, assets, property, financial condition,
results of operations or prospects of the Company and its

                                       14
<PAGE>

Subsidiaries, considered as a whole, (b) the Borrowers' and the Guarantors'
ability, taken as a whole, to perform their obligations under this Agreement or
any other Loan Document to which it is or will be a party or (c) the validity or
enforceability of any Loan Document or the rights or remedies of any Agent or
the Lenders thereunder; provided that the occurrence of any Restatement Event
shall not constitute a Material Adverse Change.

            "MATURITY DATE" means August 3, 2007.

            "MEASUREMENT QUARTER" is defined in Section 8.01(i).

            "MOODY'S" means Moody's Investors Service, Inc. or any successor
thereto.

            "MULTIEMPLOYER PLAN" means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

            "NET PROCEEDS" means, with respect to any sale, assignment or other
disposition of (but not the lease or license of) any property, or with respect
to any sale or issuance of securities or incurrence of Debt, by any Person,
gross cash proceeds received by such Person or any Subsidiary of such Person
from such sale, assignment, disposition, issuance or incurrence (including cash
received as consideration for the assumption or incurrence of liabilities
incurred in connection with or in anticipation of such transaction) after (i)
provision for all income or other taxes measured by or resulting from such
transaction, (ii) payment of all customary underwriting commissions, auditing
and legal fees, printing costs, rating agency fees and other customary and
reasonable fees and expenses incurred by such Person in connection with such
transaction, (iii) all amounts used to repay Debt (and any premium or penalty
thereon) secured by a Lien on any asset disposed of in such sale, assignment or
other disposition or which is or may be required (by the express terms of the
instrument governing such Debt or by applicable law) to be repaid in connection
with such sale, assignment, or other disposition, and (iv) deduction of
appropriate amounts to be provided by such Person or a Subsidiary of such Person
as a reserve, in accordance with GAAP consistently applied, against any
liabilities associated with the assets sold, transferred or disposed of in such
transaction and retained by such Person or a Subsidiary of such Person after
such transaction, provided that "Net Proceeds" shall include on a
dollar-for-dollar basis all amounts remaining in such reserve after such
liability shall have been satisfied in full or terminated; provided, however,
that notwithstanding the foregoing, "Net Proceeds" shall exclude (a) any amounts
received or deemed to be received by the Company for the purchase of the
Company's capital stock in connection with the Company's dividend reinvestment
program and (b) amounts received by the Company or any Subsidiary of the Company
pursuant to any transaction with the Company or any Subsidiary of the Company
otherwise permitted hereunder.

            "NET WORTH" means, with respect to any Person, the excess of such
Person's total assets over its total liabilities, total assets and total
liabilities each to be determined in accordance with GAAP consistently applied,
excluding, however, from the determination of total assets (i) goodwill,
organizational expenses, research and development expenses, trademarks, trade
names, copyrights, patents, patent applications, licenses and rights in any
thereof, and other similar intangibles, (ii) cash held in a sinking, escrow or
other analogous fund established for the

                                       15
<PAGE>

purpose of redemption, retirement or prepayment of capital stock or Debt, and
(iii) any items not included in clauses (i) or (ii) above, that are treated as
intangibles in conformity with GAAP.

            "NOTICE OF BORROWING" is defined in Section 3.01(a).

            "NOTICE OF CONVERSION" is defined in Section 3.02.

            "OBLIGATIONS" means all unpaid principal of and accrued and unpaid
interest on the Loans, all LC Outstandings, all accrued and unpaid fees and all
expenses, reimbursements, indemnities and other obligations of the Borrowers and
other Loan Parties to any of the Agents, the Arrangers, the Lenders, the Issuing
Banks or any other indemnified party arising under the Loan Documents.

            "OECD" means the Organization for Economic Cooperation and
Development.

            "OFF-BALANCE SHEET LIABILITY" of a Person shall mean any of the
following obligations not appearing on such Person's consolidated balance sheet:
(i) all lease obligations, leveraged leases, sale and leasebacks and other
similar lease arrangements of such Person, (ii) any liability under any so
called "synthetic lease" or "tax ownership operating lease" transaction entered
into by such Person, and (iii) any obligation arising with respect to any other
transaction if and to the extent that such obligation is the functional
equivalent of borrowing but that does not constitute a liability on the
consolidated balance sheet of such Person.

            "OTHER TAXES" is defined in Section 5.06(b).

            "OWNERSHIP INTEREST" of the Company in any Consolidated Subsidiary
means, at any date of determination, the percentage determined by dividing (i)
the aggregate amount of Project Finance Equity in such Consolidated Subsidiary
owned or controlled, directly or indirectly, by the Company and any other
Consolidated Subsidiary on such date, by (ii) the aggregate amount of Project
Finance Equity in such Consolidated Subsidiary owned or controlled, directly or
indirectly, by all Persons (including the Company and the Consolidated
Subsidiaries) on such date. Notwithstanding anything to the contrary set forth
above, if the "Ownership Interest," calculated as set forth above, is 50% or
less, such percentage shall be deemed to equal 0%.

            "PARTICIPANT" is defined in Section 11.07(b).

            "PBGC" means the Pension Benefit Guaranty Corporation (or any
successor entity) established under ERISA.

            "PERCENTAGE" means, for any Lender on any date of determination (a)
prior to the Commitment Termination Date, the percentage obtained by dividing
such Lender's Commitment on such day by the total of the Lenders' Commitments on
such date, and multiplying the quotient so obtained by 100%, and (b) from and
after the Commitment Termination Date, the percentage obtained by dividing (i)
the sum of (A) the aggregate outstanding principal amount of such Lender's Loans
on such day plus (B) the Dollar Equivalent of such Lender's obligation to
purchase participations in LC Outstandings on such day by (ii) the Total
Outstandings on such date, and multiplying the quotient so obtained by 100%.

                                       16
<PAGE>

            "PERMITTED INVESTMENTS" means each of the following so long as no
such Permitted Investment shall have a final maturity later than six months from
the date of investment therein:

            (i) direct obligations of the United States, or of any agency
      thereof, or obligations guaranteed as to principal and interest by the
      United States or any agency thereof;

            (ii) certificates of deposit or bankers' acceptances issued, or time
      deposits held, or investment contracts guaranteed, by any Lender, any
      nationally-recognized securities dealer or any other commercial bank,
      trust company, savings and loan association or savings bank organized
      under the laws of the United States, or any State thereof, or of any other
      country which is a member of the OECD, or a political subdivision of any
      such country, and in each case having outstanding unsecured indebtedness
      that (on the date of acquisition thereof) is rated AA- or better by S&P or
      Aa3 or better by Moody's (or an equivalent rating by another
      nationally-recognized credit rating agency of similar standing if neither
      of such corporations is then in the business of rating unsecured bank
      indebtedness);

            (iii) obligations with any Lender, any other bank or trust company
      described in clause (ii), above, or any nationally-recognized securities
      dealer, in respect of the repurchase of obligations of the type described
      in clause (i), above, provided that such repurchase obligations shall be
      fully secured by obligations of the type described in said clause (i) and
      the possession of such obligations shall be transferred to, and segregated
      from other obligations owned by, such Lender, such other bank or trust
      company or such securities dealer;

            (iv) commercial paper rated (on the date of acquisition thereof) A-1
      or P-1 or better by S&P or Moody's, respectively (or an equivalent rating
      by another nationally-recognized credit rating agency of similar standing
      if neither of such corporations is then in the business of rating
      commercial paper);

            (v) any eurodollar certificate of deposit issued by any Lender or
      any other commercial bank, trust company, savings and loan association or
      savings bank organized under the laws of the United States, or any State
      thereof, or of any country which is a member of the OECD, or a political
      subdivision of any such country, and in each case having outstanding
      unsecured indebtedness that (on the date of acquisition thereof) is rated
      AA- or better by S&P or Aa3 or better by Moody's (or an equivalent rating
      by another nationally-recognized credit rating agency of similar standing
      if neither of such corporations is then in the business of rating
      unsecured bank indebtedness); and

            (vi) interests in any money market mutual fund which at the date of
      investment in such fund has the highest fund rating by each of Moody's and
      S&P which has issued a rating for such fund (which, for S&P, shall mean a
      rating of AAAm or AAAmg).

                                       17
<PAGE>

            "PERSON" means an individual, partnership, corporation (including a
business trust), joint stock company, limited liability company, trust,
unincorporated association, joint venture or other entity, or a government or
any political subdivision or agency thereof.

            "PLAN" means, with respect to any Person, an "employee benefit plan"
as defined in Section 3(3) of ERISA (other than a Multiemployer Plan) maintained
for employees of such Person or any ERISA Affiliate of such Person that is
subject to Title IV of ERISA and has "unfunded benefit liabilities" as
determined under Section 4001(a)(18) of ERISA.

            "PLAN TERMINATION EVENT" means, (i) with respect to any Plan, a
"reportable event" within the meaning of Section 4043 of ERISA and the
regulations issued thereunder (other than a "reportable event" not subject to
the provision for 30-day notice to the PBGC under such regulations or a
"reportable event" for which the provision for the 30-day notice to the PBGC
under such regulations has been waived), or (ii) the withdrawal by the Company
or any of its ERISA Affiliates from a Plan during a plan year in which it was a
"substantial employer" as defined in Section 4001(a)(2) of ERISA resulting in
liability to the Company or any of its ERISA Affiliates under Section 4063 or
4064 of ERISA, or (iii) the filing of a notice of intent to terminate a Plan or
the termination of a Plan under Section 4041 of ERISA, or (iv) the institution
of proceedings to terminate a Plan by the PBGC, or (v) any other event or
condition which is reasonably likely to constitute grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any
Plan.

            "PLATFORM" is defined in Section 11.14

            "PLEDGE AGREEMENTS" means each of (i) that certain Third Amended and
Restated Pledge and Security Agreement, dated as of December 8, 2003, by and
between the Company and the Collateral Agent, in substantially the form of
Exhibit J attached hereto, and (ii) that certain Pledge and Security Agreement,
dated as of July 12, 2002, by and among Enterprises, the Grantors and the
Collateral Agent in substantially the form of Exhibit K hereto, in each case as
the same may be amended, restated, supplemented or otherwise modified from time
to time.

            "PRIME RATE" means the rate of interest per annum publicly announced
from time to time by Citibank as its base rate in effect at its principal office
in New York City; each change in the Prime Rate shall be effective from and
including the date such change is publicly announced as being effective.

            "PRO FORMA DIVIDEND AMOUNT" means, from and after any date of any
Consumers Dividend Restriction, the sum of (a) the aggregate amount which
Consumers could have paid to the Company during the four calendar quarters
immediately preceding such date had such Consumers Dividend Restriction been in
effect during such quarters plus (b) cash dividends received by the Company from
any other Subsidiary during such quarters.

            "PROJECT FINANCE DEBT" means Debt of any Person that is non-recourse
to such Person (unless such Person is a special-purpose entity) and each
Affiliate of such Person, other than with respect to the interest of the holder
of such Debt in the collateral, if any, securing such Debt.

                                       18
<PAGE>

            "PROJECT FINANCE EQUITY" means, at any date of determination,
consolidated equity of the common, preference and preferred stockholders of the
Company and the Consolidated Subsidiaries relating to any obligor with respect
to Project Finance Debt.

            "PROMISSORY NOTE" means any promissory note of the Borrowers payable
to the order of a Lender (and, if requested, its registered assigns) issued
pursuant to Section 3.01(c); and "PROMISSORY NOTES" means any or all of the
foregoing.

            "PROSPECTIVE LENDER" is defined in Section 3.04(d).

            "RECIPIENT" is defined in Section 11.08.

            "REGISTER" is defined in Section 11.07(h).

            "RELATED PARTIES" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.

            "REQUEST FOR ISSUANCE" is defined in Section 4.02(a).

            "REQUIRED LENDERS" means, on any date of determination, Lenders
that, collectively, on such date hold (i) more than 50% of the Commitments of
all Lenders or (ii) if the Commitments have been terminated, interests in the
Total Outstandings in excess of 50% of the Total Outstandings. Any determination
of those Lenders constituting the Required Lenders shall be made by the
Administrative Agent and shall be conclusive and binding on all parties absent
manifest error.

            "RESTATEMENT" means the restatement of the financial statements of
the Company or its Subsidiaries for any fiscal quarter of 2001, as well as any
adjustment of previously announced quarterly results, but only if made to
reflect the restatement of such quarters.

            "RESTATEMENT EVENT" means (i) the Restatement, (ii) any lawsuit or
other action previously or hereafter brought against the Company, any of its
Subsidiaries or any of their Affiliates or any present or former officer or
director of the Company, any of its Subsidiaries or any of their Affiliates
involving or arising out of the Restatement, and any settlement thereof, or
other development with respect thereto, or (iii) the occurrence of any default
or event of default under any indenture, instrument or other agreement or
contract, or the exercise of any remedy in respect thereof, that arises directly
or indirectly as a result of any of the matters described in any of the
foregoing clauses (i) or (ii) or this clause (iii); provided, however, that, for
purposes of the definition of "Material Adverse Change", (a) the foregoing
clause (ii) shall be inapplicable if such lawsuit or other action, settlement
(in an amount in the aggregate together with all other settlements of such
lawsuits or actions) or other development described in such clause (ii) could
reasonably be expected, in each case, to result in liability to such Person in
excess of $10,000,000 and (b) the foregoing clause (iii) shall be inapplicable
if any such event described in such clause (iii) would constitute an Event of
Default under Section 9.01(e).

            "RESTRICTED SUBSIDIARY" means any Subsidiary of the Company or
Enterprises (other than Consumers and its Subsidiaries) that, on a consolidated
basis with any of its

                                       19
<PAGE>

Subsidiaries as of any date of determination, accounts for more than 10% of the
consolidated assets of the Company and its Consolidated Subsidiaries.

            "S&P" means Standard & Poor's Ratings Group, a division of The
McGraw Hill Companies, Inc., or any successor thereto.

            "SECURITIZED BONDS" means any nonrecourse bonds or similar
asset-backed securities issued by a special-purpose Subsidiary of Consumers
which are payable solely from specialized charges authorized by the utility
commission of the relevant state in connection with the recovery of regulatory
assets, expenditures pursuant to the Clean Air Act, 42 U.S.C. Section 7401 et
seq., or other qualified costs.

            "SOLVENT", when used with respect to any Person, means that at the
time of determination:

            (i) the fair market value of its assets is in excess of the total
      amount of its liabilities (including, without limitation, net contingent
      liabilities); and

            (ii) it is then able and expects to be able to pay its debts
      (including, without limitation, contingent debts and other commitments) as
      they mature; and

            (iii) it has capital sufficient to carry on its business as
      conducted and as proposed to be conducted.

For purposes of this definition, the amount of contingent liabilities at any
time shall be computed as the amount that, in light of all the facts and
circumstances known to such Person at such time, represents the amount that can
reasonably be expected to become an actual or matured liability.

            "SPC" is defined in Section 11.07(f).

            "STATUTORY RESERVE RATE" means a fraction (expressed as a decimal),
the numerator of which is the number one and the denominator of which is the
number one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject for
eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in
Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Rate Loans shall be deemed to
constitute eurocurrency funding and to be subject to such reserve requirements
without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under such Regulation D or any
comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

            "SUBSIDIARY" means, with respect to any Person, any corporation or
unincorporated entity of which more than 50% of the outstanding capital stock
(or comparable interest) having ordinary voting power (irrespective of whether
at the time capital stock (or comparable interest) of any other class or classes
of such corporation or entity shall or might have voting power upon the
occurrence of any contingency) is at the time directly or indirectly owned by
said Person (whether directly or through one or more other Subsidiaries). In the
case

                                       20
<PAGE>

of an unincorporated entity, a Person shall be deemed to have more than 50% of
interests having ordinary voting power only if such Person's vote in respect of
such interests comprises more than 50% of the total voting power of all such
interests in the unincorporated entity.

            "SUPPORT OBLIGATION" means, for any Person, without duplication, any
financial obligation, contingent or otherwise, of such Person guaranteeing or
otherwise supporting any Debt or other obligation of any other Person in any
manner, whether directly or indirectly, and including any obligation of such
Person, direct or indirect (including, but not limited to, letters of credit and
surety bonds in connection therewith), (i) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Debt or to purchase (or to
advance or supply funds for the purchase of) any security for the payment of
such Debt, (ii) to purchase property, securities or services for the purpose of
assuring the owner of such Debt of the payment of such Debt, (iii) to maintain
working capital, equity capital, available cash or other financial statement
condition of the primary obligor so as to enable the primary obligor to pay such
Debt, (iv) to provide equity capital under or in respect of equity subscription
arrangements (to the extent that such obligation to provide equity capital does
not otherwise constitute Debt), or (v) to perform, or arrange for the
performance of, any non-monetary obligations or non-funded debt payment
obligations of the primary obligor.

            "TAKORADI PROJECT" means the construction and operation of Takoradi
2, a power plant currently consisting of two 110 megawatt simple-cycle units
built near Aboadze, Ghana by one or more Subsidiaries of the Company and the
government of Ghana's Volta River Authority.

            "TAX SHARING AGREEMENT" means the Amended and Restated Agreement for
the Allocation of Income Tax Liabilities and Benefits, dated as of January 1,
1994, by and among the Company, each of the members of the Consolidated Group
(as defined therein), and each of the corporations that become members of the
Consolidated Group.

            "TAXES" is defined in Section 5.06(a).

            "TOTAL OUTSTANDINGS" means, as of any date of determination, the sum
of (i) the aggregate principal amount of all Loans outstanding as of such date
plus (ii) the Dollar Equivalent of the aggregate LC Outstandings of all Letters
of Credit outstanding as of such date, after giving effect to all Extensions of
Credit to be made on such date and the application of the proceeds thereof.

            "TRANSITIONAL LETTER OF CREDIT" is defined in Section 4.02(b).

            "TRUSTEE" has the meaning assigned to that term in the Indenture.

            "TYPE" has the meaning assigned to such term (i) in the definition
of "Loan" when used in such context and (ii) in the definition of "Borrowing"
when used in such context.

            "UNRESTRICTED CASH" means cash and Permitted Investments, in each
case not subject to a Lien (including, without limitation, any Lien permitted
hereunder), setoff (other than ordinary course setoff rights of a depository
bank arising under a bank depository agreement for customary fees, charges and
other account-related expenses due to such depository bank thereunder),
counterclaim, recoupment, defense or other right in favor of any Person.

                                       21
<PAGE>

            "USA PATRIOT ACT" means the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Pub. L. No. 107-56, 115 Stat. 272 (2001), as amended.

      SECTION 1.02. COMPUTATION OF TIME PERIODS; CONSTRUCTION.

            (a) Unless otherwise indicated, each reference in this Agreement to
a specific time of day is a reference to New York City time. In the computation
of periods of time under this Agreement, any period of a specified number of
days or months shall be computed by including the first day or month occurring
during such period and excluding the last such day or month. In the case of a
period of time "from" a specified date "to" or "until" a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
means "to but excluding".

            (b) The definitions of terms herein shall apply equally to the
singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. The words "include", "includes", and "including" shall be deemed
to be followed by the phrase "without limitation". The word "will" shall be
construed to have the same meaning and effect as the word "shall". Unless the
context requires otherwise (i) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (ii) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (iii) the words "herein", "hereof" and "hereunder", and words of
similar import, shall be construed to refer to this Agreement in its entirety
and not to any particular provision hereof, (iv) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, this Agreement and (v)
the words "asset" and "property" shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.

      SECTION 1.03. ACCOUNTING TERMS. All accounting terms not specifically
defined herein shall be construed in accordance with generally accepted
accounting principles consistent with those applied in the preparation of the
financial statements referred to in Section 7.01(e) ("GAAP"), it being
understood that the financial covenants set forth in Sections 8.01(i) and (j)
shall be calculated exclusive of all debt (i) of any Affiliate of the Borrowers
(other than a Subsidiary) that is (a) consolidated on the financial statements
of the Company solely as a result of the effect and application of Financial
Accounting Standards Board Interpretation No. 46 and of Accounting Research
Bulletin No. 51, Consolidated Financial Statements, as modified by Statement of
Financial Accounting Standards No. 94, and (b) non-recourse to any Borrower or
any Guarantor or (ii) that is re-categorized as debt from certain lease
obligations pursuant to Emerging Issues Task Force ("EITF") Issue No. 01-8, any
subsequent EITF Issue or recommendation or any other interpretation, bulletin or
other similar document by the Financial Accounting Standards Board on or related
to such re-categorization. If any changes in generally accepted accounting
principles are hereafter required or permitted and are adopted by the Company or
any of its Subsidiaries, or the Company or any of its Subsidiaries shall change
its application of generally accepted accounting principles with respect to any
Off-Balance Sheet

                                       22
<PAGE>

Liabilities, including, but not limited to, the application of Financial
Accounting Standards Board Interpretation Nos. 45 and 46 and Financial
Accounting Standards Board Statement No. 150, in each case, with the agreement
of its independent certified public accountants, and such changes result in a
change in the method of calculation or the results of any of the financial
covenants, tests, restrictions or standards herein or in the related definitions
or terms used therein ("ACCOUNTING CHANGES"), the parties hereto agree, at the
Borrowers' request, to enter into negotiations, in good faith, in order to amend
such provisions in a credit neutral manner so as to reflect equitably such
changes with the desired result that the criteria for evaluating the Company's
and its Subsidiaries' financial condition shall be the same after such changes
as if such changes had not been made; provided, however, until such provisions
are amended in a manner reasonably satisfactory to the Administrative Agent and
the Required Lenders, no Accounting Change shall be given effect in such
calculations. In the event such amendment is entered into, all references in
this Agreement to GAAP shall mean generally accepted accounting principles as of
the date of such amendment. Notwithstanding the foregoing, all financial
statements to be delivered by the Company pursuant to Section 8.03 shall be
prepared in accordance with generally accepted accounting principles in effect
at such time.

                                   ARTICLE II
             COMMITMENTS, LOANS, FEES, PREPAYMENTS AND OUTSTANDINGS

      SECTION 2.01. MAKING LOANS. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make revolving loans in Dollars to the
Borrowers and to participate in the issuance of Letters of Credit (and the LC
Outstandings thereunder) denominated in Dollars or any Alternative Currency
during the period from the Closing Date until the Commitment Termination Date in
an aggregate outstanding amount not to exceed on any day such Lender's Available
Commitment (after giving effect to all Extensions of Credit to be made on such
day and the application of the proceeds thereof). Within the limits hereinafter
set forth, the Borrowers may request Extensions of Credit hereunder, prepay
Loans or reduce or cancel Letters of Credit, and use the resulting increase in
the Available Commitments for further Extensions of Credit in accordance with
the terms hereof.

      SECTION 2.02. FEES.

            (a) The Borrowers jointly and severally agree to pay to the
Administrative Agent for the account of each Lender a commitment fee equal to
the product of (i) the average daily amount of such Lender's Available
Commitment from the Closing Date, in the case of each Bank, and from the
effective date specified in the Lender Assignment pursuant to which it became a
Lender, in the case of each other Lender, until the Commitment Termination Date
multiplied by (ii) the Commitment Fee Margin. Such fees shall be payable
quarterly in arrears on the last day of each March, June, September and
December, commencing the first such date to occur following the Closing Date,
and on the Commitment Termination Date.

            (b) In addition to the fees provided for in subsection (a) above,
the Company shall pay to the Administrative Agent and/or the Arrangers, as the
case may be, the fees set forth in (i) that certain letter agreement, dated June
28, 2004, among the Company, the Administrative Agent, the Arrangers and the
other parties thereto and (ii) that certain letter agreement, dated

                                       23
<PAGE>

June 28, 2004, among the Company, the Administrative Agent and the other parties
thereto (collectively, the "FEE LETTERS"), in the amounts and at the times
specified therein.

            (c) The Borrowers agree to pay to the Administrative Agent, for the
account of each Lender, a letter of credit fee on the daily aggregate amount of
the LC Outstandings from the Closing Date, in the case of each Bank, and from
the effective date specified in the Lender Assignment pursuant to which it
became a Lender, in the case of each other Lender, until the Commitment
Termination Date at a rate per annum equal to the Applicable Margin with respect
to Eurodollar Rate Loans, payable quarterly in arrears on the last day of each
March, June, September and December, commencing on the first such date to occur
following the Closing Date, and on the Commitment Termination Date.

      SECTION 2.03. COMMITMENTS; MANDATORY PREPAYMENTS.

            (a) Reduction of Commitments. The Borrowers may (and shall provide
notice thereof to the Administrative Agent not later than 10:00 a.m. (New York
City time) on the date of termination or reduction, and the Administrative Agent
shall promptly distribute copies thereof to the Lenders) terminate in whole or
reduce ratably in part the unused portions of the Commitments; provided that any
such partial reduction shall be in the aggregate amount of $5,000,000 or an
integral multiple of $1,000,000 in excess thereof.

            (b) Change of Control. Upon the occurrence of a Change of Control
the Commitments shall be reduced to zero, the principal amount outstanding
hereunder, all interest thereon and all other amounts payable under this
Agreement and the other Loan Documents shall become and be forthwith due and
payable and all of the LC Obligations shall be cash collateralized in accordance
with the terms of Section 9.02, in each case without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived
by the Borrowers.

            (c) Prepayment upon Issuance or Sale of Consumers Stock. The Company
shall make a mandatory prepayment promptly and in any event within 3 Business
Days after the Company's receipt of any Net Proceeds from the issuance, sale,
assignment or other disposition of any capital stock or other equity interest in
Consumers (other than the issuance of preferred securities of Consumers in
respect of which the Net Proceeds received by Consumers for all such securities
do not exceed $200,000,000 in the aggregate and such Net Proceeds shall not be
distributed to the Company), together with (i) accrued interest to the date of
such prepayment on the principal amount prepaid and (ii) in the case of
Eurodollar Rate Loans, any amount payable to the Lenders pursuant to Section
5.04(b), and the Commitments shall be reduced, pro rata, in an aggregate amount
equal to such Net Proceeds. Nothing in this Section 2.03(c) shall be construed
to constitute the Lenders' consent to any transaction referenced in this clause
(c) which is not expressly permitted by Article VIII. The Company shall give the
Administrative Agent prior written notice or telephonic notice promptly
confirmed in writing (each of which the Administrative Agent shall promptly
transmit to each Lender) of when a prepayment required by this Section 2.03(c)
will be made (which date of prepayment shall be no later than the date on which
such prepayment becomes due and payable pursuant to this Section 2.03(c)). All
such prepayments shall be applied first to repay outstanding ABR Loans, then to
repay outstanding Eurodollar Rate Loans with those Eurodollar Rate Loans which
have earlier expiring Interest

                                       24
<PAGE>

Periods being repaid prior to those which have later expiring Interest Periods
and then as cash collateral pursuant to the Cash Collateral Agreement, to secure
LC Outstandings.

      SECTION 2.04. COMPUTATIONS OF OUTSTANDINGS. Whenever reference is made in
this Agreement to the principal amount outstanding on any date under this
Agreement, such reference shall refer to the Total Outstandings. References to
the unused portion of the Commitments shall refer to the excess, if any, of the
Commitments hereunder over the Total Outstandings; and references to the unused
portion of any Lender's Commitment shall refer to such Lender's Percentage of
the unused Commitments.

                                   ARTICLE III
                                      LOANS

      SECTION 3.01. LOANS.

            (a) A Borrower may request a Borrowing (other than a Conversion) by
delivering a notice (a "NOTICE OF BORROWING") to the Administrative Agent no
later than 12:00 noon (New York City time) on the third Business Day prior to
the proposed Borrowing or, in the case of ABR Loans, no later than 11:00 a.m.
(New York City time) on the date of the proposed Borrowing. The Administrative
Agent shall give each Lender prompt notice of each Notice of Borrowing. Each
Notice of Borrowing shall be in substantially the form of Exhibit A and shall
specify the requested (i) date of such Borrowing, (ii) Type of Loans to be made
in connection with such Borrowing, (iii) Interest Period, if any, for such
Loans, (iv) amount of such Borrowing and (v) identity of the applicable
Borrower. Each proposed Borrowing shall conform to the requirements of Sections
3.03 and 3.04.

            (b) Each Lender shall, before 1:00 p.m. (New York City time) on the
date of such Borrowing, make available for the account of its Applicable Lending
Office to the Administrative Agent at the Administrative Agent's offices at 2
Penns Way, Suite 200, New Castle, DE 19270, in same day funds, such Lender's
Percentage of such Borrowing. After the Administrative Agent's receipt of such
funds and upon fulfillment of the applicable conditions set forth in Article VI,
the Administrative Agent will make such funds available to the applicable
Borrower at the Administrative Agent's aforesaid address. Notwithstanding the
foregoing, unless the Administrative Agent shall have received notice from a
Lender prior to the date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender's Percentage of such
Borrowing, the Administrative Agent may assume that such Lender has made such
Percentage available to the Administrative Agent on the date of such Borrowing
in accordance with the first sentence of this subsection (b), and the
Administrative Agent may, in reliance upon such assumption, make available to
the applicable Borrower on such date a corresponding amount.

            (c) The Extensions of Credit made by each Lender shall be evidenced
by one or more accounts or records maintained by such Lender and by the
Administrative Agent in the ordinary course of business. The accounts or records
maintained by the Administrative Agent and each Lender shall be conclusive
absent manifest error of the amount of the Extensions of Credit made by the
Lenders to the Borrowers and the interest and payments thereon. Any failure to
so record or any error in doing so shall not, however, limit or otherwise affect
the obligation of

                                       25
<PAGE>

the Borrowers hereunder to pay any amount owing with respect to the Obligations.
In the event of any conflict between the accounts and records maintained by any
Lender and the accounts and records of the Administrative Agent in respect of
such matters, the accounts and records of the Administrative Agent shall control
in the absence of manifest error. Any Lender may request that Loans made by it
be evidenced by a Promissory Note. In such event, the Borrowers shall prepare,
execute and deliver to such Lender a Promissory Note payable to the order of
such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Administrative Agent. Thereafter, the
Loans evidenced by such Promissory Note and interest thereon shall at all times
(including after assignment pursuant to Section 11.07) be represented by one or
more Promissory Notes in such form payable to the order of the payee named
therein, except to the extent that any such Lender subsequently returns any such
Promissory Note for cancellation and requests that such Loans once again be
evidenced as described in the first sentence of this Section 3.01(c).

      SECTION 3.02. CONVERSION OF LOANS. Each Borrower may from time to time
Convert any of its Loans (or portions thereof) of any Type to one or more Loans
of the same or any other Type by delivering a notice of such Conversion (a
"NOTICE OF CONVERSION") to the Administrative Agent (x) no later than 12:00 noon
(New York City time) on the third Business Day prior to the date of any proposed
Conversion into a Eurodollar Rate Loan and (y) no later than 11:00 a.m. (New
York City time) on the date of any proposed Conversion into an ABR Loan. The
Administrative Agent shall give each Lender prompt notice of each Notice of
Conversion. Each Notice of Conversion shall be in substantially the form of
Exhibit B and shall specify (i) the requested date of such Conversion, (ii) the
Type of, and Interest Period, if any, applicable to, the Loans (or portions
thereof) proposed to be Converted, (iii) the requested Type of Loans to which
such Loans (or portions thereof) are proposed to be Converted, (iv) the
requested initial Interest Period, if any, to be applicable to the Loans
resulting from such Conversion, (v) the aggregate amount of Loans (or portions
thereof) proposed to be Converted and (vi) the identity of the applicable
Borrower. Each proposed Conversion shall be subject to the provisions of
Sections 3.03 and 3.04.

      SECTION 3.03. INTEREST PERIODS. The period between the date of each
Eurodollar Rate Loan and the date of payment in full of such Loan shall be
divided into successive periods of months ("INTEREST PERIODS") for purposes of
computing interest applicable thereto. The initial Interest Period for each such
Loan shall begin on the day such Loan is made, and each subsequent Interest
Period shall begin on the last day of the immediately preceding Interest Period
for such Loan. The duration of each Interest Period shall be 1, 2, 3, or 6
months, as the applicable Borrower may, in accordance with Section 3.01 or 3.02,
select; provided, however, that:

            (i) the Borrowers may not select any Interest Period for a
      Eurodollar Rate Loan that ends after the Maturity Date;

            (ii) whenever the last day of any Interest Period would otherwise
      occur on a day other than a Business Day, the last day of such Interest
      Period shall occur on the next succeeding Business Day, provided that if
      such extension would cause the last day of such Interest Period to occur
      in the next following calendar month, the last day of such Interest Period
      shall occur on the next preceding Business Day; and

                                       26
<PAGE>

            (iii) any Interest Period that commences on the last Business Day of
      a calendar month (or on a day for which there is no numerically
      corresponding day in the last calendar month of such Interest Period)
      shall end on the last Business Day of the last calendar month of such
      Interest Period.

      SECTION 3.04. OTHER TERMS RELATING TO THE MAKING AND CONVERSION OF LOANS.

            (a) Notwithstanding anything in Section 3.01 or 3.02 to the
contrary:

            (i) each Borrowing shall be in an aggregate amount not less than
      $5,000,000, or an integral multiple of $1,000,000 in excess thereof (or
      such lesser amount as shall be equal to the total amount of the Available
      Commitments on such date, after giving effect to all other Extensions of
      Credit to be made on such date), and shall consist of Loans to the same
      Borrower of the same Type, having the same Interest Period and made or
      Converted on the same day by the Lenders ratably according to their
      respective Percentages;

            (ii) at no time shall the number of Borrowings comprising Eurodollar
      Rate Loans outstanding hereunder be greater than ten (10);

            (iii) no Eurodollar Rate Loan may be Converted on a date other than
      the last day of the Interest Period applicable to such Loan unless the
      corresponding amounts, if any, payable to the Lenders pursuant to Section
      5.04(b) are paid contemporaneously with such Conversion;

            (iv) if any Borrower shall either fail to give a timely Notice of
      Conversion pursuant to Section 3.02 in respect of any of its Loans or
      fail, in any Notice of Conversion that has been timely given, to select
      the duration of any Interest Period for any of its Loans to be Converted
      into Eurodollar Rate Loans in accordance with Section 3.03, such Loans
      shall, on the last day of the then existing Interest Period therefor,
      automatically Convert into, or remain as, as the case may be, ABR Loans;
      and

            (v) if, on the date of any proposed Conversion, any Event of Default
      or Default shall have occurred and be continuing, all Loans then
      outstanding shall, on such date, automatically Convert into, or remain as,
      as the case may be, ABR Loans.

            (b) If any Lender shall notify the Administrative Agent that the
introduction of or any change in or in the interpretation of any law or
regulation makes it unlawful, or that any central bank or other governmental
authority asserts that it is unlawful, for such Lender or its Applicable Lending
Office to perform its obligations hereunder to make, or to fund or maintain,
Eurodollar Rate Loans hereunder, (i) the obligation of such Lender to make, or
to Convert Loans into, Eurodollar Rate Loans for any Borrowing from such Lender
shall be forthwith suspended until the earlier to occur of the date upon which
(A) such Lender shall cease to be a party hereto and (B) it is no longer
unlawful for such Lender to make, fund or maintain Eurodollar Rate Loans, and
(ii) if the maintenance of Eurodollar Rate Loans then outstanding through the
last day of the Interest Period therefor would cause such Lender to be in
violation of such law, regulation or assertion, the Borrowers shall either
prepay or Convert all Eurodollar Rate Loans from such Lender within five days
after such notice. Promptly upon becoming aware that the

                                       27
<PAGE>

circumstances that caused such Lender to deliver such notice no longer exist,
such Lender shall deliver notice thereof to the Administrative Agent (but the
failure to do so shall impose no liability upon such Lender). Promptly upon
receipt of such notice from such Lender (or upon such Lender's assigning all of
its Commitment, Loans, participation and other rights and obligations hereunder
pursuant to Section 11.07), the Administrative Agent shall deliver notice
thereof to the Borrowers and the Lenders and such suspension shall terminate.

            (c) If the Required Lenders shall, at least one Business Day before
the date of any requested Borrowing, notify the Administrative Agent that the
Adjusted LIBO Rate for Eurodollar Rate Loans to be made in connection with such
Borrowing will not adequately reflect the cost to such Required Lenders of
making, funding or maintaining their respective Eurodollar Rate Loans for such
Borrowing, or that they are unable to acquire funding in a reasonable manner so
as to make available Eurodollar Rate Loans in the amount and for the Interest
Period requested, or if the Administrative Agent shall determine that adequate
and reasonable means do not exist to be able to determine the Adjusted LIBO
Rate, then the right of the Borrowers to select Eurodollar Rate Loans for such
Borrowing and any subsequent Borrowing shall be suspended until the
Administrative Agent shall notify the Borrowers and the Lenders that the
circumstances causing such suspension no longer exist, and each Loan to be made
or Converted in connection with such Borrowing shall be an ABR Loan.

            (d) If any Lender shall have delivered a notice to the
Administrative Agent described in Section 3.04(b), and if and so long as such
Lender shall not have withdrawn such notice in accordance with said Section
3.04(b), the Borrowers or the Administrative Agent may demand that such Lender
assign in accordance with Section 11.07, to one or more Eligible Banks
designated by the Borrowers or the Administrative Agent (each a "PROSPECTIVE
LENDER"), all (but not less than all) of such Lender's Commitment, Loans,
participation and other rights and obligations hereunder; provided, that any
such demand by the Borrowers during the continuance of an Event of Default or
Default shall be ineffective without the consent of the Required Lenders. If,
within 30 days following any such demand by the Administrative Agent or the
Borrowers, any such Prospective Lender so designated shall fail to consummate
such assignment on terms reasonably satisfactory to such Lender, or the
Borrowers and the Administrative Agent shall have failed to designate any such
Prospective Lender, then such demand by the Borrowers or the Administrative
Agent shall become ineffective, it being understood for purposes of this
provision that such assignment shall be conclusively deemed to be on terms
reasonably satisfactory to such Lender, and such Lender shall be compelled to
consummate such assignment forthwith, if such Prospective Lender (i) shall agree
to such assignment in substantially the form of the Lender Assignment attached
hereto as Exhibit F and (ii) shall tender payment to such Lender in an amount
equal to the full outstanding dollar amount accrued in favor of such Lender
hereunder (as computed in accordance with the records of the Administrative
Agent), including, without limitation, all accrued interest and fees and, to the
extent not paid by the Borrowers, any payments required pursuant to Section
5.04(b).

            (e) Each Notice of Borrowing and Notice of Conversion shall be
irrevocable and binding on the applicable Borrower. In the case of any Borrowing
which the related Notice of Borrowing or Notice of Conversion specifies is to be
comprised of Eurodollar Rate Loans, the applicable Borrower shall indemnify each
Lender against any loss, cost or expense incurred by such Lender as a result of
any failure to fulfill, on or before the date specified in such Notice of

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<PAGE>

Borrowing or Notice of Conversion for such Borrowing, the applicable conditions
(if any) set forth in this Article III (other than failure pursuant to the
provisions of Section 3.04(b) or (c) hereof) or in Article VI, including any
such loss (including loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by
such Lender to fund the Loan to be made by such Lender when such Loan, as a
result of such failure, is not made on such date.

      SECTION 3.05. REPAYMENT OF LOANS; INTEREST

            (a) Principal. Each Borrower shall repay the outstanding principal
amount of its Loans on the Maturity Date (or such earlier date as may be
required pursuant to Section 2.03 or 9.02).

            (b) Interest. All Loans shall bear interest on the unpaid principal
amount thereof from the date of such Loan until such principal amount shall be
paid in full, at the Applicable Rate for such Loan (except as otherwise provided
in this subsection (b)), payable as follows:

            (i) ABR Loans. If such Loan is an ABR Loan, interest thereon shall
      be payable quarterly in arrears on the last day of each March, June,
      September and December, on the date of any Conversion of such ABR Loan and
      on the date such ABR Loan shall become due and payable or shall otherwise
      be paid in full; provided that any amount of principal that is not paid
      when due (whether at stated maturity, by acceleration or otherwise) shall
      bear interest, from the date on which such amount is due until such amount
      is paid in full, payable on demand, at a rate per annum equal at all times
      to the Default Rate.

            (ii) Eurodollar Rate Loans. If such Loan is a Eurodollar Rate Loan,
      interest thereon shall be payable on the last day of such Interest Period
      and, if the Interest Period for such Loan has a duration of more than
      three months, on that day of each third month during such Interest Period
      that corresponds to the first day of such Interest Period (or, if any such
      month does not have a corresponding day, then on the last day of such
      month); provided that any amount of principal that is not paid when due
      (whether at stated maturity, by acceleration or otherwise) shall bear
      interest, from the date on which such amount is due until such amount is
      paid in full, payable on demand, at a rate per annum equal at all times to
      the Default Rate.

                                   ARTICLE IV
                               LETTERS OF CREDIT

      SECTION 4.01. ISSUING BANKS. Subject to the terms and conditions hereof,
the Company may from time to time identify and arrange for one or more Lenders
reasonably satisfactory to the Administrative Agent to act as Issuing Banks
hereunder. Any such designation by the Company shall be notified to the
Administrative Agent at least three (3) Business Days prior to the first date
upon which the Company proposes that such Issuing Bank issue its first Letter of
Credit. Nothing contained herein shall be deemed to require any Lender

                                       29
<PAGE>

to agree to act as an Issuing Bank, if it does not so desire. In the event of
any conflict between any Issuing Bank Agreement and this Agreement, the terms of
this Agreement shall control.

      SECTION 4.02. LETTERS OF CREDIT.

            (a) Each Letter of Credit shall be issued (or the stated maturity
thereof extended or terms thereof modified or amended) for the account of the
Company, Enterprises or a Subsidiary of Enterprises (in which case each Borrower
and such Subsidiary shall be co-applicants with respect to such Letter of
Credit) on not less than three (3) Business Days' prior written notice thereof
to the Administrative Agent (which shall promptly distribute copies thereof to
the Lenders) and the relevant Issuing Bank and shall be denominated in Dollars
or in an Alternative Currency. Each such notice (a "REQUEST FOR ISSUANCE") shall
be delivered no later than 12:00 noon (New York City time) on the third Business
Day prior to the proposed date of issuance, extension, modification or amendment
and shall specify (i) the date (which shall be a Business Day) of issuance of
such Letter of Credit (or the date of effectiveness of such extension,
modification or amendment) and the stated expiry date thereof (which shall be no
later than the earlier of the date that is five (5) Business Days (or, in the
case of any commercial Letter of Credit, thirty (30) Business Days) prior to the
Commitment Termination Date and the date which is one year after the requested
date of issuance, provided that any Letter of Credit with a one year tenor may
provide for the renewal thereof for additional periods of up to one year which
shall in no event extend beyond the date which is five (5) Business Days (or, in
the case of any commercial Letter of Credit, thirty (30) Business Days) prior to
the Commitment Termination Date), (ii) the proposed stated amount of such Letter
of Credit (which shall not be less than $100,000 (or the Dollar Equivalent
thereof in an Alternative Currency) unless otherwise agreed by the applicable
Issuing Bank), (iii) the currency in which such Letter of Credit shall be
denominated (which currency shall be Dollars or an Alternate Currency), (iv) the
identity of the applicable Borrower and (v) such other information as shall
demonstrate compliance of such Letter of Credit with the requirements specified
therefor in this Agreement and the relevant Issuing Bank Agreement. Each Request
for Issuance shall be irrevocable unless modified or rescinded by the applicable
Borrower in writing not less than two (2) Business Days prior to the proposed
date of issuance (or effectiveness) specified therein. Not later than 12:00 noon
(New York City time) on the proposed date of issuance (or effectiveness)
specified in such Request for Issuance, and upon fulfillment of the applicable
conditions precedent and the other requirements set forth herein and in the
relevant Issuing Bank Agreement, such Issuing Bank shall issue (or extend, amend
or modify) such Letter of Credit and provide notice and a copy thereof to the
Administrative Agent, which shall promptly furnish copies thereof to the
Lenders.

            (b) Schedule III contains a schedule of certain letters of credit
issued for the account of the Company prior to the Closing Date. Subject to the
satisfaction of the applicable conditions contained in Article VI, from and
after the Closing Date such letters of credit shall be deemed to be Letters of
Credit issued pursuant to this Article IV for all purposes hereunder (each such
Letter of Credit, a "TRANSITIONAL LETTER OF CREDIT"). For purposes of
clarification, each term or provision applicable to the issuance of a Letter of
Credit (including conditions applicable thereto) shall be deemed to include the
deemed issuance of the Transitional Letters of Credit on the Closing Date.

                                       30
<PAGE>

            (c) Each Lender severally agrees with each Issuing Bank to
participate in the Extension of Credit resulting from the issuance or deemed
issuance (or extension, modification or amendment) of each Letter of Credit
issued or deemed issued (or extended, amended or modified) pursuant to this
Section 4.02 in the manner and the amount provided in Section 4.04(b), and the
issuance or deemed issuance of such Letter of Credit shall be deemed to be a
confirmation by each Issuing Bank and each Lender of such participation in such
amount.

            (d) Notwithstanding anything herein to the contrary, no Issuing Bank
shall have any obligation to, and no Issuing Bank shall, issue, extend, amend or
modify any Letter of Credit if on the date of such issuance, extension,
amendment or modification, before or after giving effect thereto, (i) the Total
Outstandings at such time would exceed the Commitments, (ii) the Dollar
Equivalent of the aggregate LC Outstandings with respect to Letters of Credit
denominated in euros would exceed the Euro Sublimit or (iii) the Dollar
Equivalent of the aggregate LC Outstandings with respect to Letters of Credit
denominated in Indian Rupees would exceed the Indian Rupee Sublimit.

      SECTION 4.03. ISSUING BANK FEES. Each Borrower shall pay directly to each
Issuing Bank such fees and expenses, if any, specified to be paid to such
Issuing Bank pursuant to each Issuing Bank Agreement to which it is a party, at
the times, and in the manner, specified in such Issuing Bank Agreement.

      SECTION 4.04. REIMBURSEMENT TO ISSUING BANKS.

            (a) Each Borrower hereby agrees to pay to the Administrative Agent
for the account of each Issuing Bank, on demand made by such Issuing Bank to the
Borrowers and the Administrative Agent, on and after each date on which such
Issuing Bank shall pay any amount under any Letter of Credit issued by such
Issuing Bank, a sum in Dollars equal to the Dollar Equivalent of the amount so
paid (calculated as of the date of such payment by such Issuing Bank) plus
interest on such Dollar Equivalent of such amount from the date so paid by such
Issuing Bank until repayment to such Issuing Bank in full at a fluctuating
interest rate per annum equal at all times to the Applicable Rate for ABR Loans.

            (b) If any Issuing Bank shall not have been reimbursed in full by
the Borrowers for any payment made by such Issuing Bank under a Letter of Credit
issued by such Issuing Bank on the date of such payment, such Issuing Bank shall
give the Administrative Agent and each Lender prompt notice thereof (an "LC
PAYMENT NOTICE") no later than 12:00 noon (New York City time) on the Business
Day immediately succeeding the date of such payment by such Issuing Bank. Each
Lender severally agrees to purchase from each Issuing Bank a participation in
the reimbursement obligation of the Borrowers to such Issuing Bank under
subsection (a) above, by paying to the Administrative Agent for the account of
such Issuing Bank an amount in Dollars equal to such Lender's Percentage of the
Dollar Equivalent of such unreimbursed amount paid by such Issuing Bank
(calculated as of the date of such payment by such Issuing Bank), plus interest
on such Dollar Equivalent of such amount at a rate per annum equal to the
Federal Funds Effective Rate from the date of such payment by such Issuing Bank
to the date of payment to such Issuing Bank by such Lender. Each such payment by
a Lender shall be made not later than 3:00 p.m. (New York City time) on the
later to occur of (i) the Business Day immediately following the date of such
payment by such Issuing Bank and

                                       31
<PAGE>

(ii) the Business Day on which such Lender shall have received an LC Payment
Notice from such Issuing Bank. Each Lender's obligation to make each such
payment to the Administrative Agent for the account of such Issuing Bank shall
be several and shall not be affected by the occurrence or continuance of any
Default or Event of Default or the failure of any other Lender to make any
payment under this Section 4.04. Each Lender further agrees that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.

            (c) The failure of any Lender to make any payment to the
Administrative Agent for the account of an Issuing Bank in accordance with
subsection (b) above, shall not relieve any other Lender of its obligation to
make payment, but no Lender shall be responsible for the failure of any other
Lender. If any Lender shall fail to make any payment to the Administrative Agent
for the account of an Issuing Bank in accordance with subsection (b) above,
within five (5) Business Days after the LC Payment Notice relating thereto,
then, for so long as such failure shall continue, such Issuing Bank shall be
deemed, for purposes of Section 5.05 and Article IX hereof and the Cash
Collateral Agreement, to be a Lender hereunder owed a Loan in an outstanding
principal amount equal to the amount due and payable by such Lender to the
Administrative Agent for the account of such Issuing Bank pursuant to subsection
(b) above.

            (d) Each participation purchased by a Lender under subsection (b)
above, shall constitute an ABR Loan in the amount in Dollars paid by such Lender
to the Administrative Agent for the account of the applicable Issuing Bank and
shall be deemed made by such Lender to the Borrowers on the date of the related
payment by the relevant Issuing Bank under the applicable Letter of Credit
issued by such Issuing Bank (irrespective of the Borrowers' noncompliance, if
any, with the conditions precedent for Loans hereunder); and all such payments
by the Lenders in respect of any one such payment by such Issuing Bank shall
constitute a single Borrowing hereunder.

      SECTION 4.05. OBLIGATIONS ABSOLUTE. The payment obligations of each Lender
under Section 4.04(b) and of the Borrowers under this Agreement in respect of
any payment under any Letter of Credit and any Loan made under Section 4.04(d)
shall be unconditional and irrevocable, and shall be paid strictly in accordance
with the terms of this Agreement under all circumstances, including the
following circumstances:

            (i) any lack of validity or enforceability of any Loan Document or
      any other agreement or instrument relating thereto or to such Letter of
      Credit;

            (ii) any amendment or waiver of, or any consent to departure from,
      all or any of the Loan Documents;

            (iii) the existence of any claim, set-off, defense or other right
      which the Borrowers may have at any time against any beneficiary, or any
      transferee, of such Letter of Credit (or any Persons for whom any such
      beneficiary or any such transferee may be acting), any Issuing Bank, or
      any other Person, whether in connection with this Agreement, the
      transactions contemplated herein or by such Letter of Credit, or any
      unrelated transaction;

                                       32
<PAGE>

            (iv) any statement or any other document presented under such Letter
      of Credit proving to be forged, fraudulent, invalid or insufficient in any
      respect or any statement therein being untrue or inaccurate in any
      respect;

            (v) payment in good faith by any Issuing Bank under a Letter of
      Credit issued by such Issuing Bank against presentation of a draft or
      certificate which does not comply with the terms of such Letter of Credit;
      or

            (vi) any other circumstance or happening whatsoever, whether or not
      similar to any of the foregoing.

      SECTION 4.06. INDEMNIFICATION; LIABILITY OF ISSUING BANKS AND THE LENDERS.

            (a) In addition to amounts payable as elsewhere provided in this
Agreement, the Borrowers hereby agree to pay and to protect, indemnify, and save
harmless each Indemnified Person from and against any and all liabilities and
costs that any such Indemnified Person may incur or be subject to as a
consequence, direct or indirect, of (i) the issuance, execution and delivery or
transfer of or payment or failure to pay under any Letter of Credit or (ii) the
failure of any Issuing Bank to honor a demand for payment under any Letter of
Credit as a result of any act or omission, whether rightful or wrongful, of any
present or future de jure or de facto government or governmental authority, in
each case other than to the extent solely as a result of the (x) gross
negligence or willful misconduct of such Indemnified Person as determined by a
court of competent jurisdiction by final and nonappealable judgment or (y) any
Issuing Bank's failure to pay under any Letter of Credit after the presentation
to it of a request strictly complying with the terms and conditions of such
Letter of Credit.

            (b) The Borrowers assume all risks of the acts and omissions of any
beneficiary or transferee of any Letter of Credit. Neither the Issuing Bank that
has issued such Letter of Credit, nor any other Indemnified Person, shall be
liable or responsible for (i) the use that may be made of such Letter of Credit
or any acts or omissions of any beneficiary or transferee thereof in connection
therewith; (ii) the validity, sufficiency or genuineness of documents, or of any
endorsement thereon, even if such documents should prove to be in any or all
respects invalid, insufficient, fraudulent or forged; (iii) payment by such
Issuing Bank against presentation of documents that do not comply with the terms
of such Letter of Credit, including failure of any documents to bear any
reference or adequate reference to such Letter of Credit; or (iv) any other
circumstances whatsoever in making or failing to make payment under such Letter
of Credit, except that the Borrowers shall have the right to bring suit against
such Issuing Bank, and such Issuing Bank shall be liable to the applicable
Borrower and any Lender, to the extent of any direct, as opposed to
consequential, damages suffered by the applicable Borrower or such Lender which
the applicable Borrower or such Lender proves were caused by such Issuing Bank's
willful misconduct or gross negligence as determined by a court of competent
jurisdiction by final and nonappealable judgment, including such Issuing Bank's
willful failure to make timely payment under such Letter of Credit following the
presentation to it by the beneficiary thereof of a draft and accompanying
certificate(s) which strictly comply with the terms and conditions of such
Letter of Credit. In furtherance and not in limitation of the foregoing, any
Issuing Bank may accept sight drafts and accompanying certificates presented
under any Letter of Credit issued by such Issuing Bank that appear on their face
to be in order,

                                       33
<PAGE>

without responsibility for further investigation, regardless of any notice or
information to the contrary. Notwithstanding the foregoing, no Lender shall be
obligated to indemnify the applicable Borrower for damages caused by any Issuing
Bank's willful misconduct or gross negligence, and the obligation of the
Borrowers to reimburse the Lenders hereunder shall be absolute and
unconditional, notwithstanding the gross negligence or willful misconduct of any
Issuing Bank.

            (c) The Borrowers' other obligations under this Section 4.06 shall
survive the repayment of all amounts owing to the Lenders, the Issuing Banks and
the Agents under the Loan Documents and the termination of the Commitments. If
and to the extent that the obligations of any Borrower under this Section 4.06
are unenforceable for any reason, the Borrowers jointly and severally agree to
make the maximum contribution to the payment and satisfaction thereof which is
permissible under applicable law.

      SECTION 4.07. CURRENCY EQUIVALENTS. The Dollar Equivalent of any amount
denominated in any Alternative Currency shall be determined by the Issuing Bank
in accordance with prevailing exchange rates, as set forth in the applicable
Issuing Bank Agreement, and notice of such amount shall be provided to the
Administrative Agent, in each case on the applicable date. The Dollar Equivalent
of the stated amount of each Letter of Credit outstanding made in an Alternative
Currency and of the amount of each participation purchased by a Lender under
Section 4.04(b) shall be recalculated hereunder on (i) each date that it shall
be necessary to determine the unused portion of each Lender's Commitment, or the
outstanding amount of any or all Loans, LC Outstandings or any Extension of
Credit, or (ii) on any such other date which the Administrative Agent deems such
recalculation necessary or advisable or is otherwise directed to make such
recalculation by the Required Lenders, but in any event at least monthly. The
Administrative Agent agrees to provide notice to the Lenders of the relevant
Dollar Equivalent determined pursuant to each such determination and each such
recalculation as soon as practicable following such determination or
recalculation, as the case may be.

      SECTION 4.08. JUDGEMENT CURRENCY. If for the purposes of obtaining
judgment in any court it is necessary to convert a sum due hereunder or under
the Promissory Notes in any currency (the "ORIGINAL CURRENCY") into another
currency (the "OTHER CURRENCY") the parties hereto agree, to the fullest extent
that they may effectively do so, that the rate of exchange used shall be that at
which in accordance with normal banking procedures the Administrative Agent
could purchase the Original Currency with the Other Currency at the
Administrative Agent's main office in New York, New York on the Business Day
immediately preceding that on which final judgment is given. The obligation of
any Borrower in respect of any sum due in the Original Currency from it to any
Lender, any Issuing Bank, the Collateral Agent or Administrative Agent hereunder
or under any other Loan Document shall, notwithstanding any judgment in any
Other Currency, be discharged only to the extent that on the Business Day
following receipt by such Lender, Issuing Bank, Collateral Agent or the
Administrative Agent (as the case may be) of any sum adjudged to be so due in
such Other Currency such Lender, Issuing Bank, Collateral Agent or
Administrative Agent (as the case may be) may in accordance with normal banking
procedures purchase the Original Currency with such Other Currency; if the
amount of the Original Currency so purchased is less than the sum originally due
to such Lender, Issuing Bank, Collateral Agent or Administrative Agent (as the
case may be) in the Original Currency, the applicable Borrower agrees, as a
separate obligation and notwithstanding

                                       34
<PAGE>

any such judgment, to indemnify such Lender, Issuing Lender, Collateral Agent or
Administrative Agent (as the case may be) against such loss, and if the amount
of the Original Currency so purchased exceeds the sum originally due in the
Original Currency to any Lender, Issuing Lender, Collateral Agent or
Administrative Agent (as the case may be), such Lender, Issuing Lender,
Collateral Agent or Administrative Agent (as the case may be) agrees to remit to
the applicable Borrower such excess.

      SECTION 4.09. CASH COLLATERAL AGREEMENT. Each Borrower agrees that the
Company will, on behalf of itself and Enterprises, maintain pursuant to the Cash
Collateral Agreement a cash collateral account, in the name of the Company but
under the sole dominion and control of the Collateral Agent, for the benefit of
itself, the Administrative Agent, the LC Issuers and the Lenders. Each Borrower
hereby pledges, assigns and grants to the Collateral Agent, for the benefit of
itself, the Administrative Agent, the LC Issuers and the Lenders, a security
interest in all of such Borrower's right, title and interest in and to all funds
which may from time to time be on deposit in such account to secure the prompt
and complete payment and performance of all reimbursement obligations of the
Borrowers now or hereafter existing with respect to LC Obligations.

      SECTION 4.10. COURT ORDER. If at any time any Issuing Bank shall have been
served with or otherwise subjected to a court order, injunction, or other
process or decree issued or granted at the instance of any Borrower restraining
or seeking to restrain such Issuing Bank from paying any amount under any Letter
of Credit issued by it (other than pursuant to any action or proceeding based on
Section 5-109 of the Uniform Commercial Code) and either (i) there has been a
drawing under such Letter of Credit which such Issuing Bank would otherwise be
obligated to pay or (ii) the stated expiration date or any reduction of the
stated amount of such Letter of Credit has occurred but the right of the
beneficiary to draw thereunder has been extended in connection with the pendency
of the related court action or proceeding, the Borrowers shall provide cash
collateral pursuant to the Cash Collateral Agreement in an amount equal to one
hundred five percent (105%) of the Dollar Equivalent of the LC Outstandings at
such time in respect of such Letter of Credit.

                                    ARTICLE V
                   PAYMENTS, COMPUTATIONS AND YIELD PROTECTION

      SECTION 5.01. PAYMENTS AND COMPUTATIONS.

