Document:

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                                                                 Exhibit 10.20

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                                RIGHTS AGREEMENT
                           DATED AS OF JANUARY 4, 2002

                                 BY AND BETWEEN
                         COMMONWEALTH ENERGY CORPORATION
                                       AND
                          COMPUTERSHARE TRUST COMPANY,
                                  RIGHTS AGENT

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                               TABLE OF CONTENTS

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                                                                                          PAGE
<S>            <C>                                                                        <C>
Section 1.     Certain Definitions..........................................................1

Section 2.     Appointment of Rights Agent..................................................5

Section 3.     Issuance of Rights Certificates..............................................5

Section 4.     Form of Rights Certificates..................................................7

Section 5.     Countersignature and Registration............................................7

Section 6.     Transfer, Split Up, Combination and Exchange of Rights,
               Certificates; Mutilated, Destroyed, Lost or Stolen Rights
               Certificates.................................................................8

Section 7.     Exercise of Rights; Purchase Price; Expiration Date of Rights................8

Section 8.     Cancellation and Destruction of Rights Certificates.........................11

Section 9.     Reservation and Availability of Preferred Stock.............................11

Section 10.    Preferred Stock Record Date.................................................12

Section 11.    The Flip-In.................................................................12

Section 12.    The Flip-Over...............................................................15

Section 13.    Adjustment of Purchase Price, Number and Kind of Shares or
               Number of Rights............................................................17

Section 14.    Rights of Action............................................................22

Section 15.    Agreement of Rights Holders.................................................22

Section 16.    Rights Holder Not Deemed a Stockholder......................................23

Section 17.    Concerning the Rights Agent.................................................24

Section 18.    Merger or Consolidation or Change of Name of Rights Agent...................24

Section 19.    Duties of Rights Agent......................................................24

Section 20.    Change of Rights Agent......................................................26

Section 21.    Issuance of New Rights Certificates.........................................27
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                               TABLE OF CONTENTS
                                  (CONTINUED)

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<S>            <C>                                                                        <C>
Section 22.    Redemption and Termination..................................................27

Section 23.    Exchange....................................................................28

Section 24.    Notice of Certain Events....................................................29

Section 25.    Notices.....................................................................30

Section 26.    Supplements and Amendments..................................................30

Section 27.    Successors..................................................................31

Section 28.    Benefits of this Agreement..................................................31

Section 29.    Severability................................................................31

Section 30.    Governing Law...............................................................31

Section 31.    Counterparts................................................................31

Section 32.    Descriptive Headings........................................................31
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EXHIBIT A -- FORM OF CERTIFICATE OF DESIGNATIONS OF
             PREFERRED STOCK
EXHIBIT B -- FORM OF RIGHTS CERTIFICATE
EXHIBIT C -- FORM OF SUMMARY OF RIGHTS TO PURCHASE
             PREFERRED STOCK

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                                RIGHTS AGREEMENT

        Rights Agreement, dated as of January 4, 2002 (this "AGREEMENT"),
between COMMONWEALTH ENERGY CORPORATION, a California corporation (the
"COMPANY"), and Computershare Trust Company (the "RIGHTS AGENT").

                              W I T N E S S E T H:

        WHEREAS, on January 4, 2002, the Board of Directors of the Company
authorized and declared a dividend distribution of one Right (as such term is
hereinafter defined) for each outstanding share of common stock, par value
$0.001 per share (the "COMMON STOCK"), of the Company outstanding on January 4,
2002 (the "RECORD DATE"), and the issuance of one Right for each share of Common
Stock of the Company issued between the Record Date and the Distribution Date
(as such term is hereinafter defined), each Right entitles the holder thereof to
purchase 1/1000th of a share of Preferred Stock of the Company having the
rights, powers and preferences set forth in the form of Certificate of
Designations attached hereto as Exhibit A, upon the terms and subject to the
conditions hereinafter set forth (the "RIGHTS");

        NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:

               Section 1. Certain Definitions. For purposes of this Agreement,
the following terms have the meanings indicated:

               (a) "ACQUIRING PERSON" shall mean any Person (as such term is
hereinafter defined) who or which, together with all Affiliates (as such term is
hereinafter defined) and Associates (as such term is hereinafter defined) of the
Person, shall be the Beneficial Owner (as such term is hereinafter defined) of
15% or more of the shares of Common Stock then outstanding and shall include all
Affiliates and Associates of the Person, but shall not include the Company, any
Subsidiary (as such term is hereinafter defined) of the Company, any employee
benefit plan of the Company or any Subsidiary of the Company or any entity
holding shares of Common Stock organized, appointed or established by the
Company for or pursuant to the terms of any such plan.

               (b) "ADVERSE PERSON" shall mean a Person who or which, pursuant
to a determination of the Board of Directors of the Company, has become the
Beneficial Owner of more than 10% of the outstanding shares of Common Stock and
that (i) such Beneficial Ownership is intended to cause the Company to
repurchase the Common Stock Beneficially Owned by such Person or to cause
pressure on the Company to take action or enter into transactions intended to
provide such Person with short-term financial gain under circumstances where the
Board of Directors of the Company determines that the best long-term interests
of the Company would not be served by taking such action or entering into such
transactions or (ii) such Beneficial Ownership is causing or reasonably likely
to cause a material adverse impact on the business or prospects of the Company;
provided, however, that the Board of Directors of the Company shall not declare
any Person to be an Adverse Person if such Person has

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reported or is required to report its ownership of Common Stock on Schedule 13G
under the Exchange Act, or on Schedule 13D under the Exchange Act (as such term
is hereinafter defined) which Schedule 13D does not state any intention to, or
reserve the right to, control or influence the Company or engage in certain
other actions, so long as such Person neither reports nor is required to report
such ownership other than as so described.

               (c) "AFFILIATE" shall mean, with respect to a specified Person, a
Person that directly, or indirectly through one or more intermediaries, controls
or is controlled by, or is under common control with, the Person specified.

               (d) "ASSOCIATE" shall mean, with respect to a specified Person,
(i) any corporation or organization (other than the Company or a Subsidiary of
the Company) of which the Person is an officer, director or partner or is,
directly or indirectly, the beneficial owner of 10% or more of any class of
equity security as defined in Rule 3a-11 of the General Rules and Regulations
under the Exchange Act, (ii) any trust or other estate in which the Person has a
substantial beneficial interest or as to which the Person serves as trustee or
in a similar fiduciary capacity, and (iii) any relative or spouse of the Person,
or any relative of the spouse, who has the same home as the Person, or is an
officer or director of any corporation controlling or controlled by the Person.

               (e) "BENEFICIAL OWNERSHIP" shall be determined pursuant to Rule
13d-3 of the General Rules and Regulations under the Securities Exchange Act of
1934 (or any successor rule or statutory provision) or, if Rule 13d-3 shall be
rescinded and there shall be no successor rule or statutory provision thereto,
pursuant to Rule 13d-3 as in effect on the date hereof; provided, however, that
a Person shall, in any event, also be deemed to be the "Beneficial Owner" of any
securities:

                      (i) which the Person or any Affiliate or Associate thereof
        beneficially owns, directly or indirectly

                      (ii) which the Person or any Affiliate or Associate
        thereof, directly or indirectly, has the right to acquire (whether the
        right is exercisable immediately or only after the passage of time)
        pursuant to any agreement, arrangement or understanding (whether or not
        in writing) or upon the exercise of conversion rights, exchange rights,
        rights, warrants or options, or otherwise; provided, however, that a
        Person shall not be deemed the "Beneficial Owner" of, or to
        "beneficially own," (A) securities tendered pursuant to a tender or
        exchange offer made by or on behalf of the Person or any Affiliate or
        Associate thereof until the tendered securities are accepted for
        purchase or exchange, or (B) securities issuable upon exercise of the
        Rights;

                      (iii) which the Person or any Affiliate or Associate
        thereof, directly or indirectly, has sole or shared voting or investment

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        power with respect thereto pursuant to any agreement, arrangement or
        understanding (whether or not in writing); provided, however, that a
        Person shall not be deemed the "Beneficial Owner" of, or to
        "beneficially own," any security under this subparagraph (iii) as a
        result of an agreement, arrangement or understanding to vote the
        security if such agreement, arrangement or understanding (A) arises
        solely from a revocable proxy given in response to a public proxy or
        consent solicitation made pursuant to, and in accordance with, the
        applicable provisions of the General Rules and Regulations under the
        Exchange Act and (B) is not also then reportable by the Person on
        Schedule 13D under the Exchange Act; or

                      (iv) which are beneficially owned, directly or indirectly,
        by any other Person or any Affiliate or Associate thereof with which the
        Person or any Affiliate or Associate thereof has any agreement,
        arrangement or understanding (whether or not in writing), for the
        purpose of acquiring, holding, voting (except pursuant to a revocable
        proxy as described in subparagraph (iii) of this paragraph (e)) or
        disposing of any voting securities of the Company.

        Nothing in this Section 1(e) shall cause a Person engaged in business as
an underwriter to be the "Beneficial Owner" of, or to "beneficially own," any
securities acquired through the Person's participation in good faith in a firm
commitment underwriting until the expiration of 40 days after the date of
acquisition.

               (f) "BUSINESS DAY" shall mean any day other than a Saturday,
Sunday or other day on which banking institutions in the State of California are
authorized or obligated by law or executive order to close.

               (g) "CLOSE OF BUSINESS" on any given date shall mean 5:00 p.m.,
California time, on that date; provided, however, that if the date is not a
Business Day it shall mean 5:00 p.m., California time, on the next succeeding
Business Day.

               (h) "CLOSING PRICE" of any security on any given day shall be the
last sale price, regular way, of the security or, in case no such sale takes
place on such day, the average of the closing bid and asked prices, regular way,
on the principal trading market on which the security is then traded.

               (i) "COMMON STOCK" shall mean the common stock, par value $0.001
per share, of the Company, and "common stock" when used with reference to any
Person other than the Company shall mean the capital stock with the greatest
voting power, or the equity securities or other equity interest having power to
control or direct the management of the Person.

               (j) "CURRENT MARKET PRICE" of any security on any given date
shall be deemed to be the average of the daily Closing Prices per share or other
trading unit of the security for 10 consecutive Trading Days (as such term is
hereinafter defined)

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immediately preceding the date; provided, however, that with respect to shares
of capital stock, in the event that the current market price per share of the
capital stock is determined during a period following the announcement of (i) a
dividend or distribution on the capital stock payable in shares of the capital
stock or securities convertible into shares of the capital stock (other than the
Rights), or (ii) any subdivision, combination or reclassification of the capital
stock, and prior to the expiration of the requisite 10 Trading Day period, as
set forth above, after the ex-dividend date for the dividend or distribution, or
the record date for the subdivision, combination or reclassification, then and
in each case, the "Current Market Price, shall be properly adjusted to take into
account ex-dividend trading; and provided further, that if the security is not
publicly held or not so listed or traded, Current Market Price per share or
other trading unit shall mean the fair value per share or other trading unit as
determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent and
shall be conclusive for all purposes.

               (k) "DISTRIBUTION DATE" shall mean the earliest of (i) the 10th
day after the Stock Acquisition Date (as such term is hereinafter defined), (ii)
the 10th business day after the date of the commencement of, or first public
announcement of the intent to commence, a tender or exchange offer by any Person
(other than the Company, any Subsidiary of the Company, any employee benefit
plan of the Company or any Subsidiary of the Company or any entity holding
shares of Common Stock organized, appointed or established by the Company for or
pursuant to the terms of any such plan), if upon consummation thereof, the
Person would be the Beneficial Owner of 15% or more of the shares of Common
Stock then outstanding (including any date that is after the date of this
Agreement and prior to issue of the Rights) and (iii) the 10th business day
following a determination by the Board of Directors of the Company that a Person
has become an Adverse Person.

               (l) "EXCHANGE ACT" shall mean the Securities Exchange Act of
1934, as amended and in effect on the date of this Agreement, and all references
to any rule or regulation of the General Rules and Regulations under the
Exchange Act shall be, except as otherwise specifically provided herein, to the
rule or regulation as was in effect on the date of this Agreement.

               (m) "EXCHANGE DATE" shall mean the date at which the rights are
exchanges as provided in Section 23 of this Agreement.

               (n) "EXPIRATION DATE" shall mean the Close of Business on January
4, 2012, subject to extension as provided in Section 12(c) of this Agreement.

               (o) "FLIP-IN EVENT" shall mean any of the events described in
Section 11(a) of this Agreement.

               (p) "FLIP-OVER EVENT" shall mean any of the events described in
Section 12(a) of this Agreement.

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               (q) "PERSON" shall mean any individual, firm, corporation,
partnership, limited liability company, sole proprietorship or other entity and
shall include any "group" as that term is used in Rule 13d-5(b) under the
Exchange Act.

               (r) "PURCHASE PRICE" shall mean the price to be paid by the
holders of Rights, upon the exercise thereof, in exchange for shares of
Preferred Stock. The initial Purchase Price shall be U.S.$50 per 1/1000th share
of Preferred Stock, subject to adjustment in accordance with Section 13 of this
Agreement.

               (s) "PREFERRED STOCK" shall mean shares of Preferred Stock, par
value $0.001 per share, of the Company.

               (t) "RECORD DATE" shall mean January 4, 2002.

               (u) "REDEMPTION DATE" shall mean the time at which the Rights are
ordered to be redeemed pursuant to Section 22 of this Agreement.

               (v) "STOCK ACQUISITION DATE" shall mean the first date of public
announcement by the Company, an Acquiring Person or otherwise, that an Acquiring
Person has become an Acquiring Person.

               (w) "SUBSIDIARY" shall mean, with reference to any Person, any
Person of which a majority of any class of equity security is Beneficially
Owned, directly or indirectly, by another Person.

               (x) "TRADING DAY", with respect to any security, shall mean a day
on which the principal national securities exchange on which such security is
listed or admitted to trading is open for the transaction of business or, if
such security is not listed or admitted to trading on any national securities
exchange, a Business Day.

               (y) "TRIGGERING EVENT" shall mean a Flip-In Event or a Flip-Over
Event.

Any determination required by the definitions contained in this Section 1 shall
be made by the Board of Directors of the Company in its good faith judgment,
which determination shall be final and binding on the Rights Agent.

               Section 2. Appointment of Rights Agent. The Company hereby
appoints the Rights Agent to act as agent for the Company and the holders of the
Rights (who, in accordance with Section 3 of this Agreement, shall prior to the
Distribution Date also be the holders of the Common Stock) in accordance with
the terms and conditions hereof, and the Rights Agent hereby accepts the
appointment. The Company may from time to time appoint whichever co-Rights
Agents it may deem necessary or desirable.

               Section 3. Issuance of Rights Certificates.

               (a) Until the Distribution Date, (i) the Rights will be evidenced
by the certificates for the Common Stock registered in the names of the holders
of the Common Stock (which certificates for Common Stock shall be deemed also to
be

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certificates for Rights) and not by separate certificates, and (ii) the Rights
will be transferable only in connection with the transfer of the underlying
shares of Common Stock (including a transfer to the Company).

               (b) As soon as practicable after the Company has notified the
Rights Agent of the occurrence of the Distribution Date, the Rights Agent will
send by first-class, insured, postage prepaid mail, to each record holder of the
Common Stock as of the Close of Business on the Distribution Date, at the
address of the holder shown on the records of the Company, a Rights certificate
(the "RIGHTS CERTIFICATE"), evidencing one Right (as adjusted from time to time
prior to the Distribution Date pursuant to this Agreement) for each share of
Common Stock so held. As of and after the Distribution Date, the Rights will be
evidenced solely by Rights Certificates.

               (c) As soon as practicable after the Record Date, the Company
will send a copy of a Summary of Rights, in substantially the form attached
hereto as Exhibit C (the "SUMMARY OF RIGHTS"), by first-class, postage prepaid
mail to each record holder of the Common Stock as of the Close of Business on
the Record Date, at the address of the holder shown on the records of the
Company.

               (d) Certificates evidencing the Common Stock issued after the
Record Date but prior to the earlier of the Distribution Date or the Expiration
Date (as such term is hereinafter defined), shall be deemed also to be
certificates evidencing Rights, and shall bear the following legend:

               THIS CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF TO
               CERTAIN RIGHTS AS SET FORTH IN THE RIGHTS AGREEMENT BETWEEN
               COMMONWEALTH ENERGY CORPORATION (THE "COMPANY") AND COMPUTERSHARE
               TRUST COMPANY, DATED AS OF JANUARY 4, 2002 (THE "RIGHTS
               AGREEMENT"), THE TERMS OF WHICH ARE HEREBY INCORPORATED HEREIN BY
               REFERENCE AND A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICES
               OF THE COMPANY. UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE
               RIGHTS AGREEMENT, THE RIGHTS WILL BE EVIDENCED BY SEPARATE
               CERTIFICATES AND WILL NO LONGER BE EVIDENCED BY THIS CERTIFICATE.
               THE COMPANY WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF
               THE RIGHTS AGREEMENT WITHOUT CHARGE AFTER RECEIPT OF A WRITTEN
               REQUEST THEREFOR. UNDER CERTAIN CIRCUMSTANCES, RIGHTS
               BENEFICIALLY OWNED BY ACQUIRING PERSONS (AS SUCH TERM IS DEFINED
               IN THE RIGHTS AGREEMENT) BECOME NULL AND VOID AND THE HOLDER OF
               THOSE RIGHTS (INCLUDING ANY SUBSEQUENT HOLDER) SHALL NOT HAVE ANY
               RIGHT TO EXERCISE THE RIGHTS.

               (e) After the Distribution Date but prior to the Expiration Date,
Rights shall only be issued in connection with the issue of Common Stock upon
the exercise of stock options granted prior to the Distribution Date or pursuant
to other benefits under

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any employee plan or arrangement established prior to the Distribution Date;
provided, however, that if, pursuant to the terms of any option or other benefit
plan, the number of shares issuable thereunder is adjusted after the
Distribution Date, the number of Rights issuable upon issuance of the shares
shall be equal only to the number of shares which would have been issuable prior
to the adjustment.

               Section 4. Form of Rights Certificates.

               (a) The Rights Certificates (and the form of election to purchase
shares and form of assignment) shall be in substantially the form of Exhibit B
and may contain whatever marks of identification or designation and/or legends,
summaries or endorsements printed thereon as the Company may deem appropriate
and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any applicable law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any stock exchange on which
the Rights may from time to time be listed or to conform to usage. Subject to
the provisions of this Agreement, the Rights Certificates, whenever issued,
shall be dated as of the Record Date and on their face shall entitle the holders
thereof to purchase the number of shares of Preferred Stock which shall be set
forth therein at the Purchase Price set forth therein, subject to adjustment as
provided in this Agreement.

               (b) Any Rights Certificate issued pursuant to Section 3(a) of
this Agreement that represents Rights beneficially owned by an Acquiring Person
or that represents any Rights owned on or after the Distribution Date by any
Person who subsequently becomes an Acquiring Person and any Rights Certificate
issued at any time upon the transfer of any Rights to an Acquiring Person
thereof or to any nominee of the Acquiring Person and any Rights Certificate
issued pursuant to Section 6 or Section 13 of this Agreement upon transfer,
exchange, replacement or adjustment of any other Rights Certificate referred to
in this sentence, may contain the following legend:

               THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE WERE ISSUED TO
               A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON. THIS RIGHTS
               CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME VOID IN
               THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE RIGHTS
               AGREEMENT.

               Section 5. Countersignature and Registration.

               (a) The Rights Certificates shall be executed on behalf of the
Company by the Chairman of its Board of Directors, its President or any Vice
President, either manually or by facsimile signature and shall have affixed
thereto the Company's seal or a facsimile thereof which shall be attested by the
Secretary or an Assistant Secretary of the Company, either manually or by
facsimile signature. Each Rights Certificate shall be manually countersigned by
the Rights Agent and shall not be valid for any purpose unless so countersigned.
In case any officer of the Company who shall have signed

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any of the Rights Certificates shall cease to be an officer of the Company
before countersignature by the Rights Agent and issue and delivery by the
Company, the Rights Certificates, nevertheless, may be countersigned by the
Rights Agent, and issued and delivered by the Company with the same force and
effect as though the person who signed the Rights Certificates had not ceased to
be an officer of the Company; and any Rights Certificate may be signed on behalf
of the Company by any person who, at the actual date of the execution of the
Rights Certificate, is an officer of the Company, even if on the date of
execution of this Rights Agreement that person was not an officer.

               (b) Following the Distribution Date, the Rights Agent will keep
or cause to be kept, at one of its offices, books for registration and transfer
of the Rights Certificates issued hereunder. The books shall show the names and
addresses of the respective holders of the Rights Certificates, the number of
Rights evidenced by each of the Rights Certificates, and the certificate number
and the date of each of the Rights Certificates.

               Section 6. Transfer, Split Up, Combination and Exchange of Rights
Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates.

               (a) At any time after the Close of Business on the Distribution
Date, and at or prior to the Close of Business on the Expiration Date, any
Rights Certificate or Certificates may be transferred, split up, combined or
exchanged for another Rights Certificate or Certificates, entitling the
registered holder to purchase a like number of shares of Preferred Stock (or
other securities, cash or other property, as the case may be) as the Rights
Certificate or Certificates surrendered then entitled the holder (or former
holder in the case of a transfer) to purchase. Any registered holder desiring to
transfer, split up, combine or exchange any Rights Certificate or Certificates
shall make the request in writing delivered to the Rights Agent, and shall
surrender the Rights Certificate or Certificates to be transferred, split up,
combined or exchanged at the principal office of the Rights Agent designated for
that purpose. Thereupon, the Rights Agent shall countersign and deliver to the
Person entitled thereto a Rights Certificate or Rights Certificates, as the case
may be, as so requested. The Company may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer, split up, combination or exchange of Rights Certificates.

               (b) Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of
a Rights Certificate, and, in case of loss, theft or destruction, of indemnity
or security reasonably satisfactory to them, and reimbursement to the Company
and the Rights Agent of all reasonable expenses incidental thereto, and upon
surrender to the Rights Agent and cancellation of the Rights Certificate if
mutilated, the Company will execute and deliver a new Rights Certificate of like
tenor to the Rights Agent for countersignature and delivery to the registered
owner in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated.

               Section 7. Exercise of Rights; Purchase Price; Expiration Date of
Rights.

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               (a) Each Right shall entitle (except as otherwise provided in
this Agreement) the registered holder thereof, upon the exercise thereof as
provided in this Agreement, to purchase, for the Purchase Price, at any time
after the Distribution Date and prior to the earlier of the Expiration Date and
the Redemption Date, 1/1000th share of Preferred Stock, subject to adjustment
from time to time as provided in Section 13 of this Agreement, payable in lawful
money of the United States of America in accordance with Paragraph (c) below.

               (b) Subject to Section 7(e), Section 22(a) and Section 23 of this
Agreement, the registered holder of any Rights Certificate may exercise the
Rights evidenced thereby in whole or in part at any time after the Distribution
Date upon surrender of the Rights Certificate, with the form of election to
purchase on the reverse side thereof including the certificate contained therein
duly executed, to the Rights Agent at the principal office of the Rights Agent,
together with payment of the Purchase Price for each 1/1000th share of Preferred
Stock as to which the Rights are exercised prior to the earliest of the
Expiration Date, the Exchange Date and the Redemption Date. The Purchase Price
and the number of shares of Preferred Stock to be acquired upon exercise of a
Right shall be subject to adjustment from time to time as provided in Section 13
of this Agreement.

               (c) Upon receipt of a Rights Certificate representing exercisable
Rights, with the form of election to purchase including the certificate
contained therein duly executed, accompanied by payment of the Purchase Price
for the shares (or cash or other assets as the case may be) to be purchased and
an amount equal to any applicable transfer tax in cash, or by certified check or
bank draft payable to the order of the Company, the Rights Agent shall thereupon
promptly:

               (i)(A) requisition from any transfer agent for the Preferred
               Stock certificates for the number of 1/1000th of a share of
               Preferred Stock to be purchased and the Company hereby
               irrevocably authorizes its transfer agent to comply with all such
               requests, or (B) requisition from the depositary agent depositary
               receipts representing the number of 1/1000th of a share of
               Preferred Stock as are to be purchased (in which case
               certificates for the shares of Preferred Stock represented by the
               receipts shall be deposited by the transfer agent with the
               depositary agent) and the Company will direct the depositary
               agent to comply with the request;

               (ii) after receipt of the certificates or depositary receipts,
               cause the same to be delivered to or upon the order of the
               registered holder of the Rights Certificate, registered in
               whatever name or names may be designated by the holder; and

               (iii) after receipt, deliver the cash, if any, to or upon the
               order of the registered holder of the Rights Certificate.

        If the Company becomes obligated to issue other securities of the
Company, pay cash and/or distribute other property pursuant to this Agreement,
the Company shall

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make all arrangements necessary so that the other securities, cash and/or other
property are available for distribution by the Rights Agent, if and when
appropriate.

               (d) If the registered holder of any Rights Certificate shall
exercise less than all the Rights evidenced thereby, a new Rights Certificate
evidencing Rights equivalent to the Rights remaining unexercised shall be issued
by the Rights Agent and delivered to the registered holder of the Rights
Certificate or to his duly authorized assigns, subject to the provisions of
Section 6 of this Agreement.

               (e) Notwithstanding anything in this Agreement to the contrary,
upon the occurrence of the earliest of: (x) the date on which the Board of
Directors of the Company decides to exchange the Rights pursuant to Section 23
of this Agreement, (y) a Triggering Event and (z) the date any Person becomes an
Acquiring Person, any unexercised Rights that are or were (at any time on or
after the earlier to occur of: (1) the Distribution Date and (2) the Stock
Acquisition Date) beneficially owned by (i) an Acquiring Person, an Adverse
Person or an Associate or Affiliate of an Acquiring Person or Adverse Person,
(ii) a transferee of an Acquiring Person or an Adverse Person (or of any
Associate or Affiliate thereof) that becomes a transferee after such Acquiring
Person becomes an Acquiring Person or such Adverse Person becomes an Adverse
Person, as the case may be, (iii) a transferee of an Acquiring Person or an
Adverse Person (or of any Associate or Affiliate thereof) that becomes a
transferee prior to or concurrently with such Acquiring Person or such Adverse
Person becoming an Acquiring Person or Adverse Person, as the case may be, and
receives the Rights pursuant to either (A) a transfer (whether or not for
consideration) from such Acquiring Person or such Adverse Person to holders of
equity interests in such Acquiring Person or such Adverse Person or to any
Person with whom such Acquiring Person or such Adverse Person has any continuing
agreement, arrangement or understanding regarding the transferred Rights or (B)
a transfer which the Board of Directors of the Company has determined is part of
a plan, arrangement or understanding which has, as a primary purpose or effect,
the avoidance of this Section 7(e), shall immediately become permanently null
and void without any further action, and no holder of the Rights shall have any
right whatsoever with respect to the Rights under this Agreement or otherwise.
The Company shall use all reasonable efforts to ensure that the provisions of
this Section 7(e) and Section 4(b) of this Agreement are complied with, but
shall have no liability to any holder of Rights Certificates or to any other
Person as a result of its failure to make any determinations with respect to an
Acquiring Person [or Adverse Person] or its Affiliates, Associates or
transferees hereunder.

               (f) Notwithstanding anything in this Agreement to the contrary,
neither the Rights Agent nor the Company shall be obligated to undertake any
action with respect to a registered holder of any Rights Certificate upon the
occurrence of any purported exercise thereof unless the registered holder shall
have (i) completed and signed the certificate contained in the form of election
to purchase set forth on the reverse side of the Rights Certificate surrendered
for the exercise and (ii) provided the additional evidence of the identity of
the Beneficial Owner (or former or proposed Beneficial Owner) or Affiliates
thereof as the Company shall reasonably request.

                                       10
<PAGE>

               Section 8. Cancellation and Destruction of Rights Certificates.
All Rights Certificates surrendered for the purpose of exercise, transfer,
split-up, combination or exchange shall, if surrendered to the Company or any of
its agents, be delivered to the Rights Agent for cancellation or in cancelled
form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no
Rights Certificates shall be issued in lieu thereof except as expressly
permitted by any of the provisions of this Agreement. The Company shall deliver
to the Rights Agent for cancellation and retirement, and the Rights Agent shall
so cancel and retire, any other Rights Certificates purchased or acquired by the
Company otherwise than upon the exercise thereof. The Rights Agent shall deliver
all cancelled Rights Certificates to the Company, or shall, at the written
request of the Company, destroy the cancelled Rights Certificates, and in that
case shall deliver a certificate of destruction thereof to the Company.

               Section 9. Reservation and Availability of Preferred Stock.

               (a) The Company covenants and agrees that it will cause to be
reserved and kept available at all times out of its authorized and unissued
shares of Preferred Stock or its authorized and issued shares of Preferred Stock
held in its treasury, free from preemptive rights or any right of first refusal,
the number of shares of Preferred Stock that will be sufficient to permit the
exercise in full of all Rights from time to time outstanding.

               (b) So long as the shares of Preferred Stock issuable upon the
exercise of the Rights may be listed on any national securities exchange, the
Company shall use its best efforts to cause, from and after the time the Rights
become exercisable, all shares reserved for issue to be listed on the exchange
upon official notice of issue when exercised.

               (c) The Company shall use its best efforts to:

                      (i) file, as soon as practicable following the earlier of
        the Distribution Date or as soon as is required by law, a registration
        statement under the Securities Act of 1933, as amended (the "Act"), with
        respect to the Preferred Stock purchasable upon exercise of the Rights
        on an appropriate form;

                      (ii) cause the registration statement to become effective
        as soon as practicable after the filing; and

                      (iii) cause the registration statement to remain effective
        (with a prospectus at all times meeting the requirements of the Act)
        until the earliest of (A) the date as of which Rights are no longer
        exercisable for the securities, (B) the Expiration Date and (C) the
        Redemption Date.

        The Company will also take all action necessary to ensure compliance
with the securities or "blue sky" laws of the various states in connection with
the exercisability of the Rights. The Company may temporarily suspend, for a
period of time not to exceed

                                       11
<PAGE>
ninety (90) days after the date set forth in clause (i) of the first sentence of
this Section 9(c), the exercisability of the Rights in order to prepare and file
the registration statements and permit them to become effective. Upon any such
suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended, as well as a public
announcement at such time as the suspension is no longer in effect.
Notwithstanding any provision of this Agreement to the contrary, the Rights
shall not be exercisable in any jurisdiction unless the requisite qualification
in that jurisdiction shall have been obtained and, if applicable, until a
registration statement has been declared effective.

               (d) The Company covenants and agrees that it will take all action
as may be necessary to ensure that all shares of Preferred Stock delivered upon
exercise of Rights shall, at the time of delivery of the certificates for the
shares (subject to payment of the Purchase Price), be duly and validly
authorized and issued, fully paid and nonassessable.

               (e) The Company further covenants and agrees that it will pay
when due and payable any and all federal and state transfer taxes and charges
which may be payable in respect of the issuance or delivery of the Rights
Certificates and of any shares of Preferred Stock upon the exercise of Rights.
The Company shall not, however, be required to pay any transfer tax that may be
payable in connection with the transfer or delivery of any Rights Certificates
or share of Preferred Stock to any Person other than the registered holder
thereof, and the Company shall not be required to transfer or issue any Rights
Certificate or share of Preferred Stock to such Person until the tax has been
paid by the registered holder thereof, or it has been determined to the
Company's satisfaction that no tax is due.

               Section 10. Preferred Stock Record Date. Each Person in whose
name any certificate for shares of Preferred Stock is issued upon the exercise
of Rights shall for all purposes be deemed to have become the holder of record
of the shares of Preferred Stock represented thereby on, and the certificate
shall be dated, the date upon which the Rights Certificate evidencing the Rights
was duly surrendered and payment of the Purchase Price (and all applicable
transfer taxes) was made; provided, however, that if the date of surrender and
payment is a date upon which the Preferred Stock transfer books of the Company
are closed, the Person shall be deemed to have become the record holder of the
shares on, and the certificate shall be dated, the next succeeding Business Day
on which the Preferred Stock transfer books of the Company are open.

               Section 11. The Flip-In. (a) If:

               (i) any Acquiring Person, directly or indirectly, shall merge
        into the Company or otherwise combine with the Company and the Company
        shall be the continuing or surviving corporation of the merger or
        combination and the Common Stock of the Company shall remain outstanding
        and unchanged; or

                                       12
<PAGE>

                      (ii) any Person (other than the Company, any Subsidiary of
        the Company, any employee benefit plan of the Company or of any
        Subsidiary of the Company, or any entity organized, appointed or
        established pursuant to the terms of such plan) shall become the
        Beneficial Owner of 15% or more of the shares of Common Stock then
        outstanding;

then, and in each case, subject to the provisions of Section 23 of this
Agreement, each holder of a Right, except as provided below and in Section 7(e)
of this Agreement, shall thereafter have a right to receive, upon exercise
thereof at the then current Purchase Price in accordance with the terms of this
Agreement, in lieu of shares of Preferred Stock, the number of shares of Common
Stock of the Company as shall equal the result obtained by (x) multiplying the
then current Purchase Price by the then number of 1/1000th of a share of
Preferred Stock for which a Right is then exercisable and dividing that product
by (y) 50% of the Current Market Price per share of the Common Stock on the date
on which the first of the events listed above in this subparagraph (a) occurs
(such number of shares hereinafter the "ADJUSTMENT SHARES").

               (b) In the event that there shall not be sufficient issued but
not outstanding, and authorized but unissued, shares of Common Stock to permit
the exercise in full of the Rights in accordance with the foregoing subparagraph
(a), the Company shall take all action as may be necessary to authorize
additional shares of Common Stock for issue upon exercise of the Rights;
provided, however, that if the Company is unable to cause the authorization of a
sufficient number of additional shares of Common Stock, then, in the event the
Rights become so exercisable, the Company, with respect to each Right and to the
extent necessary and permitted by applicable law and any agreements or
instruments in effect on the date hereof to which the Company is a party, shall,
upon the exercise of the Rights,

                      (i) pay an amount in cash equal to the excess of (A) the
        product of (1) the number of Adjustment Shares, multiplied by (2) the
        Current Market Price of the Common Stock (hereinafter the "CURRENT
        VALUE"), over (B) the Purchase Price, in lieu of issuing shares of
        Common Stock and requiring payment therefor, or

                      (ii) issue debt or equity securities, or a combination
        thereof, having a value equal to the Current Value, where the value of
        the securities shall be determined by a nationally recognized investment
        banking firm selected by the Board of Directors of the Company, and
        require the payment of the Purchase Price, or

                      (iii) deliver any combination of cash, property, Common
        Stock and/or other securities having the requisite value, and require
        payment of all or any requisite portion of the Purchase Price.

If the Company determines that some action need be taken pursuant to clauses
(i), (ii), or (iii) of the proviso of this Section 11(b), a majority of the
Board of Directors may

                                       13
<PAGE>

suspend the exercisability of the Rights for a period of up to 45 days following
the date on which the first of the events listed in Section 11(a)(i) or (ii) of
this Agreement shall have occurred, in order to decide the appropriate form of
distribution to be made pursuant to the above proviso and to determine the value
thereof. In the event of any suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily
suspended, as well as a public announcement at the time the suspension is no
longer in effect.

               Section 12. The Flip-Over.

               (a) If, following the Distribution Date, directly or indirectly,

                      (w) the Company shall consolidate with, or merge with and
               into, any other Person; or

                      (x) any Person shall consolidate with the Company, or
               merge with and into the Company and the Company shall be the
               continuing or surviving corporation of the merger and, in
               connection with the merger, all or part of the shares of Common
               Stock shall be changed into or exchanged for stock or other
               securities of any other Person or cash or any other property; or

                      (y) the Company shall effect a share exchange in which all
               or part of the Common Stock of the Company shall be exchanged
               into (including, without limitation, any conversion into or
               exchange for) securities of any other Person, cash or any other
               property; or

                      (z) the Company shall sell, lease, exchange or otherwise
               transfer or dispose of (or one or more of its Subsidiaries shall
               sell, lease, exchange or otherwise transfer or dispose of), in
               one transaction or a series of related transactions, assets or
               earning power aggregating more than 50% of the assets or earning
               power of the Company and its Subsidiaries (taken as a whole) to
               any other Person or Persons,

then, and in each case, subject to the provisions of Section 23 of this
Agreement,

               (i) each holder of a Right, except as provided in Section 7(e) of
        this Agreement, shall thereafter have the right to receive, upon the
        exercise thereof at the then current Purchase Price in accordance with
        the terms of this Agreement, the number of shares of freely tradable
        common stock of the Principal Party, free and clear of any lien,
        encumbrance or other adverse claim, as shall be equal to the result
        obtained by (1) multiplying the then current Purchase Price by the
        number of 1/1000th of a share of Preferred Stock for which a Right is
        then exercisable (or the number of 1/1000th of a share of Preferred
        Stock for which a Right was exercisable immediately prior to the

                                       14
<PAGE>

        occurrence of the Flip-In Event if a Flip-In Event has previously
        occurred) and dividing that product by (2) 50% of the Current Market
        Price per share of the common stock of the Principal Party on the date
        of consummation of the Flip-over Event;

                      (ii) all common stock of any Person for which any Right
        may be exercised after consummation of a business combination as
        provided in this Section 12(a) shall, when issued upon exercise thereof
        in accordance with this Agreement, be duly and validly authorized and
        issued and fully paid and nonassessable;

                      (iii) the Principal Party shall thereafter be liable for,
        and shall assume, by virtue of the Flip-Over Event, all the obligations
        and duties of the Company pursuant to this Agreement;

                      (iv) the term "Company" shall thereafter be deemed to
        refer to the Principal Party, it being specifically intended that the
        provisions of Section 13 hereof shall apply to the Principal Party;

                      (v) the Principal Party shall take whatever steps
        (including, but not limited to, the reservation of a sufficient number
        of shares of its common stock) in connection with the consummation as
        may be necessary to assure that the provisions hereof shall thereafter
        be applicable, as nearly as reasonably may be, in relation to its shares
        of common stock thereafter deliverable upon the exercise of the Rights;
        and

                      (vi) the provisions of Section 11 of this Agreement shall
        be of no effect following the first occurrence of any Flip-Over Event.

               (b) "PRINCIPAL PARTY" shall mean:

                      (i) in the case of any transaction described in (w), (x)
        or (y) of the first sentence of Section 12(a), the Person that is the
        issuer of any securities into which shares of Common Stock of the
        Company are converted in the merger or consolidation, and if no
        securities are so issued, the Person that is the other party to the
        merger or consolidation; and

                      (ii) in the case of any transaction described in (z) of
        the first sentence in Section 12(a), the Person that is the party
        receiving the greatest portion of the assets or earning power
        transferred pursuant to the transaction or transactions; provided,
        however, that in any case, (1) if the common stock of the Person is not
        at such time and has not been continuously over the preceding 12-month
        period registered under Section 12 of the Securities Exchange Act of
        1934, as then in effect, and the Person is a direct or indirect

                                       15
<PAGE>

        Subsidiary of another Person the common stock of which is and has been
        so registered, "Principal Party" shall refer to the other Person; and
        (2) in case the Person is a Subsidiary, directly or indirectly, of more
        than one Person, the common stocks of two or more of which are and have
        been so registered, "Principal Party" shall refer to whichever of the
        Persons is the issuer of the common stock having the greatest aggregate
        market value.