            (a) Each Borrower shall make each payment hereunder and under the
other Loan Documents not later than 2:00 p.m. (New York City time) on the day
when due in Dollars to the Administrative Agent at its offices at 2 Penns Way,
Suite 200, New Castle, DE 19270, in same day funds, except payments to be made
directly to any Issuing Bank as expressly provided herein; any payment received
after 3:00 p.m. (New York City time) shall be deemed to have been received at
the start of business on the next succeeding Business Day, unless the
Administrative Agent shall have received from, or on behalf of, the applicable
Borrower a Federal Reserve reference number with respect to such payment before
4:00 p.m. (New York City time). The Administrative Agent will promptly
thereafter cause to be distributed like funds relating to the payment of
principal, interest, fees or other amounts payable to the Lenders, to the
respective Lenders to which the same are payable, for the account of their
respective Applicable

                                       35
<PAGE>

Lending Offices, in each case to be applied in accordance with the terms of this
Agreement. If and to the extent that any distribution of any payment from a
Borrower required to be made to any Lender pursuant to the preceding sentence
shall not be made in full by the Administrative Agent on the date such payment
was received by the Administrative Agent, the Administrative Agent shall pay to
such Lender, upon demand, interest on the unpaid amount of such distribution, at
a rate per annum equal to the Federal Funds Effective Rate, from the date of
such payment by the applicable Borrower to the Administrative Agent to the date
of payment in full by the Administrative Agent to such Lender of such unpaid
amount. Upon the Administrative Agent's acceptance of a Lender Assignment and
recording of the information contained therein in the Register pursuant to
Section 11.07, from and after the effective date specified in such Lender
Assignment, the Administrative Agent shall make all payments hereunder and under
any Promissory Notes in respect of the interest assigned thereby to the Lender
assignee thereunder, and the parties to such Lender Assignment shall make all
appropriate adjustments in such payments for periods prior to such effective
date directly between themselves.

            (b) Each Borrower hereby authorizes the Administrative Agent, each
Lender and each Issuing Bank, if and to the extent payment owed to the
Administrative Agent, such Lender or such Issuing Bank, as the case may be, is
not made when due hereunder (or, in the case of a Lender, under any Promissory
Note held by such Lender), to charge from time to time against any or all of
such Borrower's accounts with the Administrative Agent, such Lender or such
Issuing Bank, as the case may be, any amount so due.

            (c) All computations of interest based on the Alternate Base Rate
(when the Alternate Base Rate is based on the Prime Rate) shall be made by the
Administrative Agent on the basis of a year of 365 or 366 days, as the case may
be. All other computations of interest and fees hereunder (including
computations of interest based on the Adjusted LIBO Rate, the CD Rate and the
Federal Funds Effective Rate) shall be made by the Administrative Agent on the
basis of a year of 360 days. In each such case, such computation shall be made
for the actual number of days (including the first day but excluding the last
day) occurring in the period for which such interest or fees are payable. Each
such determination by the Administrative Agent or a Lender shall be conclusive
and binding for all purposes, absent manifest error.

            (d) Whenever any payment hereunder or under any other Loan Document
shall be stated to be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of payment of interest and fees
hereunder; provided, however, that if such extension would cause payment of
interest on or principal of Eurodollar Rate Loans to be made in the next
following calendar month, such payment shall be made on the next preceding
Business Day and such reduction of time shall in such case be included in the
computation of payment of interest hereunder.

            (e) Unless the Administrative Agent shall have received notice from
the applicable Borrower prior to the date on which any payment is due to the
Lenders hereunder that such Borrower will not make such payment in full, the
Administrative Agent may assume that such Borrower has made such payment in full
to the Administrative Agent on such date, and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each Lender on such
due date an amount equal to the amount then due such Lender. If and to the

                                       36
<PAGE>

extent such Borrower shall not have so made such payment in full to the
Administrative Agent, such Lender shall repay to the Administrative Agent
forthwith on demand such amount distributed to such Lender, together with
interest thereon, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the Administrative
Agent, at the Federal Funds Effective Rate.

            (f) Any amount payable by any Borrower hereunder or under any of the
Promissory Notes that is not paid when due (whether at stated maturity, by
acceleration or otherwise) shall (to the fullest extent permitted by law) bear
interest, from the date when due until paid in full, at a rate per annum equal
at all times to the Default Rate, payable on demand.

            (g) If at any time insufficient funds are received by and available
to the Administrative Agent to pay fully all amounts of principal, interest and
fees then due hereunder, such funds shall be applied, subject to Section 5.07,
(i) first, toward payment of interest and fees then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (ii) second, toward payment of principal then due
hereunder, ratably among the parties entitled thereto.

      SECTION 5.02. INTEREST RATE DETERMINATION. The Administrative Agent shall
give prompt notice to the Borrowers and the Lenders of the applicable interest
rate determined by the Administrative Agent for purposes of Section 3.05(b)(i)
or (ii).

      SECTION 5.03. PREPAYMENTS. The Borrowers shall have no right to prepay any
principal amount of any Loans other than as follows:

            (a) A Borrower may (and shall provide notice thereof to the
Administrative Agent not later than 10:00 a.m. (New York City time) on the date
of prepayment, and the Administrative Agent shall promptly distribute copies
thereof to the Lenders), and if such notice is given, such Borrower shall,
prepay the outstanding principal amounts of its Loans made as part of the same
Borrowing, in whole or ratably in part; provided, however, that each partial
prepayment shall be in an aggregate principal amount of not less than $5,000,000
or an integral multiple of $1,000,000 in excess thereof (or such lesser amount
as shall be equal to the total amount of Loans outstanding to such Borrower).

            (b) On any date on which (i) any termination or optional or
mandatory reduction of the Commitments shall occur pursuant to Section 2.03(a)
or (b), (ii) the Total Outstandings shall exceed the aggregate amount of the
Commitments, (iii) the aggregate Dollar Equivalent of all LC Outstandings
denominated in euros shall exceed the Euro Sublimit, or (iv) all LC Outstandings
denominated in Indian Rupees shall exceed the Indian Rupee Sublimit, the
Borrowers shall first, pay or prepay the principal outstanding on the Loans
and/or all LC Outstandings that represent amounts that have been drawn under
Letters of Credit but have neither been reimbursed by the Borrowers nor
converted into ABR Loans, second, if all of the Loans and all of such
unreimbursed amounts constituting LC Outstanding shall have been paid in full,
provide cash collateral pursuant to the Cash Collateral Agreement, to secure
remaining LC Outstandings, and third, cause an amount of Letters of Credit to be
cancelled (if necessary after taking into account the payments and provision of
cash collateral in the immediately preceding clauses), in each case, in an
aggregate amount equal to the excess, as applicable, of (A)(i) the

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<PAGE>

Total Outstandings over (ii) the aggregate amount of the sum of the Commitments
(following such termination or reduction, if any) and any cash collateral on
deposit in the Cash Collateral Account or (B)(i)(x) the aggregate Dollar
Equivalent of all LC Outstandings denominated in euro, over (y) the sum of the
Euro Sublimit and, without duplication, such cash collateral or (ii)(x) the
aggregate Dollar Equivalent of all LC Outstandings denominated in Indian Rupees,
over (y) the sum of the Indian Rupee Sublimit and, without duplication, such
cash collateral. Any payments and prepayments required by clause "first" of this
subsection (b) shall be applied to outstanding ABR Loans up to the full amount
thereof before they are applied to outstanding Eurodollar Rate Loans.

            (c) Any prepayment pursuant to this Section 4.03 shall be
accompanied by (i) accrued interest to the date of such prepayment on the
principal amount repaid and (ii) in the case of prepayments of Eurodollar Rate
Loans, any amount payable to the Lenders pursuant to Section 5.04(b). In the
event that the Borrowers request the release of any cash collateral pursuant to
the terms of the Cash Collateral Agreement and on the date of such request or at
any time prior to the time of such release, there has become, or there becomes,
due and payable any prepayment of any Loans under this Agreement, the Borrowers
hereby direct the Administrative Agent to apply the proceeds of such release of
cash collateral to such prepayment of such Loans and agrees that any such
request is a confirmation of such direction.

      SECTION 5.04. YIELD PROTECTION.

            (a) Increased Costs. If, due to either (i) the introduction of or
any change in or in the interpretation of any law or regulation after the
Closing Date, or (ii) the compliance with any guideline or request from any
central bank or other governmental authority (whether or not having the force of
law) issued or made after the Closing Date, there shall be reasonably incurred
any increase in (A) the cost to any Lender of agreeing to make or making,
funding or maintaining Eurodollar Rate Loans, or of participating in the
issuance, maintenance or funding of any Letter of Credit, or (B) the cost to any
Issuing Bank of issuing or maintaining any Letter of Credit, then the Borrowers
shall from time to time, upon demand by such Lender or Issuing Bank, as the case
may be (with a copy of such demand to the Administrative Agent), pay to the
Administrative Agent for the account of such Lender or Issuing Bank, as the case
may be, additional amounts sufficient to compensate such Lender or Issuing Bank,
as the case may be, for such increased cost. A certificate as to the amount of
such increased cost and giving a reasonable explanation thereof, submitted to
the Borrowers and the Administrative Agent by such Lender or such Issuing Bank,
as the case may be, shall constitute such demand and shall be conclusive and
binding for all purposes, absent manifest error.

            (b) Breakage. If, due to any prepayment pursuant to Section 2.03, an
acceleration of maturity of the Loans pursuant to Section 9.02, or any other
reason, any Lender receives payments of principal of any Eurodollar Rate Loan
other than on the last day of the Interest Period relating to such Loan or if
any Borrower shall Convert any Eurodollar Rate Loans on any day other than the
last day of the Interest Period therefor, or if any Borrower shall fail to
prepay a Eurodollar Rate Loan on the date specified in a notice of prepayment,
the Borrowers shall, promptly after demand by such Lender (with a copy of such
demand to the Administrative Agent), pay to the Administrative Agent for the
account of such Lender any amounts required to compensate such Lender for
additional losses, costs, or expenses (including anticipated lost

                                       38
<PAGE>

profits) that such Lender may reasonably incur as a result of such payment,
Conversion or failure to prepay, including any loss, cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by
such Lender to fund or maintain such Loan. For purposes of this subsection (b),
a certificate setting forth the amount of such additional losses, costs, or
expenses and giving a reasonable explanation thereof, submitted to the Borrowers
and the Administrative Agent by such Lender, shall constitute such demand and
shall be conclusive and binding for all purposes, absent manifest error.

            (c) Capital. If any Lender or Issuing Bank determines that (i)
compliance with any law or regulation or any guideline or request from any
central bank or other governmental authority (whether or not having the force of
law) affects or would affect the amount of capital required or expected to be
maintained by such Lender or Issuing Bank, whether directly, or indirectly as a
result of commitments of any Person controlling such Lender or Issuing Bank (but
without duplication), and (ii) the amount of such capital is increased by or
based upon (A) the existence of such Lender's or such Issuing Bank's commitment
to lend or issue or participate in any Letter of Credit hereunder, (B) the
participation in or issuance or maintenance of any Letter of Credit or Loan or
(C) other similar such commitments, then, upon demand by such Lender or Issuing
Bank, the Borrowers jointly and severally agree immediately to pay to the
Administrative Agent for the account of such Lender or Issuing Bank from time to
time as specified by such Lender or Issuing Bank additional amounts sufficient
to compensate such Lender or Issuing Bank in the light of such circumstances, to
the extent that such Lender or Issuing Bank reasonably determines such increase
in capital to be allocable to the transactions contemplated hereby. A
certificate as to such amounts and giving a reasonable explanation thereof (to
the extent permitted by law), submitted to the Borrowers and the Administrative
Agent by such Lender or Issuing Bank, shall be conclusive and binding for all
purposes, absent manifest error.

            (d) Notices. Each Lender and Issuing Bank hereby agrees to use its
best efforts to notify the Borrowers of the occurrence of any event referred to
in subsection (a), (b) or (c) of this Section 5.04 promptly after becoming aware
of the occurrence thereof. The failure of any Lender or any Issuing Bank to
provide such notice or to make demand for payment under said subsection shall
not constitute a waiver of such Lender's or such Issuing Bank's (as the case may
be) rights hereunder; provided that, notwithstanding any provision to the
contrary contained in this Section 5.04, the Borrowers shall not be required to
reimburse any Lender or any Issuing Bank for any amounts or costs incurred under
subsection (a), (b) or (c) of this Section 5.04 more than 90 days prior to the
date that such Lender or such Issuing Bank's (as the case may be) notifies the
Borrowers in writing thereof, in each case unless, and to the extent that, any
such amounts or costs so incurred shall relate to the retroactive application of
any event notified to the Borrowers which entitles such Lender or such Issuing
Bank (as the case may be) to such compensation. If any Lender or any Issuing
Bank shall subsequently determine that any amount demanded and collected under
this Section 5.04 was done so in error, such Lender or such Issuing Bank (as the
case may be) will promptly return such amount to the Borrowers.

            (e) Survival of Obligations. Subject to subsection (d) above, the
Borrowers' obligations under this Section 5.04 shall survive the repayment of
all other amounts owing to the Lenders, the Agents and the Issuing Banks under
the Loan Documents and the termination of the Commitments. If and to the extent
that the obligations of the Borrowers under this Section 5.04

                                       39
<PAGE>

are unenforceable for any reason, the Borrowers agree to make the maximum
contribution to the payment and satisfaction thereof which is permissible under
applicable law.

      SECTION 5.05. SHARING OF PAYMENTS, ETC. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Loans owing to it (other than pursuant
to Section 5.04 or Section 5.06) in excess of its ratable share of payments
obtained by all the Lenders on account of the Loans of such Lenders, such Lender
shall forthwith purchase from the other Lenders such participation in the Loans
owing to them as shall be necessary to cause such purchasing Lender to share the
excess payment ratably with each of them; provided, however, that if all or any
portion of such excess payment is thereafter recovered from such purchasing
Lender, such purchase from each Lender shall be rescinded and such Lender shall
repay to the purchasing Lender the purchase price to the extent of such recovery
together with an amount equal to such Lender's ratable share (according to the
proportion of (i) the amount of such Lender's required repayment to (ii) the
total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered. The Borrowers agree that any Lender so purchasing a participation
from another Lender pursuant to this Section 5.05 may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of
set-off) with respect to such participation as fully as if such Lender were the
direct creditor of the Borrowers in the amount of such participation.
Notwithstanding the foregoing, if any Lender shall obtain any such excess
payment involuntarily, such Lender may, in lieu of purchasing participations
from the other Lenders in accordance with this Section 5.05, on the date of
receipt of such excess payment, return such excess payment to the Administrative
Agent for distribution in accordance with Section 5.01(a).

      SECTION 5.06. TAXES.

            (a) All payments by the Borrowers hereunder and under the other Loan
Documents shall be made in accordance with Section 5.01, free and clear of and
without deduction for all present or future taxes, levies, imposts, deductions,
charges or withholdings, and all liabilities with respect thereto, excluding, in
the case of each Lender, each Issuing Bank and each Agent, taxes imposed on its
overall net income, and franchise taxes imposed on it by the jurisdiction under
the laws of which such Lender, Issuing Bank or Agent (as the case may be) is
organized or any political subdivision thereof and, in the case of each Lender,
taxes imposed on its overall net income, and franchise taxes imposed on it by
the jurisdiction of such Lender's Applicable Lending Office or any political
subdivision thereof (all such non-excluded taxes, levies, imposts, deductions,
charges, withholdings and liabilities being hereinafter referred to as "TAXES").
If any Borrower shall be required by law to deduct any Taxes from or in respect
of any sum payable hereunder or under any other Loan Document to any Lender,
Issuing Bank or Agent, (i) the sum payable shall be increased as may be
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 5.06) such Lender,
Issuing Bank or Agent (as the case may be) receives an amount equal to the sum
it would have received had no such deductions been made, (ii) such Borrower
shall make such deductions and (iii) such Borrower shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance
with applicable law.

                                       40
<PAGE>

            (b) In addition, each Borrower jointly and severally agrees to pay
any present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies that arise from any payment made hereunder or
under any other Loan Document or from the execution, delivery or registration
of, or otherwise with respect to, this Agreement or any other Loan Document
(hereinafter referred to as "OTHER TAXES").

            (c) Each Borrower jointly and severally agrees to indemnify each
Lender, Issuing Bank and Agent for the full amount of Taxes and Other Taxes
(including any Taxes and any Other Taxes imposed by any jurisdiction on amounts
payable under this Section 5.06) paid by such Lender, Issuing Bank or Agent (as
the case may be) and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto, whether or not such Taxes or Other
Taxes were correctly or legally asserted. This indemnification shall be made
within thirty (30) days from the date such Lender, Issuing Bank or Agent (as the
case may be) makes written demand therefor; provided, that such Lender, Issuing
Bank or Agent (as the case may be) shall not be entitled to demand payment under
this Section 5.06 for an amount if such demand is not made within one year
following the date upon which such Lender, Issuing Bank or Agent (as the case
may be) shall have been required to pay such amount.

            (d) Within thirty (30) days after the date of any payment of Taxes,
the applicable Borrower will furnish to the Administrative Agent, at its address
referred to in Section 11.02, the original or a certified copy of a receipt
evidencing payment thereof.

            (e) Each Bank represents and warrants that either (i) it is
organized under the laws of a jurisdiction within the United States or (ii) it
has delivered to the Borrowers or the Administrative Agent duly completed copies
of such form or forms prescribed by the United States Internal Revenue Service
indicating that such Bank is entitled to receive payments without deduction or
withholding of any United States federal income taxes, as permitted by the
Internal Revenue Code of 1986, as amended. Each other Lender agrees that, on or
prior to the date upon which it shall become a party hereto, and upon the
reasonable request from time to time of a Borrower or the Administrative Agent,
such Lender will deliver to the Borrowers and the Administrative Agent (to the
extent that it is not prohibited by law from doing so) either (A) a statement
that it is organized under the laws of a jurisdiction within the United States
or (B) duly completed copies of such form or forms as may from time to time be
prescribed by the United States Internal Revenue Service, indicating that such
Lender is entitled to receive payments without deduction or withholding of any
United States federal income taxes, as permitted by the Internal Revenue Code of
1986, as amended. Each Bank that has delivered, and each other Lender that
hereafter delivers, to the Borrowers and the Administrative Agent the form or
forms referred to in the two preceding sentences further undertakes to deliver
to the Borrowers and the Administrative Agent, to the extent that it is not
prohibited by law from doing so, further copies of such form or forms, or
successor applicable form or forms, as the case may be, as and when any previous
form filed by it hereunder shall expire or shall become incomplete or inaccurate
in any respect. Each Lender represents and warrants that each such form supplied
by it to the Administrative Agent and the Borrowers pursuant to this subsection
(e), and not superseded by another form supplied by it, is or will be, as the
case may be, complete and accurate.

                                       41
<PAGE>
      SECTION 5.07. APPORTIONMENT OF PAYMENTS.

            (a) Subject to the provisions of Section 2.03, Section 5.03(b) and
Section 5.07(b), all payments of principal and interest in respect of
outstanding Loans, all payments in respect of unpaid reimbursement obligations
under Section 4.04(a), all payments of fees and all other payments in respect of
any other Obligations hereunder, shall be allocated among such of the Lenders
and the Issuing Banks as are entitled thereto, ratably or otherwise as expressly
provided herein. Except as provided in Section 5.07(b) with respect to payments
and proceeds of Collateral received after the occurrence of an Event of Default,
all such payments and any other amounts received by the Administrative Agent
from or for the benefit of any Borrower shall be applied:

            (i) first, to pay principal of and interest on any portion of the
      Loans which the Administrative Agent may have advanced on behalf of any
      Lender other than Citibank for which the Administrative Agent has not then
      been reimbursed by such Lender or any Borrower;

            (ii) second, to pay interest on and then the principal of the Loans
      then due and payable (in the order described hereinbelow);

            (iii) third to pay principal of and interest on all unpaid
      reimbursement obligations under Section 4.04(a);

            (iv) fourth, to the Cash Collateral Account, to secure outstanding
      Letters of Credit to the extent required pursuant to this Agreement;

            (v) fifth, to pay all other Obligations of any Loan Party under any
      Loan Document then due and payable, ratably; and

            (vi) sixth, as the Borrowers so designate.

All such principal and interest payments in respect of the Loans shall be
applied first to repay outstanding ABR Loans and then to repay outstanding
Eurodollar Rate Loans with those Eurodollar Rate Loans which have earlier
expiring Interest Periods being repaid prior to those which have later expiring
Interest Periods.

            (b) During the continuance of an Event of Default and after
declaration thereof by written notice from the Administrative Agent to the
Borrowers, the Administrative Agent shall apply all payments in respect of
Loans, unpaid reimbursement obligations under Section 4.04(a) or any other
Obligations, and the Collateral Agent shall deliver all proceeds of Collateral
to the Administrative Agent for application, in the following order:

            (i) first, to pay principal of and interest on any portion of the
      Loans which the Administrative Agent may have advanced on behalf of any
      Lender other than Citibank for which the Administrative Agent has not then
      been reimbursed by such Lender or the Borrowers;

            (ii) second, to pay any fees, expense reimbursements or indemnities
      then due to the Agents under any of the Loan Documents;

                                       42
<PAGE>

            (iii) third, to the ratable payment of any fees, expense
      reimbursements or indemnities then due to the Lenders and the Issuing
      Banks under any of the Loan Documents;

            (iv) fourth, to the ratable payment of interest due in respect of
      the Loans, in accordance with the Lenders' respective Percentages;

            (v) fifth, to the ratable payment or prepayment of principal
      outstanding on all Loans, in accordance with the Lenders' respective
      Percentages;

            (vi) sixth, to pay principal of and interest on all unpaid
      reimbursement obligations under Section 4.04(a);

            (vii) seventh, to the Cash Collateral Account to secure LC
      Obligations in respect of outstanding Letters of Credit, in an amount
      equal to the Cash Collateral Required Amount; and

            (viii) eighth, to the ratable payment of all other Obligations of
      the Loan Parties then outstanding under the Loan Documents.

The order of priority set forth in this Section 5.07(b) and the related
provisions of this Agreement are set forth solely to determine the rights and
priorities of the Agents and the Lenders as among themselves.

      SECTION 5.08. Proceeds of Collateral. During the continuance of an Event
of Default and after declaration thereof by written notice from the
Administrative Agent to the Borrowers, the Borrowers shall cause all proceeds of
Collateral (other than Collateral in respect of which the Collateral Agent
and/or the Administrative Agent shall have a prior security interest on behalf
of the Lenders hereunder) to be deposited pursuant to arrangements for the
collection of such amounts established by the Borrowers and the Administrative
Agent (or the Collateral Agent, as applicable) for application pursuant to
Section 5.07. All collections of proceeds of Collateral which are received
directly by the Company or any Subsidiary of the Company shall be deemed to have
been received by the Company or such Subsidiary of the Company as the Collateral
Agent's trustee and, during the continuance of an Event of Default and after
declaration thereof by written notice from the Administrative Agent to the
Borrowers, upon the Company's or such Subsidiary's receipt thereof, the
Borrowers shall immediately transfer or cause to be transferred all such amounts
to the Administrative Agent for application pursuant to Section 5.07. All other
proceeds of Collateral received by the Collateral Agent and/or the
Administrative Agent, whether through direct payment or otherwise, will be
deemed received by such Agent, will be the sole property of such Agent, and will
be held by such Agent, for the benefit of the Lenders for application pursuant
to Section 5.07.

                                   ARTICLE VI
                              CONDITIONS PRECEDENT

      SECTION 6.01. CONDITIONS PRECEDENT TO THE EFFECTIVENESS OF THIS AGREEMENT.
The effectiveness of this Agreement is subject to the fulfillment of the
following conditions precedent:

                                       43
<PAGE>

            (a) The Administrative Agent shall have received, on or before the
Closing Date, the following, in form and substance satisfactory to each Lender
(except where otherwise specified below) and (except for any Promissory Notes)
in sufficient copies for each Lender:

            (i) Certified copies of the resolutions of the Board of Directors,
      or of the Executive Committee of the Board of Directors (or persons
      performing similar functions), of each Borrower, each Guarantor and each
      other Grantor (each a "LOAN PARTY") authorizing each such Loan Party to
      enter into each Loan Document to which it is, or is to be, a party, and of
      all documents evidencing other necessary corporate or other action and
      Governmental Approvals, if any, with respect to each such Loan Document.

            (ii) A certificate of the Secretary or an Assistant Secretary of
      each Loan Party certifying the names, true signatures and incumbency of
      (A) the officers of such Loan Party authorized to sign the Loan Documents
      to which it is, or is to be, a party, and the other documents to be
      delivered hereunder and thereunder and (B) the representatives of such
      Loan Party authorized to sign notices to be provided under the Loan
      Documents to which it is, or is to be, a party, which representatives
      shall be acceptable to the Administrative Agent.

            (iii) Copies of the Certificate of Incorporation and by-laws (or
      comparable constitutive documents) of each Loan Party, together with all
      amendments thereto, certified by the Secretary or an Assistant Secretary
      of each such Loan Party.

            (iv) Good Standing Certificates (or other similar certificate) for
      each of the Loan Parties, issued by the Secretary of State of the
      jurisdiction of organization of each such Loan Party as of a recent date.

            (v) The Guaranty, duly executed by each Guarantor.

            (vi) The Pledge Agreements, duly executed by the Borrowers and each
      Grantor, as applicable.

            (vii) The Cash Collateral Agreement, duly executed by each Borrower.

            (viii) A certified copy of Schedule I hereto, in form and substance
      reasonably satisfactory to the Administrative Agent setting forth:

                  (A) all Project Finance Debt of the Company and the
            Consolidated Subsidiaries, as of June 30, 2004; and

                  (B) debt (as such term is construed in accordance with GAAP)
            of the Loan Parties as of June 30, 2004.

            (ix) A certificate, executed by a duly authorized officer of the
      Company, certifying that as of June 30, 2004 the Company was in compliance
      with the requirements of Section 4.4 of the AIG Pledge Agreement (which
      certificate shall set forth in reasonable detail the calculations upon
      which the Company determined such compliance).

                                       44
<PAGE>

            (x) Favorable opinions of: (A) Belinda Foxworth, Esq., Deputy
      General Counsel of the Company and counsel for the other Loan Parties, in
      substantially the form of Exhibit C and as to such other matters as the
      Required Lenders, through the Administrative Agent, may reasonably request
      and (B) Skadden, Arps, Slate, Meagher & Flom LLP, special counsel to the
      Loan Parties, in substantially the form of Exhibit D and as to such other
      matters as the Required Lenders, through the Administrative Agent, may
      reasonably request.

            (xi) Duly executed copies of a Reaffirmation in the form of
      Attachment A attached hereto from each of the Company's Subsidiaries
      identified thereon.

            (b) The following statements shall be true and the Administrative
Agent shall have received a certificate of a duly authorized officer of each
Borrower, dated the Closing Date and in sufficient copies for each Lender
stating that:

            (i) the representations and warranties set forth in Section 7.01 of
      this Agreement are true and correct with respect to such Borrower on and
      as of the Closing Date as though made on and as of such date,

            (ii) no event has occurred and is continuing that constitutes a
      Default or an Event of Default, and

            (iii) all Governmental Approvals necessary in connection with the
      Loan Documents and the transactions contemplated thereby and the
      continuing operations of such Borrower and its Subsidiaries have been
      obtained and are in full force and effect, and all third party approvals
      necessary or advisable in connection with the Loan Documents and the
      transactions contemplated thereby and the continuing operations of such
      Borrower and its Subsidiaries have been obtained and are in full force and
      effect, other than filings necessary to create or perfect security
      interests in the Collateral or as may be required under applicable energy,
      antitrust or securities laws in connection with the exercise of remedies
      with respect to certain Collateral.

            (c) The Administrative Agent shall have received evidence
satisfactory to it that all financing statements relating to the Collateral have
been completed for filing or recording and/or filed, and all certificates
representing capital stock or other ownership interests included in the
Collateral (including, without limitation, certificates, if any, representing
the capital stock or other ownership interests identified on Schedule II hereto)
have been delivered to the Collateral Agent (with duly executed stock powers).

            (d) The Borrowers shall have paid, on or before the Closing Date,
all fees under or referenced in Section 2.02(b) and all expenses referenced in
Section 11.04(a), in each case to the extent due and payable as of the Closing
Date.

            (e) The Administrative Agent shall have received each of the
following on or before the Closing Date, in each case in form and substance
satisfactory to it with sufficient copies for each Lender:

                                       45
<PAGE>

            (i) A certificate, executed by the chief executive officer and the
      chief financial officer of the Company and Consumers, as applicable, in
      favor of the Agents and the Lenders with respect to the financial
      statements described in Sections 7.01(e)(i), (ii), (iii) and (iv)
      certifying that such financial statements have been prepared in accordance
      with GAAP and are true and correct as of the date of such certificate;

            (ii) Copies of the financial statements described in Sections
      7.01(e)(i), (ii), (ii) and (iv); and

            (iii) Copies of the Company's Annual Report on Form 10-K/A for the
      fiscal year ended December 31, 2003.

            (f) The Administrative Agent shall have received evidence
satisfactory to it that on the Closing Date (i) all "Loans" under (and as
defined in) the Existing Credit Agreement and all other amounts due under the
Existing Credit Agreement have been paid in full by the Company and (ii) that
certain Credit Agreement, dated as of May 22, 2003, among the Company, the
financial institutions party thereto, Union Bank of California, N.A., as
documentation agent, and Bank One, NA, as administrative agent, has been or
concurrently with the Closing Date is being terminated and all Liens securing
obligations under such agreement have been or concurrently with the Closing Date
are being released.

      SECTION 6.02. CONDITIONS PRECEDENT TO EACH EXTENSION OF CREDIT. The
obligation of each Lender or Issuing Bank, as the case may be, to make an
Extension of Credit (including the initial Extension of Credit (including the
deemed issuance of the Transitional Letters of Credit), but excluding the
Conversion of a Eurodollar Rate Loan into an ABR Loan) shall be subject to the
further conditions precedent that, on the date of such Extension of Credit and
after giving effect thereto:

            (a) The following statements shall be true (and each of the giving
of the applicable notice or request with respect thereto and the making of such
Extension of Credit without prior correction by the applicable Borrower shall
(to the extent that such correction has been previously consented to by the
Lenders and the Issuing Banks) constitute a representation and warranty by such
Borrower that, on the date of such Extension of Credit, such statements are
true):

            (i) the representations and warranties contained in Section 7.01 of
      this Agreement (other than those contained in subsections (e)(v) and (f)
      thereof) are correct on and as of the date of such Extension of Credit,
      before and after giving effect to such Extension of Credit and to the
      application of the proceeds thereof, as though made on and as of such
      date; and

            (ii) no Default or Event of Default has occurred and is continuing,
      or would result from such Extension of Credit or the application of the
      proceeds thereof.

            (b) The Administrative Agent shall have received such other
approvals, opinions and documents as any Lender or Issuing Bank, through the
Administrative Agent, may reasonably request as to the legality, validity,
binding effect or enforceability of the Loan

                                       46
<PAGE>

Documents or the business, assets, property, financial condition, results of
operations or prospects of the Company and its Consolidated Subsidiaries.

      SECTION 6.03. CONDITIONS PRECEDENT TO CERTAIN EXTENSIONS OF CREDIT. The
obligation of each Lender or Issuing Bank, as the case may be, to make an
Extension of Credit (including the initial Extension of Credit (including the
deemed issuance of the Transitional Letters of Credit)) that would (after giving
effect to all Extensions of Credit on such date and the application of proceeds
thereof) increase the principal amount outstanding hereunder, or to make an
Extension of Credit of the type described in clause (ii) or (iii) of the
definition thereof (except any amendment of a Letter of Credit the sole effects
of which are to extend the stated termination date thereof and/or to make
nonmaterial modifications thereto), shall be subject to the further conditions
precedent that, on the date of such Extension of Credit and after giving effect
thereto:

            (a) the following statements shall be true (and each of the giving
of the applicable notice or request with respect thereto and the making of such
Extension of Credit without prior correction by the applicable Borrower shall
(to the extent that such correction has been previously consented to by the
Lenders) constitute a representation and warranty by such Borrower that, on the
date of such Extension of Credit, such statements are true):

            (i) the representations and warranties contained in subsections
      (e)(v) and (f) of Section 7.01 of this Agreement are correct on and as of
      the date of such Extension of Credit, before and after giving effect to
      such Extension of Credit and to the application of the proceeds thereof,
      as though made on and as of such date; and

            (ii) no Default or Event of Default has occurred and is continuing,
      or would result from such Extension of Credit or the application of the
      proceeds thereof;

            (b) the Administrative Agent shall have received such other
approvals, opinions and documents as any Lender or Issuing Bank, through the
Administrative Agent, may reasonably request.

      SECTION 6.04. RELIANCE ON CERTIFICATES. The Lenders, the Issuing Banks and
each Agent shall be entitled to rely conclusively upon the certificates
delivered from time to time by officers of the Loan Parties as to the names,
incumbency, authority and signatures of the respective persons named therein
until such time as the Administrative Agent may receive a replacement
certificate, in form acceptable to the Administrative Agent, from an officer of
such Person identified to the Administrative Agent as having authority to
deliver such certificate, setting forth the names and true signatures of the
officers and other representatives of such Person thereafter authorized to act
on behalf of such Person.

                                   ARTICLE VII
                         REPRESENTATIONS AND WARRANTIES

      SECTION 7.01. REPRESENTATIONS AND WARRANTIES OF THE BORROWERS. Each
Borrower represents and warrants as follows:

            (a) Existence and Standing. Each of the Borrowers, Consumers and
each of the Restricted Subsidiaries is duly organized, validly existing and in
good standing under the

                                       47
<PAGE>

laws of the state of its organization and is duly qualified to do business in,
and is in good standing in, all other jurisdictions where the nature of its
business or the nature of property owned or used by it makes such qualification
necessary.

            (b) Authorization; No Conflicts. The execution, delivery and
performance by each Loan Party of each Loan Document to which it is or will be a
party (i) are within such Loan Party's powers, (ii) have been duly authorized by
all necessary corporate or other organizational action or proceedings and (iii)
do not and will not (A) require any consent or approval of the stockholders (or
other applicable holder of equity) of such Loan Party (other than such consents
and approvals which have been obtained and are in full force and effect), (B)
violate any provision of the charter or by-laws (or other comparable
constitutive documents) of such Loan Party or of law, (C) violate any legal
restriction binding on or affecting such Loan Party, (D) result in a breach of,
or constitute a default under, any indenture or loan or credit agreement or any
other agreement, lease or instrument to which such Loan Party is a party or by
which it or its properties may be bound or affected, or (E) result in or require
the creation of any Lien (other than pursuant to the Loan Documents) upon or
with respect to any of its respective properties.

            (c) Government Consent. No Governmental Approval is required, other
than filings necessary to create or perfect security interests in the Collateral
or as may be required under applicable energy, antitrust or securities laws in
connection with the exercise of remedies with respect to certain Collateral.

            (d) Security Interests; Enforceability. Each Loan Document (i) where
applicable, creates valid and, upon filing of the financing statements delivered
on or prior to the Closing Date and described in Section 6.01(c), perfected
security interests in the Collateral covered thereby securing the payment of all
of the Loans and reimbursement obligations purported to be secured thereby,
which security interests shall be first priority perfected security interests,
subject to Liens permitted under Section 8.02(a), and (ii) is the legal, valid
and binding obligation of each Loan Party thereto enforceable against such Loan
Party in accordance with its terms; subject to the qualification, however, that
the enforcement of the rights and remedies herein and therein is subject to
bankruptcy and other similar laws of general application affecting rights and
remedies of creditors and the application of general principles of equity
(regardless of whether considered in a proceeding in equity or at law).

            (e) Financial Statements; Material Adverse Change. (i) The
consolidated balance sheets of the Company and its Consolidated Subsidiaries as
at December 31, 2002 and December 31, 2003, and the related consolidated
statements of income, retained earnings and cash flows of the Company and its
Consolidated Subsidiaries for the fiscal years then ended, included in the
Company's Annual Report on Form 10-K/A for the fiscal year ended December 31,
2003, copies of each of which have been furnished to the Administrative Agent
for distribution to each Lender, fairly present the financial condition of the
Company and its Consolidated Subsidiaries as at such dates and the results of
operations of the Company and its Consolidated Subsidiaries for the periods
ended on such dates, all in accordance with generally accepted accounting
principles consistently applied; (ii) the consolidated balance sheets of
Consumers and its consolidated Subsidiaries as at December 31, 2002 and December
31, 2003, and the related consolidated statements of income, retained earnings
and cash flows of Consumers and its consolidated Subsidiaries for the fiscal
years then ended, included in the

                                       48
<PAGE>

Company's Annual Report on Form 10-K/A for the fiscal year ended December 31,
2003, copies of each of which have been furnished to the Administrative Agent
for distribution to each Lender, fairly present the financial condition of
Consumers and its consolidated Subsidiaries as at such dates and the results of
operations of Consumers and its consolidated Subsidiaries for the periods ended
on such dates, all in accordance with generally accepted accounting principles
consistently applied; (iii) the consolidated balance sheets of the Company and
its Consolidated Subsidiaries as at March 31, 2004 and the related consolidated
statements of income, retained earnings and cash flows of the Company and its
Consolidated Subsidiaries for the fiscal quarter ending on such date, copies of
each of which have been furnished to the Administrative Agent for distribution
to each Lender, fairly present (subject to year-end audit adjustments) the
financial condition of the Company and its Consolidated Subsidiaries as at such
date and the results of the Company and its Consolidated Subsidiaries for such
period, all in accordance with generally accepted accounting principles
consistently applied; (iv) the consolidated balance sheets of Consumers and its
Consolidated Subsidiaries as at March 31, 2004 and the related consolidated
statements of income, retained earnings and cash flows of Consumers and its
Consolidated Subsidiaries for the fiscal quarter ending on such date, copies of
each of which have been furnished to the Administrative Agent for distribution
to each Lender, fairly present (subject to year-end audit adjustments) the
financial condition of Consumers and its Consolidated Subsidiaries as at such
date and the results of Consumers and its Consolidated Subsidiaries for such
period, all in accordance with generally accepted accounting principles
consistently applied; (v) since December 31, 2003, except as disclosed in the
Company's Annual Report on Form 10-K/A for the fiscal year ended December 31,
2003 and the Company's Quarterly Report on Form 10-Q for the quarter ending
March 31, 2004 and Reports on Form 8-K filed with the Securities and Exchange
Commission since December 31, 2003 but prior to the Closing Date, there has been
no Material Adverse Change; and (vi) except as a result of any Restatement Event
(other than the Restatement itself), no Loan Party has any material liabilities
or obligations except as reflected in the foregoing financial statements and in
Schedule I, as evidenced by the Loan Documents and as may be incurred, in
accordance with the terms of this Agreement, in the ordinary course of business
(as presently conducted) following the Closing Date.

            (f) Litigation. Except (i) as disclosed in the Company's Annual
Report on Form 10-K/A for the fiscal year ended December 31, 2003 and the
Company's Quarterly Report on Form 10-Q for the quarter ending March 31, 2004
and Reports on Form 8-K filed with the Securities and Exchange Commission since
December 31, 2003 but prior to the Closing Date, (ii) such other similar
actions, suits and proceedings predicated on the occurrence of the same events
giving rise to any actions, suits and proceedings described in the Reports filed
with the Securities and Exchange Commission set forth in clause (i) above (all
such matters in clauses (i) and (ii) being the "DISCLOSED MATTERS") and (iii)
any Restatement Event, there are no pending or threatened actions, suits,
investigations or proceedings against or, to the knowledge of such Borrower,
affecting the Company or any of its Subsidiaries or the properties of the
Company or any of its Subsidiaries before any court, governmental agency or
arbitrator, that would, if adversely determined, reasonably be expected to
materially adversely affect the financial condition, properties, business or
operations of the Company and its Subsidiaries, considered as a whole, or affect
the legality, validity or enforceability of this Agreement or any other Loan
Document. There have been no material adverse developments with respect to the
Disclosed Matters that have had or could reasonably be expected to result in a
Material Adverse Change.

                                       49
<PAGE>

            (g) Insurance. All insurance required by Section 8.01(b) is in full
force and effect.

            (h) ERISA. No Plan Termination Event has occurred nor is reasonably
expected to occur with respect to any Plan of the Company or any of its ERISA
Affiliates which would result in a material liability to the Company, except as
disclosed and consented to by the Required Lenders in writing from time to time.
Except as disclosed in the Company's Annual Report on Form 10-K/A for the period
ended December 31, 2003, since the date of the most recent Schedule B (Actuarial
Information) to the annual report of the Company (Form 5500 Series), if any,
there has been no material adverse change in the funding status of the Plans
referred therein and no "prohibited transaction" has occurred with respect
thereto which is reasonably expected to result in a material liability to the
Company. Neither the Company nor any of its ERISA Affiliates has incurred nor
reasonably expects to incur any material withdrawal liability under ERISA to any
Multiemployer Plan, except as disclosed and consented to by the Required Lenders
in writing from time to time.

            (i) Casualty. No fire, explosion, accident, strike, lockout or other
labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the
public enemy or other casualty (except for any such circumstance, if any, which
is covered by insurance which coverage has been confirmed and not disputed by
the relevant insurer) affecting the properties, business or operations of any
Borrower, Consumers or any Restricted Subsidiary has occurred that could
reasonably be expected to have a material adverse effect on the business,
assets, property, financial condition, results of operations or prospects of (A)
the Company and its Subsidiaries, considered as a whole, or (B) Consumers and
its Subsidiaries, considered as a whole.

            (j) Taxes. The Company and its Subsidiaries have filed all tax
returns (Federal, state and local) required to be filed and paid all taxes shown
thereon to be due, including interest and penalties, or, to the extent the
Company or any of its Subsidiaries is contesting in good faith an assertion of
liability based on such returns, has provided adequate reserves for payment
thereof in accordance with GAAP.

            (k) Legal Constraints on Dividends. No extraordinary judicial,
regulatory or other legal constraints exist which limit or restrict Consumers'
ability to declare or pay cash dividends with respect to its capital stock,
other than (i) pursuant to the Consumers Credit Facility and (ii) any such
restriction enacted or imposed by the Michigan Public Service Commission
limiting such dividends to an amount not less than $190,000,000 during any
twelvemonth period.

            (l) Ownership of Certain Subsidiaries. The Company owns (i) not less
than 80% of the outstanding shares of common stock of Enterprises and (ii) not
less than 80% of the outstanding shares of common stock of Consumers.

            (m) Accuracy of Disclosures. The Consolidated 2004-2008 Projections
of Consumers and the Borrowers (the "PROJECTIONS") are based upon assumptions
that the Borrowers believed were reasonable at the time the Projections were
delivered, and all other financial information delivered by the Borrowers to the
Administrative Agent and the Banks on

                                       50
<PAGE>

and after the Closing Date is true and correct in all material respects as at
the dates and for the periods indicated therein.

            (n) Regulation U. (i) No Loan Party is engaged in the business of
extending credit for the purpose of buying or carrying "margin stock" (within
the meaning of Regulation U issued by the Board), (ii) and no proceeds of any
Loan or any drawing under any Letter of Credit will be used to buy or carry any
margin stock or to extend credit to others for the purpose of buying or carrying
any margin stock and (iii) following application of the proceeds of each
Extension of Credit, not more than 25 percent of the value of the assets of the
Company and its Subsidiaries on a consolidated basis will be margin stock.

            (o) Investment Company Act. No Loan Party is an "investment company"
(within the meaning of the Investment Company Act of 1940, as amended).

            (p) Acquisition of Securities. No proceeds of any Loan or any
drawing under any Letter of Credit will be used to acquire any security in any
transaction without the approval of the board of directors of the Person issuing
such security if (i) the acquisition of such security would cause any Borrower
to own, directly or indirectly, 5.0% or more of any outstanding class of
securities issued by such Person, or (ii) such security is being acquired in
connection with a tender offer.

            (q) PUHCA. No Loan Party is a registered "holding company" or a
"subsidiary" or an "affiliate" of a registered "holding company," as such terms
are defined in the Public Utility Holding Company Act of 1935, as amended, 15
USC 79 et seq.

            (r) Material Adverse Change Information. The Borrowers have not
withheld any fact from the Administrative Agent, the Issuing Banks or the
Lenders in regard to the occurrence of any Material Adverse Change.

            (s) Solvency. After giving effect to the Loans to be made or Letters
of Credit to be issued on the Closing Date or such other date as Loans or
Extensions of Credit requested hereunder are made, and the disbursement of the
proceeds of such Loans or Extensions of Credit pursuant to the applicable
Borrower's instructions, the Company and its Subsidiaries, taken as a whole, are
Solvent.

            (t) Project Finance Debt. Schedule I sets forth as of June 30, 2004
(i) all Project Finance Debt of the Company and the Consolidated Subsidiaries,
and (ii) all debt (as such term is construed in accordance with GAAP) of the
Loan Parties, and, as of the Closing Date, there are no defaults in the payment
of principal or interest on any such Debt and no payments thereunder have been
deferred or extended beyond their stated maturity (except as disclosed on such
Schedule).

            (u) OFAC. None of the Borrowers or any Subsidiary or Affiliate of
the Borrowers is named on the United States Department of the Treasury's
Specially Designated Nationals or Blocked Persons list available through
http://www.treas.gov/offices/eotffc/ofac/sdn/t11sdn.pdf.

            (v) or as otherwise published from time to time.

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<PAGE>

                                  ARTICLE VIII
                           COVENANTS OF THE BORROWERS

      SECTION 8.01. AFFIRMATIVE COVENANTS. So long as any Loan or any other
amount payable hereunder or under any Promissory Note shall remain unpaid, any
Letter of Credit shall remain outstanding or any Lender shall have any
Commitment:

            (a) Payment of Taxes, Etc. Each Borrower shall pay and discharge,
and shall cause each of its Subsidiaries to pay and discharge, before the same
shall become delinquent, all taxes, assessments and governmental charges,
royalties or levies imposed upon it or upon its property except, in the case of
taxes, to the extent such Borrower or any Subsidiary thereof, as the case may
be, is contesting the same in good faith and by appropriate proceedings and has
set aside adequate reserves for the payment thereof in accordance with GAAP.

            (b) Maintenance of Insurance. Each Borrower shall maintain, and
shall cause each of the Restricted Subsidiaries and Consumers to maintain,
insurance covering the Borrowers and each of the Restricted Subsidiaries and
Consumers and their respective properties in effect at all times in such amounts
and covering such risks as is usually carried by companies engaged in similar
businesses and owning similar properties in the same general geographical area
in which the Borrowers and the Restricted Subsidiaries and Consumers operate,
either with reputable insurance companies or, in whole or in part, by
establishing reserves of one or more insurance funds, either alone or with other
corporations or associations.

            (c) Preservation of Existence, Etc. Except as otherwise permitted by
Section 8.02, each Borrower shall preserve and maintain, and shall cause each of
the Restricted Subsidiaries and, in the case of the Company, Consumers to
preserve and maintain, its corporate or limited liability company existence,
material rights (statutory and otherwise) and franchises, and take such other
action as may be necessary or advisable to preserve and maintain its right to
conduct its business in the states where it shall be conducting its business.

            (d) Compliance with Laws, Etc. Each Borrower shall comply, and shall
cause each of the Restricted Subsidiaries and Consumers to comply, in all
material respects with the requirements of all applicable laws, rules,
regulations and orders of any governmental authority, including any such laws,
rules, regulations and orders relating to zoning, environmental protection, use
and disposal of Hazardous Substances, land use, construction and building
restrictions, and employee safety and health matters relating to business
operations.

            (e) Inspection Rights. Subject to the requirements of laws or
regulations applicable to such Borrower or its Subsidiaries, as the case may be,
and in effect at the time, at any time and from time to time upon reasonable
notice, each Borrower shall permit (i) each Agent and its agents and
representatives to examine and make copies of and abstracts from the records and
books of account of, and the properties of, such Borrower or any of its
Subsidiaries and (ii) each Agent, each of the Issuing Banks, each of the
Lenders, and their respective agents and representatives to discuss the affairs,
finances and accounts of such Borrower and its Subsidiaries with such Borrower
and its Subsidiaries and their respective officers, directors and accountants.
Each such visitation and inspection described in the preceding sentence by or on
behalf of any Lender or Issuing Bank shall, unless occurring at a time when a
Default or Event of

                                       52
<PAGE>

Default shall be continuing, be at such Lender's or Issuing Bank's, as
applicable, expense; all other such inspections and visitations shall be at such
Borrower's expense.

            (f) Keeping of Books. Each Borrower shall keep, and shall cause each
of its Subsidiaries to keep, proper records and books of account, in which full
and correct entries shall be made of all financial transactions of such Borrower
and its Subsidiaries and the assets and business of such Borrower and its
Subsidiaries, in accordance with GAAP.

            (g) Maintenance of Properties, Etc. Each Borrower shall maintain,
and shall cause each of the Restricted Subsidiaries to maintain, in substantial
conformity with all laws and material contractual obligations, good and
marketable title to all of its properties which are used or useful in the
conduct of its business; provided, however, that the foregoing shall not
restrict the sale or transfer of any asset of the Borrowers or any Restricted
Subsidiary to the extent not otherwise prohibited by the terms of this
Agreement. In addition, each Borrower shall preserve, maintain, develop, and
operate, and shall cause each of its Subsidiaries to preserve, maintain, develop
and operate, in substantial conformity with all laws and material contractual
obligations, all of its material properties which are used or useful in the
conduct of its business in good working order and condition, ordinary wear and
tear excepted.

            (h) Use of Proceeds. The Borrowers shall use all Extensions of
Credit for general corporate purposes (subject to the terms and conditions of
this Agreement).

            (i) Consolidated Leverage Ratio. The Company shall maintain, as of
the last day of each fiscal quarter (in each case, the "MEASUREMENT QUARTER"), a
maximum ratio of (i) Consolidated Debt as of such day, to (ii) Consolidated
EBITDA for the immediately preceding four-fiscal-quarter period ending on such
day, of not more than 7.00 to 1.00, commencing with the Measurement Quarter
ending June 30, 2004.

            (j) Cash Coverage Ratio. The Company shall maintain, as of the last
day of each Measurement Quarter, a minimum ratio of (i) the sum of (A) Cash
Dividend Income for the four-fiscal-quarter period ending on such day, plus (B)
the lesser of (x) 25% of the Net Proceeds received by the Company from the sale,
assignment or other disposition (but not the lease or license) of any property,
including without limitation, any sale of capital stock or other equity interest
in any of the Company's direct or indirect Subsidiaries during such period and
(y) $50,000,000 to (ii) an amount equal to (A) interest expense (excluding (1)
all arrangement, underwriting and other similar fees payable in connection with
this Agreement, (2) all arrangement, underwriting and upfront fees paid in
connection with the Borrowers' senior secured credit facility dated December 8,
2003, (3) all interest or dividends paid on Hybrid Preferred Securities and (4)
interest expense payable by the Company in respect of any Debt owing to any
Subsidiary thereof) accrued by the Company in respect of all Debt during such
period, minus (B) cash interest income received by the Company from Persons
other than any Subsidiary of the Company, during such period, minus (C) all
amounts received by the Company from its Subsidiaries and Affiliates during such
period constituting reimbursement of interest expense and commitment, guaranty
and letter of credit charges of the Company to such Subsidiary or Affiliate, of
not less than 1.20 to 1.00, commencing with the Measurement Quarter ending on
June 30, 2004; provided, that the Company shall be deemed not to be in breach of
the foregoing covenant if, during the Measurement Quarter, the Borrowers have
permanently

                                       53
<PAGE>

reduced the principal amount outstanding under this Agreement and the Promissory
Notes, such that the amount determined pursuant to clause (ii) above, when
recalculated on a pro forma basis assuming that the amount of such reduced
principal amount outstanding under this Agreement and the Promissory Notes were
in effect at all times during such four-fiscal-quarter period, would result in
the Company being in compliance with such ratio.

            (k) Further Assurances. The Borrowers shall promptly execute and
deliver all further instruments and documents, and take all further action, that
may be necessary or that any Lender or any Issuing Bank through the
Administrative Agent may reasonably request in order to give effect to the
transactions contemplated by this Agreement and the other Loan Documents. In
addition, the Borrowers will use all reasonable efforts to duly obtain or make
Governmental Approvals required from time to time on or prior to such date as
the same may become legally required.

            (l) Subsidiary Guarantees. The Borrowers will (i) with respect to
each Person that becomes a Restricted Subsidiary after the Closing Date (other
than (a) any Subsidiary of the Company organized under the laws of a
jurisdiction located other than in the United States (each a "FOREIGN
SUBSIDIARY") if the execution of the Guaranty by such Subsidiary would result in
any materially adverse tax consequences to the Company and (b) CMS ERM), subject
to any limitations under contractual restrictions as in effect as of the Closing
Date or applicable law with respect to each Foreign Subsidiary, cause each such
Restricted Subsidiary to execute the Guaranty pursuant to which it agrees to be
bound by the terms and provisions of the Guaranty, and (ii) cause such Persons
identified in clause (i) above to deliver resolutions, opinions of counsel and
such other constitutive documentation as the Administrative Agent may reasonably
request, all in form and substance reasonably satisfactory to the Administrative
Agent.

            (m) Compliance with Fee Letters. The Borrowers shall comply with all
of their respective obligations under the Fee Letters.

            (n) Payment of Declared Dividend. Each Borrower shall cause each of
its direct Subsidiaries to, and Enterprises shall, pay all dividends within 30
days after declaration thereof.

            (o) Collateral. Each Borrower will cause, and will cause each of the
other Loan Parties to cause, all of such Person's right, title and interest in,
to and under the Collateral owned by it to be subject at all times to first
priority, perfected security interests in favor of the Collateral Agent for the
benefit of the Lenders to secure its respective Obligations, subject in any case
to Liens permitted under Section 8.02(a).

      SECTION 8.02. NEGATIVE COVENANTS. So long as any Loan or any other amount
payable hereunder or under any Promissory Note shall remain unpaid, any Letter
of Credit shall remain outstanding or any Lender shall have any Commitment, each
Borrower agrees that it shall not, without the written consent of the Required
Lenders:

            (a) Liens, Etc. (1) Create, incur, assume or suffer to exist, or
permit any of the Loan Parties to create, incur, assume or suffer to exist, any
Lien upon or with respect to any of its properties of any character (including
capital stock and other ownership interests of the

                                       54
<PAGE>

Borrowers' directly-owned Subsidiaries, intercompany obligations and accounts),
whether now owned or hereafter acquired, or (2) file, or permit any of the other
Loan Parties to file, under the Uniform Commercial Code of any jurisdiction a
financing statement which names either Borrower or any other Loan Party as
debtor (other than financing statements that do not evidence a Lien), or (3)
sign, or permit any of the other Loan Parties to sign, any security agreement or
other document authorizing any secured party thereunder to file any such
financing statement, or (4) assign, or permit any of the other Loan Parties to
assign, accounts, excluding, however, from the operation of the foregoing
restrictions the Liens created under the Loan Documents and the following:

            (i) Liens for taxes, assessments or governmental charges or levies
      to the extent not past due;

            (ii) cash pledges or deposits to secure (A) obligations under
      workmen's compensation laws or similar legislation, (B) public or
      statutory obligations of any of the other Loan Parties, (C) reimbursement
      obligations of Enterprises, CMS Generation or CMS ERM with respect to
      letters of credit issued by Bank of America, N.A. (or any of its
      affiliates), in connection with the settlement of claims related to CMS
      ERM's energy trading operations in an aggregate amount not to exceed
      $40,000,000, (D) Support Obligations of any Borrower or any Loan Party,
      (E) obligations of Enterprises or CMS ERM in respect of hedging
      arrangements and commodity purchases and sales (including any cash margins
      with respect thereto); provided, that with respect to clauses (D) and (E)
      above the aggregate amount of cash pledges or deposits securing such
      Support Obligations and such obligations of Enterprises or CMS ERM shall
      not exceed $400,000,000 at any one time outstanding, and (F) obligations
      of (x) the Company in respect of interest rate swap agreements and (y) any
      Loan Party in respect of foreign exchange swap agreements, provided that
      the aggregate amount of cash pledges or deposits securing such obligations
      under this clause (F) shall not exceed $50,000,000 at any one time
      outstanding;

            (iii) Liens imposed by law, such as materialmen's, mechanics',
      carriers', workmen's and repairmen's liens and other similar Liens arising
      in the ordinary course of business securing obligations which are not
      overdue or which have been fully bonded and are being contested in good
      faith;

            (iv) Liens securing the obligations under the Loan Documents;

            (v) Liens securing Off-Balance Sheet Liabilities (and all
      refinancings and recharacterizations thereof permitted under Section
      8.02(b)(iv)) in an aggregate amount not to exceed $775,000,000;

            (vi) purchase money Liens or purchase money security interests upon
      or in property acquired or held by any Borrower or any other Loan Party in
      the ordinary course of business to secure the purchase price of such
      property or to secure indebtedness incurred solely for the purpose of
      financing the acquisition of any such property to be subject to such Liens
      or security interests, or Liens or security interests existing on any such
      property at the time of acquisition, or extensions, renewals or
      replacements of any of

                                       55
<PAGE>

      the foregoing for the same or a lesser amount, provided that no such Lien
      or security interest shall extend to or cover any property other than the
      property being acquired and no such extension, renewal or replacement
      shall extend to or cover property not theretofore subject to the Lien or
      security interest being extended, renewed or replaced, and provided,
      further, that the aggregate principal amount of the Debt at any one time
      outstanding secured by Liens permitted by this clause (vi) shall not
      exceed $15,000,000;

            (vii) utility easements, building restrictions and such other
      encumbrances or charges against real property as are of a nature generally
      existing with respect to properties of a similar character and which do
      not in any material way affect the marketability of the same or interfere
      with the use thereof in the business of any Borrower or any other Loan
      Party;

            (viii) Liens existing on any capital asset of any Person at the time
      such Person is merged or consolidated with or into, or otherwise acquired
      by, any Borrower or any other Loan Party and not created in contemplation
      of such event, provided that such Liens do not encumber any other property
      or assets and such merger, consolidation or acquisition is otherwise
      permitted under this Agreement;

            (ix) Liens existing on any capital asset prior to the acquisition
      thereof by any Loan Party and not created in contemplation thereof;
      provided that such Liens do not encumber any other property or assets;

            (x) Liens existing as of the Closing Date;

            (xi) Liens securing Project Finance Debt otherwise permitted under
      this Agreement;

            (xii) Liens arising out of the refinancing, extension, renewal or
      refunding of any Debt secured by any Lien permitted by any of the
      foregoing clauses (v), (viii), (ix), (x) or (xi); provided that (a) such
      Debt is not secured by any additional assets, and (b) the amount of such
      Debt secured by any such Lien is otherwise permitted under this Agreement;

            (xiii) Liens on accounts receivable (other than intercompany
      receivables) and other contract rights of CMS ERM and its Subsidiaries
      arising on or after the Closing Date in favor of any Person (other than an
      Affiliate of the Company or any of its Subsidiaries) that facilitates the
      origination of such accounts receivable or other contract rights;

            (xiv) Liens on accounts receivable (other than intercompany
      receivables) of CMS ERM in favor of Bank of America, N.A. (or any of its
      affiliates) to secure the reimbursement obligations of Enterprises, CMS
      Generation and CMS ERM with respect to letters of credit issued by Bank of
      America, N.A. (or any of its affiliates) in connection with the settlement
      of claims related to CMS ERM's energy trading obligations in an aggregate
      amount not to exceed $40,000,000;

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<PAGE>

            (xv) subordinated Liens granted pursuant to the terms of the AIG
      Pledge Agreement, which Liens shall be subordinated pursuant to the terms
      of the Intercreditor Agreement, to secure certain surety bond obligations
      as described in the AIG Pledge Agreement; and

            (xvi) subordinated Liens on the capital stock of Enterprises and/or
      Consumers securing Debt incurred by the Company in an aggregate amount not
      to exceed $200,000,000; provided, that (i) such Liens are subordinated in
      priority to the Liens securing the Obligations, (ii) the holders of such
      Debt shall have no rights to direct or otherwise control at any time any
      disposition of Collateral or any proceeds thereof so long as any
      Obligations shall remain outstanding (all of which rights shall be waived
      to the fullest extent permitted by applicable law) pursuant to an
      intercreditor agreement on terms reasonably acceptable to the
      Administrative Agent and (iii) such Debt has terms and conditions
      (including maturity, amortization, interest rates, premiums, fees,
      covenants, subordination, events of default and remedies) that are
      reasonably acceptable to the Administrative Agent.

            (b) Debt. Permit Enterprises or any Subsidiary of Enterprises to
create, incur, assume or suffer to exist any debt (as such term is construed in
accordance with GAAP) other than:

            (i) debt arising by reason of the endorsement of negotiable
      instruments for deposit or collection or similar transactions in the
      ordinary course of Enterprises' or its Subsidiaries' business;

            (ii) in the form of indemnities in respect of unfiled mechanics'
      liens and Liens affecting Enterprises' or its Subsidiaries' properties
      permitted under Section 8.02(a)(iii);

            (iii) debt arising under the Loan Documents;

            (iv) debt constituting Off-Balance Sheet Liabilities (including any
      recharacterization thereof as debt pursuant to any changes in generally
      accepted accounting principles hereafter required or permitted and which
      are adopted by the Company or any of its Subsidiaries with the agreement
      of its independent certified public accountants) to the extent permitted
      by Section 8.02(o), and any extensions, renewals, refundings or
      replacements thereof, provided that any such extension, renewal, refunding
      or replacement is in an aggregate principal amount not greater than the
      principal amount of, is an obligation of the same Person that is the
      obligor in respect of, and has a weighted average life to maturity not
      less than the weighted average life to maturity of, the debt so extended,
      renewed, refunded or replaced;

            (v) other debt of Enterprises and its Subsidiaries outstanding on
      the Closing Date (including the debt of the Loan Parties as of June 30,
      2004 as set forth on Schedule I), and any extensions, renewals, refundings
      or replacements thereof, provided that any such extension, renewal,
      refunding or replacement is in an aggregate principal amount not greater
      than the principal amount of, is an obligation of the same Person that

                                       57
<PAGE>

      is the obligor in respect of, and has a weighted average life to maturity
      not less than the weighted average life to maturity of, the debt so
      extended, renewed, refunded or replaced;

            (vi) (a) unsecured, subordinated debt owed (i) to the Company by
      Enterprises or CMS Capital, L.L.C. (or any successor by merger to CMS
      Capital, L.L.C.), (ii) to Enterprises or CMS Capital, L.L.C. (or any
      successor by merger to CMS Capital, L.L.C.) and (iii) to any Grantor by
      any Loan Party, and (b) unsecured debt owed to any Subsidiary of
      Enterprises (other than a Grantor) by CMS Capital, L.L.C. (or any
      successor by merger to CMS Capital, L.L.C.), and (c) unsecured debt of any
      Foreign Subsidiary of Enterprises owed to another Foreign Subsidiary of
      Enterprises provided that the proceeds of any repayment of such debt are
      remitted to a Loan Party;

            (vii) Project Finance Debt of any Loan Party or any of its
      Subsidiaries incurred for working capital purposes (including construction
      or other capital expenditures) on or after the Closing Date;

            (viii) capital lease obligations and other Debt secured by purchase
      money Liens to the extent such Liens shall be permitted under Section
      8.02(a)(vi);

            (ix) (a) Project Finance Debt incurred by Takoradi International
      Company in respect of the Takoradi Project (other than Project Finance
      Debt permitted to be incurred pursuant to clause (vii) above) in an
      aggregate principal amount not to exceed $30,000,000; provided, that
      Takoradi International Company shall make a distribution of the Net
      Proceeds therefrom and the Company shall receive not less than its ratable
      share of such Net Proceeds; and

            (x) reimbursement obligations of Enterprises, CMS Generation or CMS
      ERM with respect to letters of credit issued by Bank of America, N.A. (or
      any of its affiliates), in connection with the settlement of claims
      related to CMS ERM's energy trading operations in an aggregate amount not
      to exceed $40,000,000.

            (c) Lease Obligations. Create, incur, assume or suffer to exist, or
permit any of the other Loan Parties to create, incur, assume or suffer to
exist, any obligations as lessee for the rental or hire of real or personal
property of any kind under leases or agreements to lease (other than leases
which constitute Debt) having an original term of one year or more which would
cause the aggregate direct or contingent liabilities of the Borrowers and the
other Loan Parties in respect of all such obligations payable in any period of
12 consecutive calendar months to exceed $50,000,000.

            (d) Investments in Other Persons. Make, or permit any of the other
Loan Parties to make, any loan or advance to any Person, or purchase or
otherwise acquire any capital stock, obligations or other securities of, make
any capital contribution to, or otherwise invest in, any Person, other than (i)
Permitted Investments, (ii) pursuant to the contractual or contingent
obligations of such Borrower or any other Loan Party as in effect as of the
Closing Date and in amounts not to exceed the estimated amounts as set forth on
Schedule I hereto (whether such obligation is conditioned upon a change in the
ratings of the securities issued by such Person or otherwise) and, in each case,
in an amount not to exceed such contractual or contingent

                                       58
<PAGE>

obligation as in effect on the Closing Date, (iii) investments, directly or
indirectly, by any Loan Party (x) in the capital of any Subsidiary of the
Company that is a Loan Party and (y) in assets contributed to such Loan Party,
provided that if any such assets constitute Collateral prior to such
contribution, such assets shall remain Collateral after giving effect to such
contribution and prior to such contribution such Borrower shall, and shall cause
each applicable Subsidiary to, execute and deliver to the Administrative Agent
all agreements, instruments and documents as may be necessary or reasonably
requested by the Administrative Agent to perfect its security interest in such
Collateral, (iv) investments in the capital stock or other ownership interests
of any of the Company's Subsidiaries arising from the conversion of intercompany
indebtedness to equity, (v) intercompany loans and advances to the extent the
corresponding debt is permitted under Section 8.02(b)(vi), (vi) investments
constituting non-cash consideration received in connection with the sale of any
asset not otherwise prohibited under this Agreement, (vii) additional loans,
advances, purchases, contributions and other investments in an amount not to
exceed $340,000,000 in the aggregate at any time, (viii) intercompany loans and
advances by the Company to Consumers in an aggregate principal amount not to
exceed $250,000,000 at any time, and (ix) investments by the Company in the
capital stock of Consumers; provided, however, that investments described in
clause (iv) above (solely with respect to investments made in any Subsidiary
that is not a Loan Party) shall not be permitted to be made at a time when
either a Default or an Event of Default shall be continuing or would result
therefrom.

            (e) Restricted Payments. Declare or pay, or permit any other Loan
Party to declare or pay, directly or indirectly, any dividend, payment or other
distribution of assets, properties, cash, rights, obligations or securities on
account of any share of any class of common stock of the Company or any share of
any class of capital stock or other ownership interests of any of the other Loan
Parties (other than (1) stock splits and dividends payable solely in
nonconvertible equity securities of the Company (other than Redeemable Stock or
Exchangeable Stock (as such terms are defined in the Indenture on the Closing
Date)) and (2) dividends and distributions made to such Borrower or a Loan
Party), or purchase, redeem, retire, or otherwise acquire for value, or permit
any of the other Loan Parties to purchase, redeem, retire, or otherwise acquire
for value, any shares of any class of common stock of the Company or any share
of any class of capital stock or other ownership interests of any of the other
Loan Parties or any warrants, rights, or options to acquire any such shares, now
or hereafter outstanding, or make, or permit any of the other Loan Parties to
make, any distribution of assets to any of its shareholders (other than
distributions to such Borrower or any other Loan Party) (any such dividend,
payment, distribution, purchase, redemption, retirement or acquisition being
hereinafter referred to as a "RESTRICTED PAYMENT") other than (i) pursuant to
the terms of any class of capital stock of the Company issued and outstanding
(and as in effect on) the Closing Date, any purchase or redemption of capital
stock of the Company made by exchange for, or out of the proceeds of the
substantially concurrent sale of, capital stock of the Company (other than
Redeemable Stock or Exchangeable Stock (as such terms are defined in the
Indenture on the Closing Date)); (ii) payments made by such Borrower or any
other Loan Party pursuant to the Tax Sharing Agreement; and (iii) any cash
dividend or cash distribution on common stock of the Company made after January
1, 2005; provided, that the amount of any cash dividend or cash distribution
made pursuant to the preceding clause (iii) shall not exceed, in the aggregate
with each other such cash dividend and cash distribution made during the
previous twelve-month period, (x) if after giving effect to such cash dividend
or cash distribution the Company shall have Liquidity equal to or greater than
$150,000,000, an amount equal to $75,000,000, (y) if

                                       59
<PAGE>

after giving effect to such cash dividend or cash distribution the Company shall
have Liquidity equal to or greater than $100,000,000 and less than $150,000,000,
an amount equal to $50,000,000 and (z) otherwise, zero.

            (f) Compliance with ERISA. (i) Permit to exist any "accumulated
funding deficiency" (as defined in Section 412(a) of the Internal Revenue Code
of 1986, as amended), (ii) terminate, or permit any ERISA Affiliate to
terminate, any Plan or withdraw from, or permit any ERISA Affiliate to withdraw
from, any Multiemployer Plan, so as to result in any material (in the opinion of
the Required Lenders) liability of such Borrower, any other Loan Party or
Consumers to such Plan, Multiemployer Plan or the PBGC, or (iii) permit to exist
any occurrence of any Reportable Event (as defined in Title IV of ERISA), or any
other event or condition, which presents a material (in the opinion of the
Required Lenders) risk of such a termination by the PBGC of any Plan or
withdrawal from any Multiemployer Plan so as to result in a material liability
to such Borrower, any other Loan Party or Consumers.

            (g) Transactions with Affiliates. Enter into, or permit any of its
Subsidiaries to enter into, any transaction with any of its Affiliates unless
such transaction is on terms no less favorable to such Borrower or such
Subsidiary than if the transaction had been negotiated in good faith on an
arm's-length basis with a non-Affiliate; provided that any transaction permitted
under Sections 8.02(b), 8.02(e) or 8.02(h) shall be permitted hereunder.

            (h) Mergers, Etc. Merge with or into or consolidate with or into, or
permit any of the other Loan Parties or Consumers to merge with or into or
consolidate with or into, any other Person, except that (i) (x) any Loan Party
may merge with or into any other Loan Party, (y) any Subsidiary of a Loan Party
that is not a Loan Party may merge into such Loan Party or with or into any
other Subsidiary of any Loan Party, provided that (a) in any such merger with or
into a Borrower, such Borrower (or, in the case of a merger of the Company and
Enterprises, the Company) is the surviving corporation, (b) in any such merger
into a Loan Party under clause (y) above, the Loan Party is the survivor
thereof, (c) no Default or Event of Default shall be continuing or result
therefrom and (d) such Loan Party shall not be liable with respect to any Debt
or allow its property to be subject to any Lien which it could not become liable
with respect to or allow its property to become subject to under this Agreement
or any other Loan Document on the date of such transaction, and (ii) any Loan
Party may merge with or into any other Person, provided that (a) (x) such Loan
Party is the survivor thereof, or (y) in the case of any Loan Party that is a
corporation reconstituting itself as limited liability company, such limited
liability company shall be the survivor thereof and shall confirm its
obligations as successor to such Loan Party under the Loan Documents to which
such Loan Party is a party in form and substance reasonably acceptable to the
Administrative Agent (and any Loan Party that shall have pledged the capital
stock of such predecessor Loan Party shall reconfirm the pledge of such
survivor's ownership interests as Collateral under the Loan Documents) and such
survivor shall be thereafter deemed to be a Loan Party hereunder, (b) no Default
or Event of Default shall be continuing or result therefrom, (c) such Loan Party
shall not be liable with respect to any Debt or allow its property to be subject
to any Lien which it could not become liable with respect to or allow its
property to become subject to under this Agreement or any other Loan Document on
the date of such transaction, and (d) immediately after giving effect to such
merger, the Net Worth of such Loan Party shall be equal to or greater than the
Net Worth of such Loan Party as of the last day of the fiscal quarter
immediately preceding the date of such merger.

                                       60
<PAGE>

            (i) Sales, Etc., of Assets. Sell, lease, transfer, assign, or
otherwise dispose of all or any substantial part of its assets, or permit any of
the other Loan Parties (other than CMS ERM) to sell, lease, transfer, or
otherwise dispose of all or any substantial part of its assets, except to give
effect to a transaction permitted by subsection (h) above or subsection (j)
below, provided, further, that neither such Borrower nor any of the other Loan
Parties (other than CMS ERM) shall sell, assign, transfer, lease, convey or
otherwise dispose of any property, whether now owned or hereafter acquired, or
any income or profits therefrom, or enter into any agreement to do so, except:

            (A) the sale of property for consideration not less than the Fair
      Market Value thereof so long as (i) any non-cash consideration resulting
      from such sale shall be pledged or assigned to the Collateral Agent, for
      the benefit of the Lenders, pursuant to an instrument in form and
      substance reasonably acceptable to the Collateral Agent, (ii) cash
      consideration resulting from such sale shall be (x) in an amount
      determined by such Borrower for any sale the consideration of which is
      $10,000,000 or less, or, together with all other such sales under this
      clause (x), $25,000,000 or less, or (y) for all other sales, not less than
      90% of the aggregate consideration resulting from such sale, and (iii)
      such Borrower complies with the mandatory prepayment provisions set forth
      in Section 2.03(c);

            (B) the transfer of property from a Loan Party to any Loan Party;

            (C) the transfer of property constituting an investment otherwise
      permitted under Section 8.02(d);

            (D) the sale of electricity and natural gas and other property in
      the ordinary course of the Company's and its Subsidiaries respective
      businesses consistent with past practice;

            (E) any transfer of an interest in receivables and related security,
      accounts or notes receivable on a limited recourse basis in connection
      with the incurrence of Off-Balance Sheet Liabilities, provided, that such
      transfer qualifies as a legal sale and as a sale under GAAP and the
      incurrence of such Off-Balance Sheet Liabilities is permitted under
      Section 8.02(o);

            (F) the transfer of property constituting not more than two percent
      (2%) of the ownership interests held by the Company and its Subsidiaries
      as of the Closing Date in CMS International Ventures, L.L.C. to CMS Energy
      Foundation and/or Consumers Foundation and/or any other third-party
      501(c)(3) charitable organization; and

            (G) the disposition of equipment if such equipment is obsolete or no
      longer useful in the ordinary course of such Borrower's or such
      Subsidiary's business.

            (j) Maintenance of Ownership of Subsidiaries. Sell, transfer, assign
or otherwise dispose of any shares of capital stock or other ownership interests
of any of the Loan Parties or any warrants, rights or options to acquire such
capital stock or other ownership interests, or permit any other Loan Party to
issue, sell, transfer, assign or otherwise dispose of any shares of its capital
stock or other ownership interests or the capital stock or other ownership

                                       61
<PAGE>

interests of any other Loan Party or any warrants, rights or options to acquire
such capital stock or other ownership interests, except (i) to give effect to a
transaction permitted by subsection (d), (h) or (i) above, and (ii) in
connection with the foreclosure of any Liens permitted under Section
8.02(a)(iv).

            (k) Amendment of Tax Sharing Agreement. Directly or indirectly,
amend, modify, supplement, waive compliance with, seek a waiver under, or assent
to noncompliance with, any term, provision or condition of the Tax Sharing
Agreement if the effect of such amendment, modification, supplement, waiver or
assent is to (i) reduce materially any amounts otherwise payable to, or increase
materially any amounts otherwise owing or payable by, such Borrower thereunder,
or (ii) change materially the timing of any payments made by or to such Borrower
thereunder.

            (l) Prepayments of Indebtedness. Make or agree to pay or make, or
permit any of the other Loan Parties to make or agree to pay or make, directly
or indirectly, any payment or other distribution (whether in cash, securities or
other property) of or in respect of principal of or interest on any Debt (other
than the obligations of the Loan Parties under the Loan Documents), or any
payment or other distribution (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any Debt
(other than the obligations of the Loan Parties under the Loan Documents), other
than (i) any payments on account of (a) any Debt when and as such payment was
due (including at the maturity thereof if the initial stated maturity thereof is
on or prior to the Maturity Date) pursuant to the mandatory payment provisions
applicable to such Debt at the time it was incurred (including, without
limitation, regularly scheduled payment dates for principal, interest, fees and
other amounts due thereon) or any extension thereof thereafter granted by the
holder of such Debt, (b) refinancings of Debt otherwise permitted under this
Agreement, (c) any Debt owed to the Company or any of its Subsidiaries, (d) Debt
secured by a Lien on assets subject to an asset sale not otherwise prohibited
under this Agreement and (e) the extinguishment of any intercompany Debt in
connection with a dividend or distributions permitted under Section 8.02(e),
(ii) payments constituting the exchange of the Company's common stock (other
than Redeemable Stock or Exchangeable Stock (as such terms are defined in the
Indenture on the Closing Date)) for the Company's outstanding Debt (and any cash
payments made in lieu of the issuance of fractional shares) to the extent such
exchange is permitted under the Exchange Act, and (iii) so long as no Loans or
other Obligations (other than any undrawn Letters of Credit) shall be
outstanding hereunder and the Company shall have Unrestricted Cash in excess of
$100,000,000 after giving effect thereto, any payment in respect of any other
Debt.

            (m) Conduct of Business. Engage, or permit any Restricted Subsidiary
to engage, in any business other than (a) the business engaged in by the Company
and its Subsidiaries on the date hereof, and (b) any business or activities
which are substantially similar, related or incidental thereto.

            (n) Organizational Documents. Amend, modify or otherwise change, or
permit any Restricted Subsidiary to amend, modify or otherwise change any of the
terms or provisions in any of their respective certificate of incorporation and
by-laws (or comparable

                                       62
<PAGE>

constitutive documents) as in effect on the Closing Date in any manner adverse
to the interests of the Lenders.

            (o) Off-Balance Sheet Liabilities. Create, incur, assume or suffer
to exist, or permit any of its Subsidiaries (other than, in the case of the
Company, Consumers and its Subsidiaries) to create, incur, assume or suffer to
exist, Off-Balance Sheet Liabilities (exclusive of lease obligations otherwise
permitted under Section 8.02(c)) in the aggregate in excess of $775,000,000 at
any time.

      SECTION 8.03. REPORTING OBLIGATIONS. So long as any Loan or any other
amount payable hereunder or under any Promissory Note shall remain unpaid, any
Letter of Credit shall remain outstanding or any Lender shall have any
Commitment, the Company will, unless the Required Lenders shall otherwise
consent in writing, furnish to the Administrative Agent (for delivery to each
Lender), the following:

            (a) as soon as possible and in any event within five days after any
Borrower knows or should have reason to know of the occurrence of each Default
or Event of Default continuing on the date of such statement, a statement of the
chief financial officer or chief accounting officer of the Company setting forth
details of such Default or Event of Default and the action that the Borrowers
propose to take with respect thereto;

            (b) as soon as available and in any event within 60 days after the
end of each of the first three quarters of each fiscal year of the Company,
commencing with the fiscal quarter ending on June 30, 2004, (i) a consolidated
balance sheet and consolidated statements of income and retained earnings and of
cash flows of the Company and its Subsidiaries as at the end of such quarter and
for the period commencing at the end of the previous fiscal year and ending with
the end of such quarter (which requirement shall be deemed satisfied by the
delivery of the Company's quarterly report on Form 10-Q for such quarter), all
in reasonable detail and duly certified (subject to year-end audit adjustments)
by the chief financial officer or chief accounting officer of the Company as
having been prepared in accordance with GAAP, (ii) a consolidated balance sheet
and consolidated statements of income and retained earnings and of cash flows of
Consumers and its Subsidiaries as at the end of such quarter and for the period
commencing at the end of the previous fiscal year and ending with the end of
such quarter (which requirement shall be deemed satisfied by the delivery of the
Company's quarterly report on Form 10-Q for such quarter), all in reasonable
detail and duly certified (subject to year-end audit adjustments) by the chief
financial officer or chief accounting officer of Consumers as having been
prepared in accordance with GAAP, (iii) a schedule (substantially in the form of
Exhibit E appropriately completed) of (1) for the periods ending June 30, 2004
and thereafter, the computations used by the Company in determining compliance
with the covenants contained in Sections 8.01(i) and 8.01(j) and the ratio set
forth in Section 9.01(j), (2) all Project Finance Debt of the Company and the
Consolidated Subsidiaries, together with the Company's Ownership Interest in
each such Consolidated Subsidiary and (3) all Support Obligations of the
Borrowers of the types described in clauses (iv) and (v) of the definition of
Support Obligations (whether or not each such Support Obligation or the primary
obligation so supported is fixed, conclusively determined or reasonably
quantifiable), to the extent such Support Obligations have not been previously
disclosed as "Consolidated Debt" pursuant to clause (1) above, and (iv) a
certificate of the chief financial officer or chief accounting officer of the
Company stating that no Default or Event of

                                       63
<PAGE>

Default has occurred and is continuing or, if a Default or Event of Default has
occurred and is continuing, a statement as to the nature thereof and the action
that the Borrowers propose to take with respect thereto;

            (c) as soon as available and in any event within 120 days after the
end of each fiscal year of the Company and its Subsidiaries, commencing with the
fiscal year ending on December 31, 2004, a copy of the Annual Report on Form
10-K (or any successor form) for the Company and its Subsidiaries for such year,
including therein (i) a consolidated balance sheet of the Company and its
Subsidiaries as of the end of such fiscal year and consolidated statements of
income and retained earnings and of cash flows of the Company and its
Subsidiaries for such fiscal year, accompanied by a report thereon of a
nationally-recognized independent public accounting firm, and (ii) a
consolidated balance sheet of Consumers and its Subsidiaries as of the end of
such fiscal year and consolidated statements of income and retained earnings and
of cash flows of Consumers and its Subsidiaries for such fiscal year,
accompanied by a report thereon of a nationally-recognized independent public
accounting firm, together with (iii) a schedule in form satisfactory to the
Required Lenders of (1) the computations used by such accounting firm in
determining, as of the end of such fiscal year, compliance with the covenants
contained in Sections 8.01(i) and 8.01(j) and the ratio set forth in Section
9.01(j), (2) all Project Finance Debt of the Company and the Consolidated
Subsidiaries, together with the Company's Ownership Interest in each such
Consolidated Subsidiary and (3) all Support Obligations of the Borrowers of the
types described in clauses (iv) and (v) of the definition of Support Obligations
(whether or not each such Support Obligation or the primary obligation so
supported is fixed, conclusively determined or reasonably quantifiable), to the
extent such Support Obligations have not been previously disclosed as
"Consolidated Debt" pursuant to clause (1) above, and (iv) a certificate of the
chief financial officer or chief accounting officer of the Company stating that
no Default or Event of Default has occurred and is continuing or, if a Default
or Event of Default has occurred and is continuing, a statement as to the nature
thereof and the action that the Borrowers propose to take with respect thereto;

            (d) as soon as available and in any event within 60 days after the
end of each of the first three fiscal quarters of each fiscal year of
Enterprises, commencing with the fiscal quarter ending on June 30, 2004, a
consolidated balance sheet and consolidated statements of income and retained
earnings and of cash flows of Enterprises and its Subsidiaries as at the end of
such quarter and for the period commencing at the end of the previous fiscal
year and ending with the end of such quarter, all in reasonable detail and duly
certified (subject to year-end audit adjustments) by the chief financial officer
or chief accounting officer of Enterprises as having been prepared in accordance
with GAAP;

            (e) as soon as available and in any event within 120 days after the
end of each fiscal year of Enterprises and its Subsidiaries, commencing with the
fiscal year ending on December 31, 2004, a consolidated balance sheet of
Enterprises and its Subsidiaries as of the end of such fiscal year and
consolidated statements of income and retained earnings and of cash flows of
Enterprises and its Subsidiaries for such fiscal year, all in reasonable detail
and duly certified by the chief financial officer or chief accounting officer of
Enterprises as having been prepared in accordance with GAAP;

                                       64
<PAGE>

            (f) as soon as possible and in any event (A) within 30 days after
the Company knows or has reason to know that any Plan Termination Event
described in clause (i) of the definition of Plan Termination Event with respect
to any Plan of the Company or any ERISA Affiliate of the Company has occurred
and could reasonably be expected to result in a material liability to the
Company and (B) within 10 days after the Company knows or has reason to know
that any other Plan Termination Event with respect to any Plan of the Company or
any ERISA Affiliate of the Company has occurred and could reasonably be expected
to result in a material liability to the Company, a statement of the chief
financial officer or chief accounting officer of the Company describing such
Plan Termination Event and the action, if any, which the Company proposes to
take with respect thereto;

            (g) promptly after receipt thereof by the Company or any of its
ERISA Affiliates from the PBGC, copies of each notice received by the Company or
any such ERISA Affiliate of the PBGC's intention to terminate any Plan or to
have a trustee appointed to administer any Plan;

            (h) promptly and in any event within 30 days after the filing
thereof with the Internal Revenue Service, copies of each Schedule B (Actuarial
Information) to the annual report (Form 5500 Series) with respect to each Plan
(if any) to which the Company is a contributing employer;

            (i) promptly after receipt thereof by the Company or any of its
ERISA Affiliates from a Multiemployer Plan sponsor, a copy of each notice
received by the Company or any of its ERISA Affiliates concerning the imposition
or amount of withdrawal liability in an aggregate principal amount of at least
$250,000 pursuant to Section 4202 of ERISA in respect of which the Company is
reasonably expected to be liable;

            (j) promptly after the Company becomes aware of the occurrence
thereof, notice of all actions, suits, proceedings or other events of the type
described in Section 7.01(f);

            (k) promptly after the sending or filing thereof, notice to the
Administrative Agent and each Lender of any sending or filing of all proxy
statements, financial statements and reports which the Company sends to its
public security holders (if any), all regular, periodic and special reports
which the Company files with the Securities and Exchange Commission or any
governmental authority which may be substituted therefor, or with any national
securities exchange, pursuant to the Exchange Act, and all final prospectuses
with respect to any securities issued or to be issued by the Company or any of
its Subsidiaries;

            (l) as soon as possible and in any event within five days after the
occurrence of any material default under any material agreement to which the
Company or any of its Subsidiaries is a party, which default would materially
adversely affect the business, assets, property, financial condition, results of
operations or prospects of the Company and its Subsidiaries, considered as a
whole, any of which is continuing on the date of such certificate, a certificate
of the chief financial officer of the Company setting forth the details of such
material default and the action which the Company or any such Subsidiary
proposes to take with respect thereto; and

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            (m) promptly after requested, such other information respecting the
business, properties, condition or operations, financial or otherwise, of the
Company and its Subsidiaries as any Agent or the Required Lenders may from time
to time reasonably request in writing.

The Company shall be deemed to have fulfilled its obligations pursuant to
clauses (b), (c), (d), (e), (j) and (k) above to the extent the Administrative
Agent (and the Lenders, if applicable) receives an electronic copy of the
requisite document or documents in a format reasonably acceptable to the
Administrative Agent, provided that a tangible copy of each requisite document
delivered electronically is made available by the Company promptly upon request
by any Agent or Lender.

                                   ARTICLE IX
                                    DEFAULTS

      SECTION 9.01. EVENTS OF DEFAULT. If any of the following events (each an
"EVENT OF DEFAULT") shall occur and be continuing, the Administrative Agent and
the Lenders shall be entitled to exercise the remedies set forth in Section
9.02:

            (a) The Borrowers shall fail to pay (i) any principal of any Loan
when due, (ii) any reimbursement obligation under Section 4.04(a) within one
Business Day after such amount shall have become due or (iii) any interest, fees
or other Obligations (other than any principal of any Loan or any reimbursement
obligation under Section 4.04(a)) payable hereunder within two Business Days
after such interest, fees or other amounts shall have become due; or

            (b) Any representation or warranty made by or on behalf of any Loan
Party in any Loan Document or certificate or other writing delivered pursuant
thereto shall prove to have been incorrect in any material respect when made or
deemed made; or

            (c) Any Borrower or any of its Subsidiaries shall fail to perform or
observe any term or covenant on its part to be performed or observed contained
in Section 8.01(c), (h), (i), (j), (l) or (n) or in Section 8.02 (and the
Borrowers, each Lender and each Agent hereby agrees that an Event of Default
under this subsection (c) shall be given effect as if the defaulting Subsidiary
were a party to this Agreement); or

            (d) Any Borrower or any of its Subsidiaries shall fail to perform or
observe any other term or covenant on its part to be performed or observed
contained in any Loan Document and any such failure shall remain unremedied,
after written notice thereof shall have been given to the Borrowers by the
Administrative Agent, for a period of 20 Business Days (and the Borrowers, each
Lender and each Agent hereby agrees that an Event of Default under this
subsection (d) shall be given effect as if the defaulting Subsidiary were a
party to this Agreement); or

            (e) Any Borrower, any Restricted Subsidiary or Consumers shall fail
to pay any of its Debt (including any interest or premium thereon but excluding
Debt incurred under this Agreement) aggregating, in the case of the Borrowers
and each Restricted Subsidiary, $10,000,000 or more or, in the case of
Consumers, $25,000,000 or more, when due (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise) and such failure

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shall continue after the applicable grace period, if any, specified in any
agreement or instrument relating to such Debt; or any other default under any
agreement or instrument relating to any such Debt (including any "amortization
event" or event of like import in connection with any Off-Balance Sheet
Liabilities), or any other event, shall occur and shall continue after the
applicable grace period, if any, specified in such agreement or instrument, if
the effect of such default or event is (i) to accelerate, or to permit the
acceleration of, the maturity of such Debt; or any such Debt shall be declared
to be due and payable, or required to be prepaid (other than by a regularly
scheduled required prepayment) prior to the stated maturity thereof; unless in
each such case the obligee under or holder of such Debt shall have waived in
writing such circumstance so that such circumstance is no longer continuing, or
(ii) with respect to any such event occurring in connection with any Off-Balance
Sheet Liabilities aggregating $10,000,000 or more, to terminate the reinvestment
of collections or proceeds of receivables and related security under any
agreements or instruments related thereto (other than a termination resulting
solely from the request of the Company or its Subsidiaries); or

            (f) (i) Any Borrower, any Restricted Subsidiary or Consumers shall
generally not pay its debts as such debts become due, or shall admit in writing
its inability to pay its debts generally, or shall make an assignment for the
benefit of creditors; or (ii) any proceeding shall be instituted by or against
any Borrower, any Restricted Subsidiary or Consumers seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of its debts under
any law relating to bankruptcy, insolvency, or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, or other similar official for it or for any substantial part
of its property and, in the case of a proceeding instituted against a Borrower,
either such proceeding shall remain undismissed or unstayed for a period of 60
days or any of the actions sought in such proceeding (including the entry of an
order for relief against a Borrower, a Restricted Subsidiary or Consumers or the
appointment of a receiver, trustee, custodian or other similar official for such
Borrower, such Restricted Subsidiary or Consumers or any of its property) shall
occur; or (iii) any Borrower, any Restricted Subsidiary or Consumers shall take
any corporate or other action to authorize any of the actions set forth above in
this subsection (f); or

            (g) Any judgment or order for the payment of money in excess of
$10,000,000 shall be rendered against any Borrower, any Guarantor or any of
their respective properties and either (i) enforcement proceedings shall have
been commenced by any creditor upon such judgment or order or (ii) there shall
be any period of 30 consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect; or

            (h) Any material provision of any Loan Document, after execution
hereof or delivery thereof under Article VI, shall for any reason other than the
express terms hereof or thereof cease to be valid and binding on any party
thereto; or any Loan Party shall so assert in writing; or any Guarantor shall
terminate or revoke any of its obligations under the Guaranty; or

            (i) Any "Event of Default" shall occur under and as defined in the
AIG Pledge Agreement, as the same may be amended, restated, supplemented or
otherwise modified from time to time; or

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            (j) There shall be imposed or enacted any Consumers Dividend
Restriction, the result of which is that the Dividend Coverage Ratio shall be
less than 1.15 to 1.0 at any time after the imposition of such Consumers
Dividend Restriction; or

            (k) At any time, for any reason (except to the extent permitted by
the terms of the Loan Documents or due to any failure by the Collateral Agent to
take any action on its part to be performed under applicable law in order to
maintain the perfection or priority of any such Liens), (i) the Liens intended
to be created under any of the Loan Documents with respect to Collateral having
a Fair Market Value of $10,000,000 or more become, or the Company or any of its
Subsidiaries seeks to render such Liens, invalid or unperfected, or (ii) Liens
in favor of the Collateral Agent for the benefit of the Lenders contemplated by
the Loan Documents with respect to Collateral having a Fair Market Value of
$10,000,000 or more shall, at any time, for any reason, be invalidated or
otherwise cease to be in full force and effect, or such Liens shall not have the
priority contemplated by this Agreement or the Loan Documents.

      SECTION 9.02. REMEDIES. If any Event of Default has occurred and is
continuing, then the Administrative Agent or the Collateral Agent, as
applicable, shall at the request, or may with the consent, of the Required
Lenders, upon notice to the Borrowers (i) declare the Commitments and the
obligation of each Lender to make or Convert Loans (other than Loans under
Section 4.04) and of any Issuing Bank to issue Letters of Credit to be
terminated, whereupon the same shall forthwith terminate, (ii) declare the
principal amount outstanding hereunder, all interest thereon and all other
amounts payable under this Agreement and the other Loan Documents to be
forthwith due and payable, whereupon the principal amount outstanding hereunder,
all such interest and all such amounts shall become and be forthwith due and
payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by each Borrower, (iii) make demand on the
Borrowers to pay, and the Borrowers will be obligated to, upon such demand
without any further notice or act, pay to the Administrative Agent the Cash
Collateral Required Amount, which funds shall be deposited to the Cash
Collateral Account as security for the LC Outstandings and (iv) exercise in
respect of any and all Collateral, in addition to the other rights and remedies
provided for herein or otherwise available to the Administrative Agent, the
Collateral Agent or the Lenders, all the rights and remedies of a secured party
on default under the Uniform Commercial Code in effect in the State of New York
and in effect in any other jurisdiction in which Collateral is located at that
time; provided, however, that in the event of an actual or deemed entry of an
order for relief with respect to any Borrower or any Guarantor under the
Bankruptcy Code, (A) the Commitments and the obligation of each Lender to make
or Convert Loans and of any Issuing Bank to issue Letters of Credit shall
automatically be terminated, (B) the principal amount outstanding hereunder, all
such interest and all such amounts shall automatically become and be due and
payable, without presentment, demand, protest or any notice of any kind, all of
which are hereby expressly waived by each Borrower, and (C) the Administrative
Agent shall make demand on the Borrowers to pay, and the Borrowers shall be
obligated to, upon such demand without any further notice or act, pay to the
Administrative Agent the Cash Collateral Required Amount, which funds shall be
deposited to the Cash Collateral Account as security for the LC Outstandings.
Notwithstanding anything to the contrary contained herein, no notice given or
declaration made by the Administrative Agent pursuant to this Section 9.02 shall
affect (i) the obligation of any Issuing Bank to make any payment under any
Letter of Credit issued by such Issuing Bank in accordance with the terms of
such Letter of Credit or (ii) the participatory interest of each Lender in each
such payment. If at

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any time while any Event of Default is continuing, the Administrative Agent
determines that the Cash Collateral Required Amount is greater than zero, the
Administrative Agent may make demand on the Borrowers to pay, and the Borrowers
will be obligated to, upon such demand without any further notice or act, pay to
the Administrative Agent the Cash Collateral Required Amount, which funds shall
be deposited to the Cash Collateral Account as security for the LC Outstandings.

                                    ARTICLE X
                                   THE AGENTS

      SECTION 10.01. AUTHORIZATION AND ACTION.

            (a) Each of the Lenders and each of the Issuing Banks hereby
irrevocably appoints each Agent (other than the Syndication Agent and the
Documentation Agents) as its agent and authorizes each such Agent to take such
actions on its behalf and to exercise such powers as are delegated to such Agent
by the terms of the Loan Documents, together with such actions and powers as are
reasonably incidental thereto.

            (b) Any Lender or Issuing Bank serving as an Agent hereunder shall
have the same rights and powers in its capacity as a Lender or an Issuing Bank
as any other Lender or Issuing Bank, as applicable, and may exercise the same as
though it were not an Agent, and such Lender or Issuing Bank, as applicable, and
its Affiliates may accept deposits from, lend money to and generally engage in
any kind of business with the Company or any of its Subsidiaries or other
Affiliate thereof as if it were not an Agent hereunder.

            (c) No Agent shall have any duties or obligations except those
expressly set forth in the Loan Documents. Without limiting the generality of
the foregoing, (i) no Agent shall be subject to any fiduciary or other implied
duties, regardless of whether a Default or an Event of Default has occurred and
is continuing, (ii) no Agent shall have any duty to take any discretionary
action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated by the Loan Documents that such Agent is required
to exercise in writing by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 11.01), and (iii) except as expressly set forth in the Loan
Documents, no Agent shall have any duty to disclose, or shall be liable for the
failure to disclose, any information relating to the Company or any of its
Subsidiaries or Affiliates that is communicated to or obtained by the Lender
serving as such Agent or any of its Affiliates in any capacity. No Agent shall
be liable for any action taken or not taken by it with the consent or at the
request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in Section
11.01 or any other provision of this Agreement) or in the absence of its own
gross negligence or willful misconduct. Each Agent shall be deemed not to have
knowledge of any Default or Event of Default unless and until written notice
thereof is given to such Agent by a Borrower or a Lender (in which case such
Agent shall promptly give a copy of such written notice to the Lenders and the
other Agents). No Agent shall be responsible for or have any duty to ascertain
or inquire into (A) any statement, warranty or representation made in or in
connection with any Loan Document, (B) the contents of any certificate, report
or other document delivered thereunder or in connection therewith, (C) the
performance or observance of any of the covenants, agreements or other terms

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or conditions set forth in any Loan Document, (D) the validity, enforceability,
effectiveness or genuineness of any Loan Document or any other agreement,
instrument or document, or (E) the satisfaction of any condition set forth in
Article VI or elsewhere in any Loan Document, other than to confirm receipt of
items expressly required to be delivered to such Agent. Neither the Syndication
Agent nor the Documentation Agents shall have any duties or obligations in such
capacity under any of the Loan Documents.

            (d) Each Agent shall be entitled to rely upon, and shall not incur
any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. Each Agent also may rely
upon any statement made to it orally or by telephone and believed by it to be
made by the proper Person, and shall not incur any liability for relying
thereon. Each Agent may consult with legal counsel (who may be counsel for the
Borrowers), independent accountants and other experts selected by it, and shall
not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or experts.

            (e) Each Agent may perform any and all its duties and exercise its
rights and powers by or through one or more sub-agents appointed by such Agent.
Each Agent and any such sub-agent may perform any and all its duties and
exercise its rights and powers through their respective Related Parties. The
exculpatory provisions of the preceding subsections of this Section 10.01 shall
apply to any such sub-agent and to the Related Parties of each Agent and any
such sub-agent, and shall apply to their respective activities in connection
with the syndication of the credit facilities provided for herein as well as
activities as an Agent.

            (f) Subject to the appointment and acceptance of a successor Agent
as provided in this subsection (f), any Agent may resign at any time by
notifying the Lenders, the Issuing Banks and the Borrowers. Upon any such
resignation, the Required Lenders shall have the right, in consultation with the
Borrowers, to appoint a successor. If no successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Agent gives notice of its resignation, then the retiring
Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor
Agent which shall be a Lender with an office in New York, New York, or an
Affiliate of any such Lender. Upon the acceptance of its appointment as an Agent
hereunder by a successor, such successor shall succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations hereunder.
The fees payable by the Borrowers to a successor Agent shall be the same as
those payable to its predecessor unless otherwise agreed between the Borrowers
and such successor. After an Agent's resignation hereunder, the provisions of
this Article and Section 11.04 shall continue in effect for the benefit of such
retiring Agent, its sub-agents and their respective Related Parties in respect
of any actions taken or omitted to be taken by any of them while it was acting
as an Agent.

            (g) Each Lender acknowledges that it has independently and without
reliance upon any Agent or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon any Agent or any other Lender and
based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or

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<PAGE>

based upon this Agreement, any other Loan Document or any related agreement or
any document furnished hereunder or thereunder. Each Lender agrees (except as
provided in Section 11.05) that it will not take any legal action, nor institute
any actions or proceedings, against any Borrower or any other obligor hereunder
or with respect to any Collateral, without the prior written consent of the
Required Lenders. Without limiting the generality of the foregoing, no Lender
may accelerate or otherwise enforce its portion of the Loans, or unilaterally
terminate its Commitment except in accordance with Section 9.02.

            (h) Each Lender acknowledges and agrees that neither such Lender,
nor any of its Affiliates, participants or assignees, may rely on the
Administrative Agent to carry out such Lender's, Affiliate's, participant's or
assignee's customer identification program, or other obligations required or
imposed under or pursuant to the USA Patriot Act or the regulations thereunder,
including the regulations contained in 31 C.F.R. 103.121 (as hereafter amended
or replaced, the "CIP Regulations"), or any other applicable laws, rules,
regulations or orders of any governmental authority, including any programs
involving any of the following items relating to or in connection with any of
the Borrowers, their Subsidiaries, their Affiliates or their agents, the Loan
Documents or the transactions hereunder or contemplated hereby: (a) any identity
verification procedures, (b) any recordkeeping, (c) comparisons with government
lists, (d) customer notices or (e) other procedures required under the CIP
Regulations or such other laws, rules, regulations or orders.

            (i) Within 10 days after the Closing Date and at such other times as
are required under the USA Patriot Act, each Lender and each of its assignees
and participants that are not incorporated under the laws of the United States
of America or a state thereof (and is not excepted from the certification
requirement contained in Section 313 of the USA Patriot Act and the applicable
regulations because it is both (a) an affiliate of a depository institution or
foreign bank that maintains a physical presence in the United States or foreign
country, and (b) subject to supervision by a banking authority regulating such
affiliated depository institution or foreign bank) shall deliver to the
Administrative Agent the certification, or, if applicable, recertification,
certifying that such Lender is not a "shell" and certifying to other matters as
required by Section 313 of the USA Patriot Act and the applicable regulations.

      SECTION 10.02. INDEMNIFICATION. The Lenders agree to indemnify each Agent
(to the extent not reimbursed by the Borrowers), ratably according to the
respective Percentages of the Lenders, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed
on, incurred by, or asserted against such Agent in any way relating to or
arising out of this Agreement or any action taken or omitted by such Agent under
this Agreement, provided that no Lender shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from such Agent's gross negligence or
willful misconduct. Without limitation of the foregoing, each Lender agrees to
reimburse the Agents and the Arrangers promptly upon demand for its ratable
share of any out-of-pocket expenses (including counsel fees) incurred by the
Agents and the Arrangers in connection with the preparation, syndication,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement to the
extent that the

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Agents and the Arrangers are entitled to reimbursement for such expenses
pursuant to Section 11.04 but are not reimbursed for such expenses by the
Borrowers.

      SECTION 10.03. CONCERNING THE COLLATERAL AND THE LOAN DOCUMENTS.

            (a) Each Lender and Issuing Bank authorizes and directs the
Collateral Agent to enter into the Loan Documents relating to the Collateral for
the benefit of the Lenders and the Issuing Banks. Each Lender and Issuing Bank
agrees that any action taken by any Agent or the Required Lenders (or, where
required by the express terms of this Agreement, a greater proportion of the
Lenders) in accordance with the provisions of this Agreement or the other Loan
Documents, and the exercise by any Agent or the Required Lenders (or, where so
required, such greater proportion) of the powers set forth herein or therein,
together with such other powers as are reasonably incidental thereto, shall be
authorized and binding upon all of the Lenders and the Issuing Banks. Without
limiting the generality of the foregoing, the Collateral Agent shall have the
sole and exclusive right and authority to (i) act as the disbursing and
collecting agent for the Lenders and the Issuing Banks with respect to all
payments and collections arising in connection with this Agreement and the Loan
Documents relating to the Collateral; (ii) execute and deliver each Loan
Document relating to the Collateral and accept delivery of each such agreement
delivered by any Borrower or any other Loan Party a party thereto; (iii) act as
collateral agent for the Lenders and the Issuing Banks for purposes of the
perfection of all Liens created by such agreements and all other purposes stated
therein; provided, however, the Collateral Agent hereby appoints, authorizes and
directs the other Agents, the Lenders and the Issuing Banks to act as collateral
sub-agent for the Collateral Agent, the Lenders and the Issuing Banks for
purposes of the perfection of all Liens with respect to any property of the
Company or any of its Subsidiaries at any time in the possession of such Agent,
such Lender or such Issuing Bank, including, without limitation, deposit
accounts maintained with, and cash held by, such Agent, such Lender or such
Issuing Bank; (iv) manage, supervise and otherwise deal with the Collateral; (v)
take such action as is necessary or desirable to maintain the perfection and
priority of the Liens created or purported to be created by the Loan Documents;
and (vi) except as may be otherwise specifically restricted by the terms of this
Agreement or any other Loan Document, exercise all remedies given to the
Collateral Agent, the Lenders or the Issuing Banks with respect to the
Collateral under the Loan Documents relating thereto, applicable law or
otherwise.

            (b) The Administrative Agent, each Lender and each Issuing Bank
hereby directs, in accordance with the terms of this Agreement, the Collateral
Agent to release any Lien held by the Collateral Agent for the benefit of the
Lenders and the Issuing Banks:

            (i) against all of the Collateral, upon payment in full of the
      Obligations of all of the Loan Parties under the Loan Documents and
      termination of this Agreement;

            (ii) against any part of the Collateral sold or disposed of by the
      Company or any of its Subsidiaries, if such sale or disposition is
      otherwise permitted under this Agreement, as certified to the Collateral
      Agent by the Borrowers, or is otherwise consented to by the Required
      Lenders;

            (iii) against any part of the Collateral consisting of a promissory
      note, upon payment in full of the Debt evidenced thereby;

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            (iv) against any part of the "Collateral" (as defined in the Cash
      Collateral Agreement) to the extent required pursuant to the Cash
      Collateral Agreement; and/or

            (v) against any of the Collateral and any Grantor upon the
      occurrence of any event described in Section 8.10 of the Pledge Agreement
      described in clause (i) of the definition of "Pledge Agreements" or in
      Section 9.10 of the Pledge Agreement described in clause (ii) of the
      definition of "Pledge Agreements".

The Administrative Agent, each Lender and each Issuing Bank hereby directs the
Collateral Agent to execute and deliver or file such termination and partial
release statements and do such other things as are necessary to release Liens to
be released pursuant to this Section 10.03(b) promptly upon the effectiveness of
any such release.

      SECTION 10.04. RELEASE OF GUARANTORS. Upon (x) the liquidation or
dissolution of any Guarantor, or sale of all of the capital stock or other
ownership interests of any Guarantor, or the sale of assets of any Guarantor the
result of which is that such Guarantor no longer qualifies as a Restricted
Subsidiary, in each case which is permitted pursuant to the terms of any Loan
Document or consented to in writing by the Required Lenders or all of the
Lenders, as applicable, and upon at least five (5) Business Days' prior written
request by the Borrowers or (y) the occurrence of any event described in Section
11 of the Guaranty, the Collateral Agent shall (and is hereby irrevocably
authorized by the Lenders to) execute such documents as may be necessary to
evidence the release of the applicable Guarantor from its obligations under the
Guaranty; provided, however, that (i) the Collateral Agent shall not be required
to execute any such document on terms which, in the Collateral Agent's opinion,
would expose the Collateral Agent to liability or create any obligation or
entail any consequence other than the release of such Guarantor without recourse
or warranty, and (ii) such release shall not in any manner discharge, affect or
impair the Loans, any other Guarantor's obligations under the Guaranty, or, if
applicable, any obligations of any Borrower or any Subsidiary of any Borrower in
respect of the proceeds of any such sale retained by any Borrower or any
Subsidiary of any Borrower.

                                   ARTICLE XI
                                 MISCELLANEOUS

      SECTION 11.01. AMENDMENTS, ETC. No amendment or waiver of any provision of
any Loan Document, nor consent to any departure by any Borrower or any other
Loan Party therefrom, shall in any event be effective unless the same shall be
in writing and signed by the Required Lenders, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no amendment, waiver or consent shall,
unless in writing and signed by all the Lenders, do any of the following: (i)
waive, modify or eliminate any of the conditions specified in Article VI, (ii)
increase the Commitments of the Lenders that may be maintained hereunder, (iii)
reduce or forgive the principal of, or interest on, any Loan, any Applicable
Margin, any Commitment Fee Margin or any fees or other amounts payable hereunder
(other than fees payable to the Administrative Agent pursuant to Section
2.02(b)), (iv) postpone any date fixed for any payment of principal of, or
interest on, any Loan or any fees or other amounts payable hereunder (other than
fees payable to the Administrative Agent pursuant to Section 2.02(b)) (except
with respect to any modifications of the provisions relating to amounts, timing
or application of prepayments of Loans and other

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Obligations which modification shall require only the approval of the Required
Lenders), (v) change the definition of "Required Lenders" contained in Section
1.01 or change any other provision that specifies the percentage of the
Commitments or of the aggregate unpaid principal amount of the Loans or the
number of Lenders which shall be required for the Lenders or any of them to take
any action hereunder, (vi) amend, waive or modify Section 2.03(b) or this
Section 11.01, (vii) release the Collateral Agent's Lien on all of the
Collateral or any portion of the Collateral in excess of $50,000,000 (except as
provided in Section 10.03(b)), (viii) extend the Commitment Termination Date or
the Maturity Date, (ix) amend, waive or modify any provision of Section 5.01(g),
5.05 or 5.07 that provides for or ensures ratable distributions to the Lenders
or (x) amend, waive or modify any provision of Section 4.02 that requires each
Letter of Credit to have a stated expiry date no later than five (5) Business
Days (or, in the case of any commercial Letter of Credit, thirty (30) Business
Days) prior to the Commitment Termination Date; and provided, further, that no
amendment, waiver or consent shall, unless in writing and signed by each
affected Agent in addition to the Lenders required above to take such action,
affect the rights or duties of any Agent under this Agreement or any other Loan
Document; and provided, further, that no amendment, waiver or consent shall,
unless in writing and signed by each Issuing Bank in addition to the Lenders
required above to take such action, affect the rights or duties of any Issuing
Bank under this Agreement or any other Loan Document. Any request from the
Borrowers for any amendment, waiver or consent under this Section 11.01 shall be
addressed to the Administrative Agent.

      SECTION 11.02. NOTICES, ETC. Subject to Section 11.14, all notices and
other communications provided for hereunder and under the other Loan Documents
shall be in writing and mailed, sent by courier service, telecopied or
delivered, (i) if to either Borrower, at its address at One Energy Plaza,
Jackson, Michigan 49201, Attention: S. Kinnie Smith, Jr., General Counsel, with
a copy to Laura L. Mountcastle, Vice President, Investor Relations and
Treasurer, One Energy Plaza, Jackson, Michigan 49201; (ii) if to any Bank, at
the address set forth on the signature page hereto with respect to such Bank;
(iii) if to any Issuing Bank, at its address specified in the Issuing Bank
Agreement to which it is a party; (iv) if to any Lender other than a Bank, at
its Applicable Lending Office specified in the Lender Assignment pursuant to
which it became a Lender; (v) if to the Administrative Agent with respect to
funding or payment of any amounts hereunder, at its address at 2 Penns Way,
Suite 200, New Castle, DE 19270, Attn: Dawn Conover, Telephone No. (302)
894-6063, Telecopy No. (302) 894-6120; (vi) if to the Administrative Agent for
any other reason or to the Collateral Agent, at its address at 388 Greenwich
Street, New York, New York 10003, Attn: Nick McKee, Telephone No. (212)
816-8592, Telecopy No. (212) 816-8098; or, as to each party, at such other
address as shall be designated by such party in a written notice to the other
parties. Each such notice or other communication shall be effective (i) if given
by telecopy transmission, when transmitted to the telecopy number specified in
this Section 11.02 and confirmation of receipt is received, (ii) if given by
mail, 5 days after such communication is deposited in the mails with first class
postage prepaid, addressed as aforesaid, or (iii) if given by any other means,
when delivered at the address specified in this Section 11.02, except that
notices and communications to any Agent pursuant to Article II, III, or X shall
not be effective until received by such Agent.

      SECTION 11.03. NO WAIVER OF REMEDIES. No failure on the part of any
Borrower, any Lender, any Issuing Bank or any Agent to exercise, and no delay in
exercising, any right hereunder or under any other Loan Document shall operate
as a waiver thereof; nor shall any

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single or partial exercise of any such right preclude any other or further
exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

      SECTION 11.04. COSTS, EXPENSES AND INDEMNIFICATION.

            (a) The Borrowers jointly and severally agree to (i) reimburse on
demand all reasonable costs and expenses of each Agent and each Arranger
(including reasonable fees and expenses of counsel to the Agents) in connection
with (A) the preparation, syndication, negotiation, execution and delivery of
the Loan Documents and (B) the care and custody of any and all collateral, and
any proposed modification, amendment, or consent relating to any Loan Document,
and (ii) to pay on demand all reasonable costs and expenses of each Agent and,
on and after the date upon which the principal amount outstanding hereunder
becomes or is declared to be due and payable pursuant to Section 9.02 or an
Event of Default specified in Section 9.01(a) shall have occurred and be
continuing, each Lender (including fees and expenses of counsel to the Agents,
special Michigan counsel to the Lenders and, from and after such date, counsel
for each Lender (including the allocated costs and expenses of in-house
counsel)) in connection with the workout, restructuring or enforcement (whether
through negotiations, legal proceedings or otherwise) of this Agreement, the
other Loan Documents and the other documents to be delivered hereunder.

            (b) The Borrowers jointly and severally agree to indemnify each
Agent, each Arranger, each Issuing Bank, each Lender, and each Related Party of
any of the foregoing Persons (each such Person being called an "INDEMNIFIED
PERSON") against, and hold each Indemnified Person harmless from, any and all
losses, claims, damages, liabilities and related expenses, including the
reasonable fees, charges and disbursements of any counsel for any Indemnified
Person, incurred by or asserted against any Indemnified Person arising out of,
in connection with, or as a result of (i) the execution or delivery of any Loan
Document or any other agreement or instrument contemplated hereby or thereby,
the performance by the parties to the Loan Documents of their respective
obligations thereunder or the consummation of the transactions contemplated
hereby or thereby, (ii) any Loan or other Extension of Credit or the use or
proposed use of the proceeds therefrom, (iii) any actual or alleged presence or
release of any Hazardous Substance on or from any property owned or operated by
any Borrower or any of its Subsidiaries, or any Environmental Liability related
in any way to any Borrower or any of its Subsidiaries, (iv) the use of the
Platform as contemplated herein, or (v) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether
any Indemnified Person is a party thereto; provided, that such indemnity shall
not, as to any Indemnified Person, be available to the extent that such losses,
claims, damages, liabilities or related expenses are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from
the gross negligence or willful misconduct of such Indemnified Person. The
Borrower shall pay any civil penalty or fine assessed by the Office of Foreign
Assets Control against any Indemnified Person and all reasonable costs and
expenses (including reasonable fees and expenses of counsel to such Indemnified
Persons) incurred in connection with defense thereof, as a result of acts or
omissions of the Borrowers contrary to the representation made in Section
7.01(u).

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            (c) The Borrowers' other obligations under this Section 11.04 shall
survive the repayment of all amounts owing to the Lenders, the Issuing Banks and
the Agents under the Loan Documents and the termination of the Commitments. If
and to the extent that the obligations of any Borrower under this Section 11.04
are unenforceable for any reason, the Borrowers jointly and severally agree to
make the maximum contribution to the payment and satisfaction thereof which is
permissible under applicable law.

      SECTION 11.05. RIGHT OF SET-OFF.

            (a) Upon (i) the occurrence and during the continuance of any Event
of Default and (ii) the making of the request or the granting of the consent
specified by Section 9.02 to authorize the Administrative Agent to declare the
principal amount outstanding hereunder to be due and payable pursuant to the
provisions of Section 9.02, each Lender and Issuing Bank is hereby authorized at
any time and from time to time, to the fullest extent permitted by law, to set
off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time owing
by such Lender or such Issuing Bank, as applicable, to or for the credit or the
account of any Borrower, against any and all of the obligations of such Borrower
now or hereafter existing under this Agreement and the Promissory Notes held by
such Lender or the Issuing Bank Agreement to which such Issuing Bank is a party,
as the case may be, irrespective of whether or not such Lender or such Issuing
Bank, as applicable, shall have made any demand under this Agreement or such
Promissory Notes or such Issuing Bank Agreement, as the case may be, and
although such obligations may be unmatured. Each Lender and Issuing Bank agrees
to notify promptly the applicable Borrower after any such set-off and
application made by such Lender or Issuing Bank, as the case may be, provided
that the failure to give such notice shall not affect the validity of such
set-off and application. The rights of each Lender and Issuing Bank under this
Section 11.05 are in addition to other rights and remedies (including other
rights of set-off) which such Lender and Issuing Bank may have.

            (b) Each Borrower agrees that it shall have no right of off-set,
deduction or counterclaim in respect of its obligations hereunder, and that the
obligations of the Lenders hereunder are several and not joint. Nothing
contained herein shall constitute a relinquishment or waiver of any Borrower's
rights to any independent claim that such Borrower may have against any Agent or
any Lender for such Agent's or such Lender's, as the case may be, gross
negligence or willful misconduct, but no Lender shall be liable for any such
conduct on the part of any Agent or any other Lender, and no Agent shall be
liable for any such conduct on the part of any Lender or any other Agent.

      SECTION 11.06. BINDING EFFECT. This Agreement shall become effective when
it shall have been executed by the Borrowers and the Agents and when the
Administrative Agent shall have been notified by each Bank that such Bank has
executed it and thereafter shall be binding upon and inure to the benefit of the
Borrowers, the Agents and each Lender and their respective successors and
assigns, except that, other than in connection with Enterprises reconstituting
itself as a limited liability company as permitted under Section 8.02(h),
neither Borrower shall have the right to assign its rights hereunder or any
interest herein without the prior written consent of the Lenders.

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      SECTION 11.07. ASSIGNMENTS AND PARTICIPATION.

            (a) Any Lender may sell participations in all or a portion of its
rights and obligations under this Agreement pursuant to subsection (b) below and
any Lender may assign all or any part of its rights and obligations under this
Agreement pursuant to subsection (c) below.

            (b) Any Lender may sell participations to one or more banks or other
entities (each a "PARTICIPANT") in all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Commitment and its outstanding Loan), provided that (i) such
Lender's obligations under this Agreement (including, without limitation, its
Commitment to the Borrowers hereunder) shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations, (iii) such Lender shall remain the holder of the Loans of
such Lender for all purposes of this Agreement and (iv) the Borrowers shall
continue to deal solely and directly with such Lender in connection with such
Lender's rights and obligations under this Agreement. Each Lender shall retain
the sole right to approve, without the consent of any Participant, any
amendment, modification or waiver of any provision of the Loan Documents other
than any amendment, modification or waiver with respect to any Loan or
Commitment in which such Participant has an interest which would require consent
of all of the Lenders pursuant to the terms of Section 11.01 or of any other
Loan Document. The Borrowers agree that each Participant shall be deemed to have
the right of set-off provided in Section 11.05 in respect of its participating
interest in amounts owing under the Loan Documents to the same extent as if the
amount of its participating interest were owing directly to it as a Lender under
the Loan Documents, provided that each Lender shall retain the right of set-off
provided in Section 11.05 with respect to the amount of participating interests
sold to each Participant. The Lenders agree to share with each Participant, and
each Participant, by exercising the right of set-off provided in Section 11.05,
agrees to share with each Lender, any amount received pursuant to the exercise
of its right of set-off, such amounts to be shared in accordance with Section
11.05 as if each Participant were a Lender. The Borrowers further agree that
each Participant shall be entitled to the benefits of Sections 5.04 and 5.06 to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to Section 11.07(c); provided that (i) a Participant shall
not be entitled to receive any greater payment under Section 5.04 or 5.06 than
the Lender who sold the participating interest to such Participant would have
received had it retained such interest for its own account, unless the sale of
such interest to such Participant is made with the prior written consent of the
Borrowers, and (ii) any Participant not incorporated under the laws of the
United States of America or any State thereof agrees to comply with the
provisions of Section 5.06 to the same extent as if it were a Lender.