               (c) The Company shall not consummate any Flip-over Event unless
prior thereto the Company and each Principal Party and each other Person who may
become a Principal Party shall have executed and delivered to the Rights Agent a
supplemental agreement providing for the terms set forth in paragraphs (a) and
(b) of this Section 12 and further providing that, as soon as practicable after
the date of any Flip-Over Event, the Principal Party will:

                      (i) prepare and file at its own expense a registration
        statement under the Act with respect to the Rights and the securities
        purchasable upon exercise of the Rights on an appropriate form, will use
        its best efforts to cause the registration statement to become effective
        as soon as practicable after the filing and will use its best efforts to
        cause the registration statement to remain effective (with a prospectus
        at all times meeting the requirements of the Act) until the earliest of
        the Expiration Date, the Exchange Date and the Redemption Date; and

                      (ii) will deliver to holders of the Rights historical
        financial statements for the Principal Party and each of its Affiliates
        that comply in all respects with the requirements for registration on
        Form 10 under the Exchange Act.

        The Principal Party shall temporarily suspend, for a period of time not
to exceed 90 days following the occurrence of a Flip-Over Event, the
exercisability of the Rights in order to prepare an file the registration
statement referred to in clause (i) above, and the Expiration Date shall be
extended by the number of days of the suspension. The provisions of this Section
12 shall similarly apply to successive Flip-Over Events. In the event that a
Flip-Over Event shall occur at any time after the occurrence of a Flip-In Event,
the Rights that have not theretofore been exercised shall thereafter become
exercisable in the manner described in Section 12(a).

               Section 13. Adjustment of Purchase Price, Number and Kind of
Shares or Number of Rights. The Purchase Price, the number and kind of shares
covered by each Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 13.

               (a) In the event the Company shall at any time after the date of
this Agreement (A) declare a dividend or make a distribution on the Preferred
Stock payable in shares of Preferred Stock into a larger number of shares, (B)
subdivide the

                                       16
<PAGE>

outstanding Preferred Stock into a larger number of shares, (C) combine the
outstanding Preferred Stock into a smaller number of shares, or (D) issue any
shares of its capital stock in a reclassification of the Preferred Stock
(including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation), then in
each event, except as otherwise provided in this Section 13(a), the Purchase
Price in effect at the time of the record date for the dividend or distribution,
or of the effective date of the subdivision, combination or reclassification,
and the number and kind of shares of Preferred Stock or capital stock issuable
on that date, shall be proportionately adjusted so that the holder of any Rights
(except as provided in Section 7(e) of this Agreement) exercised on or after
that time shall be entitled to receive upon payment of the Purchase Price in
effect immediately prior to that date, the aggregate number and kind of shares
of Preferred Stock or capital stock which, if the Rights had been exercised
immediately prior to that date and at a time when the Preferred Stock transfer
books of the Company were open, he would have owned upon such exercise and been
entitled to receive by virtue of the dividend, distribution, subdivision,
combination or reclassification. If an event occurs which would require an
adjustment under both Section 11(a) of this Agreement and this Section 13(a),
the adjustment provided for in this Section 13(a) shall be in addition to, and
shall be made prior to, any adjustment required pursuant to Section 11(a).

               (b) In case the Company shall fix a record date for the issuance
of rights, options or warrants to all holders of Preferred Stock entitling them
to subscribe for or purchase (for a period expiring within 45 calendar days
after the record date) Preferred Stock (or shares having the same rights,
privileges and preferences as the shares of Preferred Stock ("EQUIVALENT
PREFERRED STOCK") or securities convertible into Preferred Stock or Equivalent
Preferred Stock at a price per share of Preferred Stock or per share of
Equivalent Preferred Stock (or having a conversion price per share, if a
security convertible into Preferred Stock or Equivalent Preferred Stock) of less
than the Current Market Price per share of Preferred Stock on the record date,
the Purchase Price to be in effect after the record date shall be determined by
multiplying the Purchase Price in effect immediately prior to the record date by
a fraction, the numerator of which shall be the number of 1/1000th of shares of
Preferred Stock outstanding on the record date, plus the number of 1/1000th of
shares of Preferred Stock which the aggregate offering price of the total number
of shares of 1/1000th of Preferred Stock and/or Equivalent Preferred Stock so to
be offered (and/or the aggregate initial conversion price of the convertible
securities so to be offered) would purchase at the current market price and the
denominator of which shall be the number of 1/1000th of shares of Preferred
Stock outstanding on the record date, plus the number of additional 1/1000th of
shares of Preferred Stock and/or Equivalent Preferred Stock to be offered for
subscription or purchase (or into which the convertible securities so to be
offered are initially convertible). In case the subscription price is paid in a
form of consideration all or part of which is in a form other than cash, the
value of the consideration shall be determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement
filed with the Rights Agent and shall be binding on the Rights Agent. Shares of
Preferred Stock owned by or held for the account of the Company shall not be
deemed outstanding for the purpose of any such computation. The adjustment shall
be made successively whenever a record date is fixed; and in the

                                       17
<PAGE>

event that rights or warrants are not issued following an adjustment, the
Purchase Price shall be adjusted to be the Purchase Price that would have been
in effect if the record date had not been fixed.

               (c) In case the Company shall fix a record date for a
distribution to all holders of Preferred Stock (including any distribution made
in connection with a consolidation or merger in which the Company is the
continuing corporation) of evidences of indebtedness, cash (other than a regular
quarterly cash dividend), assets (other than a dividend payable in Preferred
Stock, but including any dividend payable in stock other than Preferred Stock)
or subscription rights or warrants (excluding those referred to in Section
13(b)), the Purchase Price to be in effect after the record date shall be
determined by multiplying the Purchase Price in effect immediately prior to the
record date by a fraction, the numerator of which shall be the Current Market
Price per 1/1000th of a share of the Preferred Stock on the record date, less
the fair market value (as determined in good faith by the Board of Directors of
the Company, whose determination shall be described in a statement filed with
the Rights Agent) of the portion of the cash, assets or evidences of
indebtedness to be so distributed or of the subscription rights or warrants
applicable to 1/1000th of a share of Preferred Stock and the denominator of
which shall be the Current Market Price per 1/1000th of a share of the Preferred
Stock. The adjustments shall be made successively whenever a record date is
fixed; and in the event that a distribution is not so made, the Purchase Price
shall again be adjusted to be the Purchase Price that would be in effect if the
record date had not been fixed.

               (d) Anything herein to the contrary notwithstanding, no
adjustment in the Purchase Price shall be required unless the adjustment would
require an increase or decrease of at least 1% in the Purchase Price; provided,
however, that any adjustments which by reason of this Section 13(d) are not
required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Section 13 shall be made to
the nearest cent or to the nearest ten-thousandth of a share of Common Stock or
other share of one-millionth of a share of Preferred Stock, as the case may be.
Notwithstanding the first sentence of this Section 13(d), any adjustment
required by this Section 13 shall be made no later than the earlier of (i) three
years from the date of the transaction which mandates such adjustment or (ii)
the earliest of the Expiration Date, the Exchange Date and the Redemption Date.

               (e) If as a result of an adjustment made pursuant to Section
11(a), the holder of any Rights thereafter exercised shall become entitled to
receive any shares of capital stock of the Company other than Preferred Stock,
thereafter the number of the other shares so receivable upon exercise of any
Rights shall be subject to adjustment from time to time in a manner and on terms
as nearly equivalent as practicable to the provisions with respect to the shares
contained in Section 13(a) through (c), inclusive, and the provisions of
Sections 7, 9, 10 and 12 hereof with respect to the Preferred Stock shall apply
on like terms to any other shares.

               (f) All Rights originally issued by the Company subsequent to any
adjustment made to the Purchase Price hereunder shall evidence the right to
purchase,

                                       18
<PAGE>

at the adjusted Purchase Price, the number of shares of Preferred Stock
purchasable from time to time hereunder upon exercise of the Rights, all subject
to further adjustment as provided herein.

               (g) Unless the Company shall have exercised its election as
provided in Section 13(h), upon each adjustment of the Purchase Price as a
result of the calculations made in Sections 13(b) and (c), each Rights
outstanding immediately prior to the making of the adjustment shall thereafter
evidence the right to purchase, at the adjusted Purchase Price, that number of
1/1000th of a share of Preferred Stock (calculated to the nearest one-millionth)
obtained by (i) multiplying (x) the number of 1/1000th of a share covered by a
Right immediately prior to this adjustment by (y) the Purchase Price in effect
immediately prior to the adjustment of the Purchase Price and (ii) dividing the
product so obtained by the Purchase Price in effect immediately after adjustment
of the Purchase Price.

               (h) The Company may elect on or after the date of any adjustment
of the Purchase Price to adjust the number of Rights, in substitution for any
adjustment in the number of shares of Preferred Stock purchasable upon the
exercise of a Right. Each of the Rights outstanding after the adjustment in the
number of Rights shall be exercisable for the number of 1/1000th of a share of
Preferred Stock for which a Right was exercisable immediately prior to the
adjustment. Each Right held of record prior to the adjustment of the number of
Rights shall become that number of Rights (calculated to the nearest
one-millionth) obtained by dividing the Purchase Price in effect immediately
prior to adjustment of the Purchase Price by the Purchase Price in effect
immediately after adjustment of the Purchase Price. The Company shall make a
public announcement of its election to adjust the number of Rights, indicating
the record date for the adjustment, and, if known at the time, the amount of the
adjustment to be made. This record date may be the date on which the Purchase
Price is adjusted or any day thereafter, but, if the Rights Certificates have
been issued, shall be at least 10 days later than the date of the public
announcement. If Rights Certificates have been issued, upon each adjustment of
the number of Rights pursuant to this Section 13(h), the Company shall, as
promptly as practicable, cause to be distributed to holders of record of Rights
Certificates on the record date Rights Certificates evidencing the additional
Rights to which the holders shall be-entitled as a result of the adjustment, or,
at the option of the Company, shall cause to be distributed to the holders of
record in substitution and replacement for the Rights Certificates held by the
holders prior to the date of adjustment, and upon surrender thereof, if required
by the Company, new Rights Certificates evidencing all the Rights to which the
holders shall be entitled after the adjustment. Rights Certificates so to be
distributed shall be issued, executed and countersigned in the manner provided
for herein (and may bear, at the option of the Company, the adjusted Purchase
Price) and shall be registered in the names of the holders of record of Rights
Certificates on the record date specified in the public announcement.

               (i) Irrespective of any adjustment or change in the Purchase
Price or the number of 1/1000th of a share of Preferred Stock issuable upon the
exercise of the Rights, the Rights Certificates theretofore and thereafter
issued may continue to

                                       19
<PAGE>

express the Purchase Price per share and the number of shares which were
expressed in the initial Rights Certificates issued hereunder.

               (j) Before taking any action that would cause an adjustment
reducing the Purchase Price below the par value of the shares of Preferred Stock
issuable upon exercise of the Rights, the Company shall take any corporate
action which may, in the opinion of its counsel, be necessary in order that the
Company may validly and legally issue fully paid and nonassessable shares of
Preferred Stock at the adjusted Purchase Price.

               (k) In any case in which this Section 13 shall require that an
adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event the issuance to the holder of any Rights exercised after the record date,
the shares of Preferred Stock and other capital stock or securities of the
Company, if any, issuable upon the exercise over and above the shares of
Preferred Stock and other capital stock or securities of the Company, if any,
issuable upon the exercise on the basis of the Purchase Price in effect prior to
the adjustment; provided, however, that the Company shall deliver to the holder
a due bill or other appropriate instrument evidencing the holder's right to
receive the additional shares upon the occurrence of the event requiring the
adjustment.

               (l) Anything in this Section 13 to the contrary notwithstanding,
the Company shall be entitled to make reductions in the Purchase Price, in
addition to those adjustments expressly required by this Section 13, as and to
the extent that in its sole discretion the Company shall determine to be
advisable in order that any (i) consolidation or subdivision of the Preferred
Stock, (ii) issuance wholly for cash of any shares of Preferred Stock at less
than the Current Market Price, (iii) issuance wholly for cash of shares of
Preferred Stock or securities which by their terms are convertible into or
exchangeable for shares of Preferred Stock, (iv) stock dividends, or (v)
issuance of rights, options or warrants referred to in this Section 13,
hereafter made by the Company to holders of its Preferred Stock shall, if
practicable, not be taxable to the stockholders.

               (m) The Company covenants and agrees that it shall not (i)
consolidate with, (ii) merge with or into, or (iii) sell or transfer to, in one
or more transactions, assets or earning power aggregating more than 50% of the
assets or earning power of the Company and its Subsidiaries taken as a whole,
any other Person if at the time of or immediately after the consolidation,
merger or sale there are any rights, warrants or other instruments or securities
outstanding or agreements in effect which would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights.

               (n) The Company covenants and agrees that, after the Stock
Acquisition Date, it will not, except as permitted by Section 22 or Section 26
hereof, take any action the purpose or effect of which is to diminish
substantially or otherwise eliminate the benefits intended to be afforded by the
Rights.

                                       20
<PAGE>

               (o) Anything in this Agreement to the contrary notwithstanding,
in the event that the Company shall at any time prior to the Distribution Date
(i) declare a dividend or distribution on the outstanding shares of Common Stock
payable in shares of Common Stock, (ii) subdivide the outstanding shares of
Common Stock, or (iii) combine the outstanding shares of Common Stock into a
smaller number of shares, the number of Rights associated with each share of
Common Stock then outstanding, or issued or delivered thereafter but prior to
the Distribution Date, shall be proportionately adjusted so that the number of
Rights thereafter associated with each share of Common Stock following any such
event shall equal the result obtained by multiplying the number of Rights
associated with each share of Common Stock immediately prior to the event by a
fraction, (1) the numerator of which shall be the total number of shares of
Common Stock outstanding immediately prior to the occurrence of the event and
(2) the denominator of which shall be the total number of shares of Common Stock
outstanding immediately following the occurrence of the event.

               (p) Whenever an adjustment is made as provided in Sections 11, 12
and 13 hereof, the Company shall (a) promptly prepare a certificate setting
forth the adjustment and a brief statement of the facts accounting for the
adjustment, (b) promptly file with the Rights Agent and with each transfer agent
for the Preferred Stock and the Common Stock a copy of the Certificate and (c)
mail a brief summary thereof to each holder of a Rights Certificate in
accordance with Section 25 hereof. The Rights Agent shall be fully protected in
relying on any such certificate and on any adjustment therein contained.

               Section 14. Rights of Action. All rights of action in respect of
this Agreement are vested in the respective registered holders of the Rights
Certificates (and, prior to the Distribution Date, the registered holders of the
Common Stock); and any registered holder of any Rights Certificate (or, prior to
the Distribution Date, of the Common Stock) without the consent of the Rights
Agent or of the holder of any other Rights Certificate (or, prior to the
Distribution Date, of the Common Stock), may, in his own behalf and for his own
benefit, enforce, and may institute and maintain any suit, action or proceeding
against the Company to enforce, or otherwise act in respect of, his nights
pursuant to this Agreement. Without limiting the foregoing or any remedies
available to the holders of Rights, it is specifically acknowledged that the
holders of Rights would not have an adequate remedy at law for any breach of
this Agreement and shall be entitled to specific performance of the obligations
hereunder and injunctive relief against actual or threatened violations of the
obligations hereunder of any Person subject to this Agreement.

               Section 15. Agreement of Rights Holders. Every holder of a Right
by accepting the same consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:

               (a) prior to the Distribution Date, the Rights will be
transferable only in connection with the transfer of Common Stock;

                                       21
<PAGE>

               (b) after the Distribution Date, the Rights Certificates are
transferable only on the registry books of the Rights Agent if surrendered at
the principal corporate trust office of the Rights Agent, duly endorsed or
accompanied by a proper instrument of transfer;

               (c) the Company and the Rights Agent may deem and treat the
person in whose name a Rights Certificate (or, prior to the Distribution Date,
the associated Common Stock certificate) is registered as the absolute owner
thereof and of the Rights evidenced thereby (notwithstanding any notations of
ownership or writing on the Rights Certificates or the associated Common Stock
certificate made by anyone other than the Company or the Rights Agent) for all
purposes whatsoever, and neither the Company nor the Rights Agent shall be
affected by any notice to the contrary; and

               (d) notwithstanding anything in this Agreement to the contrary,
neither the Company nor the Rights Agent shall have any liability to any holder
of a Right or other Person as a result of its inability to perform any of its
obligations under this Agreement by reason of any preliminary or permanent
injunction or other order, decree or ruling issued by a court or by a
governmental, regulatory or administrative agency or commission, or any statute,
rule, regulation or executive order promulgated or enacted by any governmental
authority prohibiting or otherwise restraining performance of the obligation;
provided, however, the Company must use its best efforts to have any order,
decree or ruling lifted or otherwise overturned.

               Section 16. Rights Holder Not Deemed a Stockholder. Except as
otherwise expressly provided in this Agreement, no holder, as such, of any
Rights Certificate shall be entitled to vote, receive dividends or be deemed for
any purpose the holder of the shares of Preferred Stock or any other securities
of the Company which may at any time be issuable on the exercise of the Rights
represented thereby, nor shall anything contained herein or in any Rights
Certificate be construed to confer upon the holder of any Rights Certificate, as
such, any of the rights of a Stockholder of the Company or any right to vote for
the election of directors or upon any matter submitted to Stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting Stockholders, or to
receive dividends or subscription rights, or otherwise, until and only to the
extent that the Right or Rights evidenced by the Rights Certificate shall have
been exercised in accordance with the provisions of this Agreement.

               Section 17. Concerning the Rights Agent. The Company agrees to
pay to the Rights Agent reasonable compensation for all services rendered by it
hereunder and, from time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and disbursements and other disbursements incurred in
the administration and execution of this Agreement and the exercise and
performance of its duties hereunder. The Company also agrees to indemnify the
Rights Agent for, and to hold it harmless against, any loss, liability, or
expense, incurred without negligence, bad faith or willful misconduct on the
part of the Rights Agent, for anything done or omitted by the Rights Agent in
connection with the acceptance and administration of this Agreement, including
the costs and expenses of defending against any claim of liability in the

                                       22
<PAGE>

premises. The indemnification provided for hereunder shall survive the
expiration of the Rights and the termination of this Agreement.

        The Rights Agent shall be protected and shall incur no liability for or
in respect of any action taken, suffered or omitted by it in connection with its
administration of this Agreement in reliance upon any Rights Certificate or
certificate for Common Stock or for other securities of the Company, instrument
of assignment or transfer, power of attorney, endorsement, affidavit, letter,
notice, direction, consent, certificate, statement, or other paper or document
believed by it to be genuine and to be signed, executed and, where necessary,
verified or acknowledged, by the proper Person or Persons.

               Section 18. Merger or Consolidation or Change of Name of Rights
Agent. Any corporation into which the Rights Agent or any successor Rights Agent
may be merged or with which it may be consolidated, or any corporation resulting
from any merger or consolidation to which the Rights Agent or any successor
Rights Agent shall be a party, or any corporation succeeding to the corporate
trust business of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
provided that the corporation would be eligible for appointment as a successor
Rights Agent under the provisions of Section 20 of this Agreement. In case at
the time the successor Rights Agent shall succeed to the agency created by this
Agreement, any of the Rights Certificates shall have been countersigned but not
delivered, any successor Rights Agent may adopt the countersignature of the
predecessor Rights Agent and deliver the Rights Certificates so countersigned;
and in case at that time any of the Rights Certificates shall not have been
countersigned, any successor Rights Agent may countersign the Rights
Certificates either in the name of the predecessor or in the name of the
successor Rights Agent; and in all cases the Rights Certificates shall have the
full force provided in the Rights Certificates and in this Agreement.

        In case at any time the name of the Rights Agent shall be changed and at
that time any of the Rights Certificates shall have been countersigned but not
delivered, the Rights Agent may adopt the countersignature under its prior name
and deliver Rights Certificates so countersigned; and in case at that time any
of the Rights Certificates shall not have been countersigned, the Rights Agent
may countersign the Rights Certificates either in its prior name or in its
changed name; and in all cases the Rights Certificates shall have the full force
provided in the Rights Certificates and in this Agreement.

               Section 19. Duties of Rights Agent. The Rights Agent undertakes
the duties and obligations imposed by this Agreement upon the following terms
and conditions, by all of which the Company and the holders of Rights
Certificates, by their acceptance thereof, shall be bound:

               (a) The Rights Agent may consult with legal counsel (who may be
legal counsel for the Company), and the opinion of the counsel shall be full and
complete

                                       23
<PAGE>

authorization and protection to the Rights Agent as to any action taken or
omitted by it in good faith and in accordance with the opinion.

               (b) Whenever in the performance of its duties under this
Agreement the Rights Agent shall deem it necessary or desirable that any fact or
matter (including, without limitation, the identity of any Acquiring Person) be
proved or established by the Company prior to taking or suffering any action
hereunder, the fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by the Chairman of the Board, the President,
any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any
Assistant Secretary of the Company and delivered to the Rights Agent; and the
certificate shall be full authorization to the Rights Agent, for any action
taken or suffered in good faith by it under the provisions of this Agreement in
reliance upon the certificate.

               (c) The Rights Agent shall be liable hereunder only for its own
negligence, bad faith or willful misconduct.

               (d) The Rights Agent shall not be liable for or by reason of any
of the statements of facts or recitals contained in this Agreement or in the
Rights Certificates or be required to verify the same (except as to its
countersignature on the Rights Certificates), but all statements and recitals
are and shall be deemed to have been made by the Company only.

               (e) The Rights Agent shall not be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the
validity or execution of any Rights Certificate (except its countersignature
thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Rights Certificate;
nor shall it be responsible for any adjustment required under the provisions of
Sections 11 or 13 of this Agreement or responsible for the manner, method or
amount of any such adjustment or the ascertaining of the existence of facts that
would require any such adjustment (except with respect to the exercise of Rights
evidenced by Rights Certificates after actual notice of any adjustment); nor
shall it by any act hereunder be deemed to make any representation or warranty
as to the authorization or reservation of any shares of Common Stock or
Preferred Stock to be issued pursuant to this Agreement or any Rights
Certificate or as to whether any shares of Common Stock or Preferred Stock will,
when so issued, be validly authorized and issued, fully paid and nonassessable.

               (f) The Company agrees that it will perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and delivered all
further and other acts, instruments and assurances as may reasonably be required
by the Rights Agent for the carrying out or performing by the Rights Agent of
the provisions of this Agreement.

                                       24
<PAGE>

               (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from the
Chairman of the Board, the President, any Vice President, the Secretary, any
Assistant Secretary, the Treasurer or any Assistant Treasurer of the Company,
and to apply to the officers for advice or instructions in connection with its
duties, and it shall not be liable for any action taken or suffered to be taken
by it in good faith in accordance with instructions of any officer.

               (h) The Rights Agent and any stockholder, director, officer or
employee of the Rights Agent may buy, sell or deal in any of the Rights or other
securities of the Company or become pecuniarily interested in any transaction in
which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Rights Agent
under this Agreement. Nothing herein shall preclude the Rights Agent from acting
in any other capacity for the Company or for any other legal entity.

               (i) The Rights Agent may execute and exercise any of the rights
or powers hereby vested in it or perform any duty hereunder either itself or by
or through its attorneys or agents, and the Rights Agent shall not be answerable
or accountable for any act, default, neglect or misconduct of any attorneys or
agents or for any loss to the Company resulting from any act, default, neglect
or misconduct provided reasonable care was exercised in the selection and
continued employment thereof.

               (j) No provision of this Agreement shall require the Rights Agent
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 its rights
if there shall be reasonable grounds for believing that repayment of such funds
or adequate indemnification against such risk or liability is not reasonably
assured to it.

               (k) The Rights Agent shall not be required to take notice or be
deemed to have notice of any fact event or determination under the Rights
Agreement unless and until the Rights Agent shall be specifically notified in
writing by the Company of such fact, event or determination.

               Section 20. Change of Rights Agent. The Rights Agent or any
successor Rights Agent may resign and be discharged from its duties under this
Agreement upon 30 days' notice in writing mailed to the Company, and to each
transfer agent of the Common Stock and Preferred Stock by registered or
certified mail, and to the holders of the Rights Certificates by first-class
mail. The Company may remove the Rights Agent or any successor Rights Agent upon
30 days' notice in writing, mailed to the Rights Agent or successor Rights
Agent, as the case may be, and to each transfer agent of the Common Stock and
Preferred Stock, by registered or certified mail, and to the holders of the
Rights Certificates by first-class mail. If the Rights Agent shall resign or be
removed or shall otherwise become incapable of acting, the Company shall appoint
a successor to the Rights Agent. If the Company shall fail to make such
appointment within a period of 30 days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the
resigning or incapacitated Rights

                                       25
<PAGE>

Agent or by the holder of a Rights Certificate (who shall, with such notice,
submit his Rights Certificate for inspection by the Company), then the
registered holder of any Rights Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent. Any successor Rights
Agent, whether appointed by the Company or by such a court, shall be a
corporation organized and doing business under the laws of the United States or
of the State of California (or of any other state of the United States so long
as such corporation is authorized to do business as a banking institution in the
State of California), in good standing, having a principal office in the State
of California, which is authorized under such laws to exercise corporate trust
powers and is subject to supervision or examination by federal or state
authority and which has at the time of its appointment as Rights Agent a
combined capital and surplus of at least $100,000,000. After appointment, the
successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer
to the successor Rights Agent any property at the time held by it hereunder, and
execute and deliver any further assurance, conveyance, act or deed necessary for
the purpose. Not later than the effective date of any such appointment, the
Company shall file notice thereof in writing with the predecessor Rights Agent
and each transfer agent of the Common Stock and the Preferred Stock, and mail a
notice thereof in writing to the registered holders of the Rights Certificates.
Failure to give any notice provided for in this Section 20, however, or any
defect therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent, as
the case may be.

               Section 21. Issuance of New Rights Certificates. Notwithstanding
any of the provisions of this Agreement or of the Rights to the contrary, the
Company may, at its option, issue new Rights Certificates evidencing Rights in
such form as may be approved by its Board of Directors to reflect any adjustment
or change in the Purchase Price per share and the number or kind or class of
shares or other securities or property purchasable under the Rights Certificates
made in accordance with the provision of this Agreement.

               Section 22. Redemption and Termination.

               (a) The Board of Directors of the Company may, at its option, at
any time prior to 5:00 p.m., California time, on the earlier of (i) the tenth
day following the Stock Acquisition Date, subject to extension by the Board of
Directors for a period of time up to, but not exceeding, ten additional days,
and (ii) the Expiration Date, redeem all but not less than all the then
outstanding Rights at a redemption price of $0.001 per Right, appropriately
adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such redemption price being hereinafter
referred to as the "REDEMPTION PRICE"). The Company may, at its option, pay such
redemption price in cash, shares of Common Stock (based on the market price of
the Common Stock at the time of redemption) or any other form of consideration
deemed appropriate by the Board of Directors of the Company. Notwithstanding
anything in this Agreement to the

                                       26
<PAGE>

contrary, no Rights may be exercised at any time that the Rights are subject to
redemption in accordance with the terms of this Agreement.

               (b) Immediately upon the action of the Board of Directors of the
Company extending the redemption period pursuant to Section 22(a)(i), evidence
of which shall have been filed with the Rights Agent, the Company shall issue a
press release indicating the date to which the Board of Directors has extended
its right to redeem the Rights.

               (c) Notwithstanding anything in this Agreement to the contrary,
no redemption of the Rights shall be permitted after 5:00 p.m. California time,
on the earlier of (i) the tenth day following the Stock Acquisition Date,
subject to extension by the Board of Directors for a period of time up to, but
not exceeding, ten additional days, or (ii) the Expiration Date.

               (d) Immediately upon the action of the Board of Directors of the
Company ordering the redemption of the Rights, evidence of which shall have been
filed with the Rights Agent and without any further action and without any
notice, the right to exercise the Rights will terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption Price.
Within ten days after the action of the Board of Directors ordering the
redemption of the Rights, the Company shall give notice of such redemption to
the Rights Agent and the holders of the then outstanding Rights by mailing such
notice to all such holders at their last addresses as they appear upon the
registry books of the Rights Agent or prior to the Distribution Date, on the
registry books of the Transfer Agent for the Common Stock. Any notice mailed in
the manner herein provided shall be deemed given, whether or not the holder
receives the notice. Each such notice of redemption will state the method by
which the payment of the Redemption Price will be made. In any case, failure to
give such notice to any particular holder of Rights shall not affect the
sufficiency of the notice to other holders of Rights. Neither the Company nor
any of its Affiliates or Associates may redeem, acquire or purchase for value
any Rights at any time, in any manner, other than that specifically set forth in
this Section 22, and neither the Company nor any of its Affiliates or Associates
may acquire or purchase for value any Rights at any time, in any manner, other
than in connection with the purchase of shares of associated Common Stock prior
to the Distribution Date.

               Section 23. Exchange.

               (a) The Company may, at its option but subject to receipt of any
required regulatory approvals, by action of the Board of Directors, at any time
after any Person becomes an Acquiring Person, exchange all or part of the then
outstanding and exercisable Rights (which shall not include Rights owned by the
Acquiring Person or that otherwise have become void pursuant to Section 7(e)
hereof) for shares of Common Stock at an exchange ratio of one share of Common
Stock per Right, appropriately adjusted to reflect any stock split, stock
dividend or similar transaction occurring after the date hereof (such exchange
ratio being herein referred to as the "EXCHANGE RATIO").

                                       27
<PAGE>

               (b) Immediately upon the action of the Board of Directors of the
Company ordering the exchange of any Rights pursuant to paragraph (a) of this
Section 23 and without any further action and without any notice, the right to
exercise such Rights shall terminate and the only right thereafter of a holder
of such Rights shall be to receive that number of shares of Common Stock equal
to the number of such Rights held by such holder multiplied by the Exchange
Ratio. The Company shall promptly give public notice of any such exchange;
provided, however, that the failure to give, or any defect in, such notice shall
not affect the validity of such exchange. The Company promptly shall mail a
notice of any exchange to all holders of such Rights at their last addresses as
they appear upon the registry books of Rights Agent. Any notice that is mailed
in the manner herein provided shall be deemed given, whether or not the holder
receives the notice. Each such notice of exchange will state the method by which
the exchange of the Common Stock for Rights will be effected and, in the event
of any partial exchange, the number of Rights which will be exchanged. Any
partial exchange shall be effected pro rata based on the number of Rights (other
than Rights which have become void pursuant to the provisions of Section 7(e)
hereof) held by each holder of Rights.

               (c) In any exchange pursuant to this Section 23, the Company, at
its option, may substitute Preferred (or Equivalent Preferred Stock, for shares
of Common Stock exchangeable for Rights, at the initial rate of 1/1000th of a
share of Preferred Stock (or Equivalent Preferred Stock) for each share of
Common Stock, as appropriately adjusted to reflect adjustments in the voting
rights of the Preferred Stock pursuant to the terms thereof, so that the
fraction of a share of Preferred Stock delivered in lieu of each share of Common
Stock shall have at least the same voting rights as one share of Common Stock.

               Section 24. Notice of Certain Events.

               (a) In case the Company shall propose (i) to pay any dividend
payable in stock of any class to the holders of Preferred Stock or to make any
other distribution to the holders of Preferred Stock (other than a regular
quarterly cash dividend) or (ii) to offer to the holders of Preferred Stock
rights or warrants to subscribe for or to purchase any additional shares of
Preferred Stock or shares of stock of any class or any other securities, rights
or options or (iii) to effect any reclassification of its Preferred Stock (other
than a reclassification involving only the subdivision of outstanding shares of
Preferred Stock) or (iv) to effect any Flip-Over Event or (v) to effect the
liquidation, dissolution or winding up of the Company, then, in each such case,
the Company shall give to each holder of a Rights Certificate, in accordance
with Section 25, a notice of such proposed action, which shall specify the
record date for the purposes of such stock dividend, distribution of rights or
warrants, or the date on which such reclassification, Flip-Over Event,
liquidation, dissolution, or winding up is to take place and the date of
participation therein by the holders of the shares of Preferred Stock, if any
such date is to be fixed, and such notice shall be so given in the case of any
action covered by clause (i) or (ii) above at least ten days prior to the record
date for determining holders of the shares of Preferred Stock for purposes of
such action, and in the case of any such other action, at least ten days prior
to the date of the taking of such proposed

                                       28
<PAGE>

action or the date of participation therein by the holders of the shares of
Preferred Stock whichever shall be the earlier.

               (b) Upon the occurrence of a Flip-In Event or a Flip-Over Event,
the Company or Principal Party, as the case may be, shall as soon as practicable
thereafter give to each holder of a Rights Certificate, to the extent feasible
and in accordance with Section 25, a notice of the occurrence of such event and
the consequences thereof.

               Section 25. Notices. Notices or demands authorized by this
Agreement to be given or made by the Rights Agent or by the holder of any Rights
Certificate to or on the Company shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed (until another address is filed in
writing with the Rights Agent) as follows:

                             Commonwealth Energy Corporation
                             15901 Red Hill Avenue, Suite 100
                             Tustin, CA 92780
                             Attention: Ian Carter

With copy to:                McDermott, Will & Emery
                             2049 Century Park East, 34th Floor
                             Los Angeles, CA  90067-3208
                             Attention: Joel Bernstein, Esq.

        Subject to the provisions of Section 20, any notice or demand authorized
by this Agreement to be given or made by the Company or by the holder of any
Rights Certificate to or on the Rights Agent shall be sufficiently given or made
if delivered by first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Company) as follows:

                             --------------------------
                             --------------------------
                             --------------------------
                             Attention:
                                        ---------------

        Notices or demands authorized by this Agreement to be given or made by
the Company or the Rights Agent to the holder of any Rights Certificate shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed to such holder at the address of such holder as shown on the registry
books of the Company. The Company shall deliver a copy of any notice or demand
it delivers to the holder of any Rights Certificate to the Rights Agent and the
Rights Agent shall deliver a copy of any notice or demand it deliver to the
holder of any Rights Certificate to the Company.

               Section 26. Supplements and Amendments. The Company and the
Rights Agent may from time to time supplement or amend this Agreement without
the approval of any holders of Rights Certificates in order to cure any
ambiguity, to correct or supplement any provision contained herein which may be
defective or inconsistent

                                       29
<PAGE>

with any other provisions herein or to change or supplement the provisions
hereunder in any manner which the Company may deem necessary or desirable and
which shall not adversely affect the interests of the holders of Rights
Certificates other than an Acquiring Person; provided, however, that no
amendment or supplement may be made if the effect would be to extend or shorten
the redemption period after the Stock Acquisition Date or change the Purchase
Price or the Redemption Price. Notwithstanding any other provisions of this
Section 26, the Board of Directors shall retain the right to amend the Purchase
Price for a period of six months from the date of this Agreement.

               Section 27. Successors. All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.

               Section 28. Benefits of this Agreement. Nothing in this Agreement
shall be construed to give to any Person other than the Company, the Rights
Agent and the registered holders of the Rights Certificates (and, prior to the
Distribution Date, the Common Stock) any legal or equitable right, remedy or
claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of
the Rights Certificates (and, prior to the Distribution Date, the Common Stock).

               Section 29. Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

               Section 30. Governing Law. This Agreement, each Right and each
Rights Certificate issued hereunder shall be deemed to be a contract made under
the laws of the State of California and for all purposes shall be governed by
and construed in accordance with the laws of such State applicable to contracts
made and to be performed entirely within such State.

               Section 31. Counterparts. This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.

               Section 32. Descriptive Headings. Descriptive headings of the
several Sections of this Agreement are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions
hereof.

                                       30
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.

                                             COMMONWEALTH ENERGY CORPORATION

                                             By: /s/ Ian B. Carter
                                                --------------------------------
                                                Name:  Ian B. Carter
                                                Title: Chairman and Chief
                                                       Executive Officer

                                       31
<PAGE>

                                                                       Exhibit A
                                                                              to
                                                                Rights Agreement

                                    [FORM OF]
                           CERTIFICATE OF DESIGNATIONS
                               OF PREFERRED STOCK

                                       of
                         COMMONWEALTH ENERGY CORPORATION

        We, ______________, Chairman of the Board of Directors and
______________, Secretary, of Commonwealth Energy Corporation, a corporation
organized and existing under the General Corporation Law of the State of
California (the "Corporation"), in accordance with the provisions of Section
_____ thereof, DO HEREBY CERTIFY:

        That pursuant to the authority conferred upon the Board of Directors by
the Certificate of Incorporation of the Corporation, the Board of Directors, on
January 4, 2002, adopted, ratified and approved this Certificate of Designations
and the series of preferred stock designated herein.

        Section 1. Designation and Amount. A series of the Corporation's
preferred stock, $0.001 par value per share, shall be designated as "Preferred
Stock" (the "Preferred Stock") and the number of shares constituting such series
shall be ________.

        Section 2. Voting Rights. The holders of shares of Preferred Stock shall
have the following voting rights:

               (A) Subject to the provision for adjustment hereinafter set
        forth, each share of Preferred Stock shall entitle the holder thereof to
        1000 votes on all matters submitted to a vote of the stockholders of the
        Corporation. In the event the Corporation shall at any time on or after
        January 4, 2002 declare or pay any dividend on Common Stock payable in
        shares of Common Stock, or effect a subdivision or combination or
        consolidation of the outstanding shares of Common Stock (by
        reclassification or otherwise than by payment of a dividend in shares of
        Common Stock) into a greater or lesser number of shares of Common Stock,
        then in each such case the number of votes per share to which holders of
        shares of Preferred Stock were entitled immediately prior to such event
        shall be adjusted by multiplying such number by a fraction, the
        numerator of which is the number of shares of Common Stock outstanding
        immediately after such event, and the denominator of which is the number
        of shares of Common Stock that were outstanding immediately prior to
        such event.

                                      A-1
<PAGE>

               (B) Except as otherwise provided herein or by law, the holders of
        shares of Preferred Stock and the holders of shares of Common Stock
        shall vote together as one class on all matters submitted to a vote of
        stockholders of the Corporation.

               (C) Except as set forth herein, holders of Preferred Stock shall
        have no special voting rights and their consent shall not be required
        (except to the extent they are entitled to vote with holders of Common
        Stock as set forth herein) for taking any corporate action.

        Section 3. Reacquired Shares. Any shares of Preferred Stock purchased or
otherwise acquired by the Corporation in any manner whatsoever shall be retired
and cancelled promptly after the acquisition thereof. All such shares shall upon
their cancellation become authorized but unissued shares of preferred stock and
may be reissued as part of a new series of preferred stock to be created by
resolution or resolutions of the Board of Directors, subject to the conditions
and restrictions on issuance set forth herein.