            (c) Any Lender may, in the ordinary course of its business and in
accordance with applicable law, with the consent of the Administrative Agent and
each Issuing Bank (such consent not to be unreasonably withheld or delayed), at
any time assign to any other Lender or to any Eligible Bank all or any part of
its rights and obligations under this Agreement, provided, that the aggregate of
the Commitments and the principal amount the Loans subject to any such
assignment (other than assignments to a Federal Reserve Bank, or to any other
Lender, or to any direct or indirect contractual counterparties in swap
agreements relating to the Loans to the extent required in connection with the
physical settlement of any Lender's obligations pursuant

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thereto) shall be $5,000,000 (or such lesser amount consented to by the
Administrative Agent); provided, that, unless such Lender is assigning all of
its rights and obligations hereunder, after giving effect to such assignment the
assigning Lender shall have Commitments and Loans in the aggregate of not less
than $5,000,000 (unless otherwise consented to by the Administrative Agent).

            (d) Any Lender may, in connection with any sale or participation or
proposed sale or participation pursuant to this Section 11.07 disclose to the
purchaser or Participant or proposed purchaser or Participant any information
relating to the Borrowers furnished to such Lender by or on behalf of the
Borrowers, provided that prior to any such disclosure of non-public information,
the purchaser or Participant or proposed purchaser or Participant (which
Participant is not an affiliate of a Lender) shall agree to preserve the
confidentiality of any confidential information (except any such disclosure as
may be required by law or regulatory process) relating to the Borrowers received
by it from such Lender.

            (e) Assignments under this Section 11.07 shall be made pursuant to
an agreement (a "LENDER ASSIGNMENT") substantially in the form of Exhibit F
hereto or in such other form as may be agreed to by the parties thereto and
shall not be effective until a $3,500 fee has been paid to the Administrative
Agent by the assignee, which fee shall cover the cost of processing such
assignment, provided, that such fee shall not be incurred in the event of an
assignment by any Lender of all or a portion of its rights under this Agreement
to (i) a Federal Reserve Bank, (ii) a Lender (iii) an affiliate of the assigning
Lender (which affiliate shall be an Eligible Bank) or (iv) to any direct or
indirect contractual counterparties in swap agreements relating to the Loans to
the extent required in connection with the physical settlement of any Lender's
obligations pursuant thereto.

            (f) Notwithstanding anything to the contrary contained herein, any
Lender (a "GRANTING LENDER") may grant to a special purpose funding vehicle (an
"SPC"), identified as such in writing from time to time by the Granting Lender
to the Administrative Agent and the Borrowers, the option to provide to the
Borrowers all or any part of any Loan that such Granting Lender is obligated to
make to the Borrowers pursuant to this Agreement; provided that (i) nothing
herein shall constitute a commitment by any SPC to make any Loan, (ii) if an SPC
elects not to exercise such option or otherwise fails to provide all or any part
of such Loan, the Granting Lender shall remain obligated to make such Loan
pursuant to the terms hereof, (iii) the Borrowers shall not be required to pay
any amount under Section 5.06 that is greater than the amount which it would
have been required to pay had there been no grant to an SPC and (iv) any SPC (or
assignee of an SPC) will comply, if applicable, with the provisions contained in
Section 5.06. No grant by any Granting Lender to an SPC agreeing to provide a
Loan or the making of such Loan by such SPC shall operate to relieve such
Granting Lender of its liabilities and obligations hereunder, except to the
extent of the making of such Loan by such SPC. The making of a Loan by an SPC
hereunder shall utilize the Commitment of the Granting Lender to the same
extent, and as if, such Loan were made by such Granting Lender. Each party
hereto hereby agrees that no SPC shall be liable for any indemnity or similar
payment obligation under this Agreement (all liability for which shall remain
with the Granting Lender). In addition, each party hereto hereby agrees (which
agreement shall survive the termination of this Agreement) that any SPC may (i)
with notice to, but without the prior written consent of, the Borrowers and the
Administrative Agent and without paying any processing fee therefor, assign all
or a portion

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of its interests in any Loans to the Granting Lender or to any financial
institutions (consented to by the Administrative Agent in its sole discretion)
providing liquidity and/or credit support to or for the account of such SPC to
support the funding or maintenance of Loans and (ii) disclose on a confidential
basis any non-public information relating to its Loans to any rating agency,
commercial paper dealer or provider of any surety, guarantee or credit or
liquidity enhancement to such SPC. This Section 11.07(f) may not be amended
without the written consent of any SPC that holds an option to provide Loans. No
recourse under any obligation, covenant, or agreement of the SPC contained in
this Agreement shall be had against any shareholder, officer, agent or director
of the SPC as such, by the enforcement of any assessment or by any proceeding,
by virtue of any statute or otherwise; it being expressly agreed and understood
that this Agreement is a corporate obligation of the SPC and no personal
liability shall attach to or be incurred by any officer, agent or member of the
SPC as such, or any of them under or by reason of any of the obligations,
covenants or agreements of the SPC contained in this Agreement, or implied
therefrom, and that any and all personal liability for breaches by the SPC of
any such obligations, covenants or agreements, either at law or by statute or
constitution, of every such shareholder, officer, agent or director is hereby
expressly waived by all parties to this Agreement as a condition of and
consideration for the SPC entering into this Agreement; provided, however, that
the foregoing shall not relieve any such person or entity of any liability they
might otherwise have as a result of fraudulent actions or omissions taken by
them. All parties to this Agreement acknowledge and agree that the SPC shall
only be liable for any claims that each of them may have against the SPC only to
the extent of the SPC's assets. The provisions of this clause shall survive the
termination of this Agreement.

            (g) Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations
of such Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided, that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

            (h) The Administrative Agent shall maintain at its address referred
to in Section 11.02 a copy of each Lender Assignment delivered to and accepted
by it and a register for the recordation of the names and addresses of the
Lenders and the Commitment of, and principal amount of the Loans owing to, each
Lender from time to time (the "REGISTER"). The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Borrowers, the Agents, the Issuing Banks and the Lenders may treat each Person
whose name is recorded in the Register as a Lender hereunder for all purposes of
this Agreement. The Register shall be available for inspection by any Borrower,
any Issuing Bank or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

      SECTION 11.08. CONFIDENTIALITY. In connection with the negotiation and
administration of this Agreement and the other Loan Documents, the Borrowers
have furnished and will from time to time furnish to the Agents, the Issuing
Banks and the Lenders (each, a "RECIPIENT") written information which is
identified to the Recipient when delivered as confidential (such information,
other than any such information which (i) was publicly available, or otherwise
known to the Recipient, at the time of disclosure, (ii) subsequently becomes
publicly available other than through any act or omission by the Recipient or
(iii) otherwise subsequently becomes known to the Recipient other than through a
Person whom the Recipient knows to be acting in

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violation of his or its obligations to the Borrowers, being hereinafter referred
to as "CONFIDENTIAL INFORMATION"). The Recipient will not knowingly disclose any
such Confidential Information to any third party (other than to those persons
who have a confidential relationship with the Recipient), and will take all
reasonable steps to restrict access to such information in a manner designed to
maintain the confidential nature of such information, in each case until such
time as the same ceases to be Confidential Information or as the Borrowers may
otherwise instruct. It is understood, however, that the foregoing will not
restrict the Recipient's ability to freely exchange such Confidential
Information with its Affiliates, prospective Participants in or assignees of the
Recipient's position herein or direct or indirect counterparties (or their
advisors) to any swap, securitization or derivative transaction relating to the
Obligations, but the Recipient's ability to so exchange Confidential Information
shall be conditioned upon any such Person entering into an agreement as to
confidentiality similar to this Section 11.08. It is further understood that the
foregoing will not prohibit the disclosure of any or all Confidential
Information if and to the extent that such disclosure may be required (1) by a
regulatory agency, self-regulatory body or otherwise in connection with an
examination of the Recipient's records by appropriate authorities, (2) pursuant
to court order, subpoena or other legal process or in connection with any
proceeding, suit or other action relating to any Loan Document or (3) otherwise,
as required by law; in the event of any required disclosure under clause (2) or
(3), above, the Recipient agrees to use reasonable efforts to inform the
Borrowers as promptly as practicable to the extent not prohibited by law.
Notwithstanding any other provision of this Agreement, each party (and each
Participant pursuant to Section 11.07) (and each employee, representative or
other agent of such party (or Participant)) may disclose to any and all persons,
without limitation of any kind, the U.S. tax treatment and U.S. tax structure of
the transactions contemplated by the Loan Documents and all materials of any
kind (including opinions or other tax analyses) that are provided to such party
relating to such U.S. tax treatment and U.S. tax structure, other than any
information for which nondisclosure is reasonably necessary in order to comply
with applicable securities laws.

      SECTION 11.09. Waiver of Jury Trial. THE BORROWERS, THE AGENTS, THE
ISSUING BANKS AND THE LENDERS EACH HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY OTHER INSTRUMENT OR DOCUMENT
DELIVERED HEREUNDER OR THEREUNDER.

      SECTION 11.10. GOVERNING LAW; SUBMISSION TO JURISDICTION. THIS AGREEMENT
AND THE PROMISSORY NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAWS OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO
CONFLICTS OF LAW PRINCIPLES). THE BORROWERS, THE LENDERS, THE ISSUING BANKS AND
THE AGENTS, EACH (I) IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW YORK
STATE COURT OR FEDERAL COURT SITTING IN NEW YORK CITY IN ANY ACTION ARISING OUT
OF ANY LOAN DOCUMENT, (II) AGREES THAT ALL CLAIMS IN SUCH ACTION MAY BE DECIDED
IN SUCH COURT, (III) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE
DEFENSE OF AN INCONVENIENT FORUM AND (IV) CONSENTS TO THE SERVICE OF PROCESS BY

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MAIL. A FINAL JUDGMENT IN ANY SUCH ACTION SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS. NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY
PARTY TO SERVE LEGAL PROCESS IN ANY MANNER PERMITTED BY LAW OR AFFECT ITS RIGHT
TO BRING ANY ACTION IN ANY OTHER COURT. EACH BORROWER AGREES THAT THE AGENTS
SHALL HAVE THE RIGHT TO PROCEED AGAINST SUCH BORROWER OR ITS PROPERTY IN A COURT
IN ANY LOCATION TO ENABLE THE AGENTS, THE ISSUING BANKS AND THE LENDERS TO
REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO
ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF ANY AGENT, ANY
ISSUING BANK OR ANY LENDER. EACH BORROWER AGREES THAT IT WILL NOT ASSERT ANY
PERMISSIVE COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY ANY AGENT, ANY ISSUING
BANK OR ANY LENDER TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF ANY
AGENT, ANY ISSUING BANK OR ANY LENDER. EACH BORROWER WAIVES ANY OBJECTION THAT
IT MAY HAVE TO THE LOCATION OF THE COURT IN WHICH ANY AGENT, ANY ISSUING BANK OR
ANY LENDER MAY COMMENCE A PROCEEDING DESCRIBED IN THIS SECTION.

      SECTION 11.11. RELATION OF THE PARTIES; NO BENEFICIARY. No term, provision
or requirement, whether express or implied, of any Loan Document, or actions
taken or to be taken by any party thereunder, shall be construed to create a
partnership, association, or joint venture between such parties or any of them.
No term or provision of this Agreement or any other Loan Document shall be
construed to confer a benefit upon, or grant a right or privilege to, any Person
other than the parties hereto or thereto. Each Borrower hereby acknowledges that
none of the Agents, the Lenders or the Issuing Banks has any fiduciary
relationship with or fiduciary duty to such Borrower arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Agents, the Lenders and the Issuing Banks, on the one
hand, and such Borrower, on the other hand, in connection herewith or therewith
is solely that of debtor and creditor.

      SECTION 11.12. EXECUTION IN COUNTERPARTS. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same Agreement.

      SECTION 11.13. SURVIVAL OF AGREEMENT. All covenants, agreements,
representations and warranties made herein and in the certificates pursuant
hereto shall be considered to have been relied upon by the Agents, the Lenders
and the Issuing Banks and shall survive the making by the Lenders and the
Issuing Banks of the Extensions of Credit and the execution and delivery to the
Lenders of any Promissory Notes evidencing the Extensions of Credit and shall
continue in full force and effect so long as any Promissory Note or any amount
due hereunder is outstanding and unpaid, any Letter of Credit remains
outstanding or any Commitment of any Lender has not been terminated.

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      SECTION 11.14. PLATFORM.

            (a) Each Borrower shall use its commercially reasonable best efforts
to transmit to the Administrative Agent all information, documents and other
materials that it is obligated to furnish to the Administrative Agent pursuant
to this Agreement and the other Loan Documents, including, without limitation,
all notices, requests, financial statements, financial and other reports,
certificates and other information materials, but excluding any such
communication that (i) relates to a notice of borrowing or other extension of
credit or a conversion of an existing interest rate on any Loan or Borrowing
(including, without limitation, any Notice of Conversion), (ii) relates to the
payment of any principal or other amount due hereunder prior to the scheduled
date therefor, (iii) provides notice of any Default or Event of Default
hereunder or (iv) is required to be delivered to satisfy any condition precedent
to the effectiveness of this Agreement and/or any Extension of Credit hereunder
(all such non-excluded communications being referred to herein collectively as
"COMMUNICATIONS"), in an electronic/soft medium in a format reasonably
acceptable to the Administrative Agent to oploanswebadmin@citigroup.com (or such
other e-mail address designated by the Administrative Agent from time to time).
In addition, each Borrower shall continue to provide the Communications to the
Administrative Agent in the manner specified in this Agreement but only to the
extent requested by the Administrative Agent. Each Lender, each Issuing Bank and
the Borrowers further agree that the Administrative Agent may make the
Communications available to the Lenders and the Issuing Banks by posting the
Communications on IntraLinks or a substantially similar electronic transmission
system (the "PLATFORM"); provided, however, that upon written notice to the
Administrative Agent and the Company, any Lender or any Issuing Bank (such
lender a "DECLINING LENDER") may decline to receive Communications via the
Platform and shall direct the Company to provide, and the Company shall so
provide, such Communications to such Declining Lender by delivery to such
Declining Lender's address set forth on the signature pages hereto, or as
specified in the Lender Assignment pursuant to which it became a Lender or as
otherwise directed in such notice. Subject to the conditions set forth in the
proviso in the immediately preceding sentence, nothing in this Section 11.14
shall prejudice the right of the Administrative Agent to make the Communications
available to the Lenders in any other manner specified herein.

            (b) Each Lender and Issuing Bank (other than a Declining Lender)
agrees that e-mail notice to it (at the address provided pursuant to the next
sentence and deemed delivered as provided in the next paragraph) specifying that
Communications have been posted to the Platform shall constitute effective
delivery of such Communications to such Lender or such Issuing Bank, as
applicable, for purposes of this Agreement. Each Lender and Issuing Bank (other
than a Declining Lender) agrees (i) to notify the Administrative Agent in
writing (including by electronic communication) from time to time to ensure that
the Administrative Agent has on record an effective e-mail address for such
Lender or such Issuing Bank, as applicable, to which the foregoing notice may be
sent by electronic transmission and (ii) that the foregoing notice may be sent
to such e-mail address.

            (c) Each party hereto (other than a Declining Lender) agrees that
any electronic communication referred to in this Section 11.14 shall be deemed
delivered upon the posting of a record of such communication as "sent" in the
e-mail system of the sending party or, in the case of any such communication to
the Administrative Agent, upon the posting of a record of such communication as
"received" in the e-mail system of the Administrative Agent, provided that if
such communication is not so received by the Administrative Agent during the
normal

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business hours of the Administrative Agent, such communication shall be deemed
delivered at the opening of business on the next business day for the
Administrative Agent.

            (d) Each party hereto acknowledges that the distribution of material
through an electronic medium is not necessarily secure and there are
confidentiality and other risks associated with such distribution.

            (e) EACH PARTY HERETO FURTHER ACKNOWLEDGES AND AGREES THAT:

            (i) NONE OF THE ADMINISTRATIVE AGENT, ITS AFFILIATES NOR ANY OF
      THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR
      REPRESENTATIVES (COLLECTIVELY, THE "CITIGROUP PARTIES") WARRANTS THE
      ADEQUACY OF THE PLATFORM OR THE ACCURACY OR COMPLETENESS OF ANY
      COMMUNICATIONS, AND EACH CITIGROUP PARTY EXPRESSLY DISCLAIMS LIABILITY FOR
      ERRORS OR OMISSIONS IN ANY COMMUNICATIONS, AND

            (ii) NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY,
      INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS
      FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
      FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY CITIGROUP PARTY
      IN CONNECTION WITH ANY COMMUNICATIONS OR THE PLATFORM.

            (f) This Section 11.14 shall terminate on the date that neither CUSA
nor any of the Citigroup Parties is the Administrative Agent under this
Agreement.

      SECTION 11.15. USA PATRIOT ACT. Each Lender hereby notifies the Borrowers
that pursuant to requirements of the USA Patriot Act , it is required to obtain,
verify and record information that identifies the Loan Parties, which
information includes the name and address of each Loan Party and other
information that will allow such Lender to identify such Loan Party in
accordance with the USA Patriot Act.

                                   ARTICLE XII
                             CO-BORROWER PROVISIONS

      SECTION 12.01. APPOINTMENT. Each of the Borrowers hereby irrevocably
designates, appoints and authorizes the other Borrower as its agent and
attorney-in-fact to take actions under this Agreement and the other Loan
Documents, together with such powers as are reasonably incidental thereto. The
Agents, the Issuing Banks and the Lenders shall be entitled to rely, and shall
be fully protected in relying, upon any communication from or to any Borrower as
having been delivered by or to all Borrowers. Any action taken by one Borrower
under this Agreement and the other Loan Documents shall be binding upon the
other Borrower. Each Borrower agrees that it is jointly and severally liable to
the Agents, the Issuing Banks and the Lenders for the payment of the Obligations
and that such liability is independent of the Obligations of the other Borrower
and whether such Obligations become unenforceable against the other Borrower.

                                       83
<PAGE>

      SECTION 12.02. SEPARATE ACTIONS. A separate action or actions may be
brought and prosecuted against any Borrower whether such action is brought
against the other Borrower or whether the other Borrower is joined in such
action or actions. Each Borrower authorizes the Administrative Agent, the
Issuing Banks and the Lenders to release the other Borrower without in any
manner or to any extent affecting the liability of such Borrower hereunder or
under the Loan Documents. Each Borrower waives any defense arising by reason of
any disability or other defense of the other Borrower, or the cessation for any
reason whatsoever of the liability of the other Borrower with respect to any of
the Obligations, or any claim that such Borrower's liability hereunder exceeds
or is more burdensome than the liability of the other Borrower.

      SECTION 12.03. OBLIGATIONS ABSOLUTE AND UNCONDITIONAL . Each Borrower
hereby agrees that its Obligations hereunder and under the Loan Documents shall
be unconditional, irrespective of:

            (a) the validity, enforceability, avoidance or subordination of any
of the Obligations or any of the Loan Documents as to the other Borrower;

            (b) the absence of any attempt by, or on behalf of, any Agent, any
Issuing Bank or any Lender to collect, or to take any other action to enforce,
all or any part of the Obligations whether from or against the other Borrower;

            (c) any borrowing or grant of a security interest by the other
Borrower or any receiver or assignee in relation to the other Borrower following
the occurrence of any event described in Section 9.01(f), pursuant to any
provision of applicable law comparable to Section 364 of the Bankruptcy Code;

            (d) the disallowance, under any provision of applicable law
comparable to Section 502 of the Bankruptcy Code, of all or any portion of the
claims against the other Borrower held by any Lender, any Issuing Bank or any
Agent, for repayment of all or any part of the Obligations;

            (e) the insolvency of the other Borrower; and

            (f) any other circumstance which might otherwise constitute a legal
or equitable discharge or defense of the other Borrower (other than payment in
full in cash of the Obligations and the termination of the Commitments).

      SECTION 12.04. WAIVERS AND ACKNOWLEDGEMENTS.

            (a) Except as otherwise expressly provided under any provision of
the Loan Documents or as required by any mandatory provision of applicable law,
each Borrower hereby waives diligence, presentment, demand of payment, filing of
claims with a court in the event of receivership, insolvency or bankruptcy of
any Borrower or any other Person, protest or notice with respect to the
Obligations, all setoffs and counterclaims and all presentments, demands for
performance, notices of nonperformance, protests, notices of protest, notices of
dishonor and notices of acceptance of this Agreement and the other Loan
Documents, and all other demands whatsoever (and shall not require that the same
be made on the other Borrower as a condition precedent to the other Borrower's
Obligations hereunder), and covenants that this Agreement

                                       84
<PAGE>

(and the joint and several liability of each Borrower under Section 12.01) will
not be discharged, except by payment in full in cash of the Obligations and the
termination of the Commitments. Each Borrower further waives all notices of the
existence, creation or incurrence of new or additional Debt, arising either from
additional loans extended to the other Borrower or otherwise, and also waives
all notices that the principal amount, or any portion thereof, and/or any
interest on any instrument or document evidencing all or any part of the
Obligations is due, notices of any and all proceedings to collect from the
maker, any endorser or any other guarantor of all or any part of the
Obligations, or from any other Person, and, to the extent permitted by law,
notices of exchange, sale, surrender or other handling of any security or
Collateral given to any Agent, any Issuing Bank or any Lender to secure payment
of all or any part of the Obligations.

            (b) The Agents, the Issuing Banks and/or the Lenders are hereby
authorized, without notice or demand and without affecting the liability of the
Borrowers hereunder, from time to time, (i) to accept partial payments on all or
any part of the Obligations; (ii) to take and hold security or Collateral for
the payment of all or any part of the Obligations, this Agreement, or any other
guaranties of all or any part of the Obligations or other liabilities of the
Borrowers, and (iii) to settle, release, exchange, enforce, waive, compromise or
collect or otherwise liquidate all or any part of the Obligations, this
Agreement, any guaranty of all or any part of the Obligations, and, subject to
the terms of the Pledge Agreements, any security or Collateral for the
Obligations or for any such guaranty, irrespective of the effect on the
contribution or subrogation rights of the Borrowers. Any of the foregoing may be
done in any manner, without affecting or impairing the obligations of each
Borrower hereunder.

      SECTION 12.05. CONTRIBUTION AMONG BORROWERS.

            (a) To the extent that any payment is made on the Obligations by or
on behalf of any Borrower under or pursuant to this Article XII (a "BORROWER
PAYMENT") which, taking into account all other Borrower Payments then previously
or concurrently made by any other Borrower, exceeds the amount which otherwise
would have been paid by or attributable to such Borrower if each Borrower had
paid the aggregate Obligations satisfied by such Borrower Payment in the same
proportion as such Borrower's "Allocable Amount" (as defined below) (as
determined immediately prior to such Borrower Payment) bore to the aggregate
Allocable Amounts of each of the Borrower as determined immediately prior to the
making of such Borrower Payment, then, following payment in full in cash of the
Obligations and the termination or expiration of all Commitments, such Borrower
shall be entitled to receive contribution and indemnification payments from, and
be reimbursed by, the other Borrower for the amount of such excess, pro rata
based upon their respective Allocable Amounts in effect immediately prior to
such Borrower Payment.

            (b) As of any date of determination, the "Allocable Amount" of any
Borrower shall be equal to the maximum amount of the claim which could then be
recovered from such Borrower with respect to the Obligations without rendering
such claim voidable or avoidable under Section 548 of Chapter 11 of the
Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act,
Uniform Fraudulent Conveyance Act or similar statute or common law.

            (c) This Section 12.05 is intended only to define the relative
rights of the Borrowers, and nothing set forth in this Section 12.05 is intended
to or shall impair the

                                       85
<PAGE>

obligations of the Borrowers to pay any amounts as and when the same shall
become due and payable in accordance with the terms of this Agreement.

            (d) The parties hereto acknowledge that the rights of contribution
and indemnification hereunder shall constitute assets of the Borrower to which
such contribution and indemnification is owing.

            (e) The rights of the indemnifying Borrower against the other
Borrower with respect to any payments on the Obligations shall be exercisable
upon the full payment of the Obligations in cash and the termination or expiry
of the Commitments.

      SECTION 12.06. SUBROGATION; REINSTATEMENT. Until the Obligations shall
have been paid in full in cash and the Commitments shall have been terminated,
each Borrower hereby agrees that it (i) shall have no right of subrogation with
respect to such Obligations (under contract, Section 509 of the Bankruptcy Code
or any comparable provision of any other applicable law, or otherwise) or any
other right of indemnity, reimbursement or contribution, and (ii) hereby waives
any right to enforce any remedy which any Agent, any Issuing Bank or any Lender
may now have or may hereafter have against the other Borrower. The provisions of
this Article XII shall continue to be effective or be reinstated, as the case
may be, if at any time any payment of any of the Obligations is rescinded or
must otherwise be returned by the Collateral Agent, the Administrative Agent,
any Issuing Bank or any Lender upon the insolvency, bankruptcy or reorganization
of either Borrower or otherwise, all as though such payment had not been made.

      SECTION 12.07. SUBORDINATION. Each Borrower agrees that any and all claims
of such Borrower against the other Borrower, the Guarantors or any endorser or
other guarantor of all or any part of the Obligations, or against any of their
respective properties, shall be subordinated to all of the Obligations;
provided, that, for the avoidance of doubt, so long as no Event of Default shall
be continuing, each Borrower may make loans to and receive payments in the
ordinary course with respect to Inter-Borrower Debt (as hereinafter defined)
from the other Borrower to the extent not prohibited by the terms of this
Agreement and the other Loan Documents. Notwithstanding any right of any
Borrower to ask for, demand, sue for, take or receive any payment from the other
Borrower, all rights and Liens of such Borrower, whether now or hereafter
arising and howsoever existing, in any assets of the other Borrower (whether
constituting part of the Collateral or otherwise) shall be and hereby are
subordinated to the rights of the Agents, the Issuing Banks or the Lenders in
those assets. Such Borrower shall have no right to possession of any such asset
or to foreclose upon any such asset, whether by judicial action or otherwise,
unless and until all of the Obligations shall have been paid in full in cash, no
Letters of Credit remain outstanding and the Commitments shall have been
terminated. If all or any part of the assets of any Borrower, or the proceeds
thereof, are subject to any distribution, division or application to the
creditors of such Borrower, whether partial or complete, voluntary or
involuntary, and whether by reason of liquidation, bankruptcy, arrangement,
receivership, assignment for the benefit of creditors or any other action or
proceeding, or if the business of any Borrower is dissolved or if substantially
all of the assets of any Borrower are sold, then, and in any such event, any
payment or distribution of any kind or character, either in cash, securities or
other property, which shall be payable or deliverable upon or with respect to
any Debt of any Borrower to the other Borrower ("INTER-BORROWER DEBT") shall be
paid or delivered directly to

                                       86
<PAGE>

the Administrative Agent for application to the Obligations, due or to become
due, until such Obligations shall have been paid in full in cash and no Letters
of Credit remain outstanding. Each Borrower irrevocably authorizes and empowers
the Administrative Agent, each of the Issuing Banks and each of the Lenders to
demand, sue for, collect and receive every such payment or distribution and give
acquittance therefor and to make and present for and on behalf of such Borrower
such proofs of claim and take such other action, in the Administrative Agent's,
such Issuing Bank's or such Lender's own name or in the name of such Borrower or
otherwise, as the Administrative Agent, any Issuing Bank or any Lender may deem
reasonably necessary or reasonably advisable for the enforcement of this
Agreement. After the occurrence and during the continuance of a Default or an
Event of Default, each Lender may vote, with respect to the Obligations owed to
it, such proofs of claim in any such proceeding, receive and collect any and all
dividends or other payments or disbursements made thereon in whatever form the
same may be paid or issued and apply the same on account of any of the
Obligations. Except as permitted under Sections 8.02(d) and (e), should any
payment, distribution, security or instrument or proceeds thereof be received by
any Borrower upon or with respect to the Inter-Borrower Debt during the
continuance of any Event of Default and prior to the payment in full in cash of
all of the Obligations, the termination or cancellation of each Letter of Credit
and the termination of the Commitments, such Borrower shall receive and hold the
same in trust, as trustee, for the benefit of the Agents, the Issuing Banks and
the Lenders and shall forthwith deliver the same to the Administrative Agent in
precisely the form received (accompanied by the endorsement or assignment of
such Borrower where necessary), for application to the Obligations, due or not
due, and, until so delivered, the same shall be held in trust by such Borrower
as the property of the Agents, the Issuing Banks and the Lenders. After the
occurrence and during the continuance of a Default or an Event of Default, if
any Borrower fails to make any such endorsement or assignment to the Agents, the
Issuing Banks or the Lenders, the Agents, the Issuing Banks or the Lenders (or
any of their respective officers or employees) are hereby irrevocably authorized
to make the same. Each Borrower agrees that until the Obligations have been paid
in full in cash, no Letters of Credit remain outstanding and the Commitments
have been terminated, such Borrower will not assign or transfer to any Person
any claim such Borrower has or may have against any other Borrower (other than
in favor of the Administrative Agent pursuant to the Loan Documents).

                                  ARTICLE XIII
           NO NOVATION; REFERENCES TO THIS AGREEMENT IN LOAN DOCUMENTS

      SECTION 13.01. NO NOVATION. It is the express intent of the parties hereto
that this Agreement (i) shall re-evidence, in part, the Borrowers' indebtedness
under the Existing Credit Agreement, (ii) is entered into in substitution for,
and not in payment of, the obligations of the Borrowers under the Existing
Credit Agreement, and (iii) is in no way intended to constitute a novation of
any of the Borrowers' indebtedness which was evidenced by the Existing Credit
Agreement or any of the other Loan Documents.

      SECTION 13.02. REFERENCES TO THIS AGREEMENT IN LOAN DOCUMENTS. Upon the
effectiveness of this Agreement, on and after the date hereof, each reference in
any other Loan Document to the Existing Credit Agreement (including any
reference therein to "the Credit Agreement," "thereunder," "thereof," "therein"
or words of like import referring thereto) shall mean and be a reference to this
Agreement.

                                       87
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                        CMS ENERGY CORPORATION

                                        By: /s/ Laura L. Mountcastle
                                           -------------------------------------
                                        Name: Laura L. Mountcastle
                                        Title: Vice President and Treasurer

                                        CMS ENTERPRISES COMPANY

                                        By: /s/ Laura L. Mountcastle
                                           -------------------------------------
                                           Name: Laura L. Mountcastle
                                           Title: Vice President and Treasurer

                                Signature Page to
                  Fifth Amended and Restated Credit Agreement

<PAGE>

                                        CITICORP USA, INC., as Collateral Agent
                                        and as Administrative Agent

                                        By: /s/ DAVE R. [ILLEGIBLE]
                                           -------------------------------------
                                           Name: DAVE R. [ILLEGIBLE]
                                           Title: Director

                                        CITIBANK, N.A., as a Lender

                                        By: /s/ DAVE R. [ILLEGIBLE]
                                           -------------------------------------
                                           Name: DAVE R. [ILLEGIBLE]
                                           Title: Director

                                        Address:   388 Greenwich St.
                                                   New York, NY 10013
                                        Attn:      Nicholas McKee
                                        Telephone: (212) 816-8592
                                        Fax:       (212)816-8098

                                Signature Page to
                   Fifth Amended and Restated Credit Agreement

<PAGE>

                                        WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        as Syndication Agent and a Lender

                                        By: /s/ Mark D. Weir
                                           -------------------------------------
                                           Name: Mark D. Weir
                                           Title: Director

                                        Address:   301 S. College Street
                                                   Charlotte, NC 28288-0608
                                        Attn:      Mark D. Weir
                                        Telephone: (704)383-6610
                                        Fax:       (704)383-6647

                                Signature Page to
                  Fifth Amended and Restated Credit Agreement

<PAGE>

                                        BANK ONE, NA, as a Documentation
                                        Agent and a Lender

                                        By: /s/ Jane Bek Keil
                                           -------------------------------------
                                           Name: Jane Bek Keil
                                           Title: Director

                                        Address:   JPMorgan Chase Bank
                                                   270 Park Avenue/4
                                                   New York, NY 10017
                                        Attn:      Thomas L. Casey
                                        Telephone: (212)270-5305
                                        Fax:       (212)270-3089

                                Signature Page to
                  Fifth Amended and Restated Credit Agreement

<PAGE>

                                        BARCLAYS BANK PLC, as a Documentation
                                        Agent and a Lender

                                        By: /s/ Sydney G. Dennis
                                           -------------------------------------
                                           Name:    Sydney G. Dennis
                                           Title:   Director

                                        Address:   200 Park Avenue
                                                   New York, New York 10166
                                        Attn:      Sydney G. Dennis
                                        Telephone: (212)412-2470
                                        Fax:       (212)412-2441

                                Signature Page to
                  Fifth Amended and Restated Credit Agreement

<PAGE>

                                    UNION BANK OF CALIFORNIA, N.A.,
                                    as a Documentation Agent and a Lender

                                    By: /s/ Robert J. Olson
                                       -------------------------------------
                                       Name:  Robert J. Olson
                                       Title: Senior Vice President

                                    Address:   445 S. Figueroa St., 15th Floor
                                               Los Angeles, CA 90071
                                    Attn:      Robert J. Olson
                                    Telephone: (213)236-7407
                                    Fax:       (213)236-4096

                                Signature Page to
                  Fifth Amended and Restated Credit Agreement

<PAGE>

                                      BNP PARIBAS, as a Lender

                                      By: /s/ FRANCIS J. DeLANEY
                                         -------------------------------------
                                         Name:  FRANCIS J. DeLANEY
                                         Title: Managing Director

                                      By: /s/ TIMOTHY F. VINCENT
                                         -------------------------------------
                                         Name:  TIMOTHY F. VINCENT
                                         Title: Director

                                      Address:   787 Seventh Avenue (31st Floor)
                                                 New York NY 10019
                                      Attn:      Mark Renaud
                                      Telephone: (212) 841-2807
                                      Fax:       (212) 841-2052

                                Signature Page to
                  Fifth Amended and Restated Credit Agreement

<PAGE>

                                        DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                        as a Lender

                                        By: /s/ Marcus M. Tarkington
                                           -------------------------------------
                                           Name:  Marcus M. Tarkington
                                           Title: Director

                                                  Deutsche Bank
                                        Address:  60 Wall Street
                                                  NYC 60-4301
                                                  New York, NY 10005
                                        Attn:     Marcus Tarkington
                                        Telephone: 212 250-6153
                                        Fax:       212 797-5694

                                Signature Page to
                  Fifth Amended and Restated Credit Agreement

<PAGE>

                                        MERRILL LYNCH BANK USA, as a Lender

                                        By: /s/ Louis Alder
                                           -------------------------------------
                                           Name: Louis Alder
                                           Title:   Director

                                        Address:   15 West South Temple, Ste 300
                                                   Salt Lake City, UT 84101
                                        Attn:      Frank Stepan
                                        Telephone: (801) 526-8316
                                        Fax:       (801) 531-7470

                                Signature Page to
                  Fifth Amended and Restated Credit Agreement

<PAGE>

                                   FOOTHILL INCOME TRUST II, L.P., as a Lender
                                   BY FIT II GP, LLC, Its General Partner

                                   By: /s/ Jeff Nikora
                                      -------------------------------------
                                      Name: Jeff Nikora
                                      Title: Managing Member

                                   Address:   2450 Colorado Ave. #3000 West
                                              Santa Monica, CA 90404
                                   Attn:      Dennis Ascher / Elizabeth Eipe
                                   Telephone: (310) 453-7377 / (310) 453-7387
                                   Fax:       (310) 453-7470 / (310) 453-7472

                                Signature Page to
                  Fifth Amended and Restated Credit Agreement

<PAGE>

                                       KEYBANK NATIONAL ASSOCIATION, as a Lender

                                       By: /s/ Sherrie I. Manson
                                          --------------------------------------
                                          Name: Sherrie I. Manson
                                          Title: Vice President

                                        Address:    127 Public Square
                                                    Mailcode: OH-01-27-0623
                                                    Cleveland, Ohio  44114
                                        Attn:       Sherrie I. Manson
                                        Telephone:  (216) 689-3443
                                        Fax:        (216) 689-4981

                                Signature Page to
                   Fifth Amended and Restated Credit Agreement

<PAGE>

                                      COMERICA BANK, as a Lender

                                      By: /s/ Blake W. Arnett
                                         -------------------------------------
                                         Name: Blake W. Arnett
                                         Title: Account Officer

                                      Address: 500 Woodward     MailCode 3268
                                               Detroit, MI      48224
                                      Attn: Blake W. Arnett
                                      Telephone: ([313]) [        ] 313-222-7802
                                      Fax:       ([   ]) [        ] 313-222-9514

                                Signature Page to
                   Fifth Amended and Restated Credit Agreement

<PAGE>

                               COMMITMENT SCHEDULE

<TABLE>
<CAPTION>
LENDER                                        Commitment
------                                        ----------
<S>                                         <C>
CITIBANK, N.A                               $ 33,500,000
WACHOVIA BANK, NATIONAL ASSOCIATION         $ 33,500,000
BANK ONE, NA                                $ 33,500,000
BARCLAYS BANK PLC                           $ 33,500,000
UNION BANK OF CALIFORNIA, N.A.              $ 33,500,000
BNP PARIBAS                                 $ 28,000,000
DEUTSCHE BANK TRUST COMPANY AMERICAS        $ 28,000,000
MERRILL LYNCH BANK USA                      $ 24,000,000
FOOTHILL INCOME TRUST II, L.P.              $ 20,000,000
KEYBANK NATIONAL ASSOCIATION                $ 20,000,000
COMERICA BANK                               $ 12,500,000
Total Commitments:                          $300,000,000
</TABLE>

<PAGE>

                                   SCHEDULE II

                           Pledged Ownership Interests

<TABLE>
<S>                                      <C>
GRANTOR                                  PLEDGED SUBSIDIARIES

CMS Energy Corporation                   CMS Enterprises Company (100%)

                                         Consumers Energy Company (100%)

CMS Enterprises Company                  CMS Generation Co. (100%)

                                         CMS Gas Transmission Company (100%)

                                         CMS Capital, L.L.C. (100%)

                                         CMS Energy Resource Management Company (100%)

                                         CMS International Ventures, L.L.C. (40.47%)

CMS International Ventures, L.L.C.       CMS Electric & Gas, L.L.C. (100%)

CMS Generation Co.                       CMS International Ventures, L.L.C. (21.02%)

                                         Dearborn Industrial Energy, L.L.C. (100%)

                                         CMS Generation Michigan Power L.L.C. (100%)

Dearborn Industrial Energy, L.L.C.       Dearborn Industrial Generation, L.L.C. (100%)

CMS Gas Transmission Company             CMS International Ventures, L.L.C. (37.01%)
</TABLE>

<PAGE>

                                                                    ATTACHMENT A

                                  REAFFIRMATION

               Each of the undersigned hereby acknowledges receipt of a copy of
the foregoing Fifth Amended and Restated Credit Agreement dated as of
August____, 2004 by and among CMS ENERGY CORPORATION (the "COMPANY") and CMS
ENTERPRISES COMPANY ("ENTERPRISES"), the financial institutions from time to
time party thereto (the "LENDERS"), and CITICORP USA, INC., as administrative
agent (in such capacity, the "ADMINISTRATIVE AGENT") for the Lenders and as
collateral agent (in such capacity, the "Collateral Agent") for the Lenders (as
amended, restated, supplemented or otherwise modified from time to time, the
"CREDIT AGREEMENT"). Capitalized terms used in this Reaffirmation and not
defined herein shall have the meanings given to them in the Credit Agreement.

            As used herein, (i) "ENTERPRISES PLEDGE SUPPLEMENT" means the Pledge
Supplement to the Pledge Agreement (as defined below), dated as of November 1,
2002, made by Enterprises, a Michigan corporation, in favor of the Collateral
Agent (as defined therein); (ii) "CMSGTC PLEDGE SUPPLEMENT" means the Pledge
Supplement to the Pledge Agreement (as defined below), dated as of November 1,
2002, made by CMS Gas Transmission Company, a Michigan corporation ("CMSGTC"),
in favor of the Collateral Agent (as defined therein); (iii) "CMSGC PLEDGE
SUPPLEMENT" means the Pledge Supplement to the Pledge Agreement (as defined
below), dated as of November 1, 2002, made by CMS Generation Co., a Michigan
corporation ('CMSGC"), in favor of the Collateral Agent (as defined therein);
(iv) "CMSIV PLEDGE SUPPLEMENT" means the Pledge Supplement to the Pledge
Agreement (as defined below), dated as of December 8, 2003, made by CMS
International Ventures, L.L.C., a Michigan limited liability company ("CMSIV"),
in favor of the Collateral Agent (as defined therein) and (v) "CMSEG PLEDGE
SUPPLEMENT" means the Pledge Supplement to the Pledge Agreement (as defined
below), dated as of December 8, 2003, made by CMS Electric & Gas, L.L.C.
("CMSEG"), a Michigan limited liability company, in favor of the Collateral
Agent (as defined therein).

            Without in any way establishing a course of dealing by any Agent or
any Lender, the Company:

            (a) reaffirms the grant of a security interest pursuant to that
certain Third Amended and Restated Pledge and Security Agreement, dated as of
December 8, 2003, made by the Company in favor of the Collateral Agent (as
defined therein) on behalf of and for the ratable benefit of the Lenders (the
"SECURITY AGREEMENT") and

            (b) hereby grants a security interest to the Collateral Agent, in
all of the Company's right, title and interest, whether now owned or hereinafter
acquired, in the Collateral (as defined in the Security Agreement) to secure the
Secured Obligations (as defined in the Security Agreement).

                                  Attachment A
                                       1
<PAGE>

            Without in any way establishing a course of dealing by any Agent or
any Lender, each of Enterprises and the other entities that are signatories
hereto (other than the Company):

            (a) reaffirms the grant of a security interest pursuant to that
certain Pledge and Security Agreement, dated as of July 12, 2002, made by
Enterprises and each other Grantor (as defined therein) in favor of the
Collateral Agent (as defined therein) on behalf of and for the ratable benefit
of the Lenders (the "PLEDGE AGREEMENT");

            (b) hereby grants a security interest to the Collateral Agent, in
all of such Grantor's right, title and interest, whether no owner or hereinafter
acquired, in the Collateral (as defined in the Pledge Agreement) to secure the
Obligations (as defined in the Pledge Agreement);

            (c) in the case of Enterprises, hereby grants a security interest to
the Collateral Agent, in all of its right, title and interest, whether no owner
or hereinafter acquired, in the collateral described on Schedule I to the
Enterprises Pledge Supplement;

            (d) in the case of CMSGTC, hereby grants a security interest to the
Collateral Agent, in all of its right, title and interest, whether no owner or
hereinafter acquired, in the collateral described on Schedule I to the CMSGTC
Pledge Supplement;

            (e) in the case of CMSGC, hereby grants a security interest to the
Collateral Agent, in all of its right, title and interest, whether no owner or
hereinafter acquired, in the collateral described on Schedule I to the CMSGC
Pledge Supplement;

            (f) in the case of CMSIV, hereby grants a security interest to the
Collateral Agent, in all of its right, title and interest, whether no owner or
hereinafter acquired, in the collateral described on Schedule I to the CMSIV
Pledge Supplement;

            (g) in the case of CMSEG, hereby grants a security interest to the
Collateral Agent, in all of its right, title and interest, whether no owner or
hereinafter acquired, in the collateral described on Schedule I to the CMSEG
Pledge Supplement;

            (h) in the case of each Guarantor, reaffirms its unconditional
guaranty of the Obligations pursuant to the Guaranty and

            (i) acknowledges and agrees that each such Loan Document executed by
the undersigned in connection with the Credit Agreement remains in full force
and effect and is hereby reaffirmed, ratified and confirmed. All references to
the Credit Agreement contained in the Security Agreement, the Pledge Agreement
and the Guaranty shall be a reference to the Credit Agreement as the same may
from time to time hereafter be amended, modified or restated.

                                  Attachment A
                                        2
<PAGE>

            THIS REAFFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAWS OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES).

Dated as of August_________2004

CMS ENTERPRISES COMPANY                 CMS ENERGY CORPORATION

By:___________________________          By:___________________________
Name:                                   Name:
Title:                                  Title:

CMS GAS TRANSMISSION COMPANY            CMS ELECTRIC & GAS, L.L.C.
                                        (formerly known as CMS Electric and
                                        Gas Company)

By:___________________________          By:___________________________
Name:                                   Name:
Title:                                  Title:

CMS GENERATION CO.                      CMS CAPITAL, L.L.C.

By:___________________________          By:___________________________
Name:                                   Name:
Title:                                  Title:

CMS ENERGY RESOURCE MANAGEMENT COMPANY  CMS INTERNATIONAL VENTURES, L.L.C.

By:___________________________          By:___________________________
Name:                                   Name:
Title:                                  Title:

                                  Attachment A
                                       3
<PAGE>

CMS GENERATION MICHIGAN POWER L.L.C.    DEARBORN INDUSTRIAL ENERGY, L.L.C.

By:___________________________          By:___________________________
Name:                                   Name:
Title:                                  Title:

DEARBORN INDUSTRIAL GENERATION, L.L.C.

By:__________________________
Name:
Title:

                                  Attachment A
                                       4
<PAGE>

AGREED AND ACKNOWLEDGED as of the date first written above.

CITICORP USA, INC., as Collateral Agent

By:___________________________
   Its:

                                  Attachment A
                                       5<PAGE>
                                                                     Exhibit 4.1

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

                                   MGM MIRAGE

                    $550,000,000 6.75% SENIOR NOTES DUE 2012

                                    INDENTURE

                           DATED AS OF AUGUST 25, 2004

                         U.S. BANK NATIONAL ASSOCIATION

                                     TRUSTEE

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                   Page
                                                                                                                   ----
<S>                                                                                                                <C>
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE............................................................      1
            SECTION 1.01       DEFINITIONS......................................................................      1
            SECTION 1.02       OTHER DEFINITIONS................................................................     10
            SECTION 1.03       INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT................................     11
            SECTION 1.04       RULES OF CONSTRUCTION............................................................     11

ARTICLE II THE NOTES............................................................................................     12
            SECTION 2.01       FORM AND DATING..................................................................     12
            SECTION 2.02       EXECUTION AND AUTHENTICATION.....................................................     12
            SECTION 2.03       REGISTRAR, PAYING AGENT AND DEPOSITARY...........................................     13
            SECTION 2.04       PAYING AGENT TO HOLD MONEY IN TRUST..............................................     13
            SECTION 2.05       HOLDER LISTS.....................................................................     13
            SECTION 2.06       TRANSFER AND EXCHANGE............................................................     14
            SECTION 2.07       REPLACEMENT NOTES................................................................     23
            SECTION 2.08       OUTSTANDING NOTES................................................................     23
            SECTION 2.09       INTENTIONALLY OMITTED............................................................     24
            SECTION 2.10       TEMPORARY NOTES..................................................................     24
            SECTION 2.11       CANCELLATION.....................................................................     24
            SECTION 2.12       DEFAULTED INTEREST...............................................................     24
            SECTION 2.13       CUSIP, ISIN OR COMMON CODE NUMBERS...............................................     25
            SECTION 2.14       ISSUANCE OF ADDITIONAL NOTES.....................................................     25

ARTICLE III REDEMPTION..........................................................................................     26
            SECTION 3.01       OPTIONAL REDEMPTION..............................................................     26
            SECTION 3.02       ELECTION TO REDEEM; NOTICE TO TRUSTEE............................................     27
            SECTION 3.03       SELECTION BY TRUSTEE OF NOTES TO BE REDEEMED.....................................     27
            SECTION 3.04       NOTICE OF REDEMPTION.............................................................     27
            SECTION 3.05       DEPOSIT OF REDEMPTION PRICE......................................................     28
            SECTION 3.06       NOTES PAYABLE ON REDEMPTION DATE.................................................     28
            SECTION 3.07       NOTES REDEEMED IN PART...........................................................     28
            SECTION 3.08       MANDATORY DISPOSITION OF NOTES PURSUANT TO GAMING LAWS...........................     29

ARTICLE IV COVENANTS............................................................................................     29
            SECTION 4.01       PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.......................................     29
            SECTION 4.02       REPORTS..........................................................................     29
            SECTION 4.03       OFFICER'S CERTIFICATE AS TO COMPLIANCE...........................................     30
            SECTION 4.04       MAINTENANCE OF OFFICE OR AGENCY..................................................     30
            SECTION 4.05       MONEY FOR NOTES; PAYMENTS TO BE HELD IN TRUST....................................     30
            SECTION 4.06       CORPORATE EXISTENCE..............................................................     31
            SECTION 4.07       WAIVER OF CERTAIN COVENANTS......................................................     31
            SECTION 4.08       GUARANTEE AND COLLATERAL MATTERS.................................................     32
            SECTION 4.09       CONDITIONAL COLLATERAL; GAMING APPROVALS.........................................     33
            SECTION 4.10       Limitation on Liens..............................................................     33
            SECTION 4.11       LIMITATION ON SALE AND LEASEBACK TRANSACTIONS....................................     35
            SECTION 4.12       COLLATERAL EVENT AFTER COLLATERAL RELEASE DATE...................................     35

ARTICLE V CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE..................................................     36
            SECTION 5.01       COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.............................     36
            SECTION 5.02       SUCCESSOR CORPORATION SUBSTITUTED................................................     36
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                                <C>
ARTICLE VI DEFAULTS AND REMEDIES................................................................................     37
            SECTION 6.01       EVENTS OF DEFAULT................................................................     37
            SECTION 6.02       ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT...............................     38
            SECTION 6.03       COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE..................     39
            SECTION 6.04       TRUSTEE MAY FILE PROOFS OF CLAIM.................................................     39
            SECTION 6.05       TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF DEBT SECURITIES.................     40
            SECTION 6.06       APPLICATION OF MONEY COLLECTED...................................................     40
            SECTION 6.07       LIMITATION ON SUITS..............................................................     40
            SECTION 6.08       UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM AND INTEREST........     41
            SECTION 6.09       RESTORATION OF RIGHTS AND REMEDIES...............................................     41
            SECTION 6.10       RIGHTS AND REMEDIES CUMULATIVE...................................................     41
            SECTION 6.11       DELAY OR OMISSION NOT WAIVER.....................................................     42
            SECTION 6.12       CONTROL BY HOLDERS...............................................................     42
            SECTION 6.13       WAIVER OF PAST DEFAULTS..........................................................     42
            SECTION 6.14       UNDERTAKING FOR COSTS............................................................     42
            SECTION 6.15       WAIVER OF STAY OR EXTENSION LAWS.................................................     43
            SECTION 6.16       DISQUALIFIED HOLDERS.............................................................     43

ARTICLE VII TRUSTEE.............................................................................................     43
            SECTION 7.01       CERTAIN DUTIES AND RESPONSIBILITIES..............................................     43
            SECTION 7.02       NOTICE OF DEFAULTS...............................................................     44
            SECTION 7.03       CERTAIN RIGHTS OF TRUSTEE........................................................     44
            SECTION 7.04       NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF NOTES................................     45
            SECTION 7.05       MAY HOLD NOTES...................................................................     45
            SECTION 7.06       MONEY HELD IN TRUST..............................................................     46
            SECTION 7.07       COMPENSATION AND REIMBURSEMENT...................................................     46
            SECTION 7.08       DISQUALIFICATION; CONFLICTING INTERESTS..........................................     46
            SECTION 7.09       CORPORATE TRUSTEE REQUIRED; ELIGIBILITY..........................................     46
            SECTION 7.10       RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR................................     47
            SECTION 7.11       ACCEPTANCE OF APPOINTMENT BY SUCCESSOR...........................................     48
            SECTION 7.12       MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS......................     48
            SECTION 7.13       PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY................................     48
            SECTION 7.14       APPOINTMENT OF AUTHENTICATING AGENT..............................................     48
            SECTION 7.15       APPOINTMENT OF CO-TRUSTEE........................................................     49
            SECTION 7.16       PAYING AGENT; REGISTRAR..........................................................     50
            SECTION 7.17       REPORTS BY TRUSTEE...............................................................     50

ARTICLE VIII DISCHARGE OF INDENTURE; DEFEASANCE.................................................................     51
            SECTION 8.01       SATISFACTION AND DISCHARGE OF INDENTURE..........................................     51
            SECTION 8.02       APPLICATION OF TRUST MONEY.......................................................     52
            SECTION 8.03       APPLICABILITY OF ARTICLE.........................................................     52
            SECTION 8.04       DEFEASANCE UPON DEPOSIT OF MONEYS OR U.S. GOVERNMENT OBLIGATIONS.................     53
            SECTION 8.05       DEPOSITED MONEYS AND U.S. GOVERNMENT OBLIGATIONS TO BE HELD IN TRUST.............     54
            SECTION 8.06       REPAYMENT TO COMPANY.............................................................     54

ARTICLE IX SUPPLEMENTAL INDENTURES..............................................................................     55
            SECTION 9.01       SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS...............................     55
            SECTION 9.02       SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS..................................     56
            SECTION 9.03       EXECUTION OF SUPPLEMENTAL INDENTURES.............................................     56
            SECTION 9.04       EFFECT OF SUPPLEMENTAL INDENTURES................................................     57
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                                <C>
            SECTION 9.05       CONFORMITY WITH TRUST INDENTURE ACT..............................................     57
            SECTION 9.06       REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES....................................     57

ARTICLE X NOTE GUARANTEES.......................................................................................     57
            SECTION 10.01      GUARANTEE........................................................................     57
            SECTION 10.02      EXECUTION AND DELIVERY OF GUARANTEE..............................................     58
            SECTION 10.03      LIMITATION OF SUBSIDIARY GUARANTOR'S LIABILITY...................................     58
            SECTION 10.04      CONTRIBUTION.....................................................................     58
            SECTION 10.05      RIGHTS UNDER THE GUARANTEE.......................................................     59
            SECTION 10.06      PRIMARY OBLIGATIONS..............................................................     59
            SECTION 10.07      WAIVERS..........................................................................     59
            SECTION 10.08      RELEASES.........................................................................     60
            SECTION 10.09      NO ELECTION......................................................................     60
            SECTION 10.10      FINANCIAL CONDITION OF THE COMPANY...............................................     60
            SECTION 10.11      CONSOLIDATION, MERGER, ETC., ONLY ON CERTAIN TERMS...............................     60

ARTICLE XI COLLATERAL AND SECURITY..............................................................................     61
            SECTION 11.01      EXECUTION OF COLLATERAL DOCUMENTS................................................     61
            SECTION 11.02      COLLATERAL DOCUMENTS.............................................................     61
            SECTION 11.03      RECORDING AND OPINIONS...........................................................     62
            SECTION 11.04      RELEASE AND SUBORDINATION OF COLLATERAL..........................................     63
            SECTION 11.05      CERTIFICATES OF THE COMPANY......................................................     64
            SECTION 11.06      AUTHORIZATION OF ACTIONS TO BE TAKEN BY THE TRUSTEE UNDER THE COLLATERAL
                               DOCUMENTS........................................................................     64
            SECTION 11.07      AUTHORIZATION OF RECEIPT OF FUNDS BY THE TRUSTEE UNDER THE COLLATERAL
                               DOCUMENTS........................................................................     65

ARTICLE XII MISCELLANEOUS.......................................................................................     65
            SECTION 12.01      TRUST INDENTURE ACT CONTROLS.....................................................     65
            SECTION 12.02      NOTICES..........................................................................     65
            SECTION 12.03      COMMUNICATION BY HOLDERS WITH OTHER HOLDERS......................................     66
            SECTION 12.04      CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT...............................     66
            SECTION 12.05      STATEMENTS REQUIRED IN CERTIFICATE OR OPINION....................................     66
            SECTION 12.06      RULES BY TRUSTEE, PAYING AGENT AND REGISTRAR.....................................     66
            SECTION 12.07      BUSINESS DAYS....................................................................     67
            SECTION 12.08      GOVERNING LAW....................................................................     67
            SECTION 12.09      NO RECOURSE AGAINST OTHERS.......................................................     67
            SECTION 12.10      SUCCESSORS.......................................................................     67
            SECTION 12.11      MULTIPLE ORIGINALS...............................................................     67
            SECTION 12.12      TABLE OF CONTENTS; HEADINGS......................................................     67
            SECTION 12.13      SEVERABILITY.....................................................................     67
            SECTION 12.14      NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS....................................     68
            SECTION 12.15      NO PARENT LIABILITY..............................................................     68
</TABLE>

EXHIBITS

EXHIBIT A - FORM OF GLOBAL NOTE
EXHIBIT B - FORM OF CERTIFICATE OF TRANSFER
EXHIBIT C - FORM OF CERTIFICATE OF EXCHANGE
EXHIBIT D - FORM OF CERTIFICATE FROM ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR
EXHIBIT E - FORM OF GUARANTEE ENDORSEMENT
EXHIBIT F - FORM OF JOINDER

                                      iii
<PAGE>

                             CROSS-REFERENCE TABLE*

<TABLE>
<CAPTION>
TIA SECTION                                                               INDENTURE SECTION
-----------                                                               -----------------
<S>      <C>                                                              <C>
310      (a)(1)                                                           7.09
         (a)(2)                                                           7.09
         (a)(3)                                                           N.A.
         (a)(4)                                                           N.A.
         (a)(5)                                                           7.09
         (b)                                                              7.08
         (c)                                                              N.A.
311      (a)                                                              7.13
         (b)                                                              7.13
         (c)                                                              N.A.
312      (a)                                                              2.05
         (b)                                                              12.03
         (c)                                                              12.03
313      (a)                                                              7.17
         (b)(1)                                                           7.17
         (b)(2)                                                           7.17
         (c)                                                              7.17;12.02
         (d)                                                              7.17
314      (a)                                                              4.02
         (b)                                                              11.03
         (c)(1)                                                           12.04
         (c)(2)                                                           12.04
         (c)(3)                                                           N.A.
         (d)                                                              11.04; 11.05
         (e)                                                              12.05
         (f)                                                              N.A.
315      (a)                                                              7.01
         (b)                                                              7.02; 12.01
         (c)                                                              7.01
         (d)                                                              7.01
         (e)                                                              6.14
316      (a)(last sentence)                                               2.08
         (a)(1)(A)                                                        6.12
         (a)(1)(B)                                                        6.13
         (a)(2)                                                           N.A.
         (b)                                                              6.08
         (c)                                                              N.A.
317      (a)(1)                                                           6.03
         (a)(2)                                                           6.04
         (b)                                                              2.04
318      (a)                                                              12.01
         (b)                                                              N.A.
         (c)                                                              1.03
</TABLE>

N.A. means not applicable.

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

                                       iv
<PAGE>

      INDENTURE dated as of August 25, 2004, among MGM MIRAGE, a Delaware
corporation (the "COMPANY"), the Subsidiary Guarantors party hereto, and U.S.
BANK NATIONAL ASSOCIATION (the "TRUSTEE"), having its Corporate Trust Office at
60 Livingston Avenue, St. Paul, MN 55107-2292.

      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 6.75% Senior
Notes due 2012 issued on the Closing Date (the "INITIAL NOTES"), (ii) any
Additional Notes (as defined herein) that may be issued on any other Issue Date
and (iii) if and when issued pursuant to the Registration Rights Agreement (as
defined herein), any Exchange Notes (as defined herein) or Private Exchange
Notes (as defined herein) issued in exchange for Initial Notes or Additional
Notes (all such Notes in clauses (i), (ii) and (iii) being referred to
collectively as the "NOTES"):

                                   ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE

      SECTION 1.01 DEFINITIONS.

      "1998 NOTES" means (i) the Company's 6.95% senior notes due 2005 in the
original aggregate principal amount of $300 million and (ii) the Company's
6.875% senior notes due 2008 in the original aggregate principal amount of $200
million.