        Section 4. Liquidation, Dissolution or Winding Up. Upon any liquidation,
dissolution or winding up of the Corporation, no distribution shall be made (1)
to the holders of shares of stock ranking junior (either as to dividends or upon
liquidation, dissolution or winding up) to the Preferred Stock unless, prior
thereto, the holders of shares of Preferred Stock shall have received an
aggregate amount per share, subject to the provision for adjustment hereinafter
set forth, equal to 1000 times the aggregate amount to be distributed per share
to holders of Common Stock, or (2) to the holders of stock ranking on a parity
(either as to dividends or upon liquidation, dissolution or winding up) with the
Preferred Stock, except distributions made ratably on the Preferred Stock and
all other such parity stock in proportion to the total amounts to which the
holders of all such shares are entitled upon such liquidation, dissolution or
winding up. In the event the Corporation shall at any time on or after January
4, 2002 declare or pay any dividend on Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock, then in each such case the aggregate amount to which
holders of shares of Preferred Stock were entitled immediately prior to such
event under the proviso in clause (1) of the preceding sentence shall be
adjusted by multiplying such amount by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

        Section 5. Consolidation, Merger, etc. In the event that case the
Corporation shall enter into any consolidation, merger, combination or other
transaction in which the shares of Common Stock are exchanged for or changed
into other stock or securities, cash or other property, then in any such case
the shares of Preferred Stock then outstanding shall at the same time be
similarly exchanged or changed in an amount per share (subject to the provision
for adjustment hereinafter set forth) equal to 1000 times

                                      A-2
<PAGE>

the aggregate amount of stock, securities, cash or other property (payable in
kind), as the case may be, into which or for which each share of Common Stock is
changed or exchanged. In the event the Corporation shall at any time on or after
January 4, 2002 declare or pay any dividend on Common Stock payable in shares of
Common Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise) into a
greater or lesser number of shares of Common Stock, then in each such case the
amount set forth in the preceding sentence with respect to the exchange or
change of shares of Preferred Stock shall be adjusted by multiplying such amount
by a fraction the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to such
event.

        Section 6. No Redemption. The shares of Preferred Stock shall not be
redeemable.

        Section 7. Amendment. The Certificate of Incorporation of the
Corporation shall not be amended in any manner which would materially alter or
change the powers, preferences or special rights of the Preferred Stock so as to
affect them adversely without the affirmative vote of the holders of two-thirds
or more of the outstanding shares of Preferred Stock, voting together as a
single class.

                                      A-3
<PAGE>

        IN WITNESS WHEREOF, we have executed and subscribed this Certificate and
do affirm the foregoing as true under the penalties of perjury as of this _____
day of January, 2002.

                                             -----------------------------------
                                             Ian Carter
                                             Chief Executive Officer

ATTEST:

-----------------------------------
Name:  [_________________]
Title: [_________________]

                                      A-4
<PAGE>

                                                                       Exhibit B
                                                                              to
                                                                Rights Agreement

                                    [FORM OF]
                               RIGHTS CERTIFICATE
Certificate No. R-____________ Rights

        NOT EXERCISABLE AFTER [____________] OR EARLIER IF NOTICE OF REDEMPTION
OR EXCHANGE IS GIVEN.

        THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, ON
THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.

        [THE RIGHTS REPRESENTED BY THIS CERTIFICATE ARE OR WERE BENEFICIALLY
OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR
ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
AGREEMENT. ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED
HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e)
OF THE RIGHTS AGREEMENT.]

                               RIGHTS CERTIFICATE
                         COMMONWEALTH ENERGY CORPORATION

        This certifies that ___________________ or registered assigns, is the
registered owner of the number of Rights set forth above, each of which entitles
the owner thereof, subject to the terms, provisions and conditions of the Rights
Agreement, dated as of January 4, 2002 (the "RIGHTS AGREEMENT"), between
Commonwealth Energy Corporation, a California corporation (the "COMPANY"), and
Computershare Trust Company (the "RIGHTS AGENT"), unless notice of redemption
shall have been previously given by the Company, to purchase from the Company at
any time after the Distribution Date (as such term is defined in the Rights
Agreement) and prior to 5:00 p.m. (California time) on [______________] at the
principal corporate trust office of the Rights Agent, or at the office of its
successor as Rights Agent, [_______________] of a fully paid nonassessable share
of the Preferred Stock (the "PREFERRED STOCK"), par value $0.001 per share, of
the Company, at a purchase price of $50 per share upon presentation and
surrender of this Rights Certificate with the Form of Election to Purchase duly
executed. The Purchase Price may be paid in cash or by certified bank check or
money order payable to the order of the Company.

        The number of Rights evidenced by this Rights Certificate (and the
number of shares of Preferred Stock which may be purchased upon exercise
thereof) and the Purchase Price set forth above have been determined as of
____________, based on

                                      B-1
<PAGE>

the Common Stock of the Company as constituted at such date. As provided in the
Rights Agreement, the Purchase Price and the number of shares of Preferred Stock
or other securities, cash or other property which may be purchased upon the
exercise of the Rights evidenced by this Rights Certificate are subject to
modification and adjustment upon the happening of certain events.

        If the Rights evidenced by this Rights Certificate are or were formerly
beneficially owned, on or after the earlier of the Distribution Date and the
Stock Acquisition Date, by an Acquiring Person or an Affiliate, Associate or
direct or indirect transferee of an Acquiring Person, such Rights may become
null and void and the holder of any such Right (including any subsequent holder)
shall not have any right with respect to such Right.

        This Rights Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Rights Certificates.
Capitalized terms used in this Rights Certificate have the same meanings as such
terms are defined in the Rights Agreement. Copies of the Rights Agreement are on
file at the principal executive offices of the Company and the above-mentioned
office of the Rights Agent.

        This Rights Certificate, with or without other Rights Certificates, upon
surrender at the principal corporate trust office of the Rights Agent, may be
exchanged for another Rights Certificate or Rights Certificates of like tenor
and date evidencing Rights entitling the holder to purchase a like aggregate
number of shares of Preferred Stock or other property as the Rights evidenced by
the Rights Certificate or Rights Certificates surrendered entitled such holder
to purchase. If this Rights Certificate shall be exercised in part, the holder
shall be entitled to receive, upon surrender hereof, another Rights Certificate
or Rights Certificates for the number of whole Rights not exercised.

        Subject to the provisions of the Rights Agreement, the Rights evidenced
by this Certificate may be redeemed by the Company at its option at a redemption
price of $0.001 per Right at any time prior to the earlier of (i) the close of
business on the 10th day following the time it becomes public that an Acquiring
Person has become such (with the possibility of an extension for an additional
10 days) and (ii) the Expiration Date.

        Subject to the provisions of the Rights Agreement, the Rights evidenced
by this Certificate may be exchanged by the Company, at its option, at any time
after any person becomes an Acquiring Person, for a number of shares of common
stock of the Company determined in accordance with the Rights Agreement.

        No holder of this Rights Certificate, as such, shall be entitled to vote
or to receive dividends or shall be deemed, for any purpose, the holder of
Preferred Stock or of any

                                      B-2
<PAGE>

other securities, cash or property which may at any time be issuable on the
exercise hereof, nor shall anything contained in the Rights Agreement or this
Certificate be construed to confer upon the holder hereof, as such, any of the
rights of a stockholder of the Company, including, without limitation, any right
to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in the Rights Agreement), or to receive
dividends or subscription rights, or to institute, as a holder of Preferred
Stock or other securities issuable on the exercise of the Rights represented by
this Certificate, any derivative action, or otherwise, until and only to the
extent the Right or Rights evidenced by this Rights Certificate shall have been
exercised as provided in the Rights Agreement.

        This Rights Certificate shall not be valid or obligatory for any purpose
until the Rights Agent shall have countersigned it.

                                      B-3
<PAGE>

        WITNESS the facsimile signature of the proper officers of the Company
and its corporate seal. Dated as of _____ ___, 20__.

                                             COMMONWEALTH ENERGY CORPORATION

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

ATTEST:

-----------------------------------
              Secretary

Countersigned:

-----------------------------------
By:
        Authorized Signature

                                      B-4
<PAGE>

                                    [FORM OF]
                       REVERSE SIDE OF RIGHTS CERTIFICATE
                               FORM OF ASSIGNMENT

                (To be executed by the registered holder if such
              holder desires to transfer the Rights Certificates.)

        FOR VALUE RECEIVED, _________________________________ hereby sells,
assigns and transfers unto ____________________________ (Please print name and
address of transferee) this Rights Certificate, together with all right, title
and interest therein, and does hereby irrevocably constitute and appoint
_____________________ Attorney to transfer the within Rights Certificate on the
books of the within-named Company, with full power of substitution.

Dated:                , 20
       ----------- ---    --

                                             -----------------------------------
                                                       Signature

Signature Guaranteed:

        Signatures must be guaranteed by a member firm of a registered national
securities exchange, a member of the National Association of Securities Dealers,
Inc., or a commercial bank or trust company having an office or correspondent in
the United States.

                                      B-5
<PAGE>

                                   CERTIFICATE

        The undersigned hereby certifies by checking the appropriate boxes that:

        (1) this Rights Certificate [ ] is [ ] is not being sold, assigned and
transferred by or on behalf of a Person who is or was an Acquiring Person or an
Affiliate or Associate of any such Acquiring Person (as such terms are defined
pursuant to the Rights Agreement);

        (2) after due inquiry and to the best knowledge of the undersigned, it
[ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from
any Person who is or was an Acquiring Person or an Affiliate or Associate of an
Acquiring Person.

Dated:                , 20                   -----------------------------------
       ----------- ---    --                           Signature

Signature Guaranteed:

        Signatures must be guaranteed by a member firm of a registered national
securities exchange, a member of the National Association of Securities Dealers,
Inc., or a commercial bank or trust company having an office or correspondent in
the United States.

                                     NOTICE

        The signature to the foregoing Assignment must correspond to the name as
written upon the face of this Rights Certificate in every particular, without
alteration or enlargement or any change whatsoever.

        In the event the certification set forth above in the Form of Assignment
is not completed, the Company will deem the beneficial owner of the Rights
evidenced by this Right Certificate to be an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement) and, in the case of an
Assignment, will affix a legend to that effect on any Rights Certificate issued
in exchange for this Rights Certificate.

                                      B-6
<PAGE>

                          FORM OF ELECTION TO PURCHASE

                  (To be executed if holder desires to exercise
               the Rights represented by this Rights Certificate)

To:  Commonwealth Energy Corporation

        The undersigned hereby irrevocably elects to exercise __________________
Rights represented by this Rights Certificate to purchase the shares of
Preferred Stock ______________ or other securities, cash or other property
issuable upon the exercise of such Rights and requests that certificates for
such shares or other securities be issued in the name of, and such cash or other
property be paid to:

Please insert social security or other identifying number:

--------------------------------------------------------------------------
        (Please print name and address)

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

If such number of Rights shall not be all the Rights evidenced by this Rights
Certificate, a new Rights Certificate for the remaining balance of such Rights
shall be registered in the name of and delivered to:

Please insert social security or other identifying number:

--------------------------------------------------------------------------
        (Please print name and address)

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

Dated:                , 20          Signature
       ----------- ---    --                 -----------------------------------
                                             (Signature must conform in all
                                             respects to name of holder as
                                             specified on the face of this
                                             Rights Certificate)

Signature Guaranteed:

        Signatures must be guaranteed by a member firm of a registered national
securities exchange, a member of the National Association of Securities Dealers,
Inc., or a commercial bank or trust company having an office or correspondent in
the United States.

                                      B-7
<PAGE>

                                   CERTIFICATE

               The undersigned hereby certifies by checking the appropriate
boxes that:

        (1) this Rights Certificate [ ] is [ ] is not being exercised by or on
behalf of a Person who is or was an Acquiring Person or an Affiliate or
Associate of any such Acquiring Person (as such terms are defined pursuant to
the Rights Agreement);

        (2) after due inquiry and to the best knowledge of the undersigned, it
[ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from
any Person who is or was an Acquiring Person or an Affiliate or Associate of an
Acquiring Person.

Dated:                , 20          Signature
       ----------- ---    --                 -----------------------------------

Signature Guaranteed:

        Signatures must be guaranteed by a member firm of a registered national
securities exchange, a member of the National Association of Securities Dealers,
Inc., or a commercial bank or trust company having an office or correspondent in
the United States.

                                     NOTICE

        The signature on the foregoing Form of Election to Purchase and
Certificate must correspond to the name as written upon the face of this Rights
Certificate in every particular, without alteration or enlargement or any change
whatsoever.

        In the event the certification set forth above in the Form of Election
is not completed, the Company will deem the beneficial owner of the Rights
evidenced by this Rights Certificate to be an Acquiring Person or an Affiliate
or Associate thereof (as defined in the Rights Agreement) and, in the case of an
Assignment, will affix a legend to that effect on any Rights Certificate issued
in exchange for this Rights Certificate.

                                      B-8
<PAGE>

                                                                       Exhibit C
                                                                              to
                                                                Rights Agreement

                                 [SEE ATTACHED]

                                      C-1
<PAGE>

                        COMMONWEALTH ENERGY CORPORATION

                          SUMMARY OF RIGHTS TO PURCHASE
                                 PREFERRED STOCK

        On January 4, 2002, the Board of Directors of Commonwealth Energy
Corporation, a California corporation (the "COMPANY"), declared a dividend
distribution of one preferred stock purchase right (a "RIGHT") for each share of
common stock, par value $0.001 per share (the "COMMON STOCK"), of the Company.
The dividend is payable on January 4, 2002 to stockholders of record at the
close of business on January 4, 2002 (the "RECORD DATE") and in respect of all
shares of Common Stock that become outstanding after the Record Date and prior
to the earliest of (a) the Distribution Date (as such term is hereinafter
defined), (b) the redemption of the Rights, (c) the exchange of the Rights and
(d) the expiration of the Rights. Except as described herein and subject to
adjustment as provided in the Rights Agreement (as such term is hereinafter
defined), each Right entitles the registered holder to purchase from the Company
1/1000th of a share of the Company's Preferred Stock, par value $0.001 per share
(the "PREFERRED STOCK"), at a purchase price of $50 per share (the "PURCHASE
PRICE"). The description and terms of the Rights are set forth in a Rights
Agreement, dated as of January 4, 2002 (the "RIGHTS AGREEMENT"), between the
Company and Computershare Trust Company, as Rights Agent (the "RIGHTS AGENT").

        The Rights will be evidenced by Common Stock certificates and not
separate certificates until the earliest of (i) ten days following the date of
public disclosure that a person or group, together with persons affiliated or
associated with it (an "ACQUIRING PERSON"), has acquired, or obtained the right
to acquire, beneficial ownership of 15% or more of the outstanding shares of
Common Stock (the "STOCK ACQUISITION Date"), (ii) ten business days following
commencement or disclosure of an intention to commence a tender offer or
exchange offer by a person or group other than the Company and certain related
entities if, upon consummation of such offer, such person or group, together
with persons affiliated or associated therewith, would beneficially own 15% or
more of the outstanding shares of Common Stock , and (iii) ten business days
following a determination by the Board of Directors of the Company that a
person, as such term is defined below (referred to herein as an "ADVERSE
PERSON"), alone or together with persons affiliated or associated therewith, has
become the beneficial owner of more than 10% of the outstanding shares of Common
Stock and that (A) such beneficial ownership is intended to cause the Company to
repurchase the Common Stock beneficially owned by such person or to cause
pressure on the Company to take action or enter into transactions intended to
provide such person with short-term financial gain under circumstances where the
Board of Directors of the Company determines that the best long-term interests
of the Company would not be served by taking such action or entering into such
transactions or (B) such beneficial ownership is causing or reasonably likely to
cause a material adverse impact on the business or prospects of the Company;
provided, however, that the Board of Directors of the Company shall not declare
any person to be an Adverse Person if such person has reported or is required to
report its ownership of Common Stock on Schedule 13G under the Securities
Exchange Act of 1934, as amended (the "EXCHANGE ACT"), or on Schedule 13D under

                                       C-2
<PAGE>

the Exchange Act which Schedule 13D does not state any intention to, or reserve
the right to, control or influence the Company or engage in certain other
actions, so long as such person neither reports nor is required to report such
ownership other than as so described (the earlier of such dates being the
"DISTRIBUTION DATE"). Until the Distribution Date (or earlier redemption or
expiration of the Rights), the transfer of Common Stock will also constitute
transfer of the associated Rights. Following the Distribution Date, separate
certificates will evidence the Rights.

        The Rights will first become exercisable on the Distribution Date
(unless sooner redeemed); provided, however, that no Rights will be exercisable
at any time that the Rights are subject to redemption by the Company in
accordance with the terms of the Rights Agreement. The Rights will expire at the
close of business on January 4, 2012 (the "EXPIRATION DATE"), unless earlier
redeemed by the Company as hereinafter described.

        The Purchase Price and the number of shares of Preferred Stock or other
securities, cash or other property issuable upon exercise of the Rights are
subject to adjustment from time to time to prevent dilution (i) in the event of
a stock dividend or distribution on, or a subdivision, combination or
reclassification of, the Preferred Stock, (ii) upon the grant to holders of the
Preferred Stock of certain rights, options or warrants to subscribe for
Preferred Stock or securities convertible into Preferred Stock at less than the
current market price of the Preferred Stock or (iii) upon the distribution to
holders of the Preferred Stock of other securities, cash (excluding regular
periodic cash dividends, property, evidences of indebtedness or assets).

        The number of outstanding Rights and the number of 1/1000th of a share
of Preferred Stock issuable upon exercise of each Right and the Purchase Price
are also subject to adjustment in the event of a stock dividend on the Common
Stock or a stock split of the Common Stock or subdivision, consolidation or
combination of the Common Stock occurring, in any case, prior to the
Distribution Date.

        If (i) a person acquires beneficial ownership of 15% or more of the
Common Stock, or (ii) the Company is the surviving corporation in a merger with
an Acquiring Person and the Common Stock remains outstanding and unchanged, the
Rights will "FLIP IN" and entitle each holder of a Right, except as provided
below, to purchase, upon exercise at the then-current Purchase Price, that
number of shares of Common Stock having a market value of two times the Purchase
Price.

        In the event that, following the Distribution Date, the Company is
acquired in a merger or other business combination in which the Common Stock
does not remain outstanding or is changed or 15% or more of the Company's
consolidated assets or earning power is sold, leased, exchanged or otherwise
transferred or disposed of (in one transaction or a series of related
transactions) the Rights will "FLIP OVER" and entitle each holder of a Right to
purchase, upon the exercise of the Right at the then-current Purchase Price,
that number of shares of common stock of the acquiring company (or, in certain
circumstances, one of its affiliates) which at the time of the transaction would
have a market value of two times the Purchase Price.

                                       C-3
<PAGE>

        Any "flip-in" event or "flip-over" event is a "TRIGGERING EVENT."

        Any Rights beneficially owned at any time on or after the Distribution
Date by an Acquiring Person or an Adverse Person or any affiliate or associate
of an Acquiring Person or Adverse Person (whether or not ownership is
subsequently transferred) will become null and void upon the occurrence of a
Triggering Event, and any such holder of Rights will have no right to exercise
such Rights.

        With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least 1% in
the Purchase Price.

        At any time prior to the earlier of (i) the close of business on the
tenth day following the Stock Acquisition Date (with the possibility for the
Board of Directors to extend this time for an additional ten days) and (ii) the
Expiration Date, the Company may redeem the Rights in whole, but not in part, at
a price of $0.001 per Right. The Company may, at its option, pay such redemption
price in cash, shares of Common Stock (based on the market price of the Common
Stock at the time of redemption) or any other form of consideration deemed
appropriate by the Board of Directors of the Company. Immediately upon the
action of the Company's Board of Directors electing to redeem the Rights, the
right to exercise the Rights will terminate and the only right of the holders of
Rights thereafter will be to receive the applicable redemption price.

        The Company may, at any time after the occurrence of a Triggering Event,
provided that all necessary regulatory approvals have been obtained, exchange
the Rights (other than Rights owned by the Acquiring Person [or an Adverse
Person]), in whole or in part, at a ratio of one share of Common Stock per
Right, subject to adjustment.

        Until a Right is exercised, the holder has no rights as a Stockholder of
the Company, including, without limitation, the right to vote or to receive
dividends or distributions.

        At any time prior to the Distribution Date, the Company may, without the
approval of any holder of the Rights, supplement or amend any provision of the
Rights Agreement (including the date on which the Distribution Date will occur),
except the Purchase Price, the number of shares of Preferred Stock, other
securities, cash or other property obtainable upon exercise of a Right, the
redemption price or the Expiration Date. Thereafter, the Rights Agreement may be
amended only to cure ambiguities, to correct inconsistent provisions or in ways
that do not adversely affect the holders of the Rights.

        In the event of any merger or other business combination in which Common
Stock is exchanged, each share of Preferred Stock will be entitled to receive
two times the amount received per share of Common Stock. Customary antidilution
provisions protect these rights.

                                       C-4
<PAGE>

        Because of the nature of the Preferred Stock's dividend, liquidation and
voting rights, the value of the 1/1000th of a share of Preferred Stock
purchasable upon exercise of each Right is intended to approximate the value of
one share of Common Stock.

        The Rights have certain anti-takeover effects. The Rights may cause
substantial dilution to a person or group that attempts to acquire the Company
on terms not approved by the Company's Board of Directors. The Rights should not
interfere with any merger or other business combination approved by the Board of
Directors of the Company because, at any time until ten days following the Stock
Acquisition Date, subject to extension by the Board of Directors for a period of
time up to ten additional days, the Rights may be redeemed by the Company at
$0.001 per Right.

        A copy of the Rights Agreement has been filed with the Securities and
Exchange Commission and is available free of charge from the Company. This
summary description of the Rights does not purport to be complete and is
qualified in its entirety by reference to the Rights Agreement, which is hereby
incorporated herein by this reference.

                                       C-5<PAGE>
                                                                     EXHIBIT 4.1

         FORM OF INDENTURE TO BE ENTERED INTO BETWEEN THE COMPANY AND A
                              TRUSTEE TO BE NAMED

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

                              KRAMONT REALTY TRUST

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

                                    INDENTURE

                          Dated as of ____________ 200_

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

                                [Name of Trustee]

                                     Trustee

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

                             Senior Debt Securities

================================================================================
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                             Page
                                                                                                             ----
<S>                                                                                                          <C>
ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE .....................................................    1
       Section 1.1.   Definitions .........................................................................    1
       Section 1.2.   Other Definitions ...................................................................    5
       Section 1.3.   Incorporation by Reference of Trust Indenture Act ...................................    6
       Section 1.4.   Rules of Construction ...............................................................    6

ARTICLE II. SECURITIES ....................................................................................    6
       Section 2.1.   Amount Unlimited; Issuable in Series ................................................    6
       Section 2.2.   Establishment of Terms of Series of Securities ......................................    7
       Section 2.3.   Authentication and Delivery of Securities ...........................................    9
       Section 2.4.   Execution of Securities; Trustee's Certificate of Authentication; Form of Securities    10
       Section 2.5.   Registrar and Paying Agent ..........................................................   11
       Section 2.6.   Paying Agent to Hold Money in Trust .................................................   12
       Section 2.7.   Securityholder Lists ................................................................   12
       Section 2.8.   Transfer and Exchange ...............................................................   12
       Section 2.9.   Mutilated, Destroyed, Lost and Stolen Securities ....................................   12
       Section 2.10.  Outstanding Securities ..............................................................   13
       Section 2.11.  Treasury Securities .................................................................   14
       Section 2.12.  Temporary Securities ................................................................   14
       Section 2.13.  Cancellation ........................................................................   14
       Section 2.14.  Defaulted Interest ..................................................................   14
       Section 2.15.  Global Securities ...................................................................   15
       Section 2.16.  CUSIP Numbers .......................................................................   16

ARTICLE III. REDEMPTION ...................................................................................   16
       Section 3.1.   Notice to Trustee ...................................................................   16
       Section 3.2.   Selection of Securities to be Redeemed ..............................................   16
       Section 3.3.   Notice of Redemption ................................................................   17
       Section 3.4.   Effect of Notice of Redemption ......................................................   17
       Section 3.5.   Deposit of Redemption Price .........................................................   17
       Section 3.6.   Securities Redeemed in Part .........................................................   17

ARTICLE IV. COVENANTS ....................................................................................    18
       Section 4.1.   Payment of Principal and Interest ...................................................   18
       Section 4.2.   SEC Reports .........................................................................   18
       Section 4.3.   Compliance Certificate ..............................................................   18
       Section 4.4.   Stay, Extension and Usury Laws ......................................................   18
       Section 4.5.   Corporate Existence .................................................................   19
       Section 4.6.   Taxes ...............................................................................   19

ARTICLE V. SUCCESSORS .....................................................................................   19
       Section 5.1.   When Company May Merge, Etc. ........................................................   19
</TABLE>
<PAGE>
<TABLE>
<S>                                                                                                          <C>
       Section 5.2.   Successor Corporation Substituted ...................................................   19

ARTICLE VI. DEFAULTS AND REMEDIES .........................................................................   20
       Section 6.1.   Events of Default ...................................................................   20
       Section 6.2.   Acceleration of Maturity; Rescission and Annulment ..................................   21
       Section 6.3.   Collection of Indebtedness and Suits for Enforcement by Trustee .....................   22
       Section 6.4.   Trustee May File Proofs of Claim ....................................................   23
       Section 6.5.   Trustee May Enforce Claims Without Possession of Securities .........................   23
       Section 6.6.   Application of Money Collected ......................................................   24
       Section 6.7.   Limitation on Suits .................................................................   24
       Section 6.8.   Unconditional Right of Holders to Receive Principal and Interest ....................   25
       Section 6.9.   Restoration of Rights and Remedies ..................................................   25
       Section 6.10.  Rights and Remedies Cumulative ......................................................   25
       Section 6.11.  Delay or Omission Not Waiver ........................................................   25
       Section 6.12.  Control by Holders ..................................................................   25
       Section 6.13.  Waiver of Past Defaults .............................................................   26
       Section 6.14.  Undertaking for Costs ...............................................................   26

ARTICLE VII. TRUSTEE .....................................................................................    26
       Section 7.1.   Duties of Trustee ...................................................................   26
       Section 7.2.   Rights of Trustee ...................................................................   28
       Section 7.3.   Individual Rights of Trustee ........................................................   28
       Section 7.4.   Trustee's Disclaimer ................................................................   28
       Section 7.5.   Notice of Defaults ..................................................................   29
       Section 7.6.   Reports by Trustee to Holders .......................................................   29
       Section 7.7.   Compensation and Indemnity ..........................................................   29
       Section 7.8.   Replacement of Trustee ..............................................................   30
       Section 7.9.   Successor Trustee by Merger, Etc ....................................................   31
       Section 7.10.  Eligibility; Disqualification .......................................................   31
       Section 7.11.  Preferential Collection of Claims Against Company ...................................   31

ARTICLE VIII. SATISFACTION AND DISCHARGE; DEFEASANCE ......................................................   31
       Section 8.1.   Satisfaction and Discharge of Indenture .............................................   31
       Section 8.2.   Application of Trust Funds; Indemnification .........................................   32
       Section 8.3.   Legal Defeasance of Securities of any Series ........................................   33
       Section 8.4.   Covenant Defeasance .................................................................   34
       Section 8.5.   Repayment to Company ................................................................   35

ARTICLE IX. AMENDMENTS AND WAIVERS ........................................................................   36
       Section 9.1.   Without Consent of Holders ..........................................................   36
       Section 9.2.   With Consent of Holders .............................................................   36
       Section 9.3.   Limitations .........................................................................   37
       Section 9.4.   Compliance with Trust Indenture Act .................................................   37
       Section 9.5.   Revocation and Effect of Consents ...................................................   37
       Section 9.6.   Notation on or Exchange of Securities ...............................................   38
       Section 9.7.   Trustee Protected ...................................................................   38
</TABLE>

                                  ii
<PAGE>
<TABLE>
<S>                                                                                                          <C>
ARTICLE X. MISCELLANEOUS .................................................................................    38
       Section 10.1.  Trust Indenture Act Controls ........................................................   38
       Section 10.2.  Notices .............................................................................   38
       Section 10.3.  Communication by Holders with Other Holders .........................................   39
       Section 10.4.  Certificate and Opinion as to Conditions Precedent ..................................   39
       Section 10.5.  Statements Required in Certificate or Opinion .......................................   40
       Section 10.6.  Rules by Trustee and Agents .........................................................   40
       Section 10.7.  Legal Holidays ......................................................................   40
       Section 10.8.  No Recourse Against Others ..........................................................   40
       Section 10.9.  Counterparts ........................................................................   40
       Section 10.10. Governing Laws ......................................................................   41
       Section 10.11. No Adverse Interpretation of Other Agreements .......................................   41
       Section 10.12. Successors ..........................................................................   41
       Section 10.13. Severability ........................................................................   41
       Section 10.14. Table of Contents, Headings, Etc ....................................................   41
       Section 10.15. Securities in a Foreign Currency ....................................................   41
       Section 10.16. Judgment Currency ...................................................................   42

ARTICLE XI. SINKING FUNDS ................................................................................    42
       Section 11.1.  Applicability of Article ............................................................   42
       Section 11.2.  Satisfaction of Sinking Fund Payments with Securities ...............................   43
       Section 11.3.  Redemption of Securities for Sinking Fund ...........................................   43
</TABLE>

                                      iii
<PAGE>
                              KRAMONT REALTY TRUST

         Reconciliation and tie between Trust Indenture Act of 1939 and
                   Indenture, dated as of _____________, 200_

<TABLE>
<S>                                                                                      <C>
Section 310 (a)(1)     ...........................................................       7.10
            (a)(2)     ...........................................................       7.10
            (a)(3)     ...........................................................       Not Applicable
            (a)(4)     ...........................................................       Not Applicable
            (a)(5)     ...........................................................       7.10
            (b)        ...........................................................       7.10
Section 311 (a)        ...........................................................       7.11
            (b)        ...........................................................       7.11
            (c)        ...........................................................       Not Applicable
Section 312 (a)        ...........................................................       2.7
            (b)        ...........................................................       10.3
            (c)        ...........................................................       10.3
Section 313 (a)        ...........................................................       7.6
            (b)(1)     ...........................................................       7.6
            (b)(2)     ...........................................................       7.6
            (c)(1)     ...........................................................       7.6
            (d)        ...........................................................       7.6
Section 314 (a)        ...........................................................       4.2, 10.5
            (b)        ...........................................................       Not Applicable
            (c)(1)     ...........................................................       10.4
            (c)(2)     ...........................................................       10.4
            (c)(3)     ...........................................................       Not Applicable
            (d)        ...........................................................       Not Applicable
            (e)        ...........................................................       10.5
            (f)        ...........................................................       Not Applicable
Section 315 (a)        ...........................................................       7.1
            (b)        ...........................................................       7.5
            (c)        ...........................................................       7.1
            (d)        ...........................................................       7.1
            (e)        ...........................................................       6.14
Section 316 (a)        ...........................................................       2.10
            (a)(1)(A)  ...........................................................       6.12
            (a)(1)(B)  ...........................................................       6.13
            (b)        ...........................................................       6.8
Section 317 (a)(1)     ...........................................................       6.3
            (a)(2)     ...........................................................       6.4
            (b)        ...........................................................       2.6
Section 318 (a)        ...........................................................       10.1
</TABLE>

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

                                       iv
<PAGE>
            Indenture dated as of __________200_ between Kramont Realty Trust, a
Maryland real estate investment trust (the "Company"), and [Name of Trustee], a
________________ ("Trustee").

                                   WITNESSETH

      WHEREAS, the Company has duly authorized the issuance, execution and
delivery, from time to time, of its unsecured debentures, notes or other
evidences of indebtedness (hereinafter referred to as the "Securities"), without
limit as to principal amount, issuable in one or more Series (as hereinafter
defined), the amount and terms of each such Series to be determined as
hereinafter provided; and, to provide the terms and conditions upon which the
Securities are to be authenticated, issued and delivered, the Company has duly
authorized the execution of this Indenture;

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

      NOW, THEREFORE:

      In consideration of the premises and the purchases of the Securities by
the holders thereof, the Company and the Trustee mutually covenant and agree for
the equal and proportionate benefit of the respective holders from time to time
of the Securities as follows:

                                   ARTICLE I.
                   DEFINITIONS AND INCORPORATION BY REFERENCE

      Section 1.1. Definitions.

            "Additional Amounts" means any additional amounts which are required
hereby or by any Security, under circumstances specified herein or therein, to
be paid by the Company in respect of certain taxes imposed on Holders specified
therein and which are owing to such Holders.

            "Affiliate" of any specified person means any other person directly
or indirectly controlling or controlled by or under direct or indirect common
control with such specified person. For the purposes of this definition,
"control" (including, with correlative meanings, the terms "controlled by" and
"under common control with"), as used with respect to any person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such person, whether through the
ownership of voting securities or by agreement or otherwise.

            "Agent" means any Registrar, Paying Agent or Service Agent.

            "Authorized Newspaper" means a newspaper in an official language of
the country of publication customarily published at least once a day for at
least five days in each calendar week and of general circulation in the place in
connection with which the term is used. If it shall be impractical in the
opinion of the Trustee to make any publication of any notice
<PAGE>
required hereby in an Authorized Newspaper, any publication or other notice in
lieu thereof that is made or given by the Trustee shall constitute a sufficient
publication of such notice.

            "Bearer" means anyone in possession from time to time of a Bearer
Security.

            "Bearer Security" means any Security, including any interest coupon
appertaining thereto, that does not provide for the identification of the Holder
thereof.

            "Board of Trustees" means the Board of Trustees of the Company or
any duly authorized committee thereof.

            "Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been adopted by the
Board of Trustees or pursuant to authorization by the Board of Trustees and to
be in full force and effect on the date of the certificate and delivered to the
Trustee.

            "Business Day" means, unless otherwise provided by Board Resolution,
Officers' Certificate or supplemental indenture hereto for a particular Series,
any day except a Saturday, Sunday or a legal holiday in the City of New York on
which banking institutions are authorized or required by law, regulation or
executive order to close.

            "Company" means the party named as such above until a successor
replaces it and thereafter means the successor.

            "Company Order" means a written order signed in the name of the
Company by two Officers, one of whom must be the Company's chief executive
officer, chief financial officer or principal accounting officer.

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

            "Corporate Trust Office" means the office of the Trustee at which at
any particular time its corporate trust business shall be principally
administered.

            "Debt" of any person as of any date means, without duplication, all
obligations of such person in respect of borrowed money, including all interest,
fees and expenses owed in respect thereto (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 bonds, notes, debentures or similar instruments.

            "Default" means any event which is, or after notice or passage of
time would be, an Event of Default.

            "Depository" means, with respect to the Securities of any Series
issuable or issued in whole or in part in the form of one or more Global
Securities, the person designated as Depository for such Series by the Company,
which Depository shall be a clearing agency registered under the Exchange Act;
and if at any time there is more than one such person,

                                       2
<PAGE>
"Depository" as used with respect to the Securities of any Series shall mean the
Depository with respect to the Securities of such Series.

            "Discount Security" means any Security that provides for an amount
less than the stated principal amount thereof to be due and payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.2.

            "Dollars" means the currency of the United States of America.

            "Euro" means the single currency of participating member states of
the European Union.

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

            "Foreign Currency" means any currency or currency unit issued by a
government other than the government of the United States of America.

            "Foreign Government Obligations" means with respect to Securities of
any Series that are denominated in a Foreign Currency, (i) direct obligations of
the government that issued or caused to be issued such currency for the payment
of which obligations its full faith and credit is pledged or (ii) obligations of
a person controlled or supervised by or acting as an agency or instrumentality
of such government the timely payment of which is unconditionally guaranteed as
a full faith and credit obligation by such government, which, in either case
under clauses (i) or (ii), are not callable or redeemable at the option of the
issuer thereof.

            "Global Security" or "Global Securities" means a Security or
Securities, as the case may be, in the form established pursuant to Section 2.2
evidencing all or part of a Series of Securities, issued to the Depository for
such Series or its nominee, and registered in the name of such Depository or
nominee.

            "Holder" or "Securityholder" means a person in whose name a Security
is registered or the holder of a Bearer Security.

            "Indenture" means this Indenture as amended from time to time and
shall include the form and terms of particular Series of Securities established
as contemplated hereunder.

            "interest" with respect to any Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

            "Maturity," when used with respect to any Security or installment of
principal thereof, means the date on which the principal of such Security or
such 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, notice of option to elect repayment or otherwise.

            "Officer" means the Chairman of the Board, any President, any
Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any
Assistant Secretary of the Company.

                                       3
<PAGE>
            "Officers' Certificate" means a certificate signed by two Officers,
one of whom must be the Company's principal executive officer, principal
financial officer or principal accounting officer.

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

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

            "principal" of a Security means the principal of the Security plus,
when appropriate, the premium, if any, on, and any Additional Amounts in respect
of, the Security.

            "Responsible Officer" means any officer of the Trustee in its
Corporate Trust Office and also means, with respect to a particular corporate
trust matter, any other officer to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with a particular subject.

            "SEC" means the Securities and Exchange Commission.

            "Securities" has the meaning given such item in the preamble hereto.

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

            "Series" or "Series of Securities" means each series of debentures,
notes or other debt instruments of the Company created pursuant to Sections 2.1
and 2.2 hereof.

            "Significant Subsidiary" means (i) any direct or indirect Subsidiary
of the Company that would be a "significant subsidiary" as defined in Article 1,
Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such
regulation is in effect on the date hereof, or (ii) any group of direct or
indirect Subsidiaries of the Company that, taken together as a group, would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such regulation is in effect on
the date hereof.

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

            "Subsidiary" of any specified person means any corporation of which
at least a majority of the outstanding stock having by the terms thereof
ordinary voting power for the election of directors of such corporation
(irrespective of whether or not at the time stock of any other class or classes
of such corporation 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.

                                       4
<PAGE>
            "TIA" means the Trust Indenture Act of 1939 (15 U.S. Code Sections
77aaa-77bbbb) as in effect on the date of this Indenture; provided, however,
that in the event the Trust Indenture Act of 1939 is amended after such date,
"TIA" means, to the extent required by any such amendment, the Trust Indenture
Act as so amended.

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

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

      Section 1.2. Other Definitions.

<TABLE>
<CAPTION>
                                                                   DEFINED IN
TERM                                                                SECTION
----                                                                -------
<S>                                                                <C>
"Bankruptcy Law"                                                      6.1
"Custodian"                                                           6.1
"Event of Default"                                                    6.1
"Judgment Currency"                                                  10.16
"Legal Holiday"                                                      10.7
"mandatory sinking fund payment"                                     11.1
"Market Exchange Rate"                                               10.15
"New York Banking Day"                                               10.16
"optional sinking fund payment"                                      11.1
"Paying Agent"                                                        2.5
"Registrar"                                                           2.5
"Required Currency"                                                  10.16
"Service Agent"                                                       2.5
"successor person"                                                    5.1
</TABLE>

                                       5
<PAGE>
      Section 1.3. Incorporation by Reference of Trust Indenture Act.