      "ADDITIONAL INTEREST" has the meaning set forth in the Registration Rights
Agreement.

      "ADDITIONAL NOTES" means Notes issued in accordance with Section 2.14.

      "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" (including, with correlative meanings, the terms "controlling,"
"controlled by" and "under common control with") as 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
agreement or otherwise.

      "AGENT" means any Registrar, Paying Agent, co-registrar or additional
paying agent.

      "APPLICABLE PROCEDURES" means, with respect to any transfer or exchange of
or for beneficial interests in any Global Note, the rules and procedures of the
Depositary, Euroclear and Clearstream that apply to such transfer or exchange at
the relevant time.

      "ATTRIBUTABLE DEBT" with respect to any Sale and Lease-Back Transaction
that is subject to the restrictions under Section 4.11 below, means the present
value of the minimum rental payments called for during the term of the lease
(including any period for which such lease has been extended), determined in
accordance with generally accepted accounting principles, discounted at a rate
that, at the inception of the lease, the lessee would have incurred to borrow
over a similar term the funds necessary to purchase the leased assets.

      "AUTHENTICATING AGENT" has the meaning specified in Section 7.14.

      "BANKRUPTCY LAW" means Title 11, U.S. Code, or any similar federal, state
or foreign law for the relief of debtors.

      "BENEFICIARIES" means the Holders of the Notes and the Trustee.

      "BOARD OF DIRECTORS" means, with respect to any Person, the Board of
Directors (or any similar governing body) of such Person, or unless the context
otherwise requires, any authorized committee of the Board of Directors (or such
body) of such Person. Unless otherwise specified, "BOARD OF DIRECTORS" means the
Board of Directors of the Company.

<PAGE>

      "BOARD RESOLUTION" means, with respect to the Company, a duly adopted
resolution of the Board of Directors of the Company.

      "BROKER-DEALER" means any broker-dealer that receives Exchange Notes for
its own account in any Registered Exchange Offer in exchange for Notes that were
acquired by such broker-dealer as a result of market-making or other trading
activities.

      "BUSINESS DAY" means any day which is not a Saturday, a Sunday or a legal
holiday or a day on which banking institutions or trust companies in Nevada or
New York are authorized or obligated by law to close.

      "CLEARSTREAM" means Clearstream Banking, societe anonyme, Luxembourg.

      "CLOSING DATE" means August 25, 2004.

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

      "COLLATERAL" means any assets and interests in assets now owned or
hereafter acquired by the Company or any Subsidiary Guarantor in or upon which a
Lien is granted for the benefit of the Beneficiaries (whether directly or by way
of assignment of a Lien granted to the Company or any Subsidiary Guarantor)
under any of the Collateral Documents; provided that the Liens on assets of MAC,
CORP. will not include a lien on its 50% ownership interest in Marina District
Development Holding Company, LLC, owner of 100% of the ownership interests in
Marina District Development Company, LLC, operator of Borgata.

      "COLLATERAL AGENT" means U.S. Bank National Association, in its capacity
as Collateral Agent under the Intercreditor Agreement, or its successor or
replacement pursuant to the Intercreditor Agreement.

      "COLLATERAL DOCUMENTS" means, collectively, the documents defined as
Collateral Documents in the Intercreditor Agreement, the Intercreditor
Agreement, and any agreements, documents, or instruments (including UCC
financing statements) required to be executed pursuant to the foregoing and
relating to the Collateral referred to therein, in each case as amended or
modified from time to time.

      "COLLATERAL EVENT" means, at any time after a Collateral Release Date when
the 1998 Notes remain outstanding, the occurrence of an event which requires
recollateralization of the 1998 Notes under the indenture governing the 1998
Notes.

      "COLLATERAL RELEASE" means a release of all Collateral following a
Collateral Release Date.

      "COLLATERAL RELEASE DATE" means any date on which the Company delivers
notice to the Collateral Agent requesting a release of all Liens under the
Collateral Documents which is accompanied by (i) either (A) letters from both
Moody's and Standard & Poor's indicating that both the Credit Facility and the
1998 Notes receive investment grade ratings and that the release of all
Collateral securing the Credit Facility and the 1998 Notes will not result in a
reduction in the ratings of the Credit Facility or the 1998 Notes issued by
either Moody's or Standard & Poor's below the respective ratings in effect as of
the date of issuance of the 1998 Notes or (B) evidence that the 1998 Notes have
been defeased or repaid in full, and (ii) a letter from the Administrative Agent
under the Credit Facility confirming that the Liens securing the Credit Facility
will be released concurrently with the release of the Liens securing the
Existing Senior Notes and the guarantees relating thereto.

      "COMMISSION" means the Securities and Exchange Commission or any successor
agency.

      "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 the Chairman of the Board
of Directors, the President or an Executive or Senior Vice

                                       2
<PAGE>

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.

      "CONDITIONAL COLLATERAL" means the ownership interests of MGM Grand Hotel,
LLC, Mirage Resorts, Incorporated, New York-New York Hotel and Casino, LLC,
Treasure Island Corp., Beau Rivage Resorts, Inc. or certain other licensed
Subsidiaries of the Company unless and until the requisite governmental consents
for a Lien on such ownership interests are obtained.

      "CONSOLIDATED NET TANGIBLE ASSETS" means the total amount of assets
(including investments in Joint Ventures) of the Company and its Subsidiaries
(less applicable depreciation, amortization and other valuation reserves) after
deducting therefrom (a) all current liabilities of the Company and its
Subsidiaries (excluding (i) the current portion of long-term Indebtedness, (ii)
intercompany liabilities and (iii) any liabilities which are by their terms
renewable or extendible at the option of the obligor thereon to a time more than
12 months from the time as of which the amount thereof is being computed) and
(b) all goodwill, trade names, trademarks, patents, unamortized debt discount
and any other like intangibles, all as set forth on the consolidated balance
sheet of the Company for the most recently completed fiscal quarter for which
financial statements are available and computed in accordance with generally
accepted accounting principles.

      "CORPORATE TRUST OFFICE" means the office of the Trustee specified in
Section 12.02 or any other office specified by the Trustee from time to time
pursuant to such Section.

      "CORPORATION" means a corporation, association, company or business trust.

      "CREDIT FACILITY" means, the Third Amended and Restated Loan Agreement,
dated as of November 24, 2003, and as amended on August 11, 2004, among the
Company, as Borrower and Detroit, as Co-Borrower, the Banks, Syndication Agent,
Documentation Agents and Co-Documentation Agents therein named, and Bank of
America, N.A., as Administrative Agent (and their successors and assigns from
time to time party thereto), including any related notes, guarantees, collateral
documents, instruments and agreements executed in connection therewith, in each
case as amended, modified, renewed, extended, refunded, replaced or refinanced
from time to time.

      "CREDITOR REPRESENTATIVES" means the creditor representatives named in and
parties to the Intercreditor Agreement with respect to the Existing Senior Notes
and the Credit Facility and, from and after the date of issuance of the Notes,
the Trustee as Creditor Representative for the Holders of the Notes.

      "DEFAULT" means any event that, with the passage of time or the giving of
notice or both, would be an Event of Default.

      "DEFAULTED INTEREST" has the meaning specified in Section 2.12.

      "DEFINITIVE NOTE" means one or more certificated Notes registered in the
name of the Holder thereof, issued in accordance with Section 2.06, and in the
form of Exhibit A hereto.

      "DEPOSITARY" means, with respect to the Notes issuable or issued in whole
or in part in global form, the person specified in or pursuant to Section 2.03
as the Depositary with respect to the Notes, until a successor shall have been
appointed and become such pursuant to the applicable provisions of this
Indenture, and thereafter, "DEPOSITARY" means or includes such successor.

      "DETROIT" means MGM Grand Detroit, LLC, a Delaware limited liability
company.

      "DISTRIBUTION COMPLIANCE PERIOD" means the 40-day Distribution Compliance
Period provided for in Regulation S.

      "DISCHARGED" has the meaning specified in Section 8.04.

      "DISQUALIFIED HOLDER" has the meaning specified in Section 3.08.

                                       3
<PAGE>

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

      "EUROCLEAR" means Euroclear Bank, S.A./N.V., or its successor, as operator
of the Euroclear system.

      "EVENT OF DEFAULT" has the meaning specified in Section 6.01.

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

      "EXCHANGE OFFER REGISTRATION STATEMENT" means a registration statement in
respect of Exchange Notes prepared pursuant to the Registration Rights
Agreement.

      "EXCHANGE NOTES" means, if and when issued pursuant to an Exchange Offer
Registration Statement as provided in the Registration Rights Agreement, Notes
of the Company guaranteed by the Subsidiary Guarantors issued in exchange for
Initial Notes or Additional Notes with terms substantially identical in all
material respects to the Initial Notes or Additional Notes for which such Notes
were exchanged.

      "EXCLUDED SUBSIDIARY" means Victoria Partners, Detroit and its
Subsidiaries (including MGM Grand Detroit II, LLC), MGM Insurance Company, a
Vermont corporation, other Subsidiaries that may from time to time become
Excluded Subsidiaries (if such other Subsidiaries are not guarantors of the
Company's other Indebtedness, and are not subject to any covenants in, or Liens
securing, the Credit Facility or the Existing Senior Notes), and the Company's
non-U.S. Subsidiaries whose only tangible assets are located in foreign nations
and their U.S. holding companies, provided such holding companies have no other
assets or operations and provided that except for Detroit to the extent it
guarantees any amounts of proceeds of borrowings under the Credit Facility made
available to Detroit, if any Excluded Subsidiary becomes subject to the
covenants in the Credit Facility applicable to the Subsidiary Guarantors or
grants any Liens to secure the Credit Facility, or if any Excluded Subsidiary
guarantees or grants any Liens to secure any of the Existing Senior Notes, such
Excluded Subsidiary will thereafter not be an Excluded Subsidiary.

      "EXEMPTION" has the meaning specified in Section 11.05.

      "EXEMPTION DATE" has the meaning specified in Section 11.05.

      "EXISTING SENIOR NOTES" means (i) the 1998 Notes, (ii) the Company's 6.0%
Senior Notes due 2009 in the original aggregate principal amount of $600
million, (iii) the Company's 8.50% Senior Notes due 2010 in the original
aggregate principal amount of $850 million, (iv) the Company's 5.875% Senior
Notes due 2014 in the original aggregate principal amount of $225 million, (v)
the Company 's 5.875% Senior Notes due 2014 in the original aggregate principal
amount of $300 million (including such notes issued in the exchange offer for
the 5.875% Senior Notes due 2014 in the original aggregate principal amount of
$300 million issued in a private placement on March 23, 2004) and (vi) the
Mirage Notes (in each case, including any guarantees thereof by any Subsidiary
Guarantors).

      "FUNDED DEBT" means all Indebtedness of the Company or any Subsidiary
Guarantor which (i) matures by its terms on, or is renewable at the option of
any obligor thereon to, a date more than one year after the date of original
issuance of such Indebtedness and (ii) ranks at least pari passu with the Notes
or the applicable Guarantee.

      "GAAP" means generally accepted accounting principles in the United States
of America as in effect from time to time, including those 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 have been approved by a significant segment of the accounting
profession.

      "GAMING AUTHORITY" means the Nevada Gaming Commission, the Nevada State
Gaming Control Board, the New Jersey Casino Control Commission, the New Jersey
Division of Gaming Enforcement, the Michigan Gaming Control Board, the Detroit
City Council, the Mississippi Gaming Commission or any similar commission or
agency

                                       4
<PAGE>

which has, or may at any time after the date of this Indenture have,
jurisdiction over the gaming activities of the Company or a Subsidiary (other
than an Excluded Subsidiary) of the Company or any successor thereto.

      "GAMING LAWS" means the gaming laws of a jurisdiction or jurisdictions to
which the Company or a Subsidiary of the Company is, or may at any time after
the date of this Indenture be, subject.

      "GAMING LICENSES" means every material license, permit, franchise,
registration or other material approval held by, or issued at any time after the
date of this indenture, to the Company or any of its Subsidiaries authorizing
the Company or any of its Subsidiaries to own, lease, operate or otherwise
conduct or manage gaming in any state or jurisdiction.

      "GLOBAL NOTES" means one or more Notes in the form attached hereto as
Exhibit A issued under this Indenture that is deposited with or on behalf of and
registered in the name of the Depositary or its nominee.

      "GLOBAL NOTE LEGEND" means the legend set forth in Section 2.06(f)(ii),
which is required to be placed on all Global Notes issued under this Indenture.

      "GUARANTEE" has the meaning specified in Section 10.01.

      "GUARANTEED OBLIGATIONS" has the meaning specified in Section 10.01.

      "HOLDER" means the Person in whose name a Note is registered on the
Registrar's books.

      "IAI GLOBAL NOTE" means one or more Global Notes bearing the Private
Placement Legend that will be issued in an aggregate principal amount equal to
the aggregate principal amount of Initial Notes that may be resold to
Institutional Accredited Investors on any Issue Date.

      "INCUR" means, with respect to any Indebtedness, to incur, create, issue,
assume, guarantee or otherwise become liable for or with respect to, or become
responsible for, the payment of, contingently or otherwise, such Indebtedness;
provided that the accrual of interest shall not be considered an Incurrence of
Indebtedness.

      "INDEBTEDNESS" of any Person means (i) any indebtedness of such Person,
contingent or otherwise, in respect of borrowed money (whether or not the
recourse of the lender is to the whole of the assets of such Person or only to a
portion thereof), or evidenced by notes, bonds, debentures or similar
instruments or letters of credit, or representing the balance deferred and
unpaid of the purchase price of any property, including any such indebtedness
Incurred in connection with the acquisition by such person or any of its
Subsidiaries of any other business or entity, if and to the extent such
indebtedness would appear as a liability upon a balance sheet of such Person
prepared in accordance with generally accepted accounting principles, including
for such purpose Obligations under capitalized leases, and (ii) any guarantee,
endorsement (other than for collection or deposit in the ordinary course of
business), discount with recourse, or any agreement (contingent or otherwise) to
purchase, repurchase or otherwise acquire or to supply or advance funds with
respect to, or to become liable with respect to (directly or indirectly) any
indebtedness, obligation, liability or dividend of any Person, but shall not
include indebtedness or amounts owed for compensation to employees, or for goods
or materials purchased, or services utilized, in the ordinary course of business
of such Person. For purposes of this definition of Indebtedness, a "capitalized
lease" shall be deemed to mean a lease of real or personal property which, in
accordance with generally accepted accounting principles, is required to be
capitalized.

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

      "INDIRECT PARTICIPANT" means an entity that, with respect to any
Depositary, clears through or maintains a direct or indirect, custodial
relationship with a Participant.

      "INITIAL PURCHASERS" means Banc of America Securities LLC and those
parties listed as initial purchasers in the Purchase Agreement.

                                       5
<PAGE>

      "INSTITUTIONAL ACCREDITED INVESTOR" means an institution that is an
"accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act, who is not also a QIB.

      "INTEREST PAYMENT DATE" with respect to any Note means September 1 and
March 1 of each year, commencing March 1, 2005, provided that if such Interest
Payment Date is not a Business Day, interest due on such Interest Payment Date
shall be payable on the next succeeding Business Day.

      "INTERCREDITOR AGREEMENT" means the Collateral Agent and Intercreditor
Agreement dated as of February 13, 2002 and entered into among the Company, the
Subsidiary Guarantors, U.S. Bank, National Association as the Collateral Agent
and the Creditor Representatives named therein (including any subsequent
amendments thereto).

      "ISSUE DATE" means, in respect of Initial Notes of any series, the Closing
Date or other date on which Initial Notes of such series are originally issued
under this Indenture.

      "JOINT VENTURE" means any partnership, corporation or other entity, in
which up to and including 50% of the partnership interests, outstanding voting
stock or other equity interests is owned, directly or indirectly, by the Company
and/or one or more of its Subsidiaries.

      "LETTER OF TRANSMITTAL" means the letter of transmittal to be prepared by
the Company and sent to all Holders of the Notes for use by such Holders in
connection with a Registered Exchange Offer.

      "LIEN" means any mortgage, pledge, hypothecation, assignment, deposit,
arrangement, encumbrance, security interest, lien (statutory or otherwise), or
preference, priority or other security or similar agreement or preferential
arrangement of any kind or nature whatsoever (including, without limitation, any
conditional sale or other title retention agreement having substantially the
same economic effect as any of the foregoing).

      "MATURITY" when used with respect to any Note means the date on which the
principal of such Note 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, repayment or otherwise.

      "MATURITY DATE" means September 1, 2012.

      "MIRAGE" means Mirage Resorts, Incorporated, a Nevada corporation.

      "MIRAGE NOTES" means (i) Mirage's 6.625% notes due 2005 in the original
aggregate principal amount of $200 million, (ii) Mirage's 7.25% notes due 2006
in the original aggregate principal amount of $250 million, (iii) Mirage's 6.75%
notes due 2007 in the original aggregate principal amount of $200 million, (iv)
Mirage's 6.75% notes due 2008 in the original aggregate principal amount of $200
million and (v) Mirage's 7.25% debentures due 2017 in the original aggregate
principal amount of $100 million.

      "MOODY'S" means Moody's Investor Service, Inc.

      "NEW GUARANTEE" has the meaning specified in the Intercreditor Agreement.

      "NON-PRINCIPAL PROPERTY COLLATERAL" means any leased real property parcel
that is not Principal Property and the granting of a Lien over which requires
the consent of the applicable lessor, which consent has not been obtained as of
the Issue Date.

      "NON-RECOURSE INDEBTEDNESS" means Indebtedness the terms of which provide
that the lender's claim for repayment of such Indebtedness is limited solely to
a claim against the property which secures such Indebtedness.

      "NON-U.S. PERSON" means any Person other than a U.S. Person.

      "NOTE REGISTER" means a register (the registers maintained in such office
and in any other office or agency of the Company in a Place of Payment being
herein sometimes collectively referred to as the "Note Register") in

                                       6
<PAGE>

which, subject to such reasonable regulations as it may prescribe, the Company
shall provide for the registration of Notes and of transfers and exchanges of
Notes which Company shall cause to be kept at the Corporate Trust Office of the
Trustee (or at the appropriate office of any other Registrar appointed
hereunder).

      "NOTES" has the meaning stated in the recital of this Indenture and more
particularly means any Notes authenticated and delivered under this Indenture.
From and after the issuance of any Additional Securities (but not for purposes
of determining whether such issuance is permitted hereunder), "SECURITIES" shall
include such Additional Securities for purposes of this Indenture from time to
time issued with respect to any Initial Securities that constitute such
Additional Securities. All Securities, including any such Additional Securities,
shall vote together as one series of Securities under this Indenture.

      "NOTES CUSTODIAN" or "CUSTODIAN" means the custodian with respect to any
Global Note (as appointed by the Depositary), or any successor entity thereto
covered in 2.03.

      "OBLIGATIONS" means any principal, interest, premium, if any, penalties,
fees, indemnifications, reimbursements, expenses, damages or other liabilities
or amounts payable under the documentation governing or otherwise in respect of
any Indebtedness.

      "OFFERING MEMORANDUM" means the offering memorandum dated August 11, 2004
relating to the sale of $550,000,000 aggregate principal amount of Initial
Notes.

      "OFFICERS" means any of the following: the Chairman of the Board of
Directors, the President, an Executive or Senior Vice President, the Treasurer,
an Assistant Treasurer, the Controller, an Assistant Controller, the Secretary
or an Assistant Secretary of the Company.

      "OFFICERS' CERTIFICATE" means a certificate signed by the Chairman of the
Board of Directors, the President or an Executive or Senior 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.

      "OPINION OF COUNSEL" means a written opinion of counsel, who may be
counsel to the Company (including an employee of the Company).

      "OUTSTANDING NOTES" has the meaning set forth in Section 2.08.

      "PARTICIPANT" means, with respect to the Depositary, Euroclear or
Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively (and, with respect to DTC, shall include Euroclear and
Clearstream).

      "PAYMENT" means, with respect to the Notes and Guarantees, any payment,
whether in cash or other assets or property, of interest, principal, premium,
Additional Interest or any other amount on, of or in respect of the Notes, any
other acquisition of Notes and any deposit into the trust described in Article
VIII. The verb "pay" has a correlative meaning.

      "PERSON" means any individual, corporation, partnership, limited liability
company, joint venture, association, joint stock company, trust, estate,
unincorporated organization or government or any agency or political subdivision
thereof or any other entity.

      "PLACE OF PAYMENT" when used with respect to the Notes means the Corporate
Trust Office of the Trustee or such other location as may be established under
Section 4.04.

      "PREDECESSOR NOTE" of any particular Note means every previous Note
evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purposes of this definition, any Note
authenticated and delivered under Section 2.07 in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

                                       7
<PAGE>

      "PRINCIPAL PROPERTY" means any real estate or other physical facility or
depreciable asset or securities the net book value of which on the date of
determination exceeds the greater of $25 million and 2% of Consolidated Net
Tangible Assets.

      "PRIVATE PLACEMENT LEGEND" means the legend set forth in Section
2.06(f)(i) to be placed on all Notes issued under this Indenture except where
specifically stated otherwise by the provisions of this Indenture.

      "PURCHASE AGREEMENT" means the Purchase Agreement dated August 11, 2004
for the purchase of $550,000,000 principal amount of Initial Notes among the
Company, the Subsidiary Guarantors and the Initial Purchasers as such agreement
may be amended, modified or supplemented from time to time in accordance with
the terms thereof.

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

      "REDEMPTION DATE" means the date fixed for redemption of any Note pursuant
to this Indenture.

      "REDEMPTION PRICE" has the meaning specified in Section 3.01.

      "REGISTRATION RIGHTS AGREEMENT" means (i) with respect to the Initial
Notes issued on the Closing Date, the Registration Rights Agreement dated August
25, 2004, among the Company, the Subsidiary Guarantors and the Initial
Purchasers, as such agreement may be amended, modified, or supplemented from
time to time in accordance with the terms thereof, and (ii) with respect to any
Additional Notes, one or more registration rights agreements among the Company,
the Subsidiary Guarantors and the other parties thereto, as such agreements may
be amended, modified, or supplemented from time to time in accordance with the
terms thereof, relating to the rights given by the Company to the purchasers of
Additional Notes to register such Additional Notes under the Securities Act.

      "REGISTERED EXCHANGE OFFER" means an offer made by the Company pursuant to
an Exchange Offer Registration Statement under the Securities Act to exchange
Exchange Notes for outstanding Initial Notes or Additional Notes substantially
identical in all material respects to such Initial Notes or Additional Notes
(except for the differences provided for therein).

      "REGULAR RECORD DATE" for the interest payable on the Notes on any
Interest Payment Date means the February 15 or August 15 (whether or not a
Business Day), as the case may be, immediately preceding such Interest Payment
Date.

      "REGULATION S" means Regulation S promulgated under the Securities Act, as
it may be amended from time to time, and any successor provision thereto.

      "REGULATION S GLOBAL NOTE" means one or more Global Notes issued in an
aggregate principal amount equal to the aggregate principal amount of the
Initial Notes sold in reliance on Rule 903 of Regulation S on any Issue Date.

      "RESTRICTED DEFINITIVE NOTE" means one or more Definitive Notes issued
under this Indenture bearing the Private Placement Legend.

      "RESTRICTED GLOBAL NOTE" means one or more Global Notes bearing the
Private Placement Legend, issued under this Indenture; provided, that in no case
shall an Exchange Note issued in accordance with this Indenture and the terms of
any Registration Rights Agreement be a Restricted Global Note.

      "RESTRICTED NOTES" means Global Notes and Definitive Notes issued under
this Indenture that bear or are required to bear the Private Placement Legend.

      "RULE 144A" means Rule 144A promulgated under the Securities Act, as it
may be amended from time to time, and any successor provision thereto.

                                       8
<PAGE>

      "RULE 144A GLOBAL NOTE" means one or more Global Notes bearing the Private
Placement Legend that will be issued in an aggregate principal amount equal to
the aggregate principal amount of the Initial Notes to be resold by the Initial
Purchasers in reliance on Rule 144A on any Issue Date.

      "SALE AND LEASE-BACK TRANSACTION" means any arrangement with a person
(other than the Company or any of its Subsidiaries), or to which any such person
is a party, providing for the leasing to the Company or any of its Subsidiaries
for a period of more than three years of any Principal Property which has been
or is to be sold or transferred by the Company or any of its Subsidiaries to
such person or to any other person (other than the Company or any of its
Subsidiaries), to which funds have been or are to be advanced by such person on
the security of the leased property.

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

      "SHELF REGISTRATION STATEMENT" means a shelf registration statement
prepared pursuant to the Registration Rights Agreement in respect of Initial
Notes not previously registered for sale to the public under the Securities Act.

      "SIGNIFICANT SUBSIDIARY" means, with respect to any Person, any Subsidiary
of that Person that would be a "significant subsidiary" as defined in Article I,
Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act of 1933,
as amended, as such Regulation is in effect on the date hereof.

      "SPECIAL RECORD DATE" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 2.12.

      "STANDARD &POOR'S" means Standard & Poor's Ratings Group (a division of
McGraw Hill, Inc.).

      "STATED MATURITY" when used with respect to any Note or any payment of
principal thereof or premium thereon or interest thereon means the date
specified in such Note or in this Indenture, as the date on which the principal
of such Note or such payment of principal, premium or interest is due and
payable.

      "SUBSIDIARY" of any specified Person means any corporation, partnership or
limited liability company of which at least a majority of the outstanding stock
(or other equity interests) having by the terms thereof ordinary voting power
for the election of directors (or the equivalent) of such Person (irrespective
of whether or not at the time stock (or other equity interests) of any other
class or classes of such Person shall have or might have voting power by reason
of the happening of any contingency) is at the time directly or indirectly owned
by such Person, or by one or more other Subsidiaries, or by such Person and one
or more other Subsidiaries.

      "SUBSIDIARY GUARANTOR" means (i) each Subsidiary of the Company identified
as a Subsidiary Guarantor on the signature pages hereof and (ii) each other
Subsidiary of the Company that becomes a Subsidiary Guarantor in accordance with
Section 4.08 or by executing a supplemental indenture in which such Subsidiary
agrees to be bound by the terms of this Indenture as a Subsidiary Guarantor,
together with their permitted successors and assigns provided that if the
Guarantee of a Subsidiary Guarantor is withdrawn or cancelled pursuant to
Section 4.08(b), such Person shall no longer be a Subsidiary Guarantor
hereunder.

      "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. Sections
77aaa-77bbbb) as in effect on the date of this Indenture, except as stated in
Section 9.03.

      "TREASURY SECURITIES" mean any obligations issued or guaranteed by the
United States government or any agency thereof.

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

      "TRUST OFFICER" means, when used with respect to the Trustee or Paying
Agent, any officer within the corporate trust department of the Trustee or
Paying Agent, as applicable, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other
officer of the Trustee or Paying Agent

                                       9
<PAGE>

who customarily performs functions similar to those performed by the persons who
at the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of such person's knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the
administration of this Indenture.

      "UNIFORM COMMERCIAL CODE" means the Nevada Uniform Commercial Code as in
effect from time to time.

      "UNITED STATES" means the United States of America (including the States
and the District of Columbia), its territories and possessions and other areas
subject to its jurisdiction.

      "UNRESTRICTED DEFINITIVE NOTE" means one or more Definitive Notes issued
under this Indenture that do not bear and are not required to bear the Private
Placement Legend.

      "UNRESTRICTED GLOBAL NOTE" means one or more Global Notes issued under
this Indenture representing a series of Notes that does not bear and is not
required to bear the Private Placement Legend.

      "UNRESTRICTED NOTE" means any Unrestricted Definitive Note or Unrestricted
Global Note.

      "U.S. DEPOSITARY" means Depository Trust Company or any other clearing
agency registered under the Securities Exchange Act of 1934, as amended, or any
successor thereto, which shall in either case be the U.S. Depositary designated
in the form of Note attached as Exhibit A hereto until a successor U.S.
Depositary shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter "U.S. Depositary" shall mean or include each Person
who is then a U.S. Depositary hereunder.

      "U.S. GOVERNMENT OBLIGATIONS" has the meaning specified in Section 8.04.

      "U.S. PERSON" means a U.S. person as defined in Rule 902(o) under the
Securities Act.

      "VICE PRESIDENT" includes, with respect to the Company, any Executive or
Senior Vice President and includes, with respect to the Trustee, any Vice
President, whether or not designated by a number or word or words added before
or after the title "Vice President."

      SECTION 1.02 OTHER DEFINITIONS.

<TABLE>
<CAPTION>
TERM                                                                  DEFINED IN SECTION
----                                                                  ------------------
<S>                                                                   <C>
"ADJUSTED TREASURY RATE"........................................      3.01
"AUTHENTICATION ORDER"..........................................      2.02
"COMPARABLE TREASURY ISSUE".....................................      3.01
"COMPARABLE TREASURY PRICE".....................................      3.01
"COVENANT DEFEASANCE OPTION"....................................      8.04
"DTC"...........................................................      2.03
"FUNDING GUARANTOR".............................................      10.04
"INDEPENDENT INVESTMENT BANKER".................................      3.01
"INITIAL NOTES".................................................      Preamble
"LEGAL DEFEASANCE OPTION".......................................      8.04
"MD&A"..........................................................      4.02
"NOTICE OF DEFAULT".............................................      6.01
"PAYING AGENT"..................................................      2.03
"PROTECTED PURCHASER"...........................................      2.07
"PRIVATE EXCHANGE"..............................................      2.06(i)(ii)
"PRIVATE EXCHANGE NOTES"........................................      2.06(i)(ii)
"REFERENCE TREASURY DEALER".....................................      3.01
"REFERENCE TREASURY DEALER QUOTATIONS"..........................      3.01
"REGISTRAR".....................................................      2.03
"REMAINING LIFE"................................................      3.01
</TABLE>

                                       10
<PAGE>

<TABLE>
<CAPTION>
TERM                                                                  DEFINED IN SECTION
----                                                                  ------------------
<S>                                                                   <C>
"TRANSACTION DOCUMENTS".........................................      12.15
</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 Notes.

      "indenture security holder" means a Holder.

      "indenture to be qualified" means this Indenture.

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

      "obligor" on the indenture securities means the Company, each Subsidiary
Guarantor and any other obligor on the Notes.

      All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission 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;

      (2) an accounting term not otherwise defined has the meaning assigned to
it in accordance with GAAP and all financial calculations and determinations
contemplated by this Indenture shall be made in conformity with GAAP as in
effect as of the Closing Date;

      (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) 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 Company dated such date prepared in accordance with
GAAP and accretion of principal on such security shall not be deemed to be the
incurrence of Debt;

      (7) all references to "principal" of the Notes include redemption price
and purchase price and all references to "interest" on the Notes include
Additional Interest, if any, as well as interest accruing after the commencement
of a proceeding under Title 11, U.S. Code or any similar federal or state law
for the relief of debtors (including post-petition interest), whether or not
allowed or allowable as a claim in any such proceeding;

      (8) all exhibits are incorporated by reference herein and expressly made a
part of this Indenture;

      (9) all references to articles, sections and exhibits (and subparts
thereof) are to this Indenture; and

      (10) all references to statutes or rules (or their subparts) include
replacement or successor provisions.

                                       11
<PAGE>
                                   ARTICLE II
                                    THE NOTES

      SECTION 2.01 FORM AND DATING.

      (a) General. The Notes and the Trustee's certificate of authentication
shall be substantially in the form of Exhibit A hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rule, usage
or this Indenture. Each Note shall be dated the date of its authentication. The
Notes shall be in denominations of $1,000 and integral multiples thereof.

      The terms and provisions contained in the Notes shall constitute, and are
hereby expressly made, a part of this Indenture and the Company, any Subsidiary
Guarantors and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. However,
to the extent any provision of any Note conflicts with the express provisions of
this Indenture, the provisions of this Indenture shall govern and be
controlling.

      (b) Global Notes. Notes issued in global form shall be substantially in
the form of Exhibit A attached hereto (including the Global Note Legend thereon
and the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Notes issued in definitive form shall be substantially in the form of
Exhibit A attached hereto (but without the Global Note Legend thereon and
without the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Each Global Note shall represent such of the outstanding Notes as
shall be specified therein and each shall provide that it shall represent the
aggregate principal amount of outstanding Notes from time to time endorsed
thereon and that the aggregate principal amount of outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges, redemptions or transfers of beneficial interests from one
Global Note to another Global Note. Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee or the Notes
Custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder or beneficial owner thereof as required by Section 2.06.

      (c) Form of Initial Notes, Etc. All Initial Notes issued on the Closing
Date are being or will be offered and sold by the Initial Purchasers only (i) to
QIBs (in which case they will be evidenced by a Rule 144A Global Note) or (ii)
in reliance on Regulation S under the Securities Act (in which case they will be
evidenced by a Regulation S Global Note). After such initial offers and sales,
Initial Notes that are evidenced by Restricted Global Notes or Restricted
Definitive Notes may also be transferred to Institutional Accredited Investors
(in which case they shall be evidenced by Definitive Notes or by an IAI Global
Note). All Additional Notes issued after the Closing Date shall be issued in
such form, and shall be permitted to be resold, as shall be provided in the
related Officers' Certificate required by Section 2.14.

      SECTION 2.02 EXECUTION AND AUTHENTICATION.

      The Notes shall be executed on behalf of the Company by its Chairman of
the Board of Directors, its President, one of its Executive or Senior Vice
Presidents or Chief Executive Officers or its Treasurer, and attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these
officers may be manual or facsimile.

      If an Officer whose signature is on a Note no longer holds that office at
the time a Note is authenticated, the Note shall nevertheless be valid. A Note
shall not be valid until authenticated by the manual signature of the Trustee.
The signature shall be conclusive evidence that the Note has been authenticated
under this Indenture. The Trustee shall, upon a written order of the Company
signed by an Officer (an "AUTHENTICATION ORDER"), authenticate (i) Initial Notes
for original issuance up to the aggregate principal amount stated in such
Authentication Order in such form as may be provided therein or in this
Indenture, (ii) in accordance with Section 2.06(i)(i), Exchange Notes, (iii) in
accordance with Section 2.06(i)(ii), Private Exchange Notes and (iv) Additional
Notes; provided, that the aggregate principal amount of Notes outstanding at any
time may not exceed $550,000,000, except in accordance with Section 2.14. The
Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Notes. An authenticating agent may authenticate Notes whenever the
Trustee may do so. Each

                                       12
<PAGE>
reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as an
Agent to deal with Holders or an Affiliate of the Company.

      SECTION 2.03 REGISTRAR, PAYING AGENT AND DEPOSITARY.

      The Company shall maintain an office or agency in the Borough of
Manhattan, the City of New York, where Notes may be presented for registration
of transfer or for exchange ("REGISTRAR") and an office or agency where Notes
may be presented for payment ("PAYING AGENT"). The Registrar shall keep a
register of the Notes and of their transfer and exchange. The Company may
appoint one or more co-registrars and one or more additional paying agents. The
term "Registrar" includes any co-registrar and the term "Paying Agent" includes
any additional paying agent. The Company shall enter into an appropriate agency
agreement with any Registrar, Paying Agent or other Agent not a party to this
Indenture, which shall incorporate the mandatory terms of the TIA not otherwise
excluded hereunder. The Company may change any Paying Agent or Registrar without
notice to any Holder. The Registrar or Paying Agent may resign at any time upon
not less than 10 Business Days' prior written notice to the Company; provided,
however, that the Trustee may resign as Paying Agent or Registrar only if the
Trustee also resigns as Trustee in accordance with Section 7.10.

      The Company shall notify the Trustee in writing of the name and address of
any Agent not a party to this Indenture. If the Company fails to appoint or
maintain another entity as Registrar or Paying Agent, the Trustee shall act as
such. The Company or any of its Subsidiaries may act as Paying Agent or
Registrar.

      The Company initially appoints The Depository Trust Company ("DTC") to act
as Depositary with respect to the Global Notes. The Company initially appoints
the Trustee to act as the Registrar and Paying Agent and to act as Notes
Custodian with respect to the Global Notes.

      SECTION 2.04 PAYING AGENT TO HOLD MONEY IN TRUST.

      Prior to 10:00 a.m. on each due date of the principal and interest on any
Note, 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) by wire transfer a sum sufficient to
pay such principal and interest when so becoming due. The Company shall require
each Paying Agent other than the Trustee to agree in writing that the Paying
Agent shall hold in trust for the benefit of Holders or the Trustee all money
held by the Paying Agent for the payment of principal, premium or interest on
the Notes, and shall notify the Trustee in writing of any default by the Company
in making any such payment. While any such default continues, the Trustee may
require a Paying Agent, and in such event any such Paying Agent shall have the
obligation, to pay all money held by it to the Trustee. The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee. Upon
payment over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for such money. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust
fund for the benefit of the Holders all money held by it as Paying Agent. Upon
any bankruptcy or reorganization proceedings relating to the Company, the
Trustee shall serve as Paying Agent for the Notes.

      Any money deposited with any Paying Agent, or then held by the Company or
a domestic Subsidiary in trust for the payment of principal or interest on any
Note and remaining unclaimed for two years after such principal and interest has
become due and payable shall be paid to the Company at its request, or, if then
held by the Company or a domestic Subsidiary, shall be discharged from such
trust; and the Holders shall thereafter, as general unsecured creditors, look
only to the Company for payment thereof, and all liability of the Paying Agent
with respect to such money, and all liability of the Company or such permitted
Subsidiary as trustee thereof, shall thereupon cease.

      SECTION 2.05 HOLDER 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
all Holders and shall otherwise comply with TIA Section 312(a). If the Trustee
is not the Registrar, the Company shall furnish, or shall cause the Registrar
(if other than the Company) to furnish, to the Trustee at least seven Business
Days before each interest payment date and at such other times as the Trustee
may

                                       13
<PAGE>

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 the Holders of Notes and, to
the extent applicable, the Company shall otherwise comply with TIA Section
312(a).

      SECTION 2.06 TRANSFER AND EXCHANGE.

      (a) Transfer and Exchange of Global Notes. A Global Note may not be
transferred as a whole except by the Depositary to a nominee of the Depositary,
by a nominee of the Depositary to the Depositary or to another nominee of the
Depositary, or by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary. All Global Notes shall be exchanged
by the Company for Definitive Notes if (i) the Company notifies the Trustee in
writing that the Depositary is no longer willing or able to act as a depositary
or ceases to be registered as a clearing agency under the Exchange Act and a
successor Depositary is not appointed within 90 days of such notice or cessation
or (ii) the Company in its sole discretion determines that the Global Notes (in
whole but not in part) should be exchanged for Definitive Notes and delivers a
written notice to such effect to the Trustee. Upon the occurrence of any of the
preceding events in (i) or (ii) above, Definitive Notes shall be issued in such
names as the Depositary shall instruct the Trustee. Global Notes also may be
exchanged or replaced, in whole or in part, as provided in Sections 2.07 and
2.10. Every Note authenticated and delivered in exchange for, or in lieu of, a
Global Note or any portion thereof, pursuant to this Section 2.06 or Section
2.07 or 2.10, shall be authenticated and delivered in the form of, and shall be,
a Global Note. A Global Note may not be exchanged for another Note other than as
provided in this Section 2.06(a); however, beneficial interests in a Global Note
may be transferred and exchanged as provided in Section 2.06(b) or (c).

      (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The
transfer and exchange of beneficial interests in the Global Notes shall be
effected through the Depositary, in accordance with the provisions of this
Indenture and the Applicable Procedures. Beneficial interests in the Restricted
Global Notes shall be subject to restrictions on transfer comparable to those
set forth herein to the extent required in order for the Company to comply with
the Securities Act. Transfers and exchanges of beneficial interests in the
Global Notes also shall require compliance with either subparagraph (i) or (ii)
below, as applicable, as well as one or more of the other following
subparagraphs, as applicable:

            (i) Transfer of Beneficial Interests in the Same Global Note;
Transfers of Beneficial Interests in Unrestricted Global Notes for Interests in
Other Unrestricted Global Notes. Beneficial interests in any Restricted Global
Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend; provided,
however, that prior to the expiration of the Distribution Compliance Period,
transfers of beneficial interests in a Regulation S Global Note may not be made
to a U.S. Person or for the account or benefit of a U.S. Person (other than an
Initial Purchaser). Beneficial interests in any Unrestricted Global Note may be
transferred to Persons who take delivery thereof in the form of a beneficial
interest in the same or any other Unrestricted Global Note. No written orders or
instructions shall be required to be delivered to the Registrar to effect the
transfers described in this Section 2.06(b)(i).

            (ii) All Other Transfers and Exchanges of Beneficial Interests in
Global Notes. In connection with all transfers and exchanges of beneficial
interests that are not subject to Section 2.06(b)(i), the transferor of such
beneficial interest must deliver to the Registrar either (A) (1) an order from a
Participant or an Indirect Participant given to the Depositary in accordance
with the Applicable Procedures directing the Depositary to credit or cause to be
credited a beneficial interest in another Global Note in an amount equal to the
beneficial interest to be transferred or exchanged and (2) instructions given in
accordance with the Applicable Procedures containing information regarding the
Participant account to be credited with such increase or (B) (1) an order from a
Participant or an Indirect Participant given to the Depositary in accordance
with the Applicable Procedures directing the Depositary to cause to be issued a
Definitive Note in an amount equal to the beneficial interest to be transferred
or exchanged and (2) instructions given by the Depositary to the Registrar
containing information regarding the Person in whose name such Definitive Note
shall be registered to effect the transfer or exchange referred to in (B)(1)
above. Upon consummation of a Registered Exchange Offer by the Company, the
requirements of this Section 2.06(b)(ii) shall be deemed to have been satisfied
upon receipt by the Registrar of the instructions contained in the Letter of
Transmittal delivered by the Holder of such beneficial interests in the
Restricted Global Notes and the other documents contemplated by the Registered
Exchange Offer. Upon satisfaction of all of the requirements for transfer

                                       14
<PAGE>

or exchange of beneficial interests in Global Notes contained in this Indenture
and the Notes or otherwise applicable under the Securities Act, the Trustee or
Notes Custodian shall adjust the principal amount of the relevant Global Note(s)
pursuant to Section 2.06(g).

            (iii) Transfer of Beneficial Interests to Another Restricted Global
Note. A beneficial interest in any Restricted Global Note may be transferred to
a Person who takes delivery thereof in the form of a beneficial interest in
another Restricted Global Note if the transfer complies with the requirements of
Section 2.06(b)(ii) and the Registrar receives the following:

                  (A) if the transferee will take delivery in the form of a
beneficial interest in the Rule 144A Global Note, then the transferor must
deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (1) thereof;

                  (B) if the transferee will take delivery in the form of a
beneficial interest in the Regulation S Global Note, then the transferor must
deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (2) thereof;

                  (C) if the transferee will take delivery in the form of a
beneficial interest in the IAI Global Note, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications and
certificates (including the certificate in the form of Exhibit D hereto) in item
(3) thereof, if applicable; or

                  (D) if such beneficial interest is being transferred to the
Company or any of its Subsidiaries, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(a) thereof.

            (iv) Transfer and Exchange of Beneficial Interests in a Restricted
Global Note for Beneficial Interests in an Unrestricted Global Note. A
beneficial interest in any Restricted Global Note may be exchanged for a
beneficial interest in an Unrestricted Global Note or transferred to a Person
who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note if the exchange or transfer complies with the
requirements of Section 2.06(b)(ii) and:

                  (A) such exchange or transfer is effected pursuant to the
Registered Exchange Offer in accordance with the Registration Rights Agreement
and the Holder of the beneficial interest to be transferred, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that (1) it is not a Broker-Dealer, (2) it is
not an affiliate of the Company within the meaning of Rule 405 under the
Securities Act, (3) any Exchange Notes received by it will be acquired in the
ordinary course of business, (4) it is not engaged in, and does not intend to
engage in, the distribution of the Exchange Notes and (5) it has no arrangements
or understanding with any Person to participate in the distribution of the
Exchange Notes;

                  (B) such transfer is effected pursuant to a Shelf Registration
Statement in accordance with the Registration Rights Agreement and the Registrar
receives a certificate from such Holder to such effect;

                  (C) such transfer is effected by a Broker-Dealer pursuant to
the Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; or

                  (D) the Registrar receives the following: (1) if the Holder of
such beneficial interest in a Restricted Global Note proposes to exchange such
beneficial interest for a beneficial interest in an Unrestricted Global Note, a
certificate from such Holder in the form of Exhibit C hereto, including the
certifications in item (1)(a) thereof; or (2) if the Holder of such beneficial
interest in a Restricted Global Note proposes to transfer such beneficial
interest to a Person who shall take delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note, a certificate from such Holder in the
form of Exhibit B hereto, including the certifications in item (4) thereof; and,
in each such case set forth in this subparagraph (D) (except in the case of a
transfer contemplated by item (4)(a) or (d) of Exhibit B or by item (4)(b) of
Exhibit B in the case of any transfer after the Distribution Compliance Period),
an Opinion of Counsel in form, and from legal counsel, reasonably acceptable to
the Registrar and the Company to the effect that such exchange or transfer is in
compliance with the Securities Act and that the

                                       15
<PAGE>

restrictions on transfer contained herein and in the Private Placement Legend
are no longer required in order to maintain compliance with the Securities Act.

      If any such transfer is effected pursuant to subparagraph (B) or (D) above
at a time when an Unrestricted Global Note has not yet been issued, the Company
shall issue and, upon receipt of an Authentication Order in accordance with
Section 2.02, the Trustee shall authenticate one or more Unrestricted Global
Notes in an aggregate principal amount equal to the aggregate principal amount
of beneficial interests transferred pursuant to subparagraph (B) or (D) above.
Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or
transferred to Persons who take delivery thereof in the form of, a beneficial
interest in a Restricted Global Note.

      (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

            (i) Beneficial Interests in Restricted Global Notes to Restricted
Definitive Notes. If any Holder of a beneficial interest in a Restricted Global
Note proposes to exchange such beneficial interest for a Restricted Definitive
Note or to transfer such beneficial interest to a Person who takes delivery
thereof in the form of a Restricted Definitive Note, then, upon receipt by the
Registrar of the following documentation:

                  (A) if the Holder of such beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for a Restricted
Definitive Note, a certificate from such Holder in the form of Exhibit C hereto,
including the certifications in item (2)(a) thereof;

                  (B) if such beneficial interest is being transferred to a QIB
in accordance with Rule 144A under the Securities Act, a certificate from such
Holder to the effect set forth in Exhibit B hereto, including the certifications
in item (1) thereof;

                  (C) if such beneficial interest is being transferred to a
Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule
904 under the Securities Act, a certificate from such Holder to the effect set
forth in Exhibit B hereto, including the certifications in item (2) thereof;

                  (D) if such beneficial interest is being transferred to an
Institutional Accredited Investor in reliance on an exemption from the
registration requirements of the Securities Act other than those listed in
subparagraphs (B) through (C) above, a certificate from such Holder to the
effect set forth in Exhibit B hereto, including the certifications required by
item (3)(b) thereof, if applicable;

                  (E) if such beneficial interest is being transferred to the
Company or any of its Subsidiaries, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(a) thereof; the
Trustee shall cause the aggregate principal amount of the applicable Restricted
Global Note to be reduced accordingly pursuant to Section 2.06(g), and the
Company shall execute and, upon receipt of an Authentication Order pursuant to
Section 2.02, the Trustee shall authenticate and deliver to the Person
designated in the instructions a Restricted Definitive Note in the appropriate
principal amount. Any Restricted Definitive Note issued in exchange for a
beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c)
shall be registered in such name or names and in such authorized denomination or
denominations as the Holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant. The Trustee shall deliver such Restricted Definitive Notes
to the Persons in whose names such Notes are so registered. Any Restricted
Definitive Note issued in exchange for a beneficial interest in a Restricted
Global Note pursuant to this Section 2.06(c)(i) shall bear the Private Placement
Legend and shall be subject to all restrictions on transfer contained therein.

            (ii) Beneficial Interests in Restricted Global Notes to Unrestricted
Definitive Notes. A Holder of a beneficial interest in a Restricted Global Note
may exchange such beneficial interest for an Unrestricted Definitive Note or may
transfer such beneficial interest to a Person who takes delivery thereof in the
form of an Unrestricted Definitive Note only if:

                  (A) such exchange or transfer is effected pursuant to the
Registered Exchange Offer in accordance with the Registration Rights Agreement
and the Holder of such beneficial interest, in the case of an

                                       16
<PAGE>

exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that (1) it is not a Broker-Dealer, (2) it is
not an affiliate of the Company within the meaning of Rule 405 under the
Securities Act, (3) any Exchange Notes received by it will be acquired in the
ordinary course of business, (4) it is not engaged in, and does not intend to
engage in, the distribution of the Exchange Notes and (5) it has no arrangements
or understanding with any Person to participate in the distribution of the
Exchange Notes;

                  (B) such transfer is effected pursuant to a Shelf Registration
Statement in accordance with the Registration Rights Agreement and the Registrar
receives a certificate from such Holder to such effect;

                  (C) such transfer is effected by a Broker-Dealer pursuant to
the Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; or

                  (D) the Registrar receives the following: (1) if the Holder of
such beneficial interest in a Restricted Global Note proposes to exchange such
beneficial interest for a Definitive Note that does not bear the Private
Placement Legend, a certificate from such Holder in the form of Exhibit C
hereto, including the certifications in item (1)(b) thereof; or (2) if the
Holder of such beneficial interest in a Restricted Global Note proposes to
transfer such beneficial interest to a Person who shall take delivery thereof in
the form of a Definitive Note that does not bear the Private Placement Legend, a
certificate from such Holder in the form of Exhibit B hereto, including the
certifications in item (4) thereof; and, in each such case set forth in this
subparagraph (D) (except in the case of a transfer contemplated by item (4)(a)
or (d) of Exhibit B or by item (4)(b) of Exhibit B in the case of any transfer
after the Distribution Compliance Period), an Opinion of Counsel in form, and
from legal counsel, reasonably acceptable to the Registrar and the Company to
the effect that such exchange or transfer is in compliance with the Securities
Act and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with the
Securities Act.

            (iii) Beneficial Interests in Unrestricted Global Notes to
Unrestricted Definitive Notes. If any Holder of a beneficial interest in an
Unrestricted Global Note proposes to exchange such beneficial interest for an
Unrestricted Definitive Note or to transfer such beneficial interest to a Person
who takes delivery thereof in the form of an Unrestricted Definitive Note, then,
upon satisfaction of the conditions set forth in Section 2.06(b)(ii), the
Trustee shall cause the aggregate principal amount of the applicable
Unrestricted Global Note to be reduced accordingly pursuant to Section 2.06(g),
and the Company shall execute and, upon receipt of an Authentication Order
pursuant to Section 2.02, the Trustee shall authenticate and deliver to the
Person designated in the instructions an Unrestricted Definitive Note in the
appropriate principal amount. Any Unrestricted Definitive Note issued in
exchange for a beneficial interest pursuant to this Section 2.06(c)(iii) shall
be registered in such name or names and in such authorized denomination or
denominations as the Holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant. The Trustee shall deliver such Unrestricted Definitive
Notes to the Persons in whose names such Notes are so registered. Any
Unrestricted Definitive Note issued in exchange for a beneficial interest in an
Unrestricted Global Note pursuant to this Section 2.06(c)(iii) shall not bear
the Private Placement Legend.

      (d) Transfer and Exchange of Definitive Notes for Beneficial Interests in
Global Notes.

            (i) Restricted Definitive Notes to Beneficial Interests in
Restricted Global Notes. If any Holder of a Restricted Definitive Note proposes
to exchange such Note for a beneficial interest in a Restricted Global Note or
to transfer such Restricted Definitive Notes to a Person who takes delivery
thereof in the form of a beneficial interest in a Restricted Global Note, then,
upon receipt by the Registrar of the following documentation:

                  (A) if the Holder of such Restricted Definitive Note proposes
to exchange such Note for a beneficial interest in a Restricted Global Note, a
certificate from such Holder in the form of Exhibit C hereto, including the
certifications in item (2)(b) thereof;

                  (B) if such Restricted Definitive Note is being transferred to
a QIB in accordance with Rule 144A under the Securities Act, a certificate from
such Holder to the effect set forth in Exhibit B hereto, including the
certifications in item (1) thereof;

                                       17
<PAGE>

                  (C) if such Restricted Definitive Note is being transferred to
a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule
904 under the Securities Act, a certificate from such Holder to the effect set
forth in Exhibit B hereto, including the certifications in item (2) thereof;

                  (D) if such Restricted Definitive Note is being transferred to
an Institutional Accredited Investor in reliance on an exemption from the
registration requirements of the Securities Act other than those listed in
subparagraphs (B) through (C) above, a certificate from such Holder to the
effect set forth in Exhibit B, including the certifications required by item
3(b) thereof; or

                  (E) if such Restricted Definitive Note is being transferred to
the Company or any of its Subsidiaries, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(a) thereof;

the Trustee shall cancel the Restricted Definitive Note, increase or cause to be
increased the aggregate principal amount of, in the case of clause (A), the
appropriate Restricted Global Note, in the case of clause (B) above, the Rule
144A Global Note, in the case of clause (C) above, the Regulation S Global Note,
and in all other cases, the IAI Global Note.

            (ii) Restricted Definitive Notes to Beneficial Interests in
Unrestricted Global Notes. A Holder of a Restricted Definitive Note may exchange
such Note for a beneficial interest in an Unrestricted Global Note or transfer
such Restricted Definitive Note to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note only if:

                  (A) such exchange or transfer is effected pursuant to the
Registered Exchange Offer in accordance with the Registration Rights Agreement
and the Holder, in the case of an exchange, or the transferee, in the case of a
transfer, certifies in the applicable Letter of Transmittal that (1) it is not a
Broker-Dealer, (2) it is not an affiliate of the Company within the meaning of
Rule 405 under the Securities Act, (3) any beneficial interests in Exchange
Notes received by it will be acquired in the ordinary course of business, (4) it
is not engaged in, and does not intend to engage in, the distribution of
beneficial interests in the Exchange Notes and (5) it has no arrangements or
understanding with any Person to participate in the distribution of beneficial
interests in the Exchange Notes;

                  (B) such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement and
the Registrar receives a certificate from such Holder to such effect;

                  (C) such transfer is effected by a Broker-Dealer pursuant to
the Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; or

                  (D) the Registrar receives the following: (1) if the Holder of
such Restricted Definitive Notes proposes to exchange such Notes for a
beneficial interest in the Unrestricted Global Note, a certificate from such
Holder in the form of Exhibit C hereto, including the certifications in item
(1)(c) thereof; or (2) if the Holder of such Restricted Definitive Notes
proposes to transfer such Notes to a Person who shall take delivery thereof in
the form of a beneficial interest in the Unrestricted Global Note, a certificate
from such Holder in the form of Exhibit B hereto, including the certifications
in item (4) thereof; and, in each such case set forth in this subparagraph (D)
(except in the case of a transfer contemplated by item (4)(a) or (d) of Exhibit
B or by item (4)(b) of Exhibit B in the case of any transfer after the
Distribution Compliance Period), an Opinion of Counsel, in form and from legal
counsel reasonably acceptable to the Registrar and the Company to the effect
that such exchange or transfer is in compliance with the Securities Act and that
the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the
Securities Act. Upon satisfaction of the conditions of any of the subparagraphs
in this Section 2.06(d)(ii), the Trustee shall cancel the Restricted Definitive
Notes so transferred or exchanged and increase or cause to be increased the
aggregate principal amount of the Unrestricted Global Note.

            (iii) Unrestricted Definitive Notes to Beneficial Interests in
Unrestricted Global Notes. A Holder of an Unrestricted Definitive Note may
exchange such Note for a beneficial interest in an Unrestricted

                                       18
<PAGE>
Global Note or transfer such Definitive Notes to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global Note at
any time. Upon receipt of a request for such an exchange or transfer, the
Trustee shall cancel the applicable Unrestricted Definitive Note and increase or
cause to be increased the aggregate principal amount of one of the Unrestricted
Global Notes.

            (iv) Issuance of Unrestricted Global Notes. If any such exchange or
transfer from a Definitive Note to a beneficial interest in a Global Note is
effected pursuant to subparagraphs (ii)(A), (ii)(B) or (iii) of this Section
2.06(d) at a time when an Unrestricted Global Note has not yet been issued, the
Company shall issue and, upon receipt of an Authentication Order in accordance
with Section 2.02, the Trustee shall authenticate one or more Unrestricted
Global Notes in an aggregate principal amount equal to the principal amount of
Definitive Notes so exchanged or transferred.

      (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon
request by a Holder of Definitive Notes and such Holder's compliance with the
provisions of this Section 2.06(e), the Registrar shall register the transfer or
exchange of Definitive Notes. Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.06(e).

            (i) Restricted Definitive Notes to Restricted Definitive Notes. Any
Restricted Definitive Note may be transferred to and registered in the name of
Persons who take delivery thereof in the form of a Restricted Definitive Note if
the Registrar receives the following:

                  (A) if the transfer will be made pursuant to Rule 144A under
the Securities Act, then the transferor must deliver a certificate in the form
of Exhibit B hereto, including the certifications in item (1) thereof;

                  (B) if the transfer will be made pursuant to Rule 903 or Rule
904, then the transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (2) thereof;

                  (C) if such Restricted Definitive Note is being transferred to
an Institutional Accredited Investor in reliance on an exemption from the
registration requirements of the Securities Act other than those listed in
subparagraphs (A) and (B) above, then the transferor must deliver a certificate
in the form of Exhibit B hereto, including the certifications required by item
(3)(b) thereof, if applicable; or

                  (D) if such Restricted Definitive Note is being transferred to
the Company or any of its Subsidiaries, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(a) thereof;

            (ii) Restricted Definitive Notes to Unrestricted Definitive Notes.
Any Restricted Definitive Note may be exchanged by the Holder thereof for an
Unrestricted Definitive Note or transferred to a Person or Persons who take
delivery thereof in the form of an Unrestricted Definitive Note if:

                  (A) such exchange or transfer is effected pursuant to the
Registered Exchange Offer in accordance with the Registration Rights Agreement
and the Holder, in the case of an exchange, or the transferee, in the case of a
transfer, certifies in the applicable Letter of Transmittal that (1) it is not a
Broker-Dealer, (2) it is not an affiliate of the Company within the meaning of
Rule 405 under the Securities Act, (3) any Exchange Notes received by it will be
acquired in the ordinary course of business, (4) it is not engaged in, and does
not intend to engage in, the distribution of the Exchange Notes and (5) it has
no arrangements or understanding with any Person to participate in the
distribution of the Exchange Notes;

                  (B) any such transfer is effected pursuant to a Shelf
Registration Statement in accordance with the Registration Rights Agreement and
the Registrar receives a certificate from such Holder to such effect;

                                       19
<PAGE>

                  (C) such transfer is effected by a Broker-Dealer pursuant to
the Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; or

                  (D) the Registrar receives the following: (1) if the Holder of
such Restricted Definitive Notes proposes to exchange such Notes for an
Unrestricted Definitive Note, a certificate from such Holder in the form of
Exhibit C hereto, including the certifications in item (1)(d) thereof; or (2) if
the Holder of such Restricted Definitive Notes proposes to transfer such Notes
to a Person who shall take delivery thereof in the form of an Unrestricted
Definitive Note, a certificate from such Holder in the form of Exhibit B hereto,
including the certifications in item (4) thereof; and, in each such case set
forth in this subparagraph (D) (except in the case of a transfer contemplated by
item (4)(a) or (d) of Exhibit B or by item (4)(b) of Exhibit B in the case of
any transfer after the Distribution Compliance Period), an Opinion of Counsel in
form, and from legal counsel, reasonably acceptable to the Registrar and the
Company to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the
Private Placement Legend are no longer required in order to maintain compliance
with the Securities Act.