            Whenever this Indenture refers to a provision of the TIA, the
provision is incorporated by reference in and made a part of this Indenture. The
following TIA terms used in this Indenture have the following meanings:

            "Commission" means the SEC.

            "indenture securities" means the Securities.

            "indenture security holder" means a Securityholder.

            "indenture to be qualified" means this Indenture.

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

            "obligor" on the indenture securities means the Company and any
successor obligor upon the Securities.

            All other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the TIA
and not otherwise defined herein are used herein as so defined.

      Section 1.4. Rules of Construction.

            Unless the context otherwise requires:

            (a) a term has the meaning assigned to it;

            (b) an accounting term not otherwise defined has the meaning
      assigned to it in accordance with generally accepted accounting
      principles;

            (c) "or" is not exclusive;

            (d) words in the singular include the plural, and in the plural
      include the singular; and

            (e) provisions apply to successive events and transactions.

                                   ARTICLE II.
                                   SECURITIES

      Section 2.1. Amount Unlimited; Issuable in Series.

            The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Securities
may be issued in one or more Series. All Securities of a Series shall be
identical except as may be set forth in a Board Resolution, a supplemental
indenture or an Officers' Certificate detailing the adoption of the terms
thereof pursuant to the authority granted under a Board Resolution. In the case
of Securities of a Series to be issued from time to time, the Board Resolution,
Officers' Certificate or supplemental

                                       6
<PAGE>
indenture may provide for the method by which specified terms (such as interest
rate, maturity date, record date or date from which interest shall accrue) are
to be determined. Securities may differ between Series in respect of any
matters, provided that all Series of Securities shall be equally and ratably
entitled to the benefits of the Indenture.

      Section 2.2. Establishment of Terms of Series of Securities.

            At or prior to the issuance of any Securities within a Series, the
following shall be established (as to the Series generally, in the case of
subparagraph 2.2.1 and either as to such Securities within the Series or as to
the Series generally in the case of subparagraphs 2.2.2 through 2.2.22) by a
Board Resolution, a supplemental indenture or an Officers' Certificate pursuant
to authority granted under a Board Resolution:

            2.2.1. the title of the Series (which shall distinguish the
Securities of that particular Series from the Securities of any other Series);

            2.2.2. the price or prices (expressed as a percentage of the
principal amount thereof) at which the Securities of the Series will be issued;

            2.2.3. any limit upon the aggregate principal amount of the
Securities of the Series which may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of the
Series pursuant to Section 2.8, 2.9, 2.10, 3.6 or 9.6);

            2.2.4. date or dates on which the principal of the Securities of the
Series is payable;

            2.2.5. the rate or rates (which may be fixed or variable) per annum
or, if applicable, the method used to determine such rate or rates (including,
but not limited to, any commodity, commodity index, stock exchange index or
financial index) at which the Securities of the Series shall bear interest, if
any, the date or dates from which such interest, if any, shall accrue, the date
or dates on which such interest, if any, shall commence and be payable and any
regular record date for the interest payable on any interest payment date;

            2.2.6. the place or places where the principal of and interest, if
any, on the Securities of the Series shall be payable, or the method of such
payment, if by wire transfer, mail or other means;

            2.2.7. if applicable, the period or periods within which, the price
or prices at which and the terms and conditions upon which the Securities of the
Series may be redeemed, in whole or in part, at the option of the Company;

            2.2.8. the obligation, if any, of the Company to redeem or purchase
the Securities of the Series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the period or periods within
which, the price or prices at which and the terms and conditions upon which
Securities of the Series shall be redeemed or purchased, in whole or in part,
pursuant to such obligation;

                                       7
<PAGE>
            2.2.9. the dates, if any, on which and the price or prices at which
the Securities of the Series will be repurchased by the Company at the option of
the Holders thereof and other detailed terms and provisions of such repurchase
obligations;

            2.2.10. if other than denominations of $1,000 and any integral
multiple thereof, the denominations in which the Securities of the Series shall
be issuable;

            2.2.11. the forms of the Securities of the Series in bearer or fully
registered form (and, if in fully registered form, whether the Securities will
be issuable as Global Securities);

            2.2.12. if other than the principal amount thereof, the portion of
the principal amount of the Securities of the Series that shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.2;

            2.2.13. the currency of denomination of the Securities of the
Series, which may be Dollars or any Foreign Currency, including, but not limited
to, the Euro, and if such currency of denomination is a composite currency other
than the Euro, the agency or organization, if any, responsible for overseeing
such composite currency;

            2.2.14. the designation of the currency, currencies or currency
units in which payment of the principal of and interest, if any, on the
Securities of the Series will be made;

            2.2.15. if payments of principal of or interest, if any, on the
Securities of the Series are to be made in one or more currencies or currency
units other than that or those in which such Securities are denominated, the
manner in which the exchange rate with respect to such payments will be
determined;

            2.2.16. the manner in which the amounts of payment of principal of
or interest on, if any, the Securities of the Series will be determined, if such
amounts may be determined by reference to an index based on a currency or
currencies or by reference to a commodity, commodity index, stock exchange index
or financial index;

            2.2.17. the provisions, if any, relating to any security provided
for the Securities of the Series;

            2.2.18. if the holders of Securities of the Series may convert or
exchange the Securities into or for securities of the Issuer or other property,
the period or periods within which, the rate or rates at which and the terms and
conditions upon which Securities of the Series may be converted or exchanged, in
whole or in part;

            2.2.19. any addition to or change in the Events of Default which
applies to any Securities of the Series and any change in the right of the
Trustee or the requisite Holders of such Securities to declare the principal
amount thereof due and payable pursuant to Section 6.2;

            2.2.20. any addition to or change in the covenants set forth in
Articles IV or V which applies to Securities of the Series;

                                       8
<PAGE>
            2.2.21. any other terms of the Securities of the Series (which terms
shall not be inconsistent with the provisions of this Indenture, except as
permitted by Section 9.1, but which may modify or delete any provision of this
Indenture insofar as it applies to such Series); and

            2.2.22. any depositories, interest rate calculation agents, exchange
rate calculation agents or other agents with respect to Securities of such
Series if other than those appointed herein.

            All Securities of any one Series need not be issued at the same time
and may be issued from time to time, consistent with the terms of this
Indenture, if so provided by or pursuant to the Board Resolution, supplemental
indenture or Officers' Certificate referred to above, and the authorized
principal amount of any Series may not be increased to provide for issuances of
additional Securities of such Series, unless otherwise provided in such Board
Resolution, supplemental indenture or Officers' Certificate.

      Section 2.3. Authentication and Delivery of Securities.

            At any time and from time to time after the execution and delivery
of this Indenture, the Company may deliver any Series of Securities executed by
the Company to the Trustee for authentication by it, and the Trustee shall
thereupon authenticate and deliver said Securities to or upon a Company Order,
without any further corporate action by the Company. If the form or terms of
such Series of Securities have been established in or pursuant to one or more
Board Resolutions or a supplemental indenture as permitted by this Section 2.3
and Section 2.2, in authenticating such Securities and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to Section 7.1) shall be
fully protected in relying upon:

                  (1) each Board Resolution relating to such Series of
            Securities;

                  (2) an executed supplemental indenture, if any, relating to
            such series of Securities;

                  (3) an Officers' Certificate setting forth the form and terms
            of the Securities, stating that the form and terms of the Securities
            have been established pursuant to Section 2.2 and subparagraph 2.4.3
            and comply with this Indenture, and covering such other matters as
            the Trustee may reasonably request;

                  (4) an Opinion of Counsel to the effect that:

                  (a) if the form of such Securities has been established by or
                  pursuant to resolutions of the Board of Trustees of the
                  Company as permitted by subparagraph 2.4.3 that such form has
                  been established in conformity with the provisions of this
                  Indenture;

                  (b) if the terms of such Securities have been established by
                  or pursuant to Board Resolutions as permitted by this Section
                  2.1, that such terms have been established in conformity with
                  the provisions of this Indenture;

                                       9
<PAGE>
                  (c) that such Securities, when authenticated and delivered by
                  the Trustee and executed and issued by the Company in the
                  manner and subject to any conditions specified in such Opinion
                  of Counsel, will be valid and binding obligations of the
                  Company, except as any rights thereunder may be limited by
                  bankruptcy, insolvency and other similar laws affecting the
                  enforcement of creditor's rights generally and by general
                  equity principles;

                  (d) that all laws and requirements in respect of the execution
                  and delivery by the Company of such Securities have been
                  complied with and that authentication and delivery of the
                  Securities by the Trustee will not violate the terms of this
                  Indenture; and

                  (e) covering such other matters as the Trustee may reasonably
                  request.

            Each fully registered Security shall be dated the date of its
authentication. Any series of Bearer Securities shall be dated as provided in
the Board Resolution or the provisions of the supplemental indenture creating
such series.

      Section 2.4. Execution of Securities; Trustee's Certificate of
Authentication; Form of Securities.

            2.4.1. Two Officers shall sign the Securities for the Company by
manual or facsimile signature.

                  If an Officer whose signature is on a Security no longer holds
that office at the time the Security is authenticated, the Security shall
nevertheless be valid.

            2.4.2. Only such Securities bearing a certificate of authentication
executed by the Trustee by the manual signature of one of its Responsible
Officers, shall be entitled to the benefits of this Indenture or be valid or
obligatory for any purpose. Such certificate by the Trustee upon any Security
executed by the Company shall be conclusive evidence that the Security so
authenticated has been duly authenticated and delivered hereunder and that the
Holder is entitled to the benefits of this Indenture.

                  The Trustee shall have the right to decline to authenticate
and deliver any Securities of such Series: (a) if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken; or (b) if the
Trustee in good faith by its board of directors or trustees, executive committee
or a trust committee of directors and/or vice-presidents shall determine that
such action would expose the Trustee to personal liability to Holders of any
then outstanding Series of Securities.

                  The Trustee may appoint an authenticating agent acceptable to
the Company to authenticate Securities. An authenticating agent may authenticate
Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with the Company or
an Affiliate.

                                       10
<PAGE>
            2.4.3. The Securities of each series shall be substantially of the
tenor and purport as shall be authorized by a Board Resolution or in an
indenture or indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification or designation and such legends or endorsements thereon as the
Board of Trustees of the Company may deem appropriate and as are not
inconsistent with the provisions of this Indenture, or as may be required to
comply with any law or with any rule or regulation made pursuant thereto or with
any rule or regulation of any stock exchange on which the Securities may be
listed, or to conform to usage.

                  The definitive Securities may be printed, lithographed or
fully or partly engraved or produced in any other manner, all as determined by
the officers executing such Securities, as evidenced by their executions
thereof.

      Section 2.5. Registrar and Paying Agent.

            The Company shall maintain, with respect to each Series of
Securities, at the place or places specified with respect to such Series
pursuant to Section 2.2, an office or agency where Securities of such Series may
be presented or surrendered for payment ("Paying Agent"), where Securities of
such Series may be surrendered for registration of transfer or exchange
("Registrar") and where notices and demands to or upon the Company in respect of
the Securities of such Series and this Indenture may be served ("Service
Agent"). The Registrar shall keep a register with respect to each Series of
Securities and to their transfer and exchange. The Company will give prompt
written notice to the Trustee of the name and address, and any change in the
name or address, of each Registrar, Paying Agent or Service Agent. If at any
time the Company shall fail to maintain any such required Registrar, Paying
Agent or Service Agent or shall fail to furnish the Trustee with the name and
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 such presentations, surrenders,
notices and demands.

            The Company may also from time to time designate one or more
co-registrars, additional paying agents or additional service agents and may
from time to time rescind such designations; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligations to maintain a Registrar, Paying Agent and Service Agent in each
place so specified pursuant to Section 2.2 for Securities of any Series for such
purposes. The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the name or address of any such
co-registrar, additional paying agent or additional service agent. The term
"Registrar" includes any co-registrar; the term "Paying Agent" includes any
additional paying agent; and the term "Service Agent" includes any additional
service agent.

            The Company hereby appoints the Trustee the initial Registrar,
Paying Agent and Service Agent for each Series unless another Registrar, Paying
Agent or Service Agent, as the case may be, is appointed prior to the time
Securities of that Series are first issued.

                                       11
<PAGE>
      Section 2.6. Paying Agent to Hold Money in Trust.

            The Company shall require each Paying Agent other than the Trustee
to agree in writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money held by
the Paying Agent for the payment of principal of or interest on the Series of
Securities, and will notify the Trustee of any default by the Company in making
any such payment. While any such default continues, the Trustee may require a
Paying Agent 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 the 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 Securityholders of any Series of Securities all money
held by it as Paying Agent.

      Section 2.7. Securityholder Lists.

            The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Securityholders of each Series of Securities and shall otherwise comply with TIA
Section 312(a). If the Trustee is not the Registrar, the Company shall furnish
to the Trustee at least ten days before each interest payment date and at such
other times as the Trustee may request in writing a list, in such form and as of
such date as the Trustee may reasonably require, of the names and addresses of
Securityholders of each Series of Securities.

      Section 2.8. Transfer and Exchange.

            Where Securities of a Series are presented to the Registrar with a
request to register a transfer or to exchange them for an equal principal amount
of Securities of the same Series, the Registrar shall register the transfer or
make the exchange if its requirements for such transactions are met. To permit
registrations of transfers and exchanges, the Trustee shall authenticate
Securities at the Registrar's request. No service charge shall be made for any
registration of transfer or exchange (except as otherwise expressly permitted
herein), 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 tax or similar governmental charge payable upon
exchanges pursuant to Sections 2.12, 3.6 or 9.6).

            Neither the Company nor the Registrar shall be required (a) to
issue, register the transfer of, or exchange Securities of any Series for the
period beginning at the opening of business 15 days immediately preceding the
mailing of a notice of redemption of Securities of that Series selected for
redemption and ending at the close of business on the day of such mailing, or
(b) to register the transfer of or exchange Securities of any Series selected,
called or being called for redemption as a whole or the portion being redeemed
of any such Securities selected, called or being called for redemption in part.

      Section 2.9. Mutilated, Destroyed, Lost and Stolen Securities.

            If any mutilated Security is surrendered to the Trustee, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same

                                       12
<PAGE>
Series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

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

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

            Upon the issuance of any new Security under this Section 2.9, the
Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

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

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

      Section 2.10. Outstanding Securities.

            The Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those delivered to
it for cancellation, those reductions in the interest on a Global Security
effected by the Trustee in accordance with the provisions hereof and those
described in this Section as not outstanding.

            If a Security is replaced pursuant to Section 2.9, it ceases to be
outstanding until the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

            If the Paying Agent (other than the Company, a Subsidiary or an
Affiliate of any thereof) holds on the Maturity of Securities of a Series money
sufficient to pay such Securities payable on that date, then on and after that
date such Securities of the Series cease to be outstanding and interest on them
ceases to accrue.

            A Security does not cease to be outstanding because the Company or
an Affiliate holds the Security.

                                       13
<PAGE>
            In determining whether the Holders of the requisite principal amount
of outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of a
Discount Security that shall be deemed to be outstanding for such purposes shall
be the amount of the principal thereof that would be due and payable as of the
date of such determination upon a declaration of acceleration of the Maturity
thereof pursuant to Section 6.2.

      Section 2.11. Treasury Securities.

            In determining whether the Holders of the required principal amount
of Securities of a Series have concurred in any request, demand, authorization,
direction, notice, consent or waiver, Securities of a Series owned by the
Company or an Affiliate shall be disregarded, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
request, demand, authorization, direction, notice, consent or waiver only
Securities of a Series that the Trustee knows are so owned shall be so
disregarded.

      Section 2.12. Temporary Securities.

            Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities upon a Company
Order. Temporary Securities shall be substantially in the form of definitive
Securities but may have variations that the Company considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and
the Trustee upon request shall authenticate definitive Securities of the same
Series and date of maturity in exchange for temporary Securities. Until so
exchanged, temporary securities shall have the same rights under this Indenture
as the definitive Securities.

      Section 2.13. Cancellation.

            The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee
any Securities surrendered to them for registration of transfer, exchange or
payment. The Trustee shall cancel all Securities surrendered for transfer,
exchange, payment, replacement or cancellation and shall destroy such canceled
Securities (subject to the record retention requirement of the Exchange Act) and
deliver a certificate of such destruction to the Company, unless the Company
otherwise directs. The Company may not issue new Securities to replace
Securities that it has paid or delivered to the Trustee for cancellation.

      Section 2.14. Defaulted Interest.

            If the Company defaults in a payment of interest on a Series of
Securities, it shall pay the defaulted interest, plus, to the extent permitted
by law, any interest payable on the defaulted interest, to the persons who are
Securityholders of the Series on a subsequent special record date. The Company
shall fix the record date and payment date. At least 30 days before the record
date, the Company shall mail to the Trustee and to each Securityholder of the
Series a notice that states the record date, the payment date and the amount of
interest to be paid. The Company may pay defaulted interest in any other lawful
manner.

                                       14
<PAGE>
      Section 2.15. Global Securities.

            2.15.1. Terms of Securities. A Board Resolution, a supplemental
indenture hereto or an Officers' Certificate shall establish whether the
Securities of a Series shall be issued in whole or in part in the form of one or
more Global Securities and the Depository for such Global Security or
Securities.

            2.15.2. Transfer and Exchange. Notwithstanding any provisions to the
contrary contained in Section 2.8 of the Indenture and in addition thereto, any
Global Security shall be exchangeable pursuant to Section 2.8 of the Indenture
for Securities registered in the names of Holders other than the Depository for
such Security or its nominee only if (i) such Depository notifies the Company
that it is unwilling or unable to continue as Depository for such Global
Security or if at any time such Depository ceases to be a clearing agency
registered under the Exchange Act, and, in either case, the Company fails to
appoint a successor Depository within 90 days of such event, (ii) the Company
executes and delivers to the Trustee an Officers' Certificate to the effect that
such Global Security shall be so exchangeable or (iii) an Event of Default with
respect to the Securities represented by such Global Security shall have
happened and be continuing. Any Global Security that is exchangeable pursuant to
the preceding sentence shall be exchangeable for Securities registered in such
names as the Depository shall direct in writing in an aggregate principal amount
equal to the principal amount of the Global Security with like tenor and terms.

            Except as provided in this Section 2.15.2, a Global Security may not
be transferred except as a whole by the Depository with respect to such Global
Security to a nominee of such Depository, by a nominee of such Depository to
such Depository or another nominee of such Depository or by the Depository or
any such nominee to a successor Depository or a nominee of such a successor
Depository.

            2.15.3. Legend. Any Global Security issued hereunder shall bear a
legend in substantially the following form:

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

            2.15.4. Acts of Holders. The Depository, as a Holder, may appoint
agents and otherwise authorize participants to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action which a Holder
is entitled to give or take under the Indenture.

            2.15.5. Payments. Notwithstanding the other provisions of this
Indenture, unless otherwise specified as contemplated by Section 2.2, payment of
the principal of and interest, if any, on any Global Security shall be made to
the Holder thereof.

                                       15
<PAGE>
            2.15.6. Consents, Declaration and Directions. Except as provided in
subparagraph 2.15.5, the Company, the Trustee and any Agent shall treat a person
as the Holder of such principal amount of outstanding Securities of such Series
represented by a Global Security as shall be specified in a written statement of
the Depository with respect to such Global Security, for purposes of obtaining
any consents, declarations, waivers or directions required to be given by the
Holders pursuant to this Indenture.