            (iii) Unrestricted Definitive Notes to Unrestricted Definitive
Notes. A Holder of Unrestricted Definitive Notes may transfer such Notes to a
Person who takes delivery thereof in the form of an Unrestricted Definitive
Note. Upon receipt of a request to register such a transfer, the Registrar shall
register the Unrestricted Definitive Notes pursuant to the instructions from the
Holder thereof.

      (f) Legends. The following legends shall appear on the face of all Global
Notes and Definitive Notes issued under this Indenture unless specifically
stated otherwise in the applicable provisions of this Indenture.

            (i) Private Placement Legend.

                  (A) Except as permitted by subparagraph (B) below, each Global
Note and each Definitive Note (and all Notes issued in exchange therefor or
substitution thereof) shall bear the legend in substantially the following form:

      "THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED
IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THE SECURITY
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A OR REGULATION S THEREUNDER. ACCORDINGLY,
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR
THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE NEXT
SENTENCE. BY ITS ACQUISITION HEREOF OR A BENEFICIAL INTEREST HEREIN, THE HOLDER
OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY OF THE
SECURITY THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED
ONLY (1)(a) IN THE UNITED STATES TO A PERSON WHO THE SELLER REASONABLY BELIEVES
IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (b)
OUTSIDE THE UNITED STATES IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904
OF REGULATION S UNDER THE SECURITIES ACT, (c) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(a)(1), (2), (3) or (7) OF THE
SECURITIES ACT) THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED
LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN
BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN
AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000, AN OPINION OF COUNSEL
ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT, OR (e) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE

                                       20
<PAGE>

SECURITIES ACT PROVIDED THAT THE COMPANY SHALL HAVE THE RIGHT PRIOR TO ANY SUCH
OFFER, RESALE, ASSIGNMENT, PLEDGE OR TRANSFER PURSUANT TO THIS CLAUSE (e) ABOVE
TO REQUIRE THE DELIVERY OF AN OPINION (IN FORM AND SUBSTANCE SATISFACTORY TO THE
COMPANY) OF COUNSEL SATISFACTORY TO THE COMPANY, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO THE COMPANY, (2) TO THE COMPANY OR (3) PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE,
IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER APPLICABLE JURISDICTION; AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO NOTIFY ANY PURCHASER FROM IT OF THE SECURITY
EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE."

                  (B) Notwithstanding the foregoing, any Global Note or
Definitive Note issued pursuant to subparagraphs (b)(iv), (c)(ii), (c)(iii),
(d)(ii), (d)(iii), (e)(ii) or (e)(iii) of this Section 2.06 (and all Notes
issued in exchange therefor or substitution thereof) shall not bear the Private
Placement Legend.

            (ii) Global Note Legend. Each Global Note shall bear a legend in
substantially the following form (unless otherwise specified by the Depositary):

      "THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE
REGISTERED, AND NO TRANSFER OF THE NOTE IN WHOLE OR IN PART MAY BE REGISTERED,
IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE."

      (g) Cancellation and/or Adjustment of Global Notes. At such time as all
beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or
cancelled in whole and not in part, each such Global Note shall be returned to
or retained and cancelled by the Trustee in accordance with Section 2.11. At any
time prior to such cancellation, if any beneficial interest in a Global Note is
exchanged for or transferred to a Person who will take delivery thereof in the
form of a beneficial interest in another Global Note or for Definitive Notes,
the principal amount of Notes represented by such Global Note shall be reduced
accordingly and an endorsement shall be made on such Global Note by the Trustee
or by the Depositary at the direction of the Trustee to reflect such reduction;
and if the beneficial interest is being exchanged for or transferred to a Person
who will take delivery thereof in the form of a beneficial interest in another
Global Note, the principal amount of Notes represented by such other Global Note
shall be increased accordingly and an endorsement shall be made on such Global
Note by the Trustee or by the Depositary at the direction of the Trustee to
reflect such increase.

      (h) General Provisions Relating to Transfers and Exchanges.

            (i) The Notes shall be transferable only upon the surrender of a
Note for registration of transfer and in compliance with this Section 2.06. When
a Note 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 of the Uniform Commercial Code and this Section 2.06 are met. When
Notes are presented to the Registrar with a request to exchange them for an
equal principal amount of Notes of other denominations, the Registrar shall make
the exchange as requested if the same requirements are met.

            (ii) To permit registrations of transfers and exchanges, the Company
shall execute and the Trustee shall authenticate Global Notes and Definitive
Notes upon receipt of an Authentication Order.

            (iii) No service charge shall be made to a Holder of a beneficial
interest in a Global Note or to a Holder of a Definitive Note for any
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith (other than any such transfer taxes or similar
governmental charge payable upon exchange or transfer pursuant to Sections 2.10,
3.07 and 9.06).

                                       21
<PAGE>

            (iv) The Registrar shall retain copies of all certificates, Opinions
of Counsel, notices and other written communications received pursuant to this
Section 2.06. The Company shall have the right to inspect and make copies of all
such certificates, Opinions of Counsel, notices or other written communications
at any reasonable time upon the giving of reasonable written notice to the
Registrar.

            (v) All Global Notes and Definitive Notes issued upon any
registration of transfer or exchange of Global Notes or Definitive Notes shall
be the valid obligations of the Company, evidencing the same indebtedness, and
entitled to the same benefits under this Indenture, as the Global Notes or
Definitive Notes surrendered upon such registration of transfer or exchange.

            (vi) The Company, Trustee and Registrar shall not be required (A) to
issue, to register the transfer of or to exchange any Notes during a period
beginning at the opening of business 15 days before the day of any selection of
Notes for redemption under Section 3.02 and ending at the close of business on
the day of selection, (B) to register the transfer of or to exchange any Note so
selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part or (C) to register the transfer of or to
exchange a Note between a record date and the next succeeding interest payment
date.

            (vii) Prior to due presentment for the registration of a transfer of
any Note, the Trustee, any Agent and the Company may deem and treat the Person
in whose name any Note is registered as the absolute owner of such Note for the
purpose of receiving payment of principal of, premium, if any, and interest on
such Notes, payment of the redemption price of the Notes and for all other
purposes, and none of the Trustee, any Agent or the Company shall be affected by
notice to the contrary.

            (viii) The Trustee shall authenticate Global Notes and Definitive
Notes in accordance with the provisions of Section 2.02.

            (ix) All certifications, certificates and Opinions of Counsel
required to be submitted to the Registrar pursuant to this Section 2.06 to
effect a registration of transfer or exchange may be submitted by facsimile,
with an original of such document to be sent promptly thereafter.

            (x) Notwithstanding anything herein to the contrary, as to any
certifications and certificates delivered to the Registrar pursuant to this
Section 2.06, the Registrar's duties shall be limited to confirming that any
such certifications and certificates delivered to it are in the form of Exhibits
B, C and D attached hereto. The Registrar shall not be responsible for
confirming the truth or accuracy of representations made in any such
certifications or certificates.

      (i) Exchange Offer; Private Exchange.

            (i) Promptly after the expiration of the Registered Exchange Offer
in accordance with the Registration Rights Agreement, the Company shall issue
and, upon receipt of an Authentication Order in accordance with Section 2.02,
the Trustee shall authenticate (A) one or more Unrestricted Global Notes in an
aggregate principal amount equal to the sum of (1) the principal amount of the
beneficial interests in the Restricted Global Notes validly tendered for
acceptance by Persons that certify in the applicable Letters of Transmittal that
they are entitled to participate under the Registered Exchange Offer pursuant to
the terms thereof, and accepted for exchange in the Registered Exchange Offer,
and (2) the principal amount of Definitive Securities exchanged or transferred
for beneficial interests in Unrestricted Global Securities in connection with
the Registered Exchange Offer pursuant to Section 2.06(d)(ii), and (B)
Unrestricted Definitive Notes in an aggregate principal amount equal to the
principal amount of the Restricted Definitive Notes accepted for exchange in the
Registered Exchange Offer (other than Definitive Notes described in clause
(A)(2) immediately above). Concurrently with the issuance of such Notes, the
Trustee shall cause the aggregate principal amount of the applicable Restricted
Global Notes to be reduced accordingly, and the Company shall execute and, upon
receipt of an Authentication Order pursuant to Section 2.02, the Trustee shall
authenticate and deliver to the Persons designated by the Holders of Definitive
Notes so accepted Definitive Notes in the appropriate principal amount.

                                       22
<PAGE>

            (ii) If, upon consummation of a Registered Exchange Offer, any
Initial Purchasers hold Initial Notes (or beneficial interests therein) acquired
by them as part of the initial distribution, simultaneously with the delivery of
the Exchange Notes pursuant to the Registered Exchange Offer, upon the written
request of such Initial Purchasers, the Company shall issue and, upon receipt of
an Authentication Order in accordance with Section 2.02, the Trustee shall
authenticate, in exchange (a "PRIVATE EXCHANGE") for the Initial Notes held by
such Initial Purchasers, (A) one or more Restricted Global Notes in an aggregate
principal amount equal to the sum of (1) the principal amount of the beneficial
interests in the Restricted Global Notes validly tendered for acceptance by such
Initial Purchasers and (2) the principal amount of Restricted Definitive Notes
being exchanged or transferred by such Initial Purchasers for beneficial
interests in Restricted Global Notes in connection therewith pursuant to Section
2.06(d)(i) and (B) Restricted Definitive Notes in an aggregate principal amount
equal to the aggregate principal amount of the Restricted Definitive Notes
tendered for exchange by such Initial Purchasers (other than Definitive Notes
described in clause (A)(2) immediately above) (collectively, the "PRIVATE
EXCHANGE NOTES"). Concurrently with the issuance of such Private Exchange Notes,
the Trustee shall cause the aggregate principal amount of the applicable
Restricted Global Notes to be reduced accordingly, and the Company shall execute
and, upon receipt of an Authentication Order pursuant to Section 2.02, the
Trustee shall authenticate and deliver to the Persons designated by the Holders
of Definitive Notes so accepted Definitive Notes in the appropriate principal
amount. The Company shall use its reasonable best efforts to cause the Private
Exchange Notes to bear the same CUSIP number as the Exchange Notes.

      SECTION 2.07 REPLACEMENT NOTES.

      If a mutilated Note is surrendered to the Registrar or if the Holder of a
Note claims that the Note has been lost, destroyed or wrongfully taken, the
Company shall issue and the Trustee shall authenticate a replacement Note if the
requirements of Section 8-405 of the Uniform Commercial Code are met, such that
the Holder (i) satisfies the Company or the Trustee within a reasonable time
after he 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 Note 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 and the Company including evidence of the
destruction, loss or theft of the Note. Such Holder shall furnish an indemnity
bond sufficient in the judgment of the Trustee to protect the Company, any
Subsidiary Guarantor, the Trustee, the Paying Agent, and the Registrar from any
loss that any of them may suffer if a Note is replaced. The Company and the
Trustee may charge the Holder for their expenses in replacing a Note including
the payment of a sum sufficient to cover any tax or other governmental charge
that may be required. In the event any such mutilated, lost, destroyed or
wrongfully taken Note has become or is about to become due and payable, the
Company in its discretion may pay such Note instead of issuing a new Note in
replacement thereof.

      Every replacement Note is an additional obligation of the Company and
shall be entitled to all of the benefits of this Indenture equally and
proportionally with all other Notes duly issued hereunder.

      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 Notes.

      SECTION 2.08 OUTSTANDING NOTES.

      Outstanding Notes, means, as of the date of determination, all Notes
theretofore authenticated and delivered under this Indenture, except:

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

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

                                       23
<PAGE>

            (iii) Notes, except to the extent provided in Section 8.04, with
respect to which the Company has effected defeasance as provided in Article
VIII; and

            (iv) Notes paid pursuant to Section 2.07 and Notes in exchange for
or in lieu of which other Notes have been authenticated and delivered pursuant
to this Indenture, other than any such Notes in respect of which there shall
have been presented to the Trustee proof satisfactory to it that such Notes are
held by a bona fide purchaser in whose hands such Notes are valid obligations of
the Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of Notes Outstanding have performed any Act hereunder, Notes
owned by the Company or any other obligor upon the Notes or any Affiliate of the
Company or of such other obligor shall be disregarded and deemed not to be
Outstanding (provided, that in connection with any offer by the Company or any
obligor to purchase Notes, Notes tendered by a Holder shall be Outstanding until
the date of purchase), except that, in determining whether the Trustee shall be
protected in relying upon any such Act, only Notes which a Trust Officer of the
Trustee actually knows to be so owned shall be so disregarded. Notes 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 to
act with respect to such Notes and that the pledgee is not the Company or any
other obligor upon the Notes or any Affiliate of the Company or of such other
obligor.

      SECTION 2.09 INTENTIONALLY OMITTED.

      SECTION 2.10 TEMPORARY NOTES.

      Until certificates representing Notes are ready for delivery, the Company
may prepare and the Trustee, upon receipt of an Authentication Order, shall
authenticate temporary Notes. Temporary Notes shall be substantially in the form
of Definitive Notes but may have variations that the Company considers
appropriate for temporary Notes and as shall be reasonably acceptable to the
Trustee. Without unreasonable delay, the Company shall prepare and the Trustee
shall authenticate Definitive Notes in exchange for temporary Notes. Holders of
temporary Notes shall be entitled to all of the benefits of this Indenture.

      SECTION 2.11 CANCELLATION.

      All Notes surrendered for payment, redemption, transfer or exchange shall,
if surrendered to any Person other than the Trustee, be delivered to the Trustee
at its Corporate Trust Office. All Notes so delivered shall be promptly
cancelled by the Trustee. The Company may at any time deliver to the Trustee for
cancellation any Notes previously authenticated and delivered hereunder which
the Company may have acquired in any manner whatsoever, and may deliver to the
Trustee (or to any other Person for delivery to the Trustee) for cancellation
any Notes previously authenticated hereunder which the Company has not issued,
and all Notes so delivered shall be promptly cancelled by the Trustee. No Notes
shall be authenticated in lieu of or in exchange for any Notes cancelled as
provided in this Section, except as permitted by this Indenture. All cancelled
Notes held by the Trustee shall be delivered to the Company upon Company
Request. The acquisition of any Notes by the Company shall not operate as a
redemption or satisfaction of the indebtedness represented thereby unless and
until such Notes are surrendered to the Trustee for cancellation. The Notes
shall not be disposed of until exchanged in full for Definitive Notes or until
payment thereon is made in full.

      SECTION 2.12 DEFAULTED INTEREST.

      (a) Any interest on any Note 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 registered Holder on the
relevant Regular Record Date by virtue of his having been such registered
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 such Notes (or their respective Predecessor Note)
are registered at the close of business on a special record date (the "Special
Record Date") for the payment of such Defaulted Interest, which shall be fixed
in the

                                       24
<PAGE>

following manner. The Company shall notify the Trustee in writing of the amount
of Defaulted Interest proposed to be paid on each such Note and the date of the
proposed payment, and at the same time the Company shall deposit with the
Trustee prior to 10:00 a.m., New York City time, an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Defaulted Interest as in this
clause provided. Thereupon the Trustee shall fix a Special Record Date for the
payment of such Defaulted Interest. The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest
and the Special Record Date therefor to be mailed, first-class postage prepaid,
to the Holders of such Notes at their addresses as they appear in the Note
Register, not less than 15 days prior to such Special Record Date. Notice of the
proposed payment of such Defaulted Interest and the Special Record Date therefor
having been mailed as aforesaid, such Defaulted Interest shall be paid to the
Persons in whose names such Notes (or their respective Predecessor Note) 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 Notes
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which such Notes may be listed, and upon such notice as
may be required by such exchange, if, after notice is 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.

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

      SECTION 2.13 CUSIP, ISIN OR COMMON CODE NUMBERS.

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

      SECTION 2.14 ISSUANCE OF ADDITIONAL NOTES.

      If authorized by a Board Resolution, the Company shall be entitled to
issue Additional Notes under this Indenture which shall have substantially
identical terms as the Notes, other than with respect to the date of issuance,
issue price, amount of interest payable on the first interest payment date
applicable thereto or upon a registration default as provided under a
registration rights agreement related thereto, if any (and if such Additional
Notes shall be issued in the form of Unrestricted Notes, other than with respect
to transfer restrictions); provided that such issuance shall be made in
compliance with this Indenture; provided, however, that no Additional Notes may
be issued at a price that would cause such Additional Notes to have "original
issue discount" within the meaning of Section 1273 of the Code. The Initial
Notes issued on the Closing Date, any Additional Notes and all Exchange Notes or
Private Exchange Notes issued in exchange for such Initial Notes or Additional
Notes shall be treated as a single class for all purposes under this Indenture.

      With respect to any Additional Notes, the Company shall set forth in an
Officers' Certificate, a copy of which shall be delivered to the Trustee, or in
a supplemental indenture, the following information:

      (1) the aggregate principal amount of Notes outstanding immediately prior
to the issuance of such Additional Notes;

      (2) the aggregate principal amount of such Additional Notes to be
authenticated and delivered pursuant to this Indenture;

                                       25
<PAGE>

      (3) the issue price and the issue date of such Additional Notes and the
amount of interest payable on the first interest payment date applicable
thereto;

      (4) the "CUSIP", "ISIN" or "Common Code" number, as applicable, of such
Additional Notes; and

      (5) whether such Additional Notes shall be Restricted Notes, and in which
form and pursuant to which exemptions from the Securities Act they may be issued
and resold, or whether they shall be Unrestricted Notes issued pursuant to a
registration statement under the Securities Act.

                                   ARTICLE III
                                   REDEMPTION

      SECTION 3.01 OPTIONAL REDEMPTION.

      The Notes are redeemable at the option of the Company, in whole or in part
at any time at a redemption price (the "REDEMPTION PRICE") equal to the greater
of:

            -     100% of the principal amount thereof; or

            -     as determined by an Independent Investment Banker, the sum of
                  the present values of the remaining scheduled payments of
                  principal and interest on the Notes to be redeemed (not
                  including any portion of such payments of interest accrued to
                  the Redemption Date) discounted to the Redemption Date on a
                  semiannual basis (assuming a 360-day year consisting of twelve
                  30-day months) at the Adjusted Treasury Rate, plus 50 basis
                  points,

      plus, in either of the above cases, accrued and unpaid interest to the
Redemption Date on the Notes to be redeemed.

      "ADJUSTED TREASURY RATE" means, with respect to any Redemption Date:

            -     the yield, under the heading which represents the average for
                  the immediately preceding week, appearing in the most recently
                  published statistical release designated "H.15(519)" or any
                  successor publication which is published weekly by the Board
                  of Governors of the Federal Reserve System and which
                  establishes yields on actively traded United States Treasury
                  securities adjusted to constant maturity under the caption
                  "Treasury Constant Maturities," for the maturity corresponding
                  to the Comparable Treasury Issue (if no maturity is within
                  three months before or after the Remaining Life (as defined
                  below), yields for the two published maturities most closely
                  corresponding to the Comparable Treasury Issue shall be
                  determined and the Adjusted Treasury Rate shall be
                  interpolated or extrapolated from such yields on a straight
                  line basis, rounding to the nearest month); or

            -     if such release (or any successor release) is not published
                  during the week preceding the calculation date or does not
                  contain such yields, the rate per annum equal to the
                  semi-annual equivalent yield to maturity of the Comparable
                  Treasury Issue, calculated using a price for the Comparable
                  Treasury Issue (expressed as a percentage of its principal
                  amount) equal to the Comparable Treasury Price for such
                  Redemption Date.

      The Adjusted Treasury Rate shall be calculated on the third Business Day
preceding the Redemption Date.

      "COMPARABLE TREASURY ISSUE" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Notes to be redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of such securities ("REMAINING LIFE").

                                       26
<PAGE>

      "COMPARABLE TREASURY PRICE" means (1) the average of four Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the highest
and lowest Reference Treasury Dealer Quotations, or (2) if the Independent
Investment Banker obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such quotations.

      "INDEPENDENT INVESTMENT BANKER" means one of the Reference Treasury
Dealers appointed by the Company.

      "REFERENCE TREASURY DEALER" means any primary U.S. Government securities
dealer in New York City selected by the Company.

      "REFERENCE TREASURY DEALER QUOTATIONS" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Independent Investment Banker, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker at 5:00
p.m., New York City time, on the third Business Day preceding such Redemption
Date.

      SECTION 3.02 ELECTION TO REDEEM; NOTICE TO TRUSTEE.

      The election of the Company to redeem the Notes shall be evidenced by a
Board Resolution. The Company shall, not less than 35 (unless a shorter notice
period is acceptable to the Trustee) nor more than 60 days before the Redemption
Date fixed by the Company, notify the Trustee of such Redemption Date, the
Redemption Price, the CUSIP numbers and the principal amount of Notes to be
redeemed.

      SECTION 3.03 SELECTION BY TRUSTEE OF NOTES TO BE REDEEMED.

      If less than all the Notes are to be redeemed at the election of the
Company, the particular Notes to be redeemed shall be selected not more than 60
days prior to the Redemption Date by the Trustee from the Outstanding Notes 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 Notes or any integral
multiple thereof) of the principal amount of Notes in a denomination larger than
the minimum authorized denomination for Notes pursuant to Section 2.01(a) in the
currency in which the Notes are denominated. The portions of the principal
amount of Notes so selected for partial redemption shall be equal to the minimum
authorized denominations for Notes pursuant to Section 2.01(a) in the currency
in which the Notes are denominated or any integral multiple thereof. In any case
when more than one Note is registered in the same name, the Trustee, in its
discretion, may treat the aggregate principal amount so registered as if it were
represented by one Note.

      The Trustee shall promptly notify the Company and the U.S. Depositary for
the Notes (if other than itself) in writing of the Notes selected for redemption
and, in the case of any Notes 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 Notes shall relate, in the case of
any Note redeemed or to be redeemed only in part, to the portion of the
principal amount of such Note which has been or is to be redeemed.

      SECTION 3.04 NOTICE OF REDEMPTION.

      Notice of redemption shall be given by the Company, or at the Company's
written request, by the Trustee in the name and at the expense of the Company,
not less than 30 days and not more than 60 days prior to the Redemption Date to
the Holders of the Notes to be redeemed pursuant to this Article III, in the
manner provided in Section 12.02. Any notice so given shall be conclusively
presumed to have been duly given, whether or not the Holder receives such
notice. Failure to give such notice, or any defect in such notice to the Holder
of any Note, in whole or in part, shall not affect the sufficiency of any notice
of redemption with respect to the Holder of any other Note.

                                       27
<PAGE>

      All notices of redemption shall identify the Notes to be redeemed
(including CUSIP number) and shall state:

      (a) the Redemption Date,

      (b) the Redemption Price,

      (c) that Notes are being redeemed by the Company pursuant to provisions
contained in this Indenture or the terms of the Notes, together with a brief
statement of the facts permitting such redemption,

      (d) that all Outstanding Notes are to be redeemed,

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

      (f) the Place or Places of Payment where such Notes are to be surrendered
for payment of the Redemption Price.

      SECTION 3.05 DEPOSIT OF REDEMPTION PRICE.

      On or prior to 10:00 a.m., New York City time, on the Redemption Date for
any Notes, 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 4.05) an amount of money in the currency in which
such Notes are denominated sufficient to pay the Redemption Price of such Notes
which are to be redeemed on that date.

      SECTION 3.06 NOTES PAYABLE ON REDEMPTION DATE.

      Notice of redemption having been given as aforesaid, any Notes so to be
redeemed shall, on the Redemption Date, become due and payable at the Redemption
Price in the currency in which the Notes are payable, and from and after such
date (unless the Company shall default in the payment of the Redemption Price)
such Notes shall cease to bear interest. Upon surrender of any such Note for
redemption in accordance with said notice, such Note shall be paid by the
Company at the Redemption Price; provided, however, that installments of
interest on Notes which have a Stated Maturity on or prior to the Redemption
Date for such Notes shall be payable according to the terms of such Notes and
the provisions of Section 2.04, Section 2.12 and Section 4.05.

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

      SECTION 3.07 NOTES REDEEMED IN PART.

      Any Note which is to be redeemed only in part shall be surrendered at the
Corporate Trust Office with, if the Company, the U.S. Depositary for the Notes
or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company, the U.S. Depositary for the Notes
and the Trustee duly executed by, the Holder thereof or such Holder's attorney
duly authorized in writing, and the Company shall execute, and the Trustee shall
authenticate and deliver to the Holder of such Note without service charge, a
new Note or Notes, of like tenor and form, 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 Note so surrendered. In the
case of a Note providing appropriate space for such notation, at the option of
the Holder thereof, the Trustee, in lieu of delivering a new Note or Notes as
aforesaid, may make a notation on such Note of the payment of the redeemed
portion thereof.

                                       28
<PAGE>

      SECTION 3.08 MANDATORY DISPOSITION OF NOTES PURSUANT TO GAMING LAWS.

      Each Holder and beneficial owner, by accepting or otherwise acquiring an
interest in the Notes, shall be deemed to have agreed that if the Gaming
Authority of any jurisdiction in which the Company or any of its Subsidiaries
conducts or proposes to conduct gaming requires that a Person who is a Holder or
beneficial owner must be licensed, qualified or found suitable under the
applicable Gaming Laws, such Holder or beneficial owner shall apply for a
license, qualification or a finding of suitability within the required time
period. If such Person fails to apply or become licensed or qualified or is
found unsuitable (a "DISQUALIFIED HOLDER"), then the Company shall have the
right, at its option, notwithstanding any other provision of this Indenture:

      (i) to require such Person to dispose of its Notes or beneficial interest
therein within 30 days of receipt of notice of the Company's election or such
earlier date as may be requested or prescribed by such Gaming Authority; or

      (ii) to redeem such Notes, which Redemption Date may be less than 30 days
following the notice of redemption if so requested or prescribed by the Gaming
Authority, at a redemption price equal to:

            (1) the lesser of:

                  (a) the Person's cost, plus accrued and unpaid interest, if
            any, to the earlier of the Redemption Date or the date of the
            finding of unsuitability or failure to comply; and

                  (b) 100% of the principal amount thereof, plus accrued and
            unpaid interest to the earlier of the Redemption Date and the date
            of the finding of unsuitability; or

            (2) such other amount as may be required by applicable Gaming Laws
      or by order of any Gaming Authority.

      The Company shall notify the Trustee in writing of any such Disqualified
Holder status or redemption as soon as practicable. The Company shall not be
responsible for any costs or expenses any such Holder or beneficial owner may
incur in connection with its application for a license, qualification or a
finding of suitability. Notwithstanding any other provision of this Indenture,
immediately upon the imposition of a requirement to dispose of Notes by a Gaming
Authority, such Person shall, to the extent required by applicable Gaming Laws,
have no further right (i) to exercise, directly or indirectly, through any
trustee, nominee or any other person or entity, any right conferred by the Notes
or (ii) to receive any interest, dividends or any other distributions or
payments with respect to the Notes or any remuneration in any form with respect
to the Notes from the Company or the Trustee, except the redemption price.

                                   ARTICLE IV
                                    COVENANTS

      SECTION 4.01 PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.

      The Company covenants and agrees for the benefit of the Notes, that it
will duly and punctually pay the principal of (and premium, if any) and interest
on the Notes in accordance with the terms of the Notes and this Indenture.

      SECTION 4.02 REPORTS

      (a) Whether or not required by the Commission, so long as any Notes are
outstanding, the Company shall furnish to the Holders within 15 days after the
time periods specified in the Commission's rules and regulations:

            (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

                                       29
<PAGE>

"Management's Discussion and Analysis of Financial Condition and Results of
Operations" ("MD&A") and, with respect to the annual information only, a report
thereon by the Company's independent registered public accounting firm; 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.

      (b) In addition, the Company and the Subsidiary Guarantors, for so long as
any Notes remain outstanding, shall furnish to the Holders and to securities
analysts and prospective investors, upon their request, the information required
to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. The
Company shall at all times comply with TIA Section 314(a).

      SECTION 4.03 OFFICER'S CERTIFICATE AS TO COMPLIANCE.

      The Company will deliver to the Trustee, within 120 days after the end of
each fiscal year, a certificate of the principal executive officer, principal
financial officer or principal accounting officer of the Company stating whether
or not, to the knowledge of the signer thereof, the Company is in compliance
with all covenants and conditions under this Indenture, and, in the event of any
noncompliance, specifying such noncompliance and the nature and status thereof
of which such signer may have knowledge. For purposes of this Section, such
compliance shall be determined without regard to any period of grace or
requirement of notice provided under this Indenture.

      SECTION 4.04 MAINTENANCE OF OFFICE OR AGENCY.

      The Company will maintain in each Place of Payment an office or agency
where Notes may be presented or surrendered for payment, where Notes may be
surrendered for registration of transfer or exchange, where Notes that are
convertible may be surrendered for conversion, if applicable, and where notices
and demands to or upon the Company in respect of the Notes and this Indenture
may be served. If the Notes 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 Paying Agent for the Notes in London,
Luxembourg or any other required city located outside the United States, as the
case may be, so long as the Notes are listed on such exchange, and subject to
any laws or regulations applicable thereto, in a Place of Payment located
outside the United States an office or agency where any Notes may be surrendered
for registration of transfer, where Notes may be surrendered for exchange or
redemption and where notices and demands to or upon the Company in respect of
the Notes and this Indenture may be served. The Company will give prompt written
notice to the Trustee of the location, and any change in the location, of such
office or agency. If at any time the Company shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office of the Trustee and the Company hereby
appoints the Trustee as its agent to receive all presentations, surrenders,
notices and demands.

      The Company may also from time to time designate different or additional
offices or agencies to be maintained for such purposes (in or outside of such
Place of Payment), and may from time to time rescind any such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligations described in the preceding paragraph. The
Company will give prompt written notice to the Trustee of any such additional
designation or rescission of designation and any change in the location of any
such different or additional office or agency.

      SECTION 4.05 MONEY FOR NOTES; PAYMENTS TO BE HELD IN TRUST.

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

                                       30
<PAGE>

      Whenever the Company shall have one or more Paying Agents with respect to
the Notes, it will, by or on each due date of the principal (and premium, if
any) or interest on any Notes, deposit with any such Paying Agent a sum
sufficient to pay the principal (and premium, if any) or interest so becoming
due (in same day funds and, if a Global Note is Outstanding, by 10:00 a.m., New
York City time, in order for the Trustee to make payment to the U.S. Depositary
for such Note in accordance with rules of such U.S. Depositary), such sum to be
held in trust for the benefit of the Persons entitled thereto, and (unless any
such Paying Agent is the Trustee) the Company will promptly notify the Trustee
of its action or failure so to act.

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

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

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

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

      The 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 then held by
the Company, in trust for the payment of the principal of (and premium, if any)
or interest on any Note and remaining unclaimed for two years after such
principal (and premium, if any) or interest has become due and payable shall be
paid to the Company upon Company Request, or (if then held by the Company) shall
be discharged from such trust; and the Holder of such Note 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, shall at the expense of the Company cause
to be transmitted in the manner and to the extent provided by Section 12.02,
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
notification, any unclaimed balance of such money then remaining will be repaid
to the Company upon Company Request.

      SECTION 4.06 CORPORATE EXISTENCE.

      Subject to Articles V and X, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its and each
Subsidiary Guarantor's corporate existence, rights (charter and statutory) and
franchises; provided, however, that the Company shall not be required to
preserve any such right or franchise if the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and the Subsidiary Guarantors, taken as a whole.

      SECTION 4.07 WAIVER OF CERTAIN COVENANTS.

      The Company may omit in any particular instance to comply with any term,
provision or condition set forth in Sections 4.04 through 4.06 or 4.08 through
4.12 if before the time for such compliance the Holders of at least a majority
in principal amount of the Outstanding Notes shall, by Act of such Holders,
either waive such compliance in such instance or generally waive compliance with
such term, provision or condition, but no such waiver shall extend to or affect
such term, provision or condition except to the extent expressly so waived, and,
until such waiver

                                       31
<PAGE>

shall become effective, the obligations of the Company and the duties of the
Trustee in respect of any such term, provision or condition shall remain in full
force and effect; provided that no waiver of any requirement to provide a
Guarantee or Collateral shall be effective without the Act of the Holder of each
Outstanding Note affected thereby.

      SECTION 4.08 GUARANTEE AND COLLATERAL MATTERS.

      (a) The Company shall from time to time (i) cause each Subsidiary of the
Company that is not an Excluded Subsidiary to become, on the Issue Date or, if
such Subsidiary is acquired or created after the Issue Date or such Subsidiary
was an Excluded Subsidiary but thereafter is not an Excluded Subsidiary, at the
later of (A) the time of the acquisition, creation or change in status of such
Subsidiary and (B) the time at which such Subsidiary Incurs Indebtedness or such
Subsidiary guarantees or secures any Indebtedness of the Company, a guarantor of
the obligations of the Company under this Indenture and the Notes by executing
this Indenture (directly, by supplemental indenture or by a joinder agreement, a
form of which is attached hereto as Exhibit F) as a Subsidiary Guarantor or by
executing a Guarantee in substantially the form of Article X (provided that the
provision of a Guarantee by a Subsidiary after the Issue Date shall be subject
to compliance with any applicable Gaming Laws and the Company agrees that
(subject to Section 4.08(b)) it shall not have any such Subsidiary that is not
an Excluded Subsidiary unless it is permitted to give such Guarantee under
applicable Gaming Laws) and (ii) deliver to the Trustee an Opinion of Counsel,
in form reasonably satisfactory to the Trustee, that such Guarantee is the
valid, binding and enforceable obligation of such Subsidiary Guarantor, subject
to customary exceptions for bankruptcy, fraudulent transfer and equitable
principles.

      (b) The actions set forth in Section 4.08(a) shall be taken within 10 days
of the time on which any Person is required to become a Subsidiary Guarantor,
provided that if such Person is not permitted to give a Guarantee under
applicable Gaming Laws, then, unless such Person has become a guarantor of the
Credit Facility, any Existing Senior Notes, or any Additional Notes, Exchange
Notes or Private Exchange Notes, such period shall be extended as long as the
Company continues to use best efforts to obtain the requisite consents for such
Guarantee from the applicable Gaming Authority. Each Note issued after the date
of execution by any additional Subsidiary Guarantor of a Guarantee set forth in
this Indenture shall be endorsed with a form of Guarantee that has been executed
by such Subsidiary Guarantor. However, the failure of any Note to have endorsed
thereon a Guarantee executed by such Subsidiary Guarantor shall not affect the
validity or enforceability of such Guarantee. In the case of a Subsidiary that
becomes a Subsidiary Guarantor after the Issue Date as a result of its guarantee
of Indebtedness of the Company (and not as a result of its Incurrence of
Indebtedness), if such Subsidiary thereafter no longer guarantees any
Indebtedness and has not Incurred any Indebtedness, then, upon delivery by the
Company to the Trustee of an Officers' Certificate and an Opinion of Counsel to
the effect that such conditions to release of the Guarantee by such Subsidiary
have been satisfied, the Trustee shall execute any documents reasonably required
in order to evidence the release of such Subsidiary Guarantor from its Guarantee
Obligations under its Guarantee.

      (c) Prior to the Collateral Release Date (or thereafter if a Collateral
Event has occurred and the Collateral Release Date has not again occurred), the
Company from time to time shall cause each Subsidiary Guarantor to (i) execute
such Collateral Documents as may be necessary to grant a security interest in
substantially all of the assets and properties, whether real, personal or mixed,
or tangible or intangible, of such Subsidiary Guarantor to secure its Guarantee,
and to execute and deliver all documents, and take all such other actions as may
be necessary or reasonably requested by the Trustee to grant the Trustee a
valid, enforceable and perfected Lien on all of the assets and properties of the
Subsidiary Guarantor included in the Collateral, pari passu with Liens thereon
securing the Credit Facility and the Existing Senior Notes (and additional
senior notes and guarantees subject to the Intercreditor Agreement), provided
that the provision of such Collateral Documents and such Collateral by a
Subsidiary that becomes a Subsidiary Guarantor after the Issue Date (or the
pledge of stock of any new Subsidiary that becomes subject to applicable Gaming
Laws) shall be subject to compliance with any applicable Gaming Laws, and (ii)
deliver to the Trustee an Opinion of Counsel, in form reasonably satisfactory to
the Trustee, that such Collateral Documents are the valid, binding and
enforceable obligations of such Subsidiary Guarantor, subject to customary
exceptions for bankruptcy, fraudulent transfer and equitable principles, and
create valid and perfected Liens on the Collateral therein securing such
Subsidiary Guarantor's Guarantee.

      (d) Prior to the Collateral Release Date (or thereafter if a Collateral
Event has occurred and the Collateral Release Date has not again occurred) and
subject to compliance with applicable Gaming Laws, the Company will not, and
will not permit any Subsidiary to create, incur or suffer to exist any Lien upon
any of their

                                       32
<PAGE>

properties or assets (including capital stock), that secures the Credit Facility
and the Existing Senior Notes, without making effective provision to secure all
of the Notes and Guarantees then outstanding by such Lien, equally and ratably
with (or prior to) the Credit Facility and the Existing Senior Notes, so long as
the Credit Facility and the Existing Senior Notes shall be so secured.

      (e) A Collateral Release shall not constitute or be construed as a release
(or to require the release) of the Guarantee of any Subsidiary Guarantor under
this Indenture. The Company will not, and will not permit any Subsidiary to,
create or acquire or have any Subsidiary that is not an Excluded Subsidiary
without making effective provision for such Subsidiary to become a Subsidiary
Guarantor under this Indenture. In the event that the Company or any Subsidiary
shall create or acquire any Subsidiary that is (i) not a guarantor of the
Company's Indebtedness (including the Notes, the Credit Facility and the
Existing Senior Notes), and not subject to any covenants in, or Liens securing,
the Credit Facility or the Existing Senior Notes, or (ii) a non-U.S. Subsidiary
whose only tangible assets are located in foreign nations or a holding company
of any non-U.S. Subsidiaries whose only tangible assets are located in foreign
nations, provided such holding company has no other assets or operations, then
such Subsidiary shall be an Excluded Subsidiary.

      SECTION 4.09 CONDITIONAL COLLATERAL; GAMING APPROVALS.

      Prior to the Collateral Release Date, the Company shall use commercially
reasonable efforts to obtain all necessary consents from the applicable Gaming
Authorities (i) to grant a Lien on the Conditional Collateral in favor of the
Collateral Agent pursuant to the Collateral Documents; (ii) to place
restrictions on the transfer of the equity securities of the Company's corporate
Subsidiaries holding Gaming Licenses; and (iii) to agree not to encumber such
equity securities. Upon receipt of all consents needed to grant such Lien on any
Conditional Collateral, the Company shall promptly take all action (or cause the
Subsidiary Guarantors to take all action) necessary (including execution and
delivery of Collateral Documents or supplements thereto) in order to grant and
perfect in favor of the Collateral Agent a Lien on such Conditional Collateral,
pari passu with the Lien on such Conditional Collateral securing the Credit
Facility and the Existing Senior Notes (and additional senior notes and
guarantees subject to the Intercreditor Agreement). In addition, prior to the
Collateral Release Date, the Company shall use commercially reasonable efforts
to obtain all necessary consents from the applicable lessors to grant a Lien on
the Non-Principal Property Collateral in favor of the Collateral Agent pursuant
to the Collateral Documents and, upon receipt of all consents needed to grant
such Lien on any Non-Principal Property Collateral, the Company shall promptly
take all action (or cause the Subsidiary Guarantors to take all action)
necessary (including execution and delivery of Collateral Documents or
supplements thereto) in order to grant and perfect in favor of the Collateral
Agent a Lien on such Non-Principal Property Collateral, pari passu with the Lien
on such Non-Principal Property Collateral securing the Credit Facility and the
Existing Senior Notes.

      SECTION 4.10 LIMITATION ON LIENS.

      (a) Other than as provided in Section 4.10(c) below and subject to
compliance with any applicable Gaming Laws, neither the Company nor any
Subsidiary Guarantor will, directly or indirectly, issue, assume or guarantee
any Indebtedness secured by a Lien upon any Principal Property or on any
evidences of Indebtedness or shares of capital stock of, or other ownership
interests in, any Subsidiaries (regardless of whether the Principal Property,
Indebtedness, capital stock or ownership interests were acquired before or after
the date hereof) without effectively providing that all of the Notes or
Guarantees then outstanding, as the case may be, shall be secured equally and
ratably with (or prior to) the Indebtedness so long as such Indebtedness shall
be so secured, except that this restriction will not apply to:

            (i) Liens existing on the date of original issuance of the Notes;

            (ii) Liens affecting property of a corporation or other entity
      existing at the time it becomes a Subsidiary Guarantor or at the time it
      is merged into or consolidated with the Company or a Subsidiary Guarantor
      (provided that such Liens are not incurred in connection with, or in
      contemplation of, such entity becoming a Subsidiary Guarantor or such
      merger or consolidation and do not extend to or cover property of the
      Company or any Subsidiary Guarantor other than property of the entity so
      acquired or which becomes a Subsidiary Guarantor);

                                       33
<PAGE>

            (iii) Liens (including purchase money Liens) existing at the time of
      acquisition thereof on property acquired after the date hereof or to
      secure Indebtedness Incurred prior to, at the time of, or within 24 months
      after the acquisition for the purpose of financing all or part of the
      purchase price of property acquired after the date hereof (provided that
      such Liens do not extend to or cover any property of the Company or any
      Subsidiary Guarantor other than the property so acquired);

            (iv) Liens on any property to secure all or part of the cost of
      improvements or construction thereon or Indebtedness Incurred to provide
      funds for such purpose in a principal amount not exceeding the cost of
      such improvements or construction;

            (v) Liens which secure Indebtedness of a Subsidiary of the Company
      to the Company or to a Subsidiary Guarantor or which secure Indebtedness
      of the Company to a Subsidiary Guarantor;

            (vi) Liens on the stock, partnership or other equity interest of the
      Company or Subsidiary Guarantor in any Joint Venture or any Subsidiary
      which owns an equity interest in such Joint Venture to secure
      Indebtedness, provided the amount of such Indebtedness is contributed
      and/or advanced solely to such Joint Venture;

            (vii) Liens to government entities, including pollution control or
      industrial revenue bond financing;

            (viii) Liens required by any contract or statute in order to permit
      the Company or a Subsidiary of the Company to perform any contract or
      subcontract made by it with or at the request of a governmental entity;

            (ix) mechanic's, materialman's, carrier's or other like Liens,
      arising in the ordinary course of business;

            (x) Liens for taxes or assessments and similar charges;

            (xi) zoning restrictions, easements, licenses, covenants,
      reservations, restrictions on the use of real property and other minor
      irregularities of title; and

            (xii) any extension, renewal, replacement or refinancing of any
      Indebtedness secured by a Lien permitted by any of the foregoing clauses
      (i) through (vi).

      (b) Notwithstanding the foregoing,

            (i) if any of the Existing Senior Notes are hereafter secured by any
      Liens on any of the assets of the Company or any Subsidiary Guarantor,
      then the Company and the Subsidiary Guarantor shall, substantially
      concurrently with the granting of such Liens, subject to such Liens having
      been approved by all applicable Gaming Authorities to the extent the
      Gaming Laws of the applicable jurisdiction require such approval, grant
      perfected Liens in the same collateral to secure the Notes (or Guarantees,
      as the case may be), equally, ratably and on a pari passu basis. The Liens
      granted pursuant to this provision shall be (A) granted concurrently with
      the granting of any such Liens, and (B) granted pursuant to instruments,
      documents and agreements which are no less favorable to the Trustee and
      the Holders of the Notes than those granted to secure the Existing Senior
      Notes. In connection with the granting of any such Liens, the Company and
      each Subsidiary Guarantor shall provide to the Trustee (y) policies of
      title insurance on customary terms and conditions, to the extent that
      policies of title insurance on the corresponding property are provided to
      the Holders of the Existing Senior Notes or their respective trustee (and
      in an insured amount that bears the same proportion to the principal
      amount of the Notes as the insured amount in the policies provided to the
      holders of the Existing Senior Notes bears to the aggregate outstanding
      amount of the Existing Senior Notes), and (z) legal opinions and other
      assurances as the Trustee may reasonably request.

                                       34
<PAGE>

            (ii) if the Company and the Subsidiary Guarantors become entitled to
      the release of all of the equal, ratable and pari passu Liens securing the
      Credit Facility and the Existing Senior Notes (and any additional senior
      notes or guarantees subject to the Intercreditor Agreement), and provided
      that no Default or Event of Default has then occurred and remains
      continuing, the Company and the Subsidiary Guarantors may in their sole
      discretion request that the Collateral Agent (or the Trustees and the
      Administrative Agents with respect to the Credit Facility) release any
      Liens securing the Notes, the Existing Senior Notes, such other notes and
      guarantees and the Credit Facility, and in such circumstances the
      Collateral Agent (or the Trustee) shall so release such Liens.

      (c) Notwithstanding the foregoing, the Company or any Subsidiary Guarantor
may create, assume or suffer to exist Liens not otherwise permitted as described
above, provided that at the time of such incurrence, assumption or sufferance,
after giving effect to such Lien, the sum of outstanding Indebtedness secured by
such Liens (not including Liens permitted under Section 4.10(a) above) plus all
Attributable Debt in respect of Sale and Lease-Back Transactions entered into
(not including Sale and Lease-Back Transactions permitted under Section 4.11(a)
below), measured, in each case, at the time the Lien is incurred, does not
exceed 15% of Consolidated Net Tangible Assets, provided that the foregoing
shall not apply to any Liens that may at any time secure any of the Existing
Senior Notes.

      SECTION 4.11 LIMITATION ON SALE AND LEASEBACK TRANSACTIONS.

      (a) Other than as provided in Section 4.11(b) below, neither the Company
nor any Subsidiary Guarantor will enter into any Sale and Lease-Back
Transaction, unless either:

            (i) the Company or such Subsidiary Guarantor would be entitled,
      pursuant to the provisions described in clauses (i) through (xii) of
      Section 4.10(a) above, to create, assume or suffer to exist a Lien on the
      property to be leased without equally and ratably securing the Notes; or

            (ii) an amount equal to the greater of the net cash proceeds of such
      sale or the fair market value of such property (in the good faith opinion
      of the Board of Directors) is applied within 120 days to the retirement or
      other discharge of its Funded Debt.

      (b) Notwithstanding the foregoing, the Company or any Subsidiary Guarantor
may enter into Sale and Lease-Back Transactions not otherwise permitted as
described above, provided that at the time of entering into such Sale and
Lease-Back Transaction, after giving effect to such Sale and Lease-Back
Transaction, the sum of outstanding Indebtedness secured by Liens (not including
Liens permitted under Section 4.10(a) above) plus all Attributable Debt in
respect of Sale and Lease-Back Transactions entered into (not including Sale and
Lease-Back Transactions permitted under Section 4.11(a) above), measured, in
each case, at the time any such Sale and Lease-Back Transaction is entered into,
does not exceed 15% of Consolidated Net Tangible Assets, provided that the
foregoing shall not apply to any Liens that may at any time secure any of the
Existing Senior Notes.

      SECTION 4.12 COLLATERAL EVENT AFTER COLLATERAL RELEASE DATE.

      If following a Collateral Release, a Collateral Event occurs, the Company
shall, and shall cause each of the Subsidiary Guarantors to, within 30 days
following the occurrence of such Collateral Event (provided that such Collateral
Event is then continuing) and in any event not later than the granting of any
Liens in such collateral to secure the Credit Facility, the Existing Senior
Notes or other senior notes and guarantees subject to the Intercreditor
Agreement, grant Liens in substantially all assets and properties, whether real,
personal or mixed, or tangible or intangible, of the Company and the Subsidiary
Guarantors (excluding interests in the Excluded Subsidiaries) to secure the
Notes and Guarantees, provided that the Company and the Subsidiary Guarantors
shall not be obligated to provide Liens in any assets and properties unless and
until all approvals of Gaming Authorities required for Liens in the respective
assets and properties are obtained but, if approvals of Gaming Authorities are
not required (or have been obtained) to provide Liens in any such assets or
properties to secure the Credit Facility, the Existing Senior Notes or such
other notes and guarantees, the Company and the Subsidiary Guarantors shall not
provide Liens in such assets or properties to secure the Credit Facility, the
Existing Senior Notes or such other notes and guarantees until the required
approvals of Gaming Authorities are obtained for the Liens in such assets or
properties to secure the Notes and the Guarantees. The Company shall, and shall
cause each Subsidiary Guarantor to, use its best efforts

                                       35
<PAGE>

to obtain all necessary consents from the applicable Gaming Authorities to grant
such Liens to secure the Notes and Guarantees and, upon receipt of all consents
needed to grant such a Lien, shall promptly take all action (or cause the
Subsidiary Guarantors to take all action) necessary (including execution and
delivery of Collateral Documents) in order to grant and perfect such a Lien. The
Liens granted pursuant to this Section 4.12 shall be equal, ratable and pari
passu with any Liens securing the Credit Facility and the Existing Senior Notes
and shall be granted pursuant to instruments, documents and agreements which are
(i) substantially in the form of the Collateral Documents in effect as of the
date hereof or otherwise reasonably acceptable to the Trustee and (ii) no less
favorable, in any material respect, to the Holders of the Notes than the form of
instruments, documents and agreements provided to secure the Credit Facility and
the Existing Senior Notes. Each Holder of the Outstanding Notes, by its
acceptance of a Note, consents and agrees to the terms of such Collateral
Documents (including, without limitation, the provisions providing for
foreclosure and release of Collateral) that are deemed by the Trustee to be
reasonably acceptable and, without limitation, authorizes the Trustee to make
changes to the form of the Collateral Documents in effect as of the date hereof
in order to provide appropriate exceptions from representations, warranties and
covenants for any intervening Liens permitted under Section 4.10 and to conform
to corresponding changes made to the form of instruments, documents and
agreements securing the Credit Facility and the Existing Senior Notes in effect
as of the date hereof. In connection with the granting of any such Liens, the
Company and the Subsidiary Guarantors shall contemporaneously provide to the
Trustee policies of title insurance on customary terms and conditions, to the
extent policies of title insurance on the corresponding assets and properties
are provided to the Administrative Agents or the trustees under the Credit
Facility and the Existing Senior Notes (and in an insured amount that bears the
same proportion to the aggregate principal amount of the Outstanding Notes as
the insured amount in the policies provided to the Administrative Agents or the
trustees bears to the aggregate amount of the Credit Facility and the Existing
Senior Notes), Opinions of Counsel required under TIA Section 314(b) and other
assurances as the Trustee may reasonably request.

                                    ARTICLE V
              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

      SECTION 5.01 COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS

      The Company shall not consolidate with, merge with or into, or sell,
assign, convey, transfer or lease its properties and assets substantially in
their entirety (computed on a consolidated basis) to any Person unless:

      (a) either (i) the Company is the surviving entity or (ii) the successor
or transferee (the "successor corporation") is a corporation organized and
existing under the laws of the United States, any State thereof or the District
of Columbia and shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Trustee, all of the obligations of the Company
under the Notes and this Indenture;

      (b) immediately after giving effect to such transaction, no Event of
Default or Default shall exist; and

      (c) the Company has delivered to the Trustee an Officers' Certificate and
an Opinion of Counsel conforming to the provisions of Section 12.05 hereof and
each stating that such consolidation, merger, conveyance, transfer or lease and
such supplemental indenture comply with this provision and that all conditions
precedent herein provided for relating to such transaction have been complied
with.

      The Trustee is hereby authorized to take any action deemed by it to be
necessary or desirable to confirm or ensure the validity, perfection and
priority of the Lien in favor of the Beneficiaries on the Collateral as a result
of any such transaction; provided, that this sentence shall create no obligation
on the Trustee to take any such action.

      SECTION 5.02 SUCCESSOR CORPORATION SUBSTITUTED.

      Upon any consolidation with or merger into any other corporation, or any
conveyance, transfer or lease of the properties and assets of the Company
substantially in their entirety in accordance with Section 5.01, the successor
corporation formed by such consolidation or into which the Company is merged or
to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and

                                       36
<PAGE>

power of, the Company under this Indenture with the same effect as if such
successor corporation had been named as the Company herein.

                                   ARTICLE VI
                              DEFAULTS AND REMEDIES

      SECTION 6.01 EVENTS OF DEFAULT.

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

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

      (b) default in the payment of the principal of (and premium, if any, on)
any Note at its Maturity (upon acceleration, optional or mandatory redemption or
otherwise); or

      (c) default in the performance, or breach, of any covenant or warranty of
the Company in this Indenture (other than a covenant or warranty a default in
whose performance or whose breach is elsewhere in this Section specifically
dealt with) or in the Collateral Documents, and continuance of such default or
breach for a period of 60 days after there has been given, by registered or
certified mail, to the Company by the Trustee or the Collateral Agent or to the
Company and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Notes, a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a "NOTICE OF
DEFAULT" hereunder; or

      (d) the acceleration or maturity of any Indebtedness of the Company or any
Subsidiary Guarantor (other than Non-recourse Indebtedness), at any time, in an
amount in excess of the greater of (i) $25,000,000 and (ii) 5% of Consolidated
Net Tangible Assets, if such acceleration is not annulled within 30 days after
written notice to the Company by the Trustee or to the Company and the Trustee
by the Holders of at least 25% in principal amount of the Outstanding Notes; or

      (e) entry of final judgments against the Company or any Subsidiary
Guarantor which remain undischarged for a period of 60 days, provided that the
aggregate of all such judgments exceeds $25,000,000 and judgments exceeding
$25,000,000 remain undischarged for 60 days after written notice to the Company
by the Trustee or to the Company and the Trustee by the Holders of at least 25%
in principal amount of the Outstanding Notes; or

      (f) the entry of a decree or order for relief in respect of the Company or
any Significant Subsidiary 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 a decree or order adjudging the Company or any Significant
Subsidiary a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or composition of or in respect
of the Company or any Significant Subsidiary under any applicable federal or
state law, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or other similar official) of the Company or any Significant
Subsidiary or of any substantial part of its property, or ordering the winding
up or liquidation of its affairs, and the continuance of any such decree or
order unstayed and in effect for a period of 90 consecutive days; or

      (g) the commencement by the Company or any Significant Subsidiary of a
voluntary 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 the consent by it to the entry of an order for relief in
an involuntary case under any such law or to the appointment of a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or other similar
official) of the Company or any Significant Subsidiary or of any substantial
part of its property, or the making by it of an assignment for the benefit of
its creditors, or the admission by it in writing of its inability to pay

                                       37
<PAGE>

its debts generally as they become due, or the taking of corporate action by the
Company or any Significant Subsidiary in furtherance of any such action; or

      (h) repudiation by the Company or any of the Subsidiary Guarantors of
their obligations under the Collateral Documents or the Guarantees or the
Company or any Subsidiary Guarantor takes any action that causes, or asserts, or
fails to timely take any action that it knows, or has been notified by the
Trustee, is necessary to prevent, the unenforceability of the Collateral
Documents or the Guarantees against the Company or any of the Subsidiary
Guarantors for any reason, or is necessary to maintain the perfection of the
material Liens of the Collateral Documents, except for such matters as are
expressly permitted under this Indenture or the Collateral Documents.

      SECTION 6.02 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

      If an Event of Default (other than an Event of Default described in clause
(f) or (g) of Section 6.01) with respect to Notes at the time Outstanding occurs
and is continuing, then in every such case the Trustee or the Holders of not
less than 25% in principal amount of the Outstanding Notes may declare the
principal amount of all the Notes 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) plus accrued and
unpaid interest (and premium, if payable) shall become immediately due and
payable. Upon payment of such amount all obligations of the Company in respect
of the payment of principal of the Notes shall terminate.

      At any time after such a declaration of acceleration with respect to Notes
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 at least a majority in principal amount of the Outstanding Notes, by
written notice to the Company and the Trustee, may rescind and annul such
declaration and its consequences if:

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

            (1) all overdue installments of interest on all Notes,

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

            (3) to the extent that payment of such interest is lawful, interest
upon overdue installments of interest on each Note at the rate or rates
prescribed therefor in such Notes, and

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

      (b) all Events of Default with respect to Notes, other than the nonpayment
of the principal of Notes which has become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 6.13.

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

      If an Event of Default described in clause (f) or (g) of Section 6.01
occurs with respect to the Company or any Significant Subsidiary, the principal
of, premium, if any, and accrued interest on the Notes shall be due and payable
immediately without any further action or notice.

                                       38
<PAGE>

      SECTION 6.03 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
                   TRUSTEE.

      The Company covenants that, if:

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

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

then the Company will, upon demand of the Trustee, pay to it, for the benefit of
the Holders of such Notes, the amount then due and payable on such Notes for the
principal (and premium, if any) and interest, if any, 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 amount 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 may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Company or any other obligor upon such Notes 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 Notes wherever situated.
In addition, if an Event of Default occurs and is continuing, the Trustee shall
have the remedies set forth in the Collateral Documents and Section 11.06
hereof.

      If an Event of Default with respect to Notes occurs and is continuing,
then the Trustee may, in its discretion, proceed to protect and enforce its
rights and the rights of the Holders of Notes 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 the Collateral Documents or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.

      The Trustee shall be under no duty to the Company or any Subsidiary
Guarantor to make or give any presentment, demand for performance, notice of
nonperformance, protest, notice of protest, notice of dishonor, or other notice
or demand in connection with any Collateral, or to take any steps necessary to
preserve any rights against prior parties except as expressly provided in this
Indenture. The Trustee shall not be liable to the Company or the Subsidiary
Guarantors for failure to collect or realize upon any or all of the Collateral,
or for any delay in so doing, nor shall the Trustee be under any duty to the
Company or the Subsidiary Guarantors to take any action with regard thereto. The
Trustee shall have no duty to the Company or the Subsidiary Guarantors to comply
with any recording, filing, or other legal requirements necessary to establish
or maintain the validity, priority or enforceability of the security interests
in, or the Trustee's rights in or to, any of the Collateral.

      SECTION 6.04 TRUSTEE MAY FILE PROOFS OF CLAIM.

      In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceedings, or any voluntary or involuntary case under the federal
Bankruptcy Laws, as now or hereafter constituted, relative to the Company or any
Subsidiary Guarantor, or the property of the Company or of any Subsidiary
Guarantor or their creditors, the Trustee (irrespective of whether the principal
of such Notes shall then be due and payable as therein expressed or by
declaration of acceleration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Company or any Subsidiary Guarantor for the
payment of overdue principal or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

      (a) to file and prove a claim for the whole amount of principal (and
premium, if any) and interest owing and unpaid in respect of the Notes 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,

                                       39
<PAGE>

disbursements and advances of the Trustee, its agents and counsel) and of the
Holders of such Notes allowed in such judicial proceeding, and

      (b) 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, custodian, liquidator, sequestrator (or
other similar official) in any such proceeding is hereby authorized by each such
Holder to make such payments to the Trustee, and in the event that the Trustee
shall consent to the making of such payments directly to such Holders, to pay to
the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.07.

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

      SECTION 6.05 TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF DEBT
                   SECURITIES.

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

      SECTION 6.06 APPLICATION OF MONEY COLLECTED.

      Any money 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 on account of principal (and premium,
if any) or interest, upon presentation of the Notes 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 7.07;

      SECOND: To the payment of the amounts then due and unpaid for principal of
(and premium, if any) and interest on the Notes ratably, without preference or
priority of any kind, according to the amounts due and payable on such Notes for
principal (and premium, if any) and interest, respectively;

      THIRD: without duplication, to Holders of Notes for any other obligations
owing to the Holders of Notes under the Notes, this Indenture or the Collateral
Documents; and

      FOURTH: The balance, if any, to the Person or Persons entitled thereto.

      SECTION 6.07 LIMITATION ON SUITS.

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

      (a) such Holder has previously given written notice to the Trustee of a
continuing Event of Default;

                                       40
<PAGE>

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

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

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

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

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 or the Guarantees to affect, disturb or prejudice the rights
of any other 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, the Guarantees or the Collateral Documents, except in the manner
herein provided and for the equal and ratable benefit of all of such Holders.
For the protection and enforcement of the provisions of this Section 6.07, each
and every Holder of Notes and the Trustee shall be entitled to such relief as
can be given at law or in equity.

      SECTION 6.08 UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM
                   AND INTEREST.

      Notwithstanding any other provision in this Indenture, except for
restrictions imposed by Gaming Laws or Gaming Authorities on payments by
entities holding Gaming Licenses, the Holder of any Note shall have the right,
which is absolute and unconditional, to receive payment of the principal of (and
premium, if any) and (subject to Section 2.04, Section 2.12, Section 4.05 and
Section 3.08) interest on such Note on the respective Stated Maturity or
Maturities expressed in such Note (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment
and interest thereon, and such right shall not be impaired without the consent
of such Holder except that no Holder shall have the right to institute any such
suit, if and to the extent that the institution or prosecution thereof or the
entry of judgment therein would under applicable law result in the surrender,
impairment, waiver, or loss of the Liens of the Collateral Documents upon any
property subject to the Lien in favor of the Beneficiaries.

      SECTION 6.09 RESTORATION OF RIGHTS AND REMEDIES.

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

      SECTION 6.10 RIGHTS AND REMEDIES CUMULATIVE.

      Except as otherwise expressly provided elsewhere in this Indenture, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law (including Gaming Laws),
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.

                                       41

<PAGE>

      SECTION 6.11 DELAY OR OMISSION NOT WAIVER.

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

      SECTION 6.12 CONTROL BY HOLDERS.

      The Holders of at least a majority in principal amount of the Outstanding
Notes 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 Notes, provided that:

      (a) such direction shall not be in conflict with any rule of law
(including Gaming Laws) or with this Indenture;

      (b) subject to the provisions of Section 7.01, the Trustee shall have the
right to decline to follow any such direction if the Trustee in good faith
shall, by a Trust Officer or Trust Officers of the Trustee, determine that the
proceeding so directed would be unjustly prejudicial to the Holders of Notes not
joining in any such direction; and

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

      SECTION 6.13 WAIVER OF PAST DEFAULTS.

      The Holders of not less than a majority in aggregate principal amount of
the Outstanding Notes, by notice to the Trustee, may, on behalf of the Holders
of all the Notes, waive any past default hereunder and its consequences, except
a default:

      (a) in the payment of the principal of (or premium, if any) or interest on
any Note, or

      (b) in respect of a covenant or provision hereof which, pursuant to
Article IX, cannot be modified or amended without the consent of the Holder of
each Outstanding Note affected.

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

      SECTION 6.14 UNDERTAKING FOR COSTS.

      All parties to this Indenture agree, and each Holder of any Note 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 other than the Trustee of an undertaking to pay the costs of such suit, and
that such court may in its discretion assess reasonable costs, including
reasonable attorneys' fees and expenses, against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant, but the provisions of this Section shall not apply
to any suit instituted by the Trustee, to any suit instituted by any Holder or
group of Holders holding in the aggregate more than 10% in principal amount of
the Outstanding Notes, or to any suit instituted by any Holder of a Note for the
enforcement of the payment of the principal of (or premium, if any) or interest
on such Note on or after the respective Stated Maturity or Maturities expressed
in such Note (or, in the case of redemption, on or after the Redemption Date).

                                       42
<PAGE>
      SECTION 6.15 WAIVER OF STAY OR EXTENSION LAWS.

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

      SECTION 6.16 DISQUALIFIED HOLDERS.

      To the extent required by applicable Gaming Laws, Notes held by a
Disqualified Holder shall, so long as held by such Person, be disregarded for
purposes of providing notices, directions, waivers or other actions and
determining the sufficiency of such notices, directions, waivers or actions
under this Article VI.

                                   ARTICLE VII
                                     TRUSTEE

      SECTION 7.01 CERTAIN DUTIES AND RESPONSIBILITIES.

      (a) Except during the continuance of an Event of Default with respect to
the Notes,

            (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) 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 provisions 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.

      (b) In case an Event of Default with respect to Notes has occurred and is
continuing, the Trustee shall, with respect to the Notes, 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 person would exercise or use
under the circumstances in the conduct of such person's own affairs.

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

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

            (2) the Trustee shall not be liable for any error of judgment made
in good faith by a Trust 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, suffered or omitted to be taken by it with respect to Notes in good faith
in accordance with the direction of the Holders of at least a majority in
principal amount of the Outstanding Notes relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture;
and

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

                                       43
<PAGE>
            (5) the Trustee shall cooperate and comply with any order or
directive of a Gaming Authority in connection with this Indenture, including
that the Trustee submit an application for any license, finding of suitability
or other approval pursuant to any Gaming Laws (unless the Trustee shall have
submitted its resignation) and will cooperate fully and completely in any
proceeding related to such application; provided the Company agrees to prepare
(or cause the Subsidiary Guarantors to prepare) all documentation in connection
with any such order, directive, application and proceeding and to reimburse the
Trustee for all costs and expenses incurred by it in connection therewith.

      (d) Whether or not therein expressly so provided, every provision of this
Indenture or the Collateral Documents relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the
provisions of this Section. In the event of any conflict or ambiguity between
this Indenture and any of the Collateral Documents (including the Intercreditor
Agreement), the provisions of this Indenture shall govern and control with
respect to the Trustee's rights, responsibilities and duties. The provisions of
this Indenture with respect to the Trustee's rights, responsibilities and duties
are incorporated by reference into each of the Collateral Documents (including
the Intercreditor Agreement) and shall apply with respect to the Trustee's
performance thereunder (whether in the capacity as Trustee or Collateral Agent)
as if set forth therein.

      SECTION 7.02 NOTICE OF DEFAULTS.

      Within 90 days after the occurrence of any default hereunder with respect
to Notes, the Trustee shall give notice to all Holders of Notes of such default
hereunder known to the Trustee, unless such default shall have been cured or
waived; provided, however, that, except in the case of a default in the payment
of the principal of (or premium, if any) or interest on any Note, 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 and/or
Trust Officers of the Trustee in good faith determine that the withholding of
such notice is in the interest of the Holders of Notes; and provided, further,
that in the case of any default of the character specified in Section 6.01(d)
with respect to Notes, no such notice to Holders shall be given until at least
30 days after the occurrence thereof. 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, an Event of Default with respect to Notes.

      Notice given pursuant to this Section 7.02 shall be transmitted by mail:

      (a) to all registered Holders, as the names and addresses of the
registered Holders appear in the Note Register; and

      (b) to each Holder of a Note whose name and address appear in the
information preserved at the time by the Trustee in accordance with Section
7.02(a) of this Indenture.

      SECTION 7.03 CERTAIN RIGHTS OF TRUSTEE.

      Except as otherwise provided in Section 7.01:

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

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

                                       44
<PAGE>
      (d) the Trustee may consult with counsel of its selection and the advice
of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon;

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

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

      (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) except with respect to Section 4.01, the Trustee shall have no duty to
inquire as to the performance of the Company's covenants in Article IV hereof.
In addition, the Trustee shall not be deemed to have knowledge of any Default or
Event of Default except (i) any Default or Event of Default occurring pursuant
to Section 6.01(a), (b) or (c) or (ii) any Default or Event of Default of which
the Trustee shall have received written notification or obtained actual
knowledge;

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

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

      SECTION 7.04 NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF NOTES.

      The recitals contained herein and in the Notes, except the Trustee's
certificates of authentication, shall be taken as the statements of the Company,
and the Trustee assumes no responsibility for their correctness. The Trustee
makes no representations as to the validity or sufficiency of this Indenture,
the Guarantees, the Collateral Documents or of the Notes. The Trustee shall not
be accountable for the use or application by the Company of any Notes or the
proceeds thereof. The Trustee makes no representation as to the validity, value
or condition of any property covered or intended to be covered by the Lien of
the Collateral Documents or any part thereof or as to the title of the Company
to such property or as to the security afforded by the Collateral Documents or
hereby. The Trustee has not prepared or participated in the negotiation of any
of the Collateral Documents (including the Intercreditor Agreement), and each
Holder, by the purchase of a Note, shall be deemed to have requested and
authorized the Trustee to execute and deliver the Intercreditor Agreement.

      SECTION 7.05 MAY HOLD NOTES.

      The Trustee, any Paying Agent, the Registrar or any other agent of the
Company, in its individual or any other capacity, may become the owner or
pledgee of Notes and, subject to Sections 7.08 and 7.13, may otherwise deal with
the Company with the same rights it would have if it were not Trustee, Paying
Agent, Registrar or such other agent.

                                       45
<PAGE>
      SECTION 7.06 MONEY HELD IN TRUST.

      Money in any currency held by the Trustee or any Paying Agent in trust
hereunder need not be segregated from other funds except to the extent required
by law. Neither the Trustee nor any Paying Agent shall be under any liability
for interest on any money received by it hereunder except as otherwise agreed in
writing with the Company.

      SECTION 7.07 COMPENSATION AND REIMBURSEMENT.

      The Company agrees:

      (a) to pay to the Trustee from time to time such compensation as shall be
agreed in writing between the Company and the Trustee in Dollars for all
services rendered by it hereunder and under the Collateral Documents (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

      (b) except as otherwise expressly provided herein, to reimburse the
Trustee in Dollars upon its request for all reasonable expenses, disbursements
and advances incurred or made by the Trustee in accordance with any provision of
this Indenture or the Collateral Documents (including costs incurred in
connection with applications to any Gaming Authority and including the
reasonable compensation and the reasonable expenses and disbursements of its
agents and counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or willful misconduct; and

      (c) to indemnify in Dollars the Trustee for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or willful
misconduct on its part, arising out of or in connection with the acceptance or
administration of this trust or performance of its duties hereunder or under the
Collateral Documents, including the costs and expenses of defending itself
against any claim (whether asserted by the Company, a Holder of Notes or any
other Person) or liability in connection with the exercise or performance of any
of its powers or duties hereunder.

      As security for the performance of the obligations of the Company under
this Section, the Trustee shall have a claim prior to the Notes, upon all
property and funds held or collected by the Trustee as such, except funds held
in trust for the payment of amounts due on the Notes.

      The obligations of the Company under this Section 7.07 to compensate and
indemnify the Trustee for reasonable expenses, disbursements and advances shall
constitute additional Indebtedness under this Indenture and shall survive the
satisfaction and discharge of this Indenture and any rejection or termination of
this Indenture under any Bankruptcy Law. When the Trustee incurs expenses or
renders services after an Event of Default specified in Section 6.01(f) or (g)
occurs, the expenses and the compensation for the services of the Trustee are
intended to constitute expenses of administration under any Bankruptcy Law.

      SECTION 7.08 DISQUALIFICATION; CONFLICTING INTERESTS.

      The Trustee shall comply with the relevant provisions of the Trust
Indenture Act with respect to conflicts of interest and disqualification. If
such provisions require the Trustee to resign with respect to the Notes, the
Company shall take prompt steps to have a successor appointed, in the manner and
with the effect hereinafter specified in this Article.

      SECTION 7.09 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 $100,000,000, subject to supervision or examination by Federal,
State or District of Columbia authority. If such corporation publishes reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such corporation shall be

                                       46
<PAGE>
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 Affiliate of the
Company shall serve as Trustee upon any Notes.

      SECTION 7.10 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

      Subject to compliance with applicable Gaming Laws:

      (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 under Section 7.11.

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

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

      (d) If at any time:

            (1) the Trustee shall fail to comply with Section 7.08 with respect
to the Notes after written request therefor by the Company or by any Holder who
has been a bona fide Holder of a Note for at least six months, or

            (2) the Trustee shall cease to be eligible under Section 7.09 with
respect to the Notes and shall fail to resign after written request therefor by
the Company or by any such Holder, or

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

then, in any such case, (i) the Company, by a Board Resolution, may remove the
Trustee with respect to all Notes, or (ii) subject to Section 6.14, any Holder
who has been a bona fide Holder of a Note for at least six months may, on behalf
of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee for the Notes.

      (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 Notes, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee or Trustees with respect to the Notes and shall comply with
the applicable requirements of Section 7.11. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Notes shall be appointed by Act of the
Holders of at least a majority in principal amount of the Outstanding Notes
delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment, become the
successor Trustee with respect to the Notes and, to that extent, supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect
to the Notes shall have been so appointed by the Company or the Holders and
accepted appointment in the manner hereinafter provided, any Holder who has been
a bona fide Holder of a Note for at least six months may, subject to Section
6.07, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the appointment of a successor Trustee with
respect to the Notes.

      (f) The Company shall give notice of each resignation and each removal of
the Trustee with respect to the Notes and each appointment of a successor
Trustee with respect to the Notes in the manner and to the extent

                                       47
<PAGE>
provided in Section 12.02 to the Holders of Notes. Each notice shall include the
name of the successor Trustee with respect to the Notes and the address of its
Corporate Trust Office.

      SECTION 7.11 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

      Subject to compliance with applicable Gaming Laws:

      (a) In the case of an appointment hereunder of a successor Trustee with
respect to all Notes, each 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 request of the
Company or the successor Trustee, such retiring Trustee shall, upon payment of
its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee, and shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder, subject nevertheless to its
claim, if any, provided for in Section 7.07.

      (b) 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) of this Section, as the case may be.

      (c) 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.

      SECTION 7.12 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.

      Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder and
under the Collateral Documents, provided that 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 Notes 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 Notes
so authenticated with the same effect as if such successor Trustee had itself
authenticated such Notes. In case any Notes shall not have been authenticated by
such predecessor Trustee, any such successor Trustee may authenticate and
deliver such Notes, in either its own name or that of its predecessor Trustee,
with the full force and effect which this Indenture provides for the certificate
of authentication of the Trustee.

      SECTION 7.13 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

      If and when the Trustee shall be or become a creditor of the Company (or
other obligor under the Notes), the Trustee shall be subject to the provisions
of TIA Section 311(a) regarding the collection of claims against the Company or
any Subsidiary Guarantor (or any such other obligor), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent indicated therein.

      SECTION 7.14 APPOINTMENT OF AUTHENTICATING AGENT.

      As long as any Notes remain Outstanding, upon a Company Request, there
shall be an authenticating agent (the "AUTHENTICATING AGENT") appointed, for
such period as the Company shall elect, by the Trustee to act as its agent on
its behalf and subject to its direction in connection with the authentication
and delivery of the Notes. Notes authenticated by such Authenticating Agent
shall be entitled to the benefits of this Indenture and shall be valid and
obligatory for all purposes as if authenticated by such Trustee. Wherever
reference is made in this Indenture to the authentication and delivery of Notes
by the Trustee or to the Trustee's certificate of authentication, such reference

                                       48
<PAGE>
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 such Trustee by such Authenticating Agent, except that only the
Trustee may authenticate Notes upon original issuance and pursuant to Section
2.07 hereof. Such Authenticating Agent shall at all times be a corporation
organized and doing business under the laws of the United States of America or
of any state, authorized under such laws to exercise corporate trust powers,
having a combined capital and surplus of at least $100,000,000 and subject to
supervision or examination by federal or state authority. If such Authenticating
Agent publishes reports of condition at least annually, pursuant to law or to
the requirements of said supervising or examining authority, then for 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 any 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 any Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate agency or corporate trust business of any Authenticating Agent,
shall continue to be the Authenticating Agent with respect to the Notes for
which it served as Authenticating Agent without the execution or filing of any
paper or any further act on the part of the Trustee or such Authenticating
Agent. Any Authenticating Agent may at any time, and if it shall cease to be
eligible shall, resign by giving written notice of resignation to the applicable
Trustee and to the Company.

      Upon receiving such a notice of resignation or upon such a termination, or
in case at any time any Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 7.14 with respect to the Notes,
the Trustee shall, upon Company Request, appoint a successor Authenticating
Agent, and the Company shall provide notice of such appointment to all Holders
of Notes in the manner and to the extent provided in Section 12.02. Any
successor Authenticating Agent, upon acceptance of its appointment hereunder,
shall become vested with all rights, powers, duties and responsibilities of its
predecessor hereunder, with like effect as if originally named as Authenticating
Agent herein. The Company agrees to pay to the Authenticating Agent from time to
time reasonable compensation for its services. The Authenticating Agent for the
Notes shall have no responsibility or liability for any action taken by it as
such at the direction of the Trustee, except arising out of its negligence or
willful misconduct.

      If an appointment is made pursuant to this Section, the Notes 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 Notes designated therein referred to in the within
mentioned Indenture.

            U.S. Bank National Association, As Trustee

            By:  _______________________________________
                 As Authenticating Agent

            By:  _______________________________________
                 Authorized Signatory

      SECTION 7.15 APPOINTMENT OF CO-TRUSTEE.

      Subject to compliance with applicable Gaming Laws and TIA Section
310(a)(3), if the Trustee deems it necessary or desirable in connection with the
Collateral and/or the enforcement of the Collateral Documents, the Trustee may
appoint a co-Trustee with such powers of the Trustee as may be designated by the
Trustee at the time of such appointment, and the Company and each Subsidiary
Guarantor shall, on request, execute and deliver to such co-Trustee any deeds,
conveyances or other instruments required by such co-Trustee so appointed by the
Trustee to more fully and certainly vest in and confirm to such co-Trustee its
rights, powers, trusts, duties and obligations hereunder, including duties and
obligations under Section 7.01(c)(5).

                                       49
<PAGE>

      SECTION 7.16 PAYING AGENT; REGISTRAR.

            (a) Each Paying Agent or Registrar (other than the Company) shall be
a corporation organized and doing business under the laws of the United States
of America or of any State and having a combined capital and surplus of at least
$500,000,000.

            (b) Each Paying Agent or Registrar may resign at any time by giving
written notice thereof to the Company. The Company, by a Board Resolution and
upon giving written notice thereof to the Paying Agent or Registrar, may remove
such Paying Agent or Registrar at any time.

            (c) If any Paying Agent or Registrar shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of any
Paying Agent or Registrar for any cause, the Company, by a Board Resolution,
shall promptly appoint a successor Paying Agent or Registrar.

            (d) The Company shall give notice of each resignation and each
removal of any Paying Agent or Registrar and each appointment of a successor
Paying Agent or Registrar by mailing written notice of such event by first-class
mail, postage prepaid, to the Trustee. Each notice shall include the name and
address of the successor Paying Agent or Registrar.

            (e) The Trustee is hereby initially appointed Paying Agent and
Registrar.

            (f) The Company shall enter into an appropriate written agency
agreement with any Paying Agent or Registrar not a party to this Indenture,
which agreement shall implement the provisions of this Indenture that relate to
such Paying Agent or Registrar, including the provisions of Section 7.01(c)(5).
The Company shall notify the Trustee in writing of the name and address of any
such Paying Agent or Registrar.

SECTION 7.17 REPORTS BY TRUSTEE.

      (a) Within 60 days after May 15 of each year commencing with the first May
15 after the original issuance of the Notes, the Trustee, if so required under
the Trust Indenture Act, shall transmit by mail to all Holders of Notes, in the
manner and to the extent provided in TIA Section 313(c), a brief report dated as
of such May 15 in accordance with and with respect to the matters required by
TIA Section 313(a). The Trustee shall also transmit by mail to all Holders of
Notes, in the manner and to the extent provided in TIA Section 313(c), a brief
report in accordance with and with respect to the matters required by TIA
Section 313(b)(2).

      (b) A copy of each report transmitted to Holders of Notes pursuant to this
Section 7.17 shall, at the time of such transmission, be mailed to the Company
and filed with each stock exchange, if any, upon which the Notes are listed and
also with the Commission. The Company will notify the Trustee promptly if the
Notes are listed on any stock exchange or of any delisting thereof.

      (c) Gaming License Requirements. To the extent required by Gaming Laws,
the Trustee will provide any applicable Gaming Authority upon its or the
Company's request with:

            (1) copies of all notices, reports and other written communications
which the Trustee gives to Holders of Notes;

            (2) a list of Holders of Notes promptly after the original issuance
of the Notes, eight months and two months prior to the expiration date of each
then-current Gaming License held by the Company or its Subsidiaries, and upon
demand;

            (3) notice of any Event of Default under this Indenture or of any
Default, any acceleration of the indebtedness evidenced or secured hereby, the
institution of any legal actions or proceedings before any court or governmental
authority in respect of this Indenture and any rescission, annulment or waiver
in respect of an Event of Default;

                                       50
<PAGE>
            (4) notice of the removal or resignation of the Trustee within five
Business Days thereof;

            (5) notice of any transfer or assignment of rights under this
Indenture (but no transfers or assignments of the Notes) within five Business
Days thereof; and

            (6) a copy of any amendment to the Notes or this Indenture within
five Business Days of the effectiveness thereof.

The notice specified in clause (3) above shall be in writing and, except as set
forth below, shall be given within five Business Days after the Trustee has
transmitted the notice required by Section 7.02. In the case of any notice in
respect of any Event of Default, such Notice shall be accompanied by a copy of
any notice from the Holders of the Notes, or a representative thereof or the
Trustee, to the Company and, if accompanied by any such notice to the Company,
shall be given simultaneously with the giving of any such notice to the Company.
In the case of any legal actions or proceedings, such notice shall be
accompanied by a copy of the complaint or other initial pleading or document.

      The Trustee shall in accordance with the limitations set forth herein
cooperate with any applicable Gaming Authority in order to provide such Gaming
Authority with information and documentation relevant to compliance with clause
(3) above and as otherwise required by any applicable Gaming Laws.

      The Company will advise the Trustee in writing of the expiration date of
any then-current Gaming License held by the Company or its Subsidiaries at least
nine months prior to the expiration thereof and the Trustee until so advised may
assume that such Gaming License has not expired.

      (d) Reports pursuant to this Section 7.17 shall be transmitted by mail:

            (1) to all Holders of Notes, as the names and addresses of such
Holders of Notes appear in the Note Register; and

            (2) except in the cases of reports pursuant to subsection (b) of
this Section 7.17, to each Holder of a Note whose name and address appear in the
information preserved at the time by the Trustee in accordance with Section
2.05.

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

                                  ARTICLE VIII
                       DISCHARGE OF INDENTURE; DEFEASANCE

      SECTION 8.01 SATISFACTION AND DISCHARGE OF INDENTURE.

      This Indenture shall, upon Company Request, cease to be of further effect
with respect to the Notes (except as to any surviving rights of registration of
transfer or exchange of such Notes herein expressly provided for and rights to
receive payments of principal (and premium, if any) and interest on such Notes)
and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when:

      (a) either

            (1) all Notes theretofore authenticated and delivered (other than
(i) Notes which have been destroyed, lost or stolen and which have been replaced
or paid as provided in Section 2.07, and (ii) Notes the payment for which money
has theretofore been deposited in trust or segregated and held in trust by the
Company

                                       51
<PAGE>
and thereafter repaid to the Company or discharged from such trust, as provided
in Section 4.05) have been delivered to the Trustee for cancellation; or

            (2) all Notes 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 by the
      Trustee in the name, and at the expense, of the Company;

      (b) the Company, in the case of subclause (i), (ii) or (iii) of clause
(a)(2) of this Section, has irrevocably deposited or caused to be deposited with
the Trustee as trust funds in trust for such purpose an amount sufficient to pay
and discharge the entire Indebtedness on such Notes for principal (and premium,
if any) and interest to the date of such deposit (in the case of Notes which
have become due and payable) or to the Stated Maturity or Redemption Date, as
the case may be; provided, however, in the event a petition for relief under the
federal bankruptcy laws, as now or hereafter constituted, or any other
applicable federal or state bankruptcy, insolvency or other similar law, is
filed with respect to the Company within 91 days after the deposit and the
Trustee is required to return the deposited money to the Company, the
obligations of the Company under this Indenture with respect to such Notes shall
not be deemed terminated or discharged;

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

      (d) 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; and

      (e) the Company has delivered to the Trustee an Opinion of Counsel or a
ruling by the Internal Revenue Service to the effect that Holders of the Notes
will not recognize income, gain or loss for Federal income tax purposes as a
result of such deposit and discharge.

      Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 7.07, the obligations of
the Company to any Authenticating Agent under Section 7.14, the obligations of
the Company under Section 4.01, and, if money shall have been deposited with the
Trustee pursuant to clause (b) of this Section, the obligations of the Trustee
under Section 8.02 and the last paragraph of Section 4.05, shall survive.

      SECTION 8.02 APPLICATION OF TRUST MONEY.

      Subject to the provisions of the last paragraph of Section 4.05, all money
deposited with the Trustee pursuant to Section 8.01 shall be held in trust and
applied by it, in accordance with the provisions of the Notes, 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 premium, if
any) and interest for whose payment such money has been deposited with the
Trustee.

      SECTION 8.03 APPLICABILITY OF ARTICLE.

      Except as otherwise provided in Section 8.04, the Company may terminate
its obligations under the Notes and this Indenture as set forth in Section 8.04.

                                       52
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      SECTION 8.04 DEFEASANCE UPON DEPOSIT OF MONEYS OR U.S. GOVERNMENT
                   OBLIGATIONS.

      At the Company's option, either (a) the Company shall be deemed to have
been Discharged (as defined below) from its obligations with respect to Notes
and the Subsidiary Guarantors shall be deemed to have been discharged from their
obligations under their Guarantees in respect of the Notes ("LEGAL DEFEASANCE
OPTION") or (b) the Company shall cease to be under any obligation to comply
with any term, provision or condition set forth in Sections 5.01, 4.03, 4.08,
4.09, 4.10, 4.11 and 4.12 with respect to Notes and the Subsidiary Guarantors
shall cease to be under any obligation to comply with any term, provision or
condition set forth in Section 10.11 (or comparable provisions of its Guarantee
if not set forth in Article X) with respect to their Guarantees in respect of
the Notes ("COVENANT DEFEASANCE OPTION") at any time after the applicable
conditions set forth below have been satisfied:

      (a) The Company shall have deposited or caused to be deposited irrevocably
with the Trustee as trust funds in trust, specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of the Notes (i) money in an
amount, or (ii) U.S. Government Obligations (as defined below) which through the
payment of interest and principal in respect thereof in accordance with their
terms will provide, not later than one day before the due date of any payment,
money in an amount, or (iii) a combination of (i) and (ii), sufficient, in the
opinion (with respect to (i) and (ii)) of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge each installment of principal
(including any mandatory sinking fund payments) of and premium, if any, and
interest on, the Outstanding Notes on the dates such installments of interest or
principal and premium are due;

      (b) Such deposit shall not cause the Trustee to have a conflicting
interest as defined in Section 7.08 and for purposes of the Trust Indenture Act;

      (c) Such deposit will 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 or any Subsidiary Guarantor is a party or by which it is
bound;

      (d) If the Notes are then listed on any national securities exchange, the
Company shall have delivered to the Trustee an Opinion of Counsel or a letter or
other document from such exchange to the effect that the Company's exercise of
its option under this Section would not cause such Notes to be delisted;

      (e) No Event of Default or Default shall have occurred and be continuing
on the date of such deposit and, with respect to the legal defeasance option
only, no Event of Default under Section 6.01(f) or Section 6.01(g) or event
which with the giving of notice or lapse of time, or both, would become an Event
of Default under Section 6.01(f) or Section 6.01(g) shall have occurred and be
continuing on the 91st day after such date;

      (f) The Company shall have delivered to the Trustee an Opinion of Counsel
or a ruling from the Internal Revenue Service to the effect that the Holders of
the Notes will not recognize income, gain or loss for United States federal
income tax purposes as a result of such deposit, defeasance or Discharge.
Notwithstanding the foregoing, if the Company exercises its covenant defeasance
option and an Event of Default under Section 6.01(f) or Section 6.01(g) or event
which, with the giving of notice or lapse of time, or both, would become an
Event of Default under Section 6.01(f) or Section 6.01(g) shall have occurred
and be continuing on the 91st day after the date of such deposit, the
obligations of the Company and the Subsidiary Guarantors referred to under the
definition of covenant defeasance option with respect to such Notes shall be
reinstated; and

      (g) The Company shall have delivered to the Trustee an Officers'
Certificate certifying the conditions set forth in clauses (a) through (f) of
this Section 8.04 have been satisfied.

      Upon Discharge (or if the Company exercised its covenant defeasance option
and no Event of Default under Section 6.01(f) or Section 6.01(g) or event which,
with the giving of notice or lapse of time, or both, would become an Event of
Default under Section 6.01(f) or Section 6.01(g) shall have occurred and be
continuing on the 91st day after the requisite deposit, then on such 91st day
(or, if earlier, on the Collateral Release Date)) the Collateral pledged under
the Collateral Documents will be released and the Trustee, on demand of the
Company,

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shall execute such documents as shall be necessary to release the Collateral and
to terminate the obligations of the Company under the Collateral Documents (and,
upon Discharge (or such 91st day), the obligations of the Company and the
Subsidiary Guarantors under Article XI shall terminate); provided that no such
release or termination shall affect the Collateral Documents insofar as they
secure obligations other than the Notes and Guarantees.

      "DISCHARGED" means that the Company and the Subsidiary Guarantors shall be
deemed to have paid and discharged the entire indebtedness represented by, and
obligations under, the Notes and the Guarantees in respect of the Notes and to
have satisfied all the obligations under this Indenture and the Collateral
Documents in respect of the Notes (and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging the same), except (i)
the rights of Holders of Notes to receive, from the trust fund described in
clause (a) above, payment of the principal of (and premium, if any) and interest
on such Notes when such payments are due, (ii) the Company's obligations with
respect to the Notes under Sections 2.10, 2.06, 2.07, 4.04 and 8.05 and (c) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and under
the Collateral Documents.

      "U.S. GOVERNMENT OBLIGATIONS" means securities that are (i) direct
obligations of the United States 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 the payment of
which is unconditionally guaranteed as a full faith and credit obligation by the
United States, which, in either case under clauses (i) or (ii), are not callable
or redeemable at the option of the issuer thereof prior to the final Maturity
Date of the Notes, 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 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.

      SECTION 8.05 DEPOSITED MONEYS AND U.S. GOVERNMENT OBLIGATIONS TO BE HELD
                   IN TRUST.

      All moneys and U.S. Government Obligations deposited with the Trustee
pursuant to Section 8.04 in respect of Notes shall be held in trust and applied
by it, in accordance with the provisions of such Notes 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 Notes, of all sums due and to become due thereon for principal (and
premium, if any) and interest, if any, but such money need not be segregated
from other funds except to the extent required by law.

      The Company shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the U.S. Government Obligations deposited
pursuant to Section 8.04 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of the Outstanding Notes.

      SECTION 8.06 REPAYMENT TO COMPANY.

      The Trustee and any Paying Agent shall promptly pay or return to the
Company upon Company Request any moneys or U.S. Government Obligations held by
them at any time that are not required for the payment of the principal of (and
premium, if any) and interest on the Notes for which money or U.S. Government
Obligations have been deposited pursuant to Section 8.04.

      The provisions of the last paragraph of Section 4.05 shall apply to any
money held by the Trustee or any Paying Agent under this Article that remains
unclaimed for two years after the Maturity of any Notes for which money or U.S.
Government Obligations have been deposited pursuant to Section 8.04.

                                       54
<PAGE>
                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

      SECTION 9.01 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.

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

      (a) to evidence the succession of another corporation to the rights of the
Company or any Subsidiary Guarantor and the assumption by such successor of the
covenants and obligations of the Company or any Subsidiary Guarantor contained
herein, in the Collateral Documents and in the Notes; or

      (b) to add to the covenants of the Company and the Subsidiary Guarantors,
for the benefit of the Holders of Notes, or to surrender any right or power
herein conferred upon the Company or the Subsidiary Guarantors; or

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

      (d) to supplement any of the provisions of this Indenture or the
Collateral Documents to such extent as shall be necessary to permit or
facilitate the defeasance and discharge of Notes pursuant to Article VIII,
provided that any such action shall not adversely affect the interests of the
Holders of Notes in any material respect; or

      (e) to evidence and provide for the acceptance of appointment hereunder by
a successor Trustee with respect to the Notes and the Collateral Documents, and
to add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one trustee; or

      (f) to comply with the requirements of the Commission in connection with
the qualification of this Indenture under the Trust Indenture Act; or

      (g) to cure any ambiguity; or

      (h) to correct or supplement any provision herein or in any Collateral
Document which may be defective or inconsistent with any other provision herein
or therein; or

      (i) to eliminate any conflict between the terms of this Indenture, the
Collateral Documents and the Notes and the Trust Indenture Act; or

      (j) to make any other provisions with respect to matters or questions
arising under this Indenture or the Collateral Documents which shall not be
inconsistent with any provision of this Indenture or the Collateral Documents;
provided such other provisions shall not adversely affect the interests of the
Holders of Outstanding Notes;

      (k) to make any amendments or supplements required by Article XI; or

      (l) to establish a series of Additional Notes as contemplated by Section
2.14 and to make any change to Article II, Section 4.01 or the Exhibits hereto
that applies only to Additional Notes (other than a change relating to other
provisions of this Indenture incorporated or referenced in Article II, Section
4.01 or any such Exhibit).

      The terms of any document entered into pursuant to this Section shall be
subject to prior approval, if required, of any applicable Gaming Authority.

                                       55
<PAGE>
      SECTION 9.02 SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS.

      With the written consent of the Holders of not less than at least a
majority in principal amount of the Outstanding Notes, 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, or amendments to the Guarantees or the Collateral Documents
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture, the Guarantees or the
Collateral Documents or of modifying in any manner the rights of the Holders of
the Notes under this Indenture, the Guarantees or the Collateral Documents;
provided, however, that no such supplemental indenture shall, without the
consent of the Holder of each Outstanding Note affected thereby,

      (a) change the Stated Maturity of the principal of, or any installment of
principal of or interest on, any Note, or reduce the principal amount thereof or
the rate (or extend the time for payment) of interest thereon or any premium
payable upon redemption thereof, or change the currency in which the principal
of (and premium, if any) or interest on such Note is denominated or payable, or
impair the right to institute suit for the enforcement of any payment on or
after the Stated Maturity thereof (including, in the case of redemption, on or
after the Redemption Date), or alter any redemption provisions in a manner
adverse to the Holders of Notes or release any Subsidiary Guarantor under any
Guarantee or any collateral securing the Notes (except in accordance with the
terms of the Indenture, the Guarantees or the Collateral Documents); or

      (b) reduce the percentage in principal amount of the Outstanding Notes,
the consent of whose Holders is required for any 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

      (c) modify any of the provisions of this Section, Section 4.07 or Section
6.13, except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of
the Holder of each Outstanding Note affected thereby; provided, however, that
this clause shall not be deemed to require the consent of any Holder with
respect to changes in the references to "the Trustee" and concomitant changes in
this Section, or the deletion of this proviso, in accordance with the
requirements of Sections 7.11 and 9.01(f); or

      (d) modify any of the provisions of this Indenture which by their terms
expressly require the consent of each affected Holder of Notes to modify.

      It shall not be necessary for any Act of Holders 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.

      The terms of any document entered into pursuant to this Section shall be
subject to prior approval, if required, of any applicable Gaming Authority. To
the extent required by applicable Gaming Laws, Notes held by a Disqualified
Holder shall, so long as held by such a Person, be disregarded for purposes of
providing consents and determining the sufficiency of consents under this
Section 9.02.

      SECTION 9.03 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 7.1) 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 the Collateral Documents. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which adversely affects the Trustee's own rights, duties or immunities
under this Indenture or otherwise in a material way.

                                       56
<PAGE>
      SECTION 9.04 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 Notes theretofore or thereafter authenticated and delivered hereunder shall
be bound thereby.

      SECTION 9.05 CONFORMITY WITH TRUST INDENTURE ACT.

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

      SECTION 9.06 REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES.

      Notes 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 Notes so
modified as to conform, in the opinion of the Trustee and the Board of
Directors, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for
Outstanding Notes.

                                    ARTICLE X
                                 NOTE GUARANTEES

      SECTION 10.01 GUARANTEE.

      (a) In consideration of good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, each of the Subsidiary Guarantors,
jointly and severally, hereby unconditionally guarantees, which guarantee shall
be secured as provided in the Collateral Documents (each such guarantee,
together with each New Guarantee and any future guarantees executed pursuant to
Section 4.08 hereof, being a "GUARANTEE"), to each Holder of a Note
authenticated and delivered by the Trustee and to the Trustee, irrespective of
the validity and enforceability of this Indenture, the Note or the obligations
of the Company under this Indenture or the Note, that: (i) the principal of and
interest on the Note will be paid in full when due, whether at the maturity or
interest payment date, by acceleration, call for redemption, upon a purchase
offer or otherwise, and interest on the overdue principal and interest, if any,
of the Note, if lawful, and all other obligations of the Company to the Holders
or the Trustee under this Indenture or the Note will be promptly paid in full or
performed, all in accordance with the terms of this Indenture and the Note; and
(ii) in case of any extension of time of payment or renewal of any securities or
any of such other obligations, they will be paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at maturity,
by acceleration, call for redemption, upon a purchase offer or otherwise
(collectively, the "GUARANTEED OBLIGATIONS"). This Guarantee is a guarantee of
payment and not of collection.

      Failing payment when due of any amount so guaranteed for whatever reason,
the Subsidiary Guarantors shall be jointly and severally obligated to pay the
same before failure to so pay becomes an Event of Default.

      (b) Each Subsidiary Guarantor agrees that (i) its obligations with regard
to this Guarantee shall be unconditional, irrespective of the validity,
regularity or enforceability of the Note or this Indenture, any amendments to
the Indenture, the Notes or the Collateral Documents (other than this Article
X), the absence of any action to enforce the same, any delays in obtaining or
realizing upon (or failures to obtain or realize upon) Collateral, the recovery
of any judgment against the Company, any action to enforce the same or any other
circumstances that might otherwise constitute a legal or equitable discharge or
defense of a guarantor and (ii) this Guarantee will not be discharged except by
complete performance of the obligations contained in the Note and this
Indenture. Each of the Subsidiary Guarantors hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding first
against the Company or right to require the prior disposition of the assets of
the Company to meet its obligations, protest, notice and all

                                       57
<PAGE>
demands whatsoever. Without limiting the generality of the foregoing, each of
the Subsidiary Guarantors hereby waives, to the extent permitted under Nev. Rev.
Stat. 40.495, any rights arising out of Nev. Rev. Stat. 40.430.

      (c) If any Holder or the Trustee is required by any court or otherwise to
return to either the Company or any Subsidiary Guarantor, or any Custodian,
Trustee, or similar official acting in relation to either the Company or any
Subsidiary Guarantor, any amount paid by either the Company or any of the
Subsidiary Guarantors to the Trustee or such Holder, this Guarantee, to the
extent theretofore discharged, shall be reinstated in full force and effect.
Each of the Subsidiary Guarantors agrees that it will not be entitled to any
right of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby except as set forth in Section 10.05 hereof.

      (d) Each of the Subsidiary Guarantors agrees that (i) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Section 6.02
hereof for the purposes of this Guarantee, notwithstanding any stay, injunction
or other prohibition preventing such acceleration as to the Company of the
obligations guaranteed hereby, and (ii) in the event of any declaration of
acceleration of those obligations as provided in Section 6.02, those obligations
(whether or not due and payable) will forthwith become due and payable by each
of the Subsidiary Guarantors for the purpose of this Guarantee.

      SECTION 10.02 EXECUTION AND DELIVERY OF GUARANTEE.

      To evidence its Guarantee set forth in Section 10.01, each of the
Subsidiary Guarantors agrees that a notation of such Guarantee substantially in
the form of the notation to be included on each Note authenticated and delivered
by the Trustee as set forth in Exhibit E shall be endorsed and that this
Indenture shall be executed on behalf of such Subsidiary Guarantor by a duly
authorized officer.

      Each of the Subsidiary Guarantors agrees that its Guarantee set forth in
Section 10.01 shall remain in full force and effect and apply to all the Notes
notwithstanding any failure to endorse on each Note a notation of such
Guarantee.

      If an Officer whose facsimile signature is on a Note no longer holds that
office at the time the Trustee authenticates the Note on which a Guarantee is
endorsed, the Guarantee shall be valid nevertheless.

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

      SECTION 10.03 LIMITATION OF SUBSIDIARY GUARANTOR'S LIABILITY.

      Each Subsidiary Guarantor and by its acceptance hereof each Holder hereby
confirms that it is the intention of all such parties that the guarantee by such
Subsidiary Guarantor pursuant to its Guarantee set forth in this Indenture not
constitute a fraudulent transfer or conveyance for purposes of any federal or
state law. To effectuate the foregoing intention, the Holders and each
Subsidiary Guarantor hereby irrevocably agree that the obligations of each such
Subsidiary Guarantor under this Guarantee shall be limited to the maximum amount
as will, after giving effect to all other contingent and fixed liabilities of
such Subsidiary Guarantor and after giving effect to any collections from or
payments made by or on behalf of any other Subsidiary Guarantor in respect of
the obligations of such other Subsidiary Guarantor under its Guarantee set forth
in this Indenture or pursuant to Section 10.04, result in the obligations of
such Subsidiary Guarantor under such Guarantee not constituting a fraudulent
conveyance or fraudulent transfer under federal or state law. This Section 10.03
is for the benefit of the creditors of each Subsidiary Guarantor.

      SECTION 10.04 CONTRIBUTION.

      In order to provide for just and equitable contribution among the
Subsidiary Guarantors, the Subsidiary Guarantors agree, inter se, that in the
event any payment or distribution is made by any Subsidiary Guarantor (a
"FUNDING GUARANTOR") under the Guarantee, such Funding Guarantor shall be
entitled to a contribution from each other Subsidiary Guarantor in a pro rata
amount based on the net worth of each Subsidiary Guarantor (including the
Funding Guarantor but, in the case of Detroit, not in excess of the amount of
proceeds of borrowings under the

                                       58
<PAGE>
Credit Facility made available to Detroit) for all payments, damages and
expenses incurred by that Funding Guarantor in discharging the Company's
obligations with respect to the Notes or any other Subsidiary Guarantor's
obligations with respect to the Guarantee.

      SECTION 10.05 RIGHTS UNDER THE GUARANTEE.

      No payment by any Subsidiary Guarantor pursuant to the provisions hereof
to the Trustee shall entitle such Subsidiary Guarantor to any payment out of any
Collateral held by the Trustee under this Indenture or any Collateral Documents.

      (a) Each of the Subsidiary Guarantors waives notice of the issuance, sale
and purchase of the Note and notice from the Trustee or the Holders from time to
time of any of the Note of their acceptance and reliance on this Guarantee.

      (b) Notwithstanding any payment or payments made by the Subsidiary
Guarantors by reason of this Guarantee, the Subsidiary Guarantors shall not be
subrogated to any rights of the Trustee, the Collateral Agent or any Holder
against the Company until all the Note shall have been paid or deemed to have
been paid within the meaning of the Indenture. Any payment made by the
Subsidiary Guarantors by reason of this Guarantee shall be in all respects
subordinated to the full and complete payment or discharge under this Indenture
of all obligations guaranteed hereby, and no payment by the Subsidiary
Guarantors by reason of this Guarantee shall give rise to any claim of the
Subsidiary Guarantors against the Trustee or any Holder of the Note. Unless and
until the Note shall have been paid or deemed to have been paid within the
meaning of the Indenture, neither the Subsidiary Guarantors nor any of them will
assign or otherwise transfer any such claim against the Company to any other
person.

      (c) No set-off, counterclaim, reduction or diminution of any obligation or
any defense of any kind or nature (other than performance by the Subsidiary
Guarantors of their obligations hereunder) which any Subsidiary Guarantor may
have or assert against the Trustee or any Holder of any Note shall be available
hereunder to such Subsidiary Guarantor against the Trustee.

      (d) Each Subsidiary Guarantor agrees to pay all costs, expenses and fees,
including all reasonable attorneys' fees and expenses, which may be incurred by
the Trustee in enforcing or attempting to enforce this Guarantee or protecting
the rights of the Trustee, the Collateral Agent or the Holders of the Notes, if
any, in accordance with this Indenture.

      SECTION 10.06 PRIMARY OBLIGATIONS.

      Each Subsidiary Guarantor agrees that it is directly liable to each Holder
hereunder, that the obligations of each Subsidiary Guarantor hereunder are
independent of the obligations of the Company or any other guarantor, and that a
separate action may be brought against each Subsidiary Guarantor, whether such
action is brought against the Company or any other Subsidiary Guarantor or
whether the Company or any other guarantor is joined in such action. Each
Subsidiary Guarantor agrees that its liability hereunder shall be immediate and
shall not be contingent upon the exercise or enforcement by the Trustee or the
Holders of the Notes of whatever remedies they may have against the Company or
any other guarantor, or the enforcement of any Lien or realization upon any
Collateral the Trustee may at any time possess. Each Subsidiary Guarantor agrees
that any release which may be given by the Trustee or the Holders of the Notes
to the Company or any other guarantor shall not release such Subsidiary
Guarantor. Each Subsidiary Guarantor consents and agrees that the Trustee shall
be under no obligation to marshal any property or assets of the Company or any
other guarantor in favor of such Subsidiary Guarantor, or against or in payment
of any or all of the Guaranteed Obligations.

      SECTION 10.07 WAIVERS.

      (a) Each Subsidiary Guarantor hereby waives any right to receive, or any
claim or defense based on failure to receive: (i) notice of the amount of the
Guaranteed Obligations; (ii) notice of any adverse change in the financial
condition of the Company or of any other fact that might increase such
Subsidiary Guarantor's risk hereunder; (iii) notice of a Default or Event of
Default; and (iv) all other notices (except if such notice is specifically

                                       59
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required to be given to such Subsidiary Guarantor under this Indenture or any of
the Collateral Documents to which such Subsidiary Guarantor is a party) and
demands to which such Subsidiary Guarantor might otherwise be entitled.

      (b) Each Subsidiary Guarantor hereby waives the right by statute or
otherwise to require the Trustee or the Holders to institute suit against the
Company (or against any other Person) or to exhaust any rights and remedies
which the Trustee or the Holders have or may have against the Company (or
against any other Person). In this regard, each Subsidiary Guarantor agrees that
it is bound to the payment of each and all of the Guaranteed Obligations,
whether now existing or hereafter arising, as fully as if such Guaranteed
Obligations were directly owing to the guaranteed party by such Subsidiary
Guarantor. Each Subsidiary Guarantor further waives any defense arising by
reason of any disability or other defense (other than the defense that the
Guaranteed Obligations shall have been fully and finally performed and
indefeasibly paid) of the Company or by reason of the cessation from any cause
whatsoever of the liability of the Company in respect thereof.

      (c) Each Subsidiary Guarantor hereby waives: (i) any claim or defense
directly or indirectly arising from or caused by any election of remedies by the
Trustee or Holders of the Notes, whether or not such election of remedies
directly or indirectly results in impairment or loss of rights or claims of such
Subsidiary Guarantor against the Company or other Persons; and (ii) any defenses
based on suretyship law or impairment of collateral.

      SECTION 10.08 RELEASES.

      Each Subsidiary Guarantor consents and agrees that, without notice to or
by such Subsidiary Guarantor and without affecting or impairing the obligations
of such Subsidiary Guarantor hereunder, the Trustee may, by action or inaction,
compromise or settle, extend the period of duration or the time for the payment,
or discharge the performance of, or may refuse to, or otherwise not enforce, or
may, by action or inaction, release all or any one or more parties to, any one
or more of the terms and provisions of this Indenture or the Collateral
Documents or may grant other indulgences to the Company in respect thereof, or
may, by action or inaction, release or substitute any other guarantor, if any,
of the Guaranteed Obligations, or may enforce, exchange, release, or waive, by
action or inaction, any security for the Guaranteed Obligations or any other
guaranty of the Guaranteed Obligations, or any portion thereof.

      SECTION 10.09 NO ELECTION.

      The Trustee shall have the right to seek recourse against each Subsidiary
Guarantor to the fullest extent provided for herein and no election by the
Trustee to proceed in one form of action or proceeding, or against any party, or
on any obligation, shall constitute a waiver of Trustee's right to proceed in
any other form of action or proceeding, or against other parties unless the
Trustee has expressly waived such right in writing.

      SECTION 10.10 FINANCIAL CONDITION OF THE COMPANY.

      Each Subsidiary Guarantor represents and warrants to the Trustee and
Holders that it is currently informed of the financial condition of the Company
and, of all other circumstances which a diligent inquiry would reveal and which
bear upon the risk of nonpayment of the Guaranteed Obligations. Each Subsidiary
Guarantor further represents and warrants to the Trustee and Holders that it has
read and understands the terms and conditions of this Indenture and the
Collateral Documents. Each Subsidiary Guarantor hereby covenants that it will
continue to keep itself informed of the Company's financial condition, the
financial condition of other guarantors, if any, and of all other circumstances
which bear upon the risk of nonpayment or nonperformance of the Guaranteed
Obligations.

      SECTION 10.11 CONSOLIDATION, MERGER, ETC., ONLY ON CERTAIN TERMS.

      No Subsidiary Guarantor shall consolidate with, merge with or into, or
sell, assign, convey, transfer or lease its properties and assets substantially
in their entirety (computed on a consolidated basis) to any Person, unless:

            (i) subject to the following paragraph, the Person formed by or
      surviving any such consolidation or merger (if other than the Subsidiary
      Guarantor, another Subsidiary Guarantor or the Company) is a corporation
      organized and existing under the laws of the United States, any State
      thereof or

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      the District of Columbia and assumes, by supplemental indenture hereto,
      all of the obligations of such Subsidiary Guarantor under this Guarantee
      and this Indenture;

            (ii) immediately after giving effect to such transaction, no Event
      of Default or Default shall exist; and

            (iii) such Person executing the supplemental indenture required
      pursuant to clause (i) above, has delivered to the Trustee an Officers'
      Certificate and an Opinion of Counsel conforming to the provisions of
      Section 12.05 hereof and each stating that such consolidation, merger,
      conveyance, transfer or lease and such supplemental indenture comply with
      this provision and that all conditions precedent herein provided for
      relating to such transaction have been complied with.

      Notwithstanding the preceding paragraph, in the event of (a) a sale or
other disposition of all of the assets of any Subsidiary Guarantor, by way of
merger, consolidation or otherwise or (b) a sale or other disposition of all of
the capital stock of any Subsidiary Guarantor, then the Subsidiary Guarantor (in
the event of a sale or other disposition, by way of such a merger, consolidation
or otherwise, of all of the capital stock of such Subsidiary Guarantor) or the
corporation acquiring the property (in the event of a sale or other disposition
of all of the assets of the Subsidiary Guarantor) will be released and relieved
of any obligations under its Guarantee set forth in this Indenture, except in
the event of a sale or other disposition to the Company, any other Subsidiary
Guarantor or any Affiliate thereof. Upon delivery by the Company to the Trustee
of an Officers' Certificate and Opinion of Counsel conforming to the provisions
of Section 12.05 hereof, to the effect that such sale or other disposition was
made by the Company or such Subsidiary Guarantor in accordance with the
provisions of this Indenture, the Trustee shall execute any documents reasonably
required in order to evidence the release of any such Subsidiary Guarantor from
its Guaranteed Obligations under its Guarantee set forth in this Indenture.

                                   ARTICLE XI
                             COLLATERAL AND SECURITY

      SECTION 11.01 EXECUTION OF COLLATERAL DOCUMENTS.

      The Trustee, at the Company's expense, will execute and deliver and the
Company and each Subsidiary Guarantor will execute, deliver, file and record all
instruments and do all acts and other things as may be reasonably necessary to
provide for the Liens under the Collateral Documents, in accordance with the
terms of the Intercreditor Agreement and this Indenture; provided that, with
respect to any Collateral Documents that may be executed after the Issue Date
and that are not subject to approvals under applicable Gaming Laws that have
been obtained by the Company, the Trustee, the Company and each Subsidiary
Guarantor will comply with applicable Gaming Laws in connection with such
Collateral Documents. The Trustee, at the Company's expense, will cooperate
reasonably with the Company and each Subsidiary Guarantor in doing all such acts
and things required by the preceding sentence.

      SECTION 11.02 COLLATERAL DOCUMENTS.

      The due and punctual payment of the principal of, premium, if any, and
interest on the Notes when and as the same shall be due and payable, whether on
an interest payment date, at maturity, by acceleration, repurchase, redemption
or otherwise, and interest on the overdue principal of and interest (to the
extent permitted by law), if any, on the Notes and performance of all other
obligations of the Company and the Subsidiary Guarantors to the Holders of the
Outstanding Notes or the Trustee under this Indenture, the Guarantees and the
Notes, according to the terms hereunder or thereunder, shall be secured as
provided in the Collateral Documents, subject to Section 11.04 hereof. Each
Holder of the Outstanding Notes, by its acceptance of a Note, consents and
agrees to the terms of the Collateral Documents (including, without limitation,
the provisions providing for foreclosure and release of Collateral) as the same
may be in effect or may be amended from time to time in accordance with the
terms thereof and hereof and authorizes and directs the Trustee to enter into
each of the Collateral Documents (including the Intercreditor Agreement) and to
perform its respective obligations and exercise its respective rights thereunder
in accordance therewith. The Company and each Subsidiary Guarantor shall do or
cause to be done all such acts and things as may be necessary or proper, or as
may be required by the provisions of the Collateral Documents, to assure and
confirm to the Trustee the security interest in the Collateral contemplated
hereby and by the Collateral Documents, as from time to time constituted, so as
to render the same available for the security and benefit of this

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Indenture and of the Notes secured hereby, according to the intent and purposes
herein expressed. The Company and each Subsidiary Guarantor shall take any and
all actions necessary, or reasonably requested by the Trustee, to cause the
Collateral Documents to create and maintain, as security of the Obligations of
the Company and each Subsidiary Guarantor under this Indenture and the Notes,
valid and enforceable, perfected (except as expressly provided therein), Liens
in and on all the Collateral (and in all assets and properties of the Company
and any Subsidiary Guarantor, whether real, personal or mixed, tangible or
intangible, which under this Indenture or any Collateral Documents is required
to be included in the Collateral), in favor of the Trustee, superior to and
prior to the rights of all third Persons except as permitted by Section 4.10 and
the Collateral Documents (including pari passu Indebtedness permitted under the
Intercreditor Agreement).

      Unless an Event of Default shall have occurred and be continuing, the
Trustee shall (in the absence of bad faith) not be required to take any action,
or to require the Company to take any action, to maintain the priority or
perfection of any Liens in the Collateral, other than as set forth in the
following two sentences. In the event that the Trustee receives an Opinion of
Counsel or an Officers' Certificate or a written notice from the Company or any
Holder of Outstanding Notes delivered pursuant to this Indenture requesting the
Trustee to take any action, or stating that any action is required to be taken,
in order to maintain the priority or perfection of any of the Liens of the
Trustee in the Collateral, the Trustee shall take such actions, or cause such
actions to be taken, as are set forth in such Opinion of Counsel, Officer's
Certificate or written notice. The Trustee shall be deemed not to know of any
change in the law requiring the taking of such action unless such change is set
forth in a subsequent Opinion of Counsel or Officer's Certificate delivered
pursuant to this Indenture or the Collateral Documents or a written notice from
the Company or Holder of Outstanding Notes.

      SECTION 11.03 RECORDING AND OPINIONS.

      (a) On the Issue Date and in connection with any Liens securing the
Indenture required after a Collateral Event, the Company and each Subsidiary
Guarantor shall have executed, delivered, filed and recorded or shall execute,
deliver, file and record, all instruments and documents, and shall have done or
shall do all such acts and other things, at the expense of the Company and each
Subsidiary Guarantor, as are necessary to subject the Collateral (other than the
Conditional Collateral and the Non-Principal Property Collateral, which shall
remain subject to Section 4.09 of this Indenture) to the Liens of the Collateral
Documents. Each of the Company and every Subsidiary Guarantor shall execute,
deliver, file and record all instruments and do all acts and other things as may
be reasonably necessary or advisable to perfect, maintain and protect the Liens
of the Collateral Documents.

      (b) The Company shall furnish to the Trustee upon the execution and
delivery of this Indenture and as soon as practicable after a Collateral Event
following a Collateral Release, an Opinion of Counsel either (i) stating that in
the opinion of such counsel all action has been taken with respect to the
recording, registering and filing of this Indenture, financing statements or
other instruments necessary to make effective the Lien intended to be created by
the Collateral Documents, and reciting the details of such action, or (ii)
stating that, in the opinion of such counsel, no such action is necessary to
make such Lien effective.

      (c) The Company shall furnish to the Trustee at the time of execution and
delivery of any Collateral Document, or any amendments or supplements thereto,
after the Issue Date by any Subsidiary Guarantor under Section 4.08, an Opinion
of Counsel to the effect set forth in subsection (c) of this Section 11.03, but
relating only to such additional Collateral Documents or new parties thereto.

      (d) Prior to the Collateral Release Date (or after a Collateral Event has
occurred), the Company shall furnish to the Trustee on or prior to each
anniversary of the date hereof and upon the delivery of any Collateral Document,
an Opinion of Counsel, dated as of such date, stating that either (i) (A) all
action has been taken with respect to the recording, registering, filing,
rerecording and refiling of the Indenture, all supplemental indentures, the
Collateral Documents, financing statements, continuation statements or other
Collateral and all other instruments as are necessary or appropriate to fully
maintain, protect and preserve the Liens and the rights of the Holders, the
Collateral Agent and the Trustee hereunder and under the Collateral Documents,
and reciting the details of such action or referring to prior Opinions of
Counsel in which such details are given and (B) based on relevant laws as in
effect on the date of such Opinion of Counsel, all financing statements and
continuation statements have been executed and filed that are necessary as of
such date and during the succeeding 12 months fully to preserve and protect, to
the extent such protection and preservation are possible by filing, the rights
of the Holders, the Collateral

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Agent and the Trustee hereunder and under the Collateral Documents with respect
to their Liens in the Collateral, or (ii) no such action is necessary to
maintain, preserve and protect the Liens and the rights of the Holders, the
Collateral Agent and the Trustee hereunder and under the Collateral Documents
during such period. Such Opinion of Counsel shall be required in addition to,
and not in lieu of, any Officers' Certificate required under this Indenture or
the Collateral Documents.

      SECTION 11.04 RELEASE AND SUBORDINATION OF COLLATERAL.

      (a) Subject to subsections (b) and (c) of this Section 11.04, Collateral
may be released from the Lien and security interest created by the Collateral
Documents at any time or from time to time at the sole cost and expense of the
Company only (i) upon payment in full of the Notes in accordance with the terms
thereof and of this Indenture and all other obligations of the Company and each
Subsidiary Guarantor then due and owing under this Indenture, the Notes and the
Collateral Documents, (ii) upon the sale or other disposition of such
Collateral, except as expressly otherwise provided in this Indenture or the
Collateral Documents, provided that the Lien of the Collateral Documents shall
attach to any and all proceeds of such sale or other disposition, or (iii) upon
the Collateral Release Date, provided that the Trustee shall not be obligated to
effectuate a Collateral Release at any time when a Collateral Event exists, a
Default or Event of Default has then occurred and remains continuing or if the
Administrative Agent (or the trustees in respect of the Existing Senior Notes
and any additional senior notes and guarantees subject to the Intercreditor
Agreement) is not concurrently releasing the Liens securing the Credit Facility
(or the Existing Senior Notes or any additional senior notes and guarantees
subject to the Intercreditor Agreement). Except as provided in subdivision (b)
of this Section 11.04, the Trustee shall not release any Lien on any Collateral
pursuant to clauses (i), (ii) or (iii) above unless and until it shall have
received from the Company an Officers' Certificate certifying that all
conditions precedent hereunder have been met and that such release is not in
violation of any applicable Gaming Laws and such other documents required by
Section 11.05 hereof.

      Upon compliance with the foregoing provisions, the Trustee shall execute,
deliver or acknowledge any necessary or proper instruments of termination,
satisfaction or release to evidence the release of any Collateral permitted to
be released pursuant to this Indenture or the Collateral Documents.

      (b) The Company and the Subsidiary Guarantors may, in the ordinary course
of business, without any release or consent by the Trustee or any Holder of the
Notes and, from and after the Exemption Date, without any documents required by
TIA Section 314(d) to the extent provided in the Exemption, (i) sell, lease,
transfer, assign or otherwise dispose of inventory, (ii) sell, lease, transfer,
assign or otherwise dispose of any assets that are damaged, worn out, obsolete
or no longer necessary for the proper conduct of the business of the Company or
such Subsidiary Guarantor, provided that (A) such assets are replaced by new
Collateral being subject to the Lien of the Indenture and the Collateral
Documents and having at least equal value and utility as the disposed assets
(whether or not being the same character) or (B) such assets (if not replaced)
are not, in the aggregate, material to the conduct of the business of the
Company or such Subsidiary Guarantor, (iii) collect and dispose of accounts
receivable and checks and (iv) utilize cash on deposit in the accounts of the
Company and the Subsidiary Guarantors. In each such case, subject to the terms
of the Intercreditor Agreement and the Collateral Documents governed by the
Intercreditor Agreement, the Lien of this Indenture and the Collateral Documents
shall be deemed automatically released without any action on the part of the
Trustee, provided that the Lien of the Indenture and the Collateral Documents
shall attach to any and all proceeds of such disposition. In connection with any
such release, subject to the terms of the Intercreditor Agreement and the
Collateral Documents governed by the Intercreditor Agreement, upon delivery by
the Company to the Trustee of an Officers' Certificate requesting release of
assets under this Section 11.04(b) (A) specifically describing the proposed
released assets and (B) certifying that such asset disposition complies with the
terms and conditions of this Section 11.04(b), the Trustee shall execute a
release, without recourse, of the aforementioned items of Collateral in the form
provided by the Company or the applicable Subsidiary Guarantor. To the extent
that may be provided in the Exemption, the fair value of Collateral released
from the Liens of the Indenture and the Collateral Documents under this Section
11.04(b) shall not be considered in determining whether the aggregate fair value
of Collateral released from the Liens of the Indenture and the Collateral
Documents in any calendar year exceeds the 10% threshold specified in TIA
Section 314(d)(1); provided that the Company's right to rely on this sentence at
any time is conditioned upon the Company having furnished to the Trustee all
certificates described in subdivision (c) of Section 11.05 hereof that were
required to be furnished to the Trustee at or prior to such time.

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      (c) Subject to the terms of the Intercreditor Agreement and the Collateral
Documents governed by the Intercreditor Agreement, no release of Collateral
pursuant hereto shall be effective as against the Holders of Notes and no
Collateral shall be released pursuant to Section 11.04(a), without the prior
written consent of the Trustee, at any time when an Event of Default shall have
occurred and be continuing and either (i) the maturity of the Notes shall have
been accelerated (whether by declaration or otherwise), or (ii) such Event of
Default is an Event of Default pursuant to clause (f) or (g) of Section 6.01. In
addition, subject to the terms of the Intercreditor Agreement and the Collateral
Documents governed by the Intercreditor Agreement, at any time when an Event of
Default shall have occurred and be continuing and such Event of Default is an
Event of Default pursuant to clause (a) or (b), or clause (d) of Section 6.01 in
respect of obligations under the Credit Facility and the Existing Senior Notes,
the Trustee may, and shall upon the request of the Holders of Outstanding Notes
of at least 25% in principal amount of the Notes then outstanding, by notice to
the Company, prohibit any release or disposition of Collateral otherwise
permitted by subsections (a) or (b) of this Section 11.04.

      SECTION 11.05 CERTIFICATES OF THE COMPANY.

      (a) The Company shall furnish to the Trustee prior to each proposed
release of Collateral pursuant to the Collateral Documents, all documents
required by TIA Section 314(d), except as provided in subdivision (b) of Section
11.04 and except to the extent such requirement may be satisfied by delivery to
the Collateral Agent of Collateral Documents subject to the Intercreditor
Agreement. The Trustee may, to the extent permitted by Sections 7.01 and 7.03
hereof, accept as conclusive evidence of compliance with the foregoing
provisions the appropriate statements contained in such instruments. Any
certificate or opinion required by TIA Section 314(d) may be made by an Officer
of the Company except in cases where TIA Section 314(d) requires that such
certificate or opinion be made by an independent engineer, appraiser or other
expert within the meaning of TIA Section 314(d). The release of any Collateral
from the Lien of any Collateral Document or the subordination of any Lien of any
Collateral Document shall not be deemed to impair such Lien or the Collateral
under the Collateral Documents in contravention of the provisions of this
Indenture or such Collateral Document if and to the extent the Collateral or
Lien is released or subordinated pursuant to, and in accordance with, this
Indenture and such Collateral Document.

      (b) The Company may from time to time file with the Commission a request
for an exemption (an "EXEMPTION") from the requirements of TIA Section 314(d)
for purposes of the releases of Collateral described in subdivision (b) of
Section 11.04, shall provide the Trustee with an Officers' Certificate setting
forth the effective date (the "EXEMPTION DATE") of the Exemption, if granted,
and shall provide the Trustee with a copy of any Exemption granted by the
Commission and promptly inform the Trustee of any amendment to, or any
rescission or termination of, the Exemption.

      (c) In the case of transactions permitted by subdivision (b) of Section
11.04 hereof, the Company shall deliver to the Trustee, within 15 days after the
end of each of the six-month periods ended on January 31 and July 31 in each
year, an Officers' Certificate to the effect that all transactions effected
pursuant to subdivision (b) of Section 11.04 hereof during the preceding
six-month period were made by the Company and the Subsidiary Guarantors in the
ordinary course of business and that all proceeds therefrom were used by the
Company and the Subsidiary Guarantors in connection with their respective
businesses or to make payments on the Notes or as otherwise permitted under this
Indenture and the Collateral Documents.

      SECTION 11.06 AUTHORIZATION OF ACTIONS TO BE TAKEN BY THE TRUSTEE UNDER
                    THE COLLATERAL DOCUMENTS.

      Subject to compliance with any applicable Gaming Laws and to the
provisions of the Intercreditor Agreement, the Trustee may, in its sole
discretion and without the consent of the Holders of Outstanding Notes, on
behalf of the Holders of Outstanding Notes, take all actions it deems necessary
or appropriate in order to (a) enforce any of the terms of the Collateral
Documents and (b) collect and receive any and all amounts payable in respect of
the Obligations of the Company hereunder. Subject to the provisions of the
Intercreditor Agreement, the Trustee shall have the power to institute and to
maintain such suits and proceedings as it may reasonably deem expedient to
prevent any impairment of the Collateral by any acts that may be unlawful or in
violation of the Collateral Documents or this Indenture, and such suits and
proceedings as the Trustee may reasonably deem expedient to preserve or protect
its interest and the interests of the Holders of Outstanding Notes in the
Collateral (including power to institute and maintain suits or proceedings to
restrain the enforcement of or compliance with any legislative

                                       64
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or other governmental enactment, rule or order that may be unconstitutional or
otherwise invalid if the enforcement of, or compliance with, such enactment,
rule, or order would impair the security interest hereunder or be prejudicial to
the interests of the Holders of Outstanding Notes or the Trustee).

      SECTION 11.07 AUTHORIZATION OF RECEIPT OF FUNDS BY THE TRUSTEE UNDER THE
                    COLLATERAL DOCUMENTS.

      The Trustee is authorized to receive any funds for the benefit of the
Holders of Outstanding Notes distributed under the Collateral Documents, and to
make further distributions or such funds to the Holders of Outstanding Notes
according to the provisions of this Indenture and the Collateral Documents.

                                   ARTICLE XII
                                  MISCELLANEOUS

      SECTION 12.01 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 12.02 NOTICES.

      Any notice or communication shall be in writing and shall hand delivered
or mailed by first class mail (registered or certified, return receipt
requested) or sent by telex or telecopier, to the following addresses:

      if to the Company:

            MGM MIRAGE

            3600 Las Vegas Boulevard South,
            Las Vegas, Nevada 89109

            telecopier no.:  (702)693-7628

            Attention of:  Treasurer.

      if to the Trustee:

            U.S. BANK NATIONAL ASSOCIATION
            60 Livingston Avenue,
            St. Paul, MN 55107-2292

            telecopier no.:  (651) 495-8097

            Attention of:  Corporate Trust Administration

      The Company or the Trustee by notice to the other may designate additional
or different addresses for subsequent notices or communications. Any notice or
communication to the Company, any Subsidiary Guarantors or the Trustee, shall be
deemed to have been given or made as of the date delivered if personally
delivered; when answered back, if telexed; when receipt is acknowledged, if
telecopied; and five (5) calendar days after mailing if sent by registered or
certified mail, postage prepaid (except that a notice of change of address shall
not be deemed to have been given until actually received by the addressee).

      Any notice or communication mailed to a Holder shall be made in compliance
with TIA Section 313(c) and mailed to the Holder at the Holder's address as it
appears on the registration books of the Registrar and shall be sufficiently
given if so mailed within the time prescribed.

                                       65
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      Failure to mail a notice or communication to a Holder or any defect in it
shall not affect its sufficiency with respect to other Holders. If a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

      SECTION 12.03 COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.

      Holders may communicate pursuant to TIA Section 312(b) with other Holders
with respect to their rights under this Indenture or the Notes. The Company, the
Subsidiary Guarantors, the Trustee, the Registrar and anyone else shall have the
protection of TIA Section 312(c).

      SECTION 12.04 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, at the request of the
Trustee the Company shall furnish to the Trustee:

      (1) an Officers' Certificate in form and substance satisfactory to the
Trustee (which shall include the statements set forth in Section 12.05) 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,
provided, however, that with respect to matters of law, an Officers' Certificate
may be based upon an Opinion of Counsel, unless the signers know, or in the
exercise of reasonable care should know, that such Opinion of Counsel is
erroneous; and

      (2) an Opinion of Counsel in form and substance satisfactory to the
Trustee (which shall include the statements set forth in Section 12.05) stating
that, in the opinion of such counsel, all such conditions precedent have been
complied with, provided, further, that with respect to matters of fact an
Opinion of Counsel may rely on an Officers' Certificate or certificates of
public officials, unless the signer knows, or in the exercise of reasonable care
should know, that any such document is erroneous.

      To the extent applicable, the Company shall comply with TIASection
314(c)(3).

      SECTION 12.05 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 or satisfied; and

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

      SECTION 12.06 RULES BY TRUSTEE, PAYING AGENT AND REGISTRAR.

      The Trustee may make reasonable rules for action by or a meeting of
Holders. The Registrar and the Paying Agent may make reasonable rules for their
functions.

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      SECTION 12.07 BUSINESS DAYS.

      Unless otherwise specified pursuant to this Indenture or in any Note, in
any case where any Interest Payment Date, Redemption Date or Stated Maturity of
any Note shall not be a Business Day at any Place of Payment for the Notes, then
(notwithstanding any other provision of this Indenture or of the Notes) payment
of principal (and premium, if any) or interest 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 at the Stated Maturity, and no interest shall
accrue on the amount so payable for the period from and after such Interest
Payment Date, Redemption Date or Stated Maturity, as the case may be, to such
Business Day if such payment is made or duly provided for on such Business Day.

      SECTION 12.08 GOVERNING LAW.

      THIS INDENTURE, THE NOTES AND THE GUARANTEES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEVADA 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. EACH
OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE
STATE OF NEVADA IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
INDENTURE OR THE NOTES.

      SECTION 12.09 NO RECOURSE AGAINST OTHERS.

      No direct or indirect incorporator, employee, stockholder, director or
officer, as such, past, present or future of the Company or any successor
corporation or any of the Company's Affiliates, shall have any personal
liability in respect of the obligations of the Company under the Notes or this
Indenture, either directly or through the Company, by reason of his, her or its
status as such incorporator, stockholder, employee, director or officer. Each
Holder by accepting a Note waives and releases all such liability. Such waiver
and release are part of the consideration for the issuance of the Notes.

      SECTION 12.10 SUCCESSORS.

      All agreements of the Company and each Subsidiary Guarantor in this
Indenture and the Notes (including the Note Guarantee endorsements thereon)
shall bind their successors. All agreements of the Trustee in this Indenture
shall bind its successors.

      SECTION 12.11 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 12.12 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.

      SECTION 12.13 SEVERABILITY.

      In case any one or more of the provisions in this Indenture, in the Notes
or in the Guarantees shall be held invalid, illegal or unenforceable, in any
respect for any reason, the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions shall not in
any way be affected or impaired thereby, it being intended that all of the
provisions hereof shall be enforceable to the full extent permitted by law.

                                       67
<PAGE>
      SECTION 12.14 NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

      This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or any of its Subsidiaries. Any such indenture,
loan or debt agreement may not be used to interpret this Indenture.

      SECTION 12.15 NO PARENT LIABILITY.

      In the event (a) there is any Default, Event of Default or other default
or alleged default by the Company, any Subsidiary Guarantor or any Affiliate of
any thereof under this Indenture, the Notes, any Guarantee or any other
document, instrument or agreement arising out of or relating to any of the
foregoing (collectively, the "TRANSACTION DOCUMENTS") or (b) the Trustee, any
Holder of any Note or any Affiliate of any of the foregoing has or may have any
claim arising from or relating to the terms of any Transaction Document, neither
the Trustee, such Holder or such Affiliate shall commence any lawsuit or
otherwise seek to impose any liability whatsoever in respect thereof against
Tracinda Corporation or its shareholder (hereinafter collectively referred to as
"Tracinda"). Tracinda shall not have any liability whatsoever with respect to
any Transaction Document or any matters relating to or arising from any
Transaction Document. None of the Trustee, any Holder of any Note or any
Affiliate of any of the foregoing shall assert or permit any Person claiming
through any of them to assert a claim or impose any liability against Tracinda
as to any matter or thing arising out of or relating to any Transaction Document
or any alleged breach or default of any Transaction Document by the Company, any
Subsidiary Guarantor or any Affiliate thereof. Tracinda is not a party to any
Transaction Document and is not liable for any alleged breach or default of any
Transaction Document by the Company, any Subsidiary Guarantor or any Affiliate
of any thereof. The terms of this Section 12.15 shall control, notwithstanding
anything to the contrary appearing in any Transaction Document.

                                       68
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed and delivered all as of the day and year first above written.

                                      MGM MIRAGE

                                      By: /s/ Bryan L. Wright
                                          -------------------
                                      Name: Bryan L. Wright
                                      Title: Vice President - Assistant General
                                             Counsel & Assistant Secretary

                                      U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE

                                      By: /s/ Frank Leslie
                                          ----------------
                                      Name: Frank P. Leslie III
                                      Title: Vice President

                     SIGNATURE PAGE TO MGM MIRAGE INDENTURE
                                   AUGUST 2004
<PAGE>

                SUBSIDIARY GUARANTORS:
     AC HOLDING CORP. II, a Nevada corporation
     AC HOLDING CORP., a Nevada corporation
     BEAU RIVAGE DISTRIBUTION CORP., a Mississippi corporation
     BEAU RIVAGE RESORTS, INC., a Mississippi corporation
     BELLAGIO II, LLC, a Nevada limited liability company
     BELLAGIO, LLC, a Nevada limited liability company
     BOARDWALK CASINO, INC., a Nevada corporation
     BUNGALOW, INC., a Mississippi corporation
     COUNTRY STAR LAS VEGAS, LLC, a Nevada limited liability company
     DESTRON, INC., a Nevada corporation
     EGARIM, INC., an Alabama corporation
     GRAND LAUNDRY, INC., a Nevada corporation
     LV CONCRETE CORP., a Nevada corporation
     M.I.R. TRAVEL, a Nevada corporation
     MAC, CORP., a New Jersey corporation
     METROPOLITAN MARKETING, LLC, a Nevada limited liability company
     MGM GRAND ATLANTIC CITY, INC., a New Jersey corporation
     MGM GRAND CONDOMINIUMS, LLC, a Nevada limited liability company
     MGM GRAND DETROIT, INC., a Delaware corporation
     MGM GRAND HOTEL, LLC, a Nevada limited liability company
     MGM GRAND NEW YORK, LLC, a Nevada limited liability company
     MGM GRAND RESORTS, LLC, a Nevada limited liability company
     MGM MIRAGE ACQUISITION CO. #61, a Nevada corporation
     MGM MIRAGE ADVERTISING, INC., a Nevada corporation
     MGM MIRAGE AVIATION CORP., a Nevada corporation
     MGM MIRAGE CORPORATE SERVICES, a Nevada corporation
     MGM MIRAGE DESIGN GROUP, a Nevada corporation
     MGM MIRAGE DEVELOPMENT, INC., a Nevada corporation
     MGM MIRAGE ENTERTAINMENT AND SPORTS, a Nevada corporation
     MGM MIRAGE INTERNATIONAL, a Nevada corporation
     MGM MIRAGE MANUFACTURING CORP., a Nevada corporation
     MGM MIRAGE OPERATIONS, INC., a Nevada corporation
     MGM MIRAGE RETAIL, a Nevada corporation
     MH, INC., a Nevada corporation
     MIRAGE LAUNDRY SERVICES CORP., a Nevada corporation
     MIRAGE LEASING CORP., a Nevada corporation
     MIRAGE RESORTS, INCORPORATED, a Nevada corporation
     MMNY LAND COMPANY, INC., a New York corporation
     MRGS CORP., a Nevada corporation
     NEW PRMA LAS VEGAS, INC., a Nevada corporation
     NEW YORK - NEW YORK HOTEL & CASINO, LLC, a Nevada limited liability company
     NEW YORK-NEW YORK TOWER, LLC, a Nevada limited liability company
     PRMA LAND DEVELOPMENT COMPANY, a Nevada corporation
     PRMA, LLC, a Nevada limited liability company
     RESTAURANT VENTURES OF NEVADA, INC., a Nevada corporation

                     SIGNATURE PAGE TO MGM MIRAGE INDENTURE
                                   AUGUST 2004
<PAGE>
     THE APRIL COOK COMPANIES, a Nevada corporation
     THE MIRAGE CASINO-HOTEL, a Nevada corporation
     THE PRIMADONNA COMPANY, LLC, a Nevada limited liability company
     TREASURE ISLAND CORP., a Nevada corporation
     VIDIAD, a Nevada corporation

                  By:     /s/ Bryan L. Wright
                          -------------------
                  Name:   Bryan L. Wright
                  Title:  Assistant Secretary

                     SIGNATURE PAGE TO MGM MIRAGE INDENTURE
                                   AUGUST 2004
<PAGE>
                                                                       EXHIBIT A

                               FORM OF GLOBAL NOTE

                                                        CUSIP No. ______________

      UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO MGM MIRAGE OR
ITS AGENT FOR REGISTRATION OR TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN 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 OWNED
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

      THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO
TRANSFER OF THE NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

      THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED
IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THE SECURITY
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A OR REGULATION S THEREUNDER. ACCORDINGLY,
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR
THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE NEXT
SENTENCE. BY ITS ACQUISITION HEREOF OR A BENEFICIAL INTEREST HEREIN, THE HOLDER
OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY OF THE
SECURITY THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED
ONLY (1)(a) IN THE UNITED STATES TO A PERSON WHO THE SELLER REASONABLY BELIEVES
IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (b)
OUTSIDE THE UNITED STATES IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904
OF REGULATION S UNDER THE SECURITIES ACT, (c) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(a)(1), (2), (3) or (7) OF THE
SECURITIES ACT) THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED
LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN
BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN
AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000, AN OPINION OF COUNSEL
ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT, OR (e) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED THAT THE COMPANY SHALL
HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, RESALE, ASSIGNMENT, PLEDGE OR TRANSFER
PURSUANT TO THIS CLAUSE (e) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION (IN FORM
AND SUBSTANCE SATISFACTORY TO THE COMPANY) OF COUNSEL SATISFACTORY TO THE
COMPANY, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY, (2)
TO THE COMPANY OR (3) PURSUANT TO AN

                                      A-1
<PAGE>
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
OR ANY OTHER APPLICABLE JURISDICTION; AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO NOTIFY ANY PURCHASER FROM IT OF THE SECURITY
EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE.

                                   MGM MIRAGE

                     6.75% Senior Note Due September 1, 2012

No. __                                                              $[_________]

      MGM MIRAGE, a Delaware corporation (the "Company"), promises to pay to
Cede & Co. or registered assigns, or its registered assigns, the principal sum
of [_____] in U.S. Dollars on September 1, 2012.

      Interest Payment Dates:                 March 1 and September 1

      Record Dates:                           February 15 and August 15

      Additional provisions of this Note are set forth on the other side of this
Note.

                                      A-2
<PAGE>
      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                             MGM MIRAGE

                                             By____________________________
                                             Name:
                                             Title:

Attest:

______________________________________
Bryan L. Wright
Vice President, Assistant General Counsel
and Assistant Secretary

                         [Authentication Page to Follow]

                                      A-3
<PAGE>
                          CERTIFICATE OF AUTHENTICATION

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

Dated:                                      U.S. BANK NATIONAL ASSOCIATION,
                                            As Trustee

                                            By__________________________________
                                                Authorized Signatory

                                      A-4
<PAGE>
                         [FORM OF REVERSE SIDE OF NOTE]

                    6.75 % Senior Note Due September 1, 2012

      1.    INTEREST

      MGM MIRAGE, a Delaware corporation (the "Company"), promises to pay
interest on the principal amount of this Note at the rate per annum shown above
and shall pay Additional Interest, if any, payable pursuant to the relevant
Registration Rights Agreement.

      The Company shall pay interest (including Additional Interest, if any)
semi-annually in arrears on March 1 and September 1 of each year commencing on
March 1, 2005. Interest on the Notes will accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from August 25,
2004 with respect to this Note. Interest shall be computed on the basis of a
360-day year comprised of twelve 30-day months.

      2.    METHOD OF PAYMENT

      The Company shall pay interest (except defaulted interest but including
Additional Interest, if any) on the Notes to the Persons who are registered
Holders of Notes at the close of business on the February 15 or August 15
immediately preceding the interest payment date even if Notes are canceled after
the record date and on or before the interest payment date. Holders must
surrender Notes to a Paying Agent to collect principal payments. The Company
shall pay principal and interest in money of the United States that at the time
of payment is legal tender for payment of public and private debts. However, all
payments in respect of this Note (including principal, premium, if any, interest
and Additional Interest, if any) must be made by wire transfer of immediately
available funds to the accounts specified by the Holder hereof.

      3.    PAYING AGENT AND REGISTRAR

      Initially, U.S. BANK NATIONAL ASSOCIATION (the "TRUSTEE") shall act as
Paying Agent and Registrar. The Company may appoint and change any Paying Agent
or Registrar without notice to the Holders. The Company or any domestically
organized Subsidiary may act as Paying Agent or Registrar.

      4.    INDENTURE

      The Company issued the Notes under an Indenture dated as of August 25,
2004 (the "INDENTURE"), among the Company, the Subsidiary Guarantors and the
Trustee. The terms of the Notes include those stated in the Indenture and those
made part of the Indenture by reference to the TIA. Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Notes are subject to all such terms, and Holders are referred to
the Indenture and the TIA for a statement of those terms.

      The Notes are secured (as provided in the Collateral Documents) senior
obligations of the Company. Subject to the conditions set forth in the
Indenture, the Company may issue Additional Notes in an unlimited principal
amount. This Note is one of the Notes referred to in the Indenture. The Notes
include the Initial Notes, the Additional Notes and any Exchange Notes or
Private Exchange Notes issued in exchange for Additional Notes or Initial Notes
pursuant to the Registration Rights Agreement and the Indenture. The Initial
Notes, the Additional Notes, the Exchange Notes and the Private Exchange Notes
are treated as a single class of Notes under the Indenture. The Subsidiary
Guarantors have, jointly and severally, unconditionally guaranteed the
Guaranteed Obligations on a senior secured basis pursuant to the terms of the
Indenture.

      5.    OPTIONAL REDEMPTION; MANDATORY DISPOSITION PURSUANT TO GAMING LAWS

      The Notes are redeemable at the option of the Company, in whole or in part
at any time at a redemption price (the "Redemption Price") equal to the greater
of:

                                      A-5
<PAGE>
            -     100% of the principal amount thereof; or

            -     as determined by an Independent Investment Banker, the sum of
                  the present values of the remaining scheduled payments of
                  principal and interest on the Notes to be redeemed (not
                  including any portion of such payments of interest accrued to
                  the Redemption Date) discounted to the Redemption Date on a
                  semiannual basis (assuming a 360-day year consisting of twelve
                  30-day months) at the Adjusted Treasury Rate, plus 50 basis
                  points,

      plus, in either of the above cases, accrued and unpaid interest to the
Redemption Date on the Notes to be redeemed.

      "Adjusted Treasury Rate" means, with respect to any Redemption Date:

            -     the yield, under the heading which represents the average for
                  the immediately preceding week, appearing in the most recently
                  published statistical release designated "H.15(519)" or any
                  successor publication which is published weekly by the Board
                  of Governors of the Federal Reserve System and which
                  establishes yields on actively traded United States Treasury
                  securities adjusted to constant maturity under the caption
                  "Treasury Constant Maturities," for the maturity corresponding
                  to the Comparable Treasury Issue (if no maturity is within
                  three months before or after the Remaining Life (as defined
                  below), yields for the two published maturities most closely
                  corresponding to the Comparable Treasury Issue shall be
                  determined and the Adjusted Treasury Rate shall be
                  interpolated or extrapolated from such yields on a straight
                  line basis, rounding to the nearest month); or

            -     if such release (or any successor release) is not published
                  during the week preceding the calculation date or does not
                  contain such yields, the rate per annum equal to the
                  semi-annual equivalent yield to maturity of the Comparable
                  Treasury Issue, calculated using a price for the Comparable
                  Treasury Issue (expressed as a percentage of its principal
                  amount) equal to the Comparable Treasury Price for such
                  Redemption Date.

      The Adjusted Treasury Rate shall be calculated on the third Business Day
preceding the Redemption Date.

      "Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Notes to be redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of such securities ("Remaining Life").

      "Comparable Treasury Price" means (1) the average of four Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the highest
and lowest Reference Treasury Dealer Quotations, or (2) if the Independent
Investment Banker obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such quotations.

      "Independent Investment Banker" means one of the Reference Treasury
Dealers appointed by the Company.

      "Reference Treasury Dealer" means any primary U.S. Government securities
dealer in New York City selected by the Company.

      "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Independent Investment Banker, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker at 5:00
p.m., New York City time, on the third Business Day preceding such Redemption
Date.

                                      A-6
<PAGE>
      The rights of each Holder or beneficial owner of Notes are subject to the
Gaming Laws and requirements of the Gaming Authorities. Notwithstanding any
other provision of the Indenture, if any Gaming Authority requires that a Holder
or beneficial owner of Notes of a Holder must be licensed, qualified or found
suitable under any Gaming Law, such Holder or such beneficial owner shall apply
for a license, qualification or a finding of suitability, as the case may be,
within the required time period. If such person fails to apply or become
licensed or qualified or is not found suitable (in each case, a "failure of
compliance"), the Company shall have the right, at its option, (i) to require
such Holder or owner to dispose of such Holder's or beneficial owner's Notes
within 30 days of receipt of notice of the Company's election or such earlier
date as may be requested or prescribed by such Gaming Authority, or (ii) to
redeem such Notes, which Redemption Date may be less than 30 days following the
notice of redemption if so requested or prescribed by the Gaming Authority, at a
redemption price equal to (a) the lesser of (1) the Holder's cost, plus accrued
and unpaid interest, if any, to the earlier of the Redemption Date or the date
of the finding of unsuitability or failure to comply and (2) 100% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the
earlier of the Redemption Date and the date of the finding of unsuitability or
failure to comply or (b) such other amount as may be required by applicable
Gaming Laws or by order of any Gaming Authority. The Company shall notify the
Trustee in writing of any such failure of compliance or redemption as soon as
practicable. The Company shall not be responsible for any costs or expenses any
such Holder or beneficial owner may incur in connection with its application for
a license, qualification or finding of suitability. Immediately upon the
imposition of a requirement to dispose of the Notes by a Gaming Authority, such
Holder or beneficial owner shall, to the extent required by applicable Gaming
Laws, have no further right (i) to exercise, directly or indirectly, through any
trustee, nominee or any other person or entity, any right conferred by the
Notes, or (ii) to receive any remuneration in any form with respect to the Notes
from the Company or the Trustee, except the redemption price.

      6.    NOTICES OF REDEMPTION

      Notices of redemption shall be mailed by first-class mail at least 30
(unless a shorter notice is acceptable to the Trustee) days but not more than 60
days before the redemption date to each Holder of Notes to be redeemed at its
registered address all in accordance with the Indenture. If less than all of the
Notes are to be redeemed at any time (other than pursuant to paragraph 5 above)
the particular Notes to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Notes not
previously called for redemption, by such method as the Trustee shall deem fair
and appropriate. On and after the redemption date, interest ceases to accrue on
Notes or portions of them called for redemption.

      7.    DENOMINATIONS; TRANSFER; EXCHANGE

      The Notes are in registered form without coupons in denominations of
$1,000 and whole multiples of $1,000. A Holder may transfer or exchange Notes 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
transfer documents and to pay any taxes required by law or permitted by the
Indenture. The Registrar shall not be required (A) to issue, to register the
transfer of or to exchange any Notes during a period beginning at the opening of
business 15 days before the day of any selection of Notes for redemption and
ending at the close of business on the day of selection, (B) to register the
transfer of or to exchange any Note so selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part or (C) to
register the transfer of or to exchange a Note between a record date and the
next succeeding interest payment date.

      8.    PERSONS DEEMED OWNERS

      The registered Holder of this Note may be treated as the owner of it for
all purposes.

      9.    UNCLAIMED MONEY

      If money for the payment of principal or interest remains unclaimed for
two years, the Paying Agent shall pay the money back to the Company at its
request, or if then held by the Company or a domestic Subsidiary, shall be
discharged from such trust (unless an abandoned property law designates another
Person for payment thereof). After any such payment, Holders entitled to the
money must look only to the Company for payment thereof, and all liability of
the Paying Agent with respect to such money, and all liability of the Company or
such permitted Subsidiary as trustee thereof, shall thereupon cease.

                                      A-7
<PAGE>
      10.   DISCHARGE AND DEFEASANCE

      Subject to certain conditions set forth in the Indenture, the Company at
any time may terminate some or all of its obligations under the Indenture with
respect to the Notes if, among other things, the Company deposits with the
Trustee funds for the payment of principal and interest on the Notes to
redemption or maturity, as the case may be.

      11.   AMENDMENT, WAIVER

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Notes under the Indenture at any
time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Notes at the time outstanding. The Indenture
also contains provisions, with certain exceptions as therein provided,
permitting the Holders of a majority in principal amount of the Notes at the
time outstanding, on behalf of the Holders of all such Notes, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. The Indenture also
permits certain other amendments, modifications or waivers thereof only with the
consent of all affected Holders of the Notes, while certain other amendments or
modifications may be made without the consent of any Holders of Notes. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the transfer hereof or in exchange herefor or in lieu hereof, whether or
not notation of such consent or waiver is made upon this Note. The right of any
Holder of a Note (or such Holder's duly designated proxy) to participate in any
consent required or sought pursuant to any provision of the Indenture (and the
obligation of the Company to obtain any such consent otherwise required from
such Holder) may be subject to the requirement that such Holder shall have been
the Holder of record of Notes as of a date set by the Company and identified by
the Trustee in a notice furnished to Holders of the Notes in accordance with the
terms of the Indenture.

      12.   DEFAULTS AND REMEDIES

      Events of Default are set forth in the Indenture. If an Event of Default
shall have occurred and be continuing, the Trustee or the Holders of at least
25% in principal amount of outstanding Notes may declare the principal of,
premium, if any, and accrued interest (including Additional Interest, if any) on
all the Notes to be due and payable by notice in writing to the Company and, if
given by the Holders, to the Trustee, specifying the respective Events of
Default, and the same shall become immediately due and payable.

      Holders may not enforce the Indenture or the Notes except as provided in
the Indenture. The Trustee may refuse to enforce the Indenture or the Notes
unless it receives indemnity or security reasonably satisfactory to it. Subject
to certain limitations, Holders of a majority in principal amount of the Notes
may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders notice of any continuing Default (except a Default in
payment of principal, premium, if any, or interest) if and so long as a
committee of its Trust Officers in good faith determines that withholding notice
is in the interest of the Holders.

      13.   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 Notes 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.

      14.   NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND
            STOCKHOLDERS

      No past, present or future director, officer, employee, stockholder or
incorporator, as such, of the Company or any successor corporation shall have
any liability for any obligations of the Company under the Notes or the
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Holder by

                                      A-8
<PAGE>
accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for the issue of the Notes.

      15.   GOVERNING LAW

      THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEVADA 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.

      16.   AUTHENTICATION

      This Note and the Subsidiary Guarantee endorsed hereon 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 Note.

      17.   ABBREVIATIONS

      Customary abbreviations may be used in the name of a Holder 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).

      18.   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 Notes and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Holders. No representation is made as
to the accuracy of such numbers either as printed on the Notes or as contained
in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

      The Company shall furnish to any Holder upon written request and without
charge to the Holder a copy of the Indenture which has in it the text of this
Note in larger type. Requests may be made to:

                                   MGM MIRAGE
             3600 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS, NEVADA 89109

                             ATTENTION OF SECRETARY

                                      A-9
<PAGE>
                                 ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note 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 Note on the
books of the Company. The agent may substitute another to act for him.

Date:  ________________ Your Signature:  _____________________

Signature Guarantee:___________________________________________
                       (Signature must be guaranteed by a
                       participant in a recognized signature
                       guarantee medallion program)

________________________________________________________________________
Sign exactly as your name appears on the other side of this Note.

                                      A-10
<PAGE>
                SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

    The following increases or decreases in this Global Note have been made:

<TABLE>
<CAPTION>
Date of Exchange          Amount of decrease     Amount of increase in   Principal amount of    Signature of authorized
                          in Principal  Amount   Principal Amount of     this Global Note       signatory of Trustee or
                          of this Global Note    this Global Note        following such         Notes Custodian
                                                                         decrease or increase
<S>                       <C>                    <C>                     <C>                    <C>

</TABLE>

                                      A-11
<PAGE>
                                                                       EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

MGM MIRAGE
U.S. BANK NATIONAL ASSOCIATION
60 Livingston Avenue
St. Paul, Minnesota 55107-2292
Attention:  Corporate Trust Trustee Administration

            Re:   MGM MIRAGE (the "COMPANY")
                  6.75% Senior Notes due 2012 (the "NOTES").

      Reference is hereby made to that certain Indenture dated August 25, 2004
(the "INDENTURE"), between MGM MIRAGE, as Company (the "COMPANY"), the
Subsidiary Guarantors (as defined therein) and U.S. BANK NATIONAL ASSOCIATION,
as trustee (the "TRUSTEE"). Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.

      ______________ (the "Transferor") owns and proposes to transfer the Notes
or interests in Notes specified in Annex A hereto, in the principal amount of
$___________ (the "TRANSFER"), to __________ (the "Transferee"), as further
specified in Annex A hereto. In connection with the Transfer, the Transferor
hereby certifies that:

      [CHECK ALL THAT APPLY]

      1. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN
THE RULE 144A GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO RULE 144A. The
Transfer is being effected pursuant to and in accordance with Rule 144A under
the United States Securities Act of 1933, as amended (the "SECURITIES ACT"),
and, accordingly, the Transferor hereby further certifies that the beneficial
interest in a Global Note or a Definitive Note is being transferred to a Person
that the Transferor reasonably believed and believes is purchasing the
beneficial interest in a Global Note or such Definitive Note for its own
account, or for one or more accounts with respect to which such Person exercises
sole investment discretion, and such Person and each such account is a
"qualified institutional buyer" within the meaning of Rule 144A in a transaction
meeting the requirements of Rule 144A and such Transfer is in compliance with
any applicable blue sky securities laws of any relevant State of the United
States. Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the Rule 144A Global Note and/or the Definitive Note and in
the Indenture and with the Securities Act.

      2. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN
THE REGULATION S GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO REGULATION S. The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
904 under the Securities Act and, accordingly, the Transferor hereby further
certifies that (i) the Transfer is not being made to a person in the United
States and (x) at the time the buy order was originated, the Transferee was
outside the United States or such Transferor and any Person acting on its behalf
reasonably believed and believes that the Transferee was outside the United
States or (y) the transaction was executed in, on or through the facilities of a
designated offshore securities market and neither such Transferor nor any Person
acting on its behalf knows that the transaction was prearranged with a buyer in
the United States, (ii) no directed selling efforts (as defined in Rule 902 of
Regulation S) have been made in contravention of the requirements of Rule 903(b)
or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction
is not part of a plan or scheme to evade the registration requirements of the
Securities Act and (iv) if the proposed transfer is being made prior to the
expiration of the Distribution Compliance Period (as provided in Rule 904 of
Regulation S), the transfer is not being made to a U.S. Person or for the
account or benefit of a U.S. Person (other than an Initial Purchaser) and the
interest transferred will be held immediately thereafter through Euroclear or
Clearstream. Upon consummation of the proposed transfer in accordance with the
terms of the Indenture, the transferred beneficial interest in a Global Note

                                       B-1
<PAGE>
or Definitive Note will be subject to the restrictions on Transfer enumerated in
the Private Placement Legend printed on the Regulation S Global Note and/or the
Definitive Note and in the Indenture and with the Securities Act.

      3. [ ] CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
INTEREST IN A IAI GLOBAL NOTE OR A RESTRICTED DEFINITIVE NOTE PURSUANT TO ANY
PROVISION OF THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S. The
Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and
any applicable blue sky securities laws of any relevant State of the United
States, and accordingly the Transferor hereby further certifies that (check
one):

            (a) [ ] Such Transfer is being effected to the Company or a
      subsidiary thereof; or

            (b) [ ] such Transfer is being effected to an Institutional
      Accredited Investor and pursuant to an exemption from the registration
      requirements of the Securities Act other than Rule 144A, Rule 144, Rule
      903 or Rule 904, and the Transferor hereby further certifies that it has
      not engaged in any general solicitation within the meaning of Regulation D
      under the Securities Act and the Transfer complies with the transfer
      restrictions applicable to beneficial interests in a Restricted Global
      Note or Restricted Definitive Notes and the requirements of the exemption
      claimed, which certification is supported by (1) a certificate executed by
      the Transferee in the form of Exhibit D to the Indenture (attached hereto)
      and (2) if such transfer is in respect of an aggregate principal amount of
      less than $100,000, an Opinion of Counsel acceptable to the Company that
      such transfer is in compliance with the Securities Act.

      Upon consummation of the proposed transfer in accordance with the terms of
the Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on IAI Global Note or the Restricted Definitive Notes and in the
Indenture and the Securities Act.

      4. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN
AN UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

            (a) [ ] CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The Transfer
      is being effected pursuant to and in accordance with Rule 144 under the
      Securities Act and in compliance with the transfer restrictions contained
      in the Indenture and any applicable blue sky securities laws of any
      relevant State of the United States and (ii) the restrictions on transfer
      contained in the Indenture and the Private Placement Legend are not
      required in order to maintain compliance with the Securities Act. Upon
      consummation of the proposed Transfer in accordance with the terms of the
      Indenture, the transferred beneficial interest in a Global Note or
      Definitive Note will no longer be subject to the restrictions on transfer
      enumerated in the Private Placement Legend printed on the Restricted
      Global Notes, on Restricted Definitive Notes and in the Indenture.

            (b) [ ] CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The
      Transfer is being effected pursuant to and in accordance with Rule 903 or
      Rule 904 under the Securities Act and in compliance with the transfer
      restrictions contained in the Indenture and any applicable blue sky
      securities laws of any State of the United States and (ii) the
      restrictions on transfer contained in the Indenture and the Private
      Placement Legend are not required in order to maintain compliance with the
      Securities Act. Upon consummation of the proposed Transfer in accordance
      with the terms of the Indenture, the transferred beneficial interest or
      Definitive Note will no longer be subject to the restrictions on transfer
      enumerated in the Private Placement Legend printed on the Restricted
      Global Notes, on Restricted Definitive Notes and in the Indenture.

            (c) [ ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i) The
      Transfer is being effected pursuant to and in compliance with an exemption
      from the registration requirements of the Securities Act other than Rule
      144, Rule 903 or Rule 904 and in compliance with the transfer restrictions
      contained in the Indenture and any applicable blue sky securities laws of
      any State of the United States and (ii) the restrictions on transfer
      contained in the Indenture and the Private Placement Legend are not
      required in order to maintain compliance with the Securities Act. Upon
      consummation of the proposed Transfer in accordance with the terms of the
      Indenture, the transferred beneficial interest in a Global Note or
      Definitive

                                      B-2
<PAGE>
      Note will not be subject to the restrictions on transfer enumerated in the
      Private Placement Legend printed on the Restricted Global Notes or
      Restricted Definitive Notes and in the Indenture. This certificate and the
      statements contained herein are made for your benefit and the benefit of
      the Company.

            (d) [ ] CHECK IF TRANSFER IS PURSUANT TO REGISTRATION STATEMENT.
      Such Transfer is being effected pursuant to an effective registration
      statement under the Securities Act and in compliance with the prospectus
      delivery requirements of the Securities Act.

      ___________________________
      [Insert Name of Transferor]

      By:________________________

      Name:
      Title:

      Dated:____________

                                      B-3
<PAGE>
                       ANNEX A TO CERTIFICATE OF TRANSFER

      1.    The Transferor owns and proposes to transfer the following:

      [CHECK ONE OF (a) OR (b)]

            (a)   [ ]   a beneficial interest in the:

                  (i)   [ ]   Rule 144A Global Note (CUSIP         ), or

                  (ii)  [ ]   Regulation S Global Note (CUSIP ______), or

                  (iii) [ ]   IAI Global Note (CUSIP ______), or

            (b)   [ ]   a Restricted Definitive Note.

      2.    After the Transfer the Transferee will hold:

      [CHECK ONE]

            (a)   [ ]   a beneficial interest in the:

                  (i)   [ ]   Rule 144A Global Note (CUSIP ______), or

                  (ii)  [ ]   Regulation S Global Note (CUSIP ______), or

                  (iii) [ ]   IAI Global Note (CUSIP ______), or

                  (iv)  [ ]   Unrestricted Global Note (CUSIP ______); or

            (b)   [ ]   a Restricted Definitive Note; or

            (c)   [ ]   an Unrestricted Definitive Note,

      in accordance with the terms of the Indenture.

                                      B-4
<PAGE>
                                                                       EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

MGM MIRAGE
U.S. BANK NATIONAL ASSOCIATION
60 Livingston Avenue
St. Paul, Minnesota 55107-2292
Attention:  Corporate Trust Trustee Administration

            Re:   MGM MIRAGE (the "COMPANY")
                  6.75% Senior Notes due 2012 (the "NOTES").

      Reference is hereby made to that certain Indenture dated August 25, 2004
(the "INDENTURE") between MGM MIRAGE, as Company (the "COMPANY"), the Initial
Guarantors (as defined therein) and U.S. BANK NATIONAL ASSOCIATION, as trustee
(the "Trustee"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

      ____________, (the "OWNER") owns and proposes to exchange the Notes or
beneficial interests in the Notes specified herein, in the principal amount of
$____________ (the "EXCHANGE"). In connection with the Exchange, the Owner
hereby certifies that:

      1. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A
RESTRICTED GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN AN UNRESTRICTED GLOBAL NOTE

            (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In
connection with the Exchange of the Owner's beneficial interest in a Restricted
Global Note for a beneficial interest in an Unrestricted Global Note in an equal
principal amount, the Owner hereby certifies (i) the beneficial interest is
being acquired for the Owner's own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to the
Global Notes and pursuant to and in accordance with the United States Securities
Act of 1933, as amended (the "SECURITIES ACT"), (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest in an Unrestricted Global Note is being acquired in
compliance with any applicable blue sky securities laws of any relevant State of
the United States.

            (b) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO UNRESTRICTED DEFINITIVE NOTE. In connection with the
Exchange of the Owner's beneficial interest in a Restricted Global Note for an
Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note
is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act, (iv) the Definitive Note is being acquired
in compliance with any applicable blue sky securities laws of any relevant State
of the United States and (v) the conditions for issuance of Definitive
Securities under the Indenture have been satisfied.

            (c) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the
Owner's Exchange of a Restricted Definitive Note for a beneficial interest in an
Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any
relevant State of the United States.

                                      C-1
<PAGE>
            (d) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
UNRESTRICTED DEFINITIVE NOTE. In connection with the Owner's Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Unrestricted Definitive Note is being acquired for the Owner's
own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
Unrestricted Definitive Note is being acquired in compliance with any applicable
blue sky securities laws of any relevant State of the United States.

      2. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN
RESTRICTED GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN RESTRICTED GLOBAL NOTES

            (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO RESTRICTED DEFINITIVE NOTE. In connection with the
Exchange of the Owner's beneficial interest in a Restricted Global Note for a
Restricted Definitive Note with an equal principal amount, the Owner hereby
certifies that the Restricted Definitive Note is being acquired for the Owner's
own account without transfer. Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Definitive Note and in
the Indenture and the Securities Act. The conditions for issuance of Definitive
Securities under the Indenture have been satisfied.

            (b) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with the Exchange
of the Owner's Restricted Definitive Note for a beneficial interest in the:
[CHECK ONE] ? Rule 144A Global Note (only if the Owner is a QIB) or ? Regulation
S Global Note (only if the Owner is Non-U.S. Person) or ? IAI Global Note (only
if the Owner is an Institutional Accredited Investor other than a QIB) with an
equal principal amount, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner's own account without transfer and (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with
the Securities Act, and in compliance with any applicable blue sky securities
laws of any relevant State of the United States. Upon consummation of the
proposed Exchange in accordance with the terms of the Indenture, the beneficial
interest issued will be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the relevant Restricted Global Note and
in the Indenture and the Securities Act.

      This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                                    _______________________
                                    [Insert Name of Owner]

                                    By:_____________________________________
                                        Name:
                                        Title:

                                    Dated:____________

                                      C-2
<PAGE>
                                                                       EXHIBIT D

                       FORM OF CERTIFICATE FROM ACQUIRING
                        INSTITUTIONAL ACCREDITED INVESTOR

MGM MIRAGE
U.S. BANK NATIONAL ASSOCIATION
60 Livingston Avenue
St. Paul, Minnesota 55107-2292

Attention:  Corporate Trust Trustee Administration

Ladies and Gentlemen:

      This certificate is delivered to request a transfer of $        principal
amount of the 6.75% Senior Notes due 2012 (the "NOTES") of MGM MIRAGE (the
"COMPANY").

      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"), an "INSTITUTIONAL ACCREDITED INVESTOR"), and we are acquiring
the Notes 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 risk of our investment in the Notes and invest in or purchase
securities similar to the Notes 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.

      2. We understand that the Notes 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
accounts for which we are acting as hereinafter stated, that if we should sell
the Notes or any interest therein, we will do so only (A)(i) in the United
States, to a person who the seller reasonably believes is a Qualified
Institutional Buyer (as defined in Rule 144A under the Securities Act)
purchasing for its own account or for the account of a Qualified Institutional
Buyer meeting the requirements of Rule 144A, (ii) outside the United States, in
a transaction meeting the requirements of Rule 904 of Regulation S under the
Securities Act, (iii) in a transaction meeting the requirements of Rule 144
under the Securities Act, (iv) to an institutional "accredited investor" (as
defined in Rule 501(a)(1), (2), (3) or (7) of the Securities Act) that, prior to
such transfer, furnishes the Trustee a signed letter containing certain
representations and agreements (the form of which can be obtained from the
Trustee) and, if such transfer is in respect of an aggregate principal amount of
less than $100,000, an Opinion of Counsel acceptable to the Company that such
transfer is in compliance with the Securities Act, or (v) in accordance with
another exemption from the registration requirements of the Securities Act,
provided that the Company shall have the right prior to any such offer, resale,
assignment, pledge or transfer pursuant to clause (v) above to require the
delivery of an Opinion (in form and substance satisfactory to the Company) of
Counsel satisfactory to the Company, certification and/or other information
satisfactory to the Company, (B) to the Company, or (C) pursuant to an effective
registration statement under the Securities Act and, in each case, in accordance
with any applicable securities laws of any state of the United States or any
other applicable jurisdiction, and we further agree that we

                                      D-1
<PAGE>
will, and each subsequent Holder is required to notify any purchaser from it of
the security evidenced hereby of the resale restrictions set forth in (A) above.

      3. We understand that, on any proposed resale of the Notes or beneficial
interest therein, we will be required to furnish to you and the Company such
certifications, legal opinions and other information as you and the Company may
reasonably require to confirm that the proposed sale complies with the foregoing
restrictions. We further understand that the Notes purchased by us will bear a
legend to the foregoing effect.

      4. We are acquiring the Notes or beneficial interest therein purchased by
us for our own account or for one or more accounts (each of which is an
institutional "accredited investor") as to each of which we exercise sole
investment discretion.

      You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.

                                    ________________________________________
                                    [Insert Name of Accredited Investor]

                                    By:_____________________________________
                                        Name:
                                        Title:

                                    Dated:  _____________, _____

                                      D-2
<PAGE>
                                                                       EXHIBIT E

                    [FORM OF NOTATION OF SECURITY GUARANTEE]

                                    GUARANTEE

      For value received, the undersigned hereby unconditionally guarantee to
the Holder of the Note upon which this Guarantee is endorsed the due and
punctual payment, as set forth in the Indenture pursuant to which this Note and
Guarantee were issued, of the principal of, premium (if any) and interest on
such Note when and as the same shall become due and payable for any reason
according to the terms of such Note and the Indenture. This Guarantee will not
become effective until the Trustee signs the certificate of authentication on
this Note. Such Guarantee is more fully set forth in the Indenture.

Dated as of [________], 2004

                              SUBSIDIARY GUARANTORS

      BELLAGIO II, LLC, a Nevada limited liability company
      BELLAGIO, LLC, a Nevada limited liability company
      METROPOLITAN MARKETING, LLC, a Nevada limited liability company
      MGM GRAND CONDOMINIUMS, LLC, a Nevada limited liability company
      MGM GRAND NEW YORK, LLC, a Nevada limited liability company
      MGM GRAND RESORTS, LLC, a Nevada limited liability company
      MGM MIRAGE ACQUISITION CO. #61, a Nevada corporation
      MGM MIRAGE AVIATION CORP., a Nevada corporation
      MGM MIRAGE CORPORATE SERVICES, a Nevada corporation
      MGM MIRAGE MANUFACTURING CORP., a Nevada corporation
      MGM MIRAGE DEVELOPMENT, INC., a Nevada corporation
      MGM MIRAGE Entertainment and Sports, a Nevada corporation
      MGM MIRAGE International, a Nevada corporation
      MGM MIRAGE OPERATIONS, INC., a Nevada corporation
      MMNY LAND COMPANY, INC., a New York corporation
      MGM Grand Hotel, LLC, a Nevada limited liability company
      Grand Laundry, Inc., a Nevada corporation
      Destron, Inc., a Nevada corporation
      MGM Grand Atlantic City, Inc., a New Jersey corporation
      MGM Grand Detroit, Inc., a Delaware corporation
      New York-New York Hotel & Casino, LLC, a Nevada limited liability company
      New York-New York Tower, LLC, a Nevada limited liability company
      PRMA, LLC, a Nevada limited liability company
      The Primadonna Company, LLC, a Nevada limited liability corporation
      PRMA Land Development Co., a Nevada corporation
      New PRMA Las Vegas, Inc., a Nevada corporation
      AC Holding Corp., a Nevada corporation
      AC Holding Corp. II, a Nevada corporation
      The April Cook Companies, a Nevada corporation
      Beau Rivage Distribution Corp., a Mississippi corporation
      Beau Rivage Resorts, Inc., a Mississippi corporation
      Boardwalk Casino, Inc., a Nevada corporation
      Bungalow, Inc., a Mississippi corporation
      Country Star Las Vegas, LLC, a Nevada limited liability company
      EGARIM, Inc., an Alabama corporation
      LV Concrete Corp., a Nevada corporation
      MAC, CORP., a New Jersey corporation

                                      E-1
<PAGE>
      MH, Inc., a Nevada corporation
      M.I.R. Travel, a Nevada corporation
      Mirage Resorts, Incorporated, a Nevada corporation
      MGM Mirage Advertising, Inc., a Nevada corporation
      MGM Mirage Design Group, a Nevada Corporation
      MGM Mirage Retail, a Nevada corporation
      The Mirage Casino-Hotel, a Nevada corporation
      Mirage Laundry Services Corp., a Nevada corporation
      Mirage Leasing Corp., a Nevada corporation
      MRGS Corp., a Nevada corporation
      Restaurant Ventures of Nevada, Inc., a Nevada corporation
      Treasure Island Corp., a Nevada corporation
      VidiAd, a Nevada corporation

                        By:   _________________________________
                              Bryan L. Wright
                              Vice President, Assistant General Counsel
                              and Assistant Secretary

                                      E-2
<PAGE>
                                                                       EXHIBIT F

                          FORM OF INSTRUMENT OF JOINDER

                                  (INDENTURES)

                  THIS INSTRUMENT OF JOINDER ("Joinder") is executed as of
_______, by the undersigned Subsidiaries of MGM MIRAGE ("Joining Parties"), with
reference to the following guaranties:

            1.    Guaranty of 6.95% Notes Due 2005. The Guaranty dated as of May
                  31, 2000, made by Mirage Resorts, Incorporated (as successor
                  by merger to the obligations of MGMGMR Acquisition, Inc.
                  ("MGMGMR")), a Nevada corporation ("Mirage"), and certain
                  subsidiaries of MGM MIRAGE ("MGM") in favor of JPMorgan Chase
                  Bank (successor in interest to PNC Bank, National Association)
                  (the "6.95% Guaranty"), for the Holders of MGM's 6.95% Senior
                  Collateralized Notes due 2005 issued pursuant to the Indenture
                  dated as of February 2, 1998, between MGM (under its former
                  name MGM Grand, Inc. ("MGM Grand")) and PNC Bank, National
                  Association, as Trustee (the "6.95% Indenture").

            2.    Guaranty of 6-7/8% Notes due 2008. The Guaranty dated as of
                  May 31, 2000, made by Mirage (as successor by merger to the
                  obligations of MGMGMR), and certain other subsidiaries of MGM
                  in favor of U.S. Trust Company, National Association (formerly
                  known as U.S. Trust Company of California, N.A.)(the "6-7/8%
                  Guaranty"), for the Holders of MGM's 6-7/8% Senior
                  Collateralized Notes due 2008 issued pursuant to the Indenture
                  dated as of February 6, 1998, between MGM (under its former
                  name MGM Grand) and U.S. Trust Company, National Association
                  (formerly known as U.S. Trust Company of California, N.A.), as
                  Trustee (the "6-7/8% Indenture").

            3.    Guaranty of 7.25% Senior Notes due 2006. The Guaranty dated as
                  of May 31, 2000, made by MGM (under its former name MGM
                  Grand), and certain subsidiaries of MGM in favor of U.S. Bank,
                  N.A. (formerly known as Firstar Bank of Minnesota, N.A) (the
                  "7.25% Guaranty"), for the Holders of Mirage's 7.25% Senior
                  Notes due 2006 issued pursuant to the Indenture dated as of
                  October 15, 1996, between Mirage and U.S. Bank, N.A. (formerly
                  known as Firstar Bank of Minnesota, N.A), as Trustee (the
                  "7.25% Indenture").

            4.    Guaranty of 6.75% Senior Notes due 2007 and 7.25% Debentures
                  due 2017. The Guaranty dated as of May 31, 2000, made by MGM
                  (under its former name MGM Grand), and certain subsidiaries of
                  MGM in favor of First Security Bank, National Association (the
                  "6.75% and 7.25% Guaranty"), for the Holders of Mirage's 6.75%
                  Notes due 2007 and for the Holders of Mirage's 7.25%
                  Debentures due 2017 issued pursuant to the Indenture dated as
                  of August 1, 1997, between Mirage and First Security Bank,
                  National Association, as Trustee (the "6.75% and 7.25%
                  Indenture").

            5.    Guaranty of 6.625% Notes due 2005 and 6.75% Notes due 2008.
                  The Guaranty dated as of May 31, 2000, made by MGM (under its
                  former name MGM Grand), and certain subsidiaries of MGM in
                  favor of JPMorgan Chase Bank (the "6.625% and 6.75%
                  Guaranty"), for the Holders of Mirage's 6.625% Notes due 2005
                  and for the Holders of Mirage's 6.75% Notes due 2008 issued
                  pursuant to the Indenture dated as of February 4, 1998,
                  between Mirage and JPMorgan Chase Bank, as successor Trustee
                  to PNC Bank, National Association (the "6.625% and 6.75%
                  Indenture").

                                      F-1
<PAGE>
            6.    Guaranty of 8 -1/2% Notes Due 2010. The Guaranty dated as of
                  September 17, 2003, made by certain subsidiaries of MGM in
                  favor of BNY Western Trust Company, as successor to U.S. Trust
                  Company, National Association (the "8.50% Guaranty"), for the
                  Holders of MGM's 8.50% Senior Notes due 2010 issued pursuant
                  to the Indenture dated as of September 15, 2000, between MGM
                  and U.S. Trust Company, National Association, as Trustee (the
                  "8.50% Indenture").

            7.    Guaranty of 5.875% Notes Due 2014. The Guaranty dated as of
                  February 27, 2004, made by certain subsidiaries of MGM in
                  favor of U.S. Bank National Association (the "February 5.875%
                  Guaranty"), for the Holders of MGM's 5.875% Senior Notes due
                  2014 (including such 5.875% Senior Notes issued in the
                  exchange offer for the 5.875% Senior Notes due 2014) issued
                  pursuant to the Indenture dated as of February 27, 2004, among
                  MGM, the subsidiary guarantors party thereto and U.S. Bank
                  National Association, as Trustee (the "5.875% Indenture").

            8.    Guaranty of 5.875% Notes Due 2014. The Guaranty dated as of
                  March 23, 2004, made by certain subsidiaries of MGM in favor
                  of U.S. Bank National Association (the "March 5.875%
                  Guaranty"), for the Holders of MGM's 5.875% Senior Notes due
                  2014 (including such 5.875% Senior Notes issued in the
                  exchange offer for the 5.875% Senior Notes due 2014) issued
                  pursuant to the Indenture dated as of March 23, 2004, among
                  MGM, the subsidiary guarantors party thereto and U.S. Bank
                  National Association, as Trustee (the "March 5.875%
                  Indenture").

      (The 6.95% Guaranty, the 6-7/8% Guaranty, the 7.25% Guaranty, the 6.75%
and 7.25% Guaranty, the 6.625%, the 6.75% Guaranty, the 8.50% Guaranty, the
February 5.875% Guaranty and the March 5.875% Guaranty are collectively referred
to herein as the "Guaranties.")

                                    RECITALS

                  Each Joining Party has become a Restricted Subsidiary of MGM
under the 6.95% Indenture and the 6-7/8% Indenture, and as such is required
pursuant to Section 12.7 of the 6.95% Indenture and the 6-7/8% Indenture to
become a party to the Guaranties.

                  NOW THEREFORE, each Joining Party jointly and severally agrees
as follows:

                                    AGREEMENT

                  1. By this Joinder, each Joining Party becomes a party to each
of the Guaranties as an additional joint and several "Guarantor." Each Joining
Party agrees that, upon its execution hereof, it will become a Guarantor under
each of the Guaranties and will be bound by all terms, conditions, and duties
applicable to a Guarantor under each of the Guaranties.

                  2. The effective date of this Joinder is _______.

                  3. Notice of acceptance hereof is waived.

                                      F-2
<PAGE>
                  IN WITNESS WHEREOF, each of the undersigned has executed this
Joinder by its duly authorized officer as of the date first written above.

                                    "Joining Parties"

                                    By: ___________________________________

                                    By:____________________________

                                      F-3

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