      Section 2.16. CUSIP Numbers.

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

                                  ARTICLE III.
                                   REDEMPTION

      Section 3.1. Notice to Trustee.

            The Company may, with respect to any Series of Securities, reserve
the right to redeem and pay the Series of Securities or may covenant to redeem
and pay the Series of Securities or any part thereof prior to the Stated
Maturity thereof at such time and on such terms as provided for in such
Securities. If a Series of Securities is redeemable and the Company wants or is
obligated to redeem prior to the Stated Maturity thereof all or part of the
Series of Securities pursuant to the terms of such Securities, it shall notify
the Trustee of the redemption date and the principal amount of Series of
Securities to be redeemed. The Company shall give the notice at least 45 days
before the redemption date (or such shorter notice as may be acceptable to the
Trustee).

      Section 3.2. Selection of Securities to be Redeemed.

            Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture or an Officers' Certificate, if less than
all the Securities of a Series are to be redeemed, the Trustee shall select the
Securities of the Series to be redeemed in any manner that the Trustee deems
fair and appropriate. The Trustee shall make the selection from Securities of
the Series outstanding not previously called for redemption. The Trustee may
select for redemption portions of the principal of Securities of the Series that
have denominations larger than $1,000. Securities of the Series and portions of
them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or,
with respect to Securities of any Series issuable in other denominations
pursuant to Section 2.2.10, the minimum principal denomination for each Series
and integral multiples thereof. Provisions of this Indenture that apply to
Securities of a Series called for redemption also apply to portions of
Securities of that Series called for redemption.

                                       16
<PAGE>
      Section 3.3. Notice of Redemption.

            Unless otherwise indicated for a particular Series by Board
Resolution, a supplemental indenture hereto or an Officers' Certificate, at
least 30 days but not more than 60 days before a redemption date, the Company
shall mail a notice of redemption by first-class mail to each Holder whose
Securities are to be redeemed and if any Bearer Securities are outstanding,
publish on one occasion a notice in an Authorized Newspaper.

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

            (a) the redemption date;

            (b) the redemption price;

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

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

            (e) that interest on Securities of the Series called for redemption
      ceases to accrue on and after the redemption date; and

            (f) any other information as may be required by the terms of the
      particular Series or the Securities of a Series being redeemed.

            At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense.

      Section 3.4. Effect of Notice of Redemption.

            Once notice of redemption is mailed or published as provided in
Section 3.3, Securities of a Series called for redemption become due and payable
on the redemption date and at the redemption price. A notice of redemption may
not be conditional. Upon surrender to the Paying Agent, such Securities shall be
paid at the redemption price plus accrued interest to the redemption date.

      Section 3.5. Deposit of Redemption Price.

            On or before the redemption date, the Company shall deposit with the
Paying Agent money sufficient to pay the redemption price of and accrued
interest, if any, on all Securities to be redeemed on that date.

      Section 3.6. Securities Redeemed in Part.

            Upon surrender of a Security that is redeemed in part, the Trustee
shall authenticate for the Holder a new Security of the same Series and the same
maturity equal in principal amount to the unredeemed portion of the Security
surrendered.

                                       17
<PAGE>
                                  ARTICLE IV.
                                    COVENANTS

      Section 4.1. Payment of Principal and Interest.

            The Company covenants and agrees for the benefit of the Holders of
each Series of Securities that it will duly and punctually pay the principal of
and interest, if any, on the Securities of that Series in accordance with the
terms of such Securities and this Indenture.

      Section 4.2. SEC Reports.

            The Company shall deliver to the Trustee within 15 days after it
files them with the SEC copies of the annual reports and of the information,
documents, and other reports (or copies of such portions of any of the foregoing
as the SEC may by rules and regulations prescribe) which the Company is required
to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The
Company also shall comply with the other provisions of TIA Section 314(a).

      Section 4.3. Compliance Certificate.

            The Company shall deliver to the Trustee, within 90 days after the
end of each fiscal year of the Company, an Officers' Certificate stating that a
review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his knowledge the Company has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions hereof
(or, if a Default or Event of Default shall have occurred, describing all such
Defaults or Events of Default of which he may have knowledge).

      The Company will, so long as any of the Securities are outstanding,
deliver to the Trustee, forthwith upon becoming aware of any Default or Event of
Default, an Officers' Certificate specifying such Default or Event of Default
and what action the Company is taking or proposes to take with respect thereto.

            Section 4.4. Stay, Extension and Usury Laws.

      The Company covenants (to the extent that it may lawfully do so) that it
will not at any time insist upon, plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture or the Securities; and the Company (to the
extent it may lawfully do so) hereby expressly waives all benefit or advantage
of any such law and covenants that it will not, by resort to any such law,
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 has been enacted.

                                       18
<PAGE>
      Section 4.5. Corporate Existence.

            Subject to Article V, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the corporate, partnership or other existence of each Significant
Subsidiary in accordance with the respective organizational documents of each
Significant Subsidiary and the rights (charter and statutory), licenses and
franchises of the Company and its Significant Subsidiaries; provided, however,
that the Company shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any Significant
Subsidiary, if the Board of Trustees shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company and
its Subsidiaries taken as a whole and that the loss thereof is not adverse in
any material respect to the Holders.

      Section 4.6. Taxes.

            The Company shall, and shall cause each of its Significant
Subsidiaries to, pay prior to delinquency all taxes, assessments and
governmental levies, except as contested in good faith and by appropriate
proceedings.

                                   ARTICLE V.
                                   SUCCESSORS

      Section 5.1. When Company May Merge, Etc.

            The Company shall not consolidate with or merge into, or convey,
transfer or lease all or substantially all of its properties and assets to, any
person (a "successor person"), and may not permit any person to merge into, or
convey, transfer or lease its properties and assets substantially as an entirety
to, the Company, unless:

            (a) the successor person (if any) is a corporation, partnership,
      trust or other entity organized and validly existing under the laws of any
      U.S. domestic jurisdiction and expressly assumes the Company's obligations
      on the Securities and under this Indenture and

            (b) immediately after giving effect to the transaction, no Default
      or Event of Default shall have occurred and be continuing.

            The Company shall deliver to the Trustee prior to the consummation
of the proposed transaction an Officers' Certificate to the foregoing effect and
an Opinion of Counsel stating that the proposed transaction and such
supplemental indenture comply with this Indenture.

      Section 5.2. Successor Corporation Substituted.

            Upon any consolidation or merger, or any sale, lease, conveyance or
other disposition of all or substantially all of the assets of the Company in
accordance with Section 5.1, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such sale,
lease, conveyance or other disposition is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this

                                       19
<PAGE>
Indenture with the same effect as if such successor person has been named as the
Company herein; provided, however, that the predecessor Company in the case of a
sale, lease, conveyance or other disposition shall not be released from the
obligation to pay the principal of and interest, if any, on the Securities.

                                  ARTICLE VI.
                              DEFAULTS AND REMEDIES

      Section 6.1. Events of Default.

            "Event of Default," wherever used herein with respect to Securities
of any Series, means any one of the following events, unless in the establishing
Board Resolution, supplemental indenture or Officers' Certificate it is provided
that such Series shall not have the benefit of said Event of Default:

            (a) default in the payment of any interest on any Security of that
      Series when it becomes due and payable, and continuance of such default
      for a period of 30 days (unless the entire amount of such payment is
      deposited by the Company with the Trustee or with a Paying Agent prior to
      the expiration of such period of 30 days); or

            (b) default in the payment of the principal of any Security of that
      Series at its Maturity; or

            (c) default in the deposit of any sinking fund payment, when and as
      due in respect of any Security of that Series; or

            (d) default in the performance or breach of any covenant or warranty
      of the Company in this Indenture (other than a covenant or warranty that
      has been included in this Indenture solely for the benefit of Series of
      Securities other than that Series), which default continues uncured for a
      period of 60 days after there has been given, by registered or certified
      mail, to the Company by the Trustee or to the Company and the Trustee by
      the Holders of at least 25% in principal amount of the outstanding
      Securities of that Series a written notice specifying such default or
      breach and requiring it to be remedied and stating that such notice is a
      "Notice of Default" hereunder; or

            (e) the Company or any of its Significant Subsidiaries pursuant to
      or within the meaning of any Bankruptcy Law:

                  (i) commences a voluntary case,

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

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

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

                  (v) generally is unable to pay its debts as the same become
            due; or

                                       20
<PAGE>
            (f) a court of competent jurisdiction enters an order or decree
      under any Bankruptcy Law that:

                  (i) is for relief against the Company or any of its
            Significant Subsidiaries in an involuntary case,

                  (ii) appoints a Custodian of the Company or any of its
            Significant Subsidiaries or for all or substantially all of its
            property, or

                  (iii) orders the liquidation of the Company or any of its
            Significant Subsidiaries,

and the order or decree remains unstayed and in effect for 60 days; or

            (g) any other Event of Default provided with respect to Securities
      of that Series, which is specified in a Board Resolution, a supplemental
      indenture hereto or an Officers' Certificate, in accordance with
      subparagraph 2.2.19.

            The term "Bankruptcy Law" means Title 11, U.S. Code or any similar
Federal or state law for the relief of debtors. The term "Custodian" means any
receiver, trustee, assignee, liquidator or similar official under any Bankruptcy
Law.

      Section 6.2. Acceleration of Maturity; Rescission and Annulment.

            If an Event of Default with respect to Securities of any Series at
the time outstanding occurs and is continuing (other than an Event of Default
referred to in Section 6.1(e) or (f)) then in every such case the Trustee or the
Holders of not less than 25% in principal amount of the outstanding Securities
of that Series may declare the principal amount (or, if any Securities of that
Series are Discount Securities, such portion of the principal amount as may be
specified in the terms of such Securities) of and accrued and unpaid interest,
if any, on all of the Securities of that Series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount) and accrued and unpaid interest, if any, shall become immediately due
and payable. If an Event of Default specified in Section 6.1(e) or (f) shall
occur, the principal amount (or specified amount) of and accrued and unpaid
interest, if any, on all outstanding Securities shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder.

            At any time after such a declaration of acceleration with respect to
any Series has been made and before a judgment or decree for payment of the
money due has been obtained by the Trustee as hereinafter in this Article VI
provided, the Holders of a majority in principal amount of the outstanding
Securities of that Series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if:

            (a) the Company has paid or deposited with the Trustee a sum
      sufficient to pay

                  (i) all overdue interest, if any, on all Securities of that
            Series,

                                       21
<PAGE>
                  (ii) the principal of any Securities of that Series which have
            become due otherwise than by such declaration of acceleration and
            interest thereon at the rate or rates prescribed therefor in such
            Securities,

                  (iii) to the extent that payment of such interest is lawful,
            interest upon any overdue principal and overdue interest at the rate
            or rates prescribed therefor in such Securities, and

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

      and

            (b) all Events of Default with respect to Securities of that Series,
      other than the non-payment of the principal of Securities of that Series
      which have become due solely by such declaration of acceleration, have
      been cured or waived as provided in Section 6.13.

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

      Section 6.3. Collection of Indebtedness and Suits for Enforcement by
Trustee.

            The Company covenants that if

            (a) default is made in the payment of any interest on any Security
      when such interest becomes due and payable and such default continues for
      a period of 30 days, or

            (b) default is made in the payment of principal of any Security at
      the Maturity thereof, or

            (c) default is made in the deposit of any sinking fund payment when
      and as due by the terms of a Security,

then, the Company will, upon demand of the Trustee, pay to it, for the benefit
of the Holders of such Securities, the whole amount then due and payable on such
Securities for principal and interest and, to the extent that payment of such
interest shall be legally enforceable, interest on any overdue principal or any
overdue interest, at the rate or rates prescribed therefor in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

            If the Company fails to pay such amounts 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, may
prosecute such proceeding to judgment or final decree and may enforce the same
against the Company or any other obligor upon such Securities and collect the
moneys adjudged or deemed to be payable in the manner provided by

                                       22
<PAGE>
law out of the property of the Company or any other obligor upon such
Securities, wherever situated.

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

      Section 6.4. Trustee May File Proofs of Claim.

            In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal 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
      interest owing and unpaid in respect of the Securities and to file such
      other papers or documents as may be necessary or advisable in order to
      have the claims of the Trustee (including any claim for the reasonable
      compensation, expenses, disbursements and advances of the Trustee, its
      agents and counsel) and of the Holders 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
      custodian, receiver, assignee, trustee, liquidator, sequestrator or other
      similar official in any such judicial proceeding is hereby authorized by
      each Holder to make such payments to the Trustee and, in the event that
      the Trustee shall consent to the making of such payments directly to the
      Holders, to pay to the Trustee any amount due it for the reasonable
      compensation, expenses, disbursements and advances of the Trustee, its
      agents and counsel, and any other amounts due the Trustee under Section
      7.7.

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

      Section 6.5. Trustee May Enforce Claims Without Possession of Securities.

            All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee 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,

                                       23
<PAGE>
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

      Section 6.6. Application of Money Collected.

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

            First: To the payment of all amounts due the Trustee under Section
7.7; and

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

            Third: To the Company.

      Section 6.7. Limitation on Suits.

            No Holder of any Security of any Series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless

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

            (b) the Holders of not less than 25% in principal amount of the
      outstanding Securities of that Series shall have made written request to
      the Trustee to institute proceedings in respect of such Event of Default
      in its own name as Trustee hereunder;

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

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

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

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

                                       24
<PAGE>
      Section 6.8. Unconditional Right of Holders to Receive Principal and
Interest.

            Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Security on
the Stated Maturity or Stated Maturities expressed in such Security (or, in the
case of redemption, on the redemption date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without
the consent of such Holder.

      Section 6.9. Restoration of Rights and Remedies.

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

      Section 6.10. Rights and Remedies Cumulative.

            Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities in Section 2.9, 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, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

      Section 6.11. Delay or Omission Not Waiver.

            No delay or omission of the Trustee or of any Holder of any
Securities to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this
Article VI 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 a majority in principal amount of the outstanding
Securities of any Series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of such Series, provided that

            (a) such direction shall not be in conflict with any rule of law or
      with this Indenture,

                                       25
<PAGE>
            (b) the Trustee may take any other action deemed proper by the
      Trustee which is not inconsistent with such direction, and

            (c) subject to the provisions of Section 6.1, the Trustee shall have
      the right to decline to follow any such direction if the Trustee in good
      faith shall, by a Responsible Officer of the Trustee, determine that the
      proceeding so directed would involve the Trustee in personal liability.

      Section 6.13. Waiver of Past Defaults.

            The Holders of not less than a majority in principal amount of the
outstanding Securities of any Series may on behalf of the Holders of all the
Securities of such Series waive any past Default hereunder with respect to such
Series and its consequences, except a Default in the payment of the principal of
or interest on any Security of such Series (provided, however, that the Holders
of a majority in principal amount of the outstanding Securities of any Series
may rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration). Upon any such waiver, such
Default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

      Section 6.14. Undertaking for Costs.

            All parties to this Indenture agree, and each Holder of any Security
by his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 6.14 shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in principal
amount of the outstanding Securities of any Series, or to any suit instituted by
any Holder for the enforcement of the payment of the principal of or interest on
any Security on or after the Stated Maturity or Stated Maturities expressed in
such Security (or, in the case of redemption, on the redemption date).

                                  ARTICLE VII.
                                     TRUSTEE

      Section 7.1. Duties of Trustee.

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

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

                                       26
<PAGE>
                  (i) The Trustee need perform only those duties that are
            specifically set forth in this Indenture and no others.

                  (ii) In the absence of bad faith on its part, the Trustee may
            conclusively rely, as to the truth of the statements and the
            correctness of the opinions expressed therein, upon Officers'
            Certificates or Opinions of Counsel furnished to the Trustee and
            conforming to the requirements of this Indenture; however, in the
            case of any such Officers' Certificates or Opinions of Counsel which
            by any provisions hereof are specifically required to be furnished
            to the Trustee, the Trustee shall examine such Officers'
            Certificates and Opinions of Counsel to determine whether or not
            they conform to the requirements of this Indenture.

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

                  (i) This paragraph does not limit the effect of paragraph (b)
            of this Section.

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

                  (iii) The Trustee shall not be liable with respect to any
            action taken, suffered or omitted to be taken by it with respect to
            Securities of any Series in good faith in accordance with the
            direction of the Holders of a majority in principal amount of the
            outstanding Securities of such Series relating to the time, method
            and place of conducting any proceeding for any remedy available to
            the Trustee, or exercising any trust or power conferred upon the
            Trustee, under this Indenture with respect to the Securities of such
            Series.

            (d) Every provision of this Indenture that in any way relates to the
      Trustee is subject to paragraph (a), (b) and (c) of this Section 7.1.

            (e) The Trustee may refuse to perform any duty or exercise any right
      or power unless it receives indemnity satisfactory to it against any loss,
      liability or expense.

            (f) The Trustee shall not be liable for interest on any money
      received by it except as the Trustee may agree in writing with the
      Company. Money held in trust by the Trustee need not be segregated from
      other funds except to the extent required by law.

            (g) No provision of this Indenture shall require the Trustee to risk
      its own funds or otherwise incur any financial liability in the
      performance of any of its duties, 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 is not
      reasonably assured to it.

                                       27
<PAGE>
            (h) The Paying Agent, the Registrar and any authenticating agent
      shall be entitled to the protections, immunities and standard of care as
      are set forth in paragraphs (a), (b) and (c) of this Section with respect
      to the Trustee.

            Section 7.2. Rights of Trustee.

            (a) The Trustee may rely on and shall be protected in acting or
      refraining from acting upon any document believed by it to be genuine and
      to have been signed or presented by the proper person. The Trustee need
      not investigate any fact or matter stated in the document.

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

            (c) The Trustee may act through agents and shall not be responsible
      for the misconduct or negligence of any agent appointed with due care. No
      Depository shall be deemed an agent of the Trustee and the Trustee shall
      not be responsible for any act or omission by any Depository.

            (d) The Trustee shall not be liable for any action it takes or omits
      to take in good faith which it believes to be authorized or within its
      rights or powers.

            (e) The Trustee may consult with counsel 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.

            (f) The Trustee shall be under no obligation to exercise any of the
      rights or powers vested in it by this Indenture at the request or
      direction of any of the Holders of Securities unless such Holders shall
      have offered to the Trustee reasonable security or indemnity against the
      costs, expenses and liabilities which might be incurred by it in
      compliance with such request or direction.

      Section 7.3. Individual Rights of Trustee.

            The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or an
Affiliate with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. The Trustee is also subject to Sections 7.10
and 7.11.

      Section 7.4. Trustee's Disclaimer.

            The Trustee makes no representation as to the validity or adequacy
of this Indenture or the Securities, it shall not be accountable for the
Company's use of the proceeds from the Securities and it shall not be
responsible for any statement in the Securities other than its authentication.

                                       28
<PAGE>
      Section 7.5. Notice of Defaults.

            If a Default or Event of Default occurs and is continuing with
respect to the Securities of any Series and if it is known to a Responsible
Officer of the Trustee, the Trustee shall mail to each Securityholder of the
Securities of that Series and, if any Bearer Securities are outstanding, publish
on one occasion in an Authorized Newspaper, notice of a Default or Event of
Default within 90 days after it occurs or, if later, after a Responsible Officer
of the Trustee has knowledge of such Default or Event of Default. Except in the
case of a Default or Event of Default in payment of principal of or interest on
any Security of any Series, the Trustee may withhold the notice if and so long
as its corporate trust committee or a committee of its Responsible Officers in
good faith determines that withholding the notice is in the interests of
Securityholders of that Series.

      Section 7.6. Reports by Trustee to Holders.

            Within 60 days after May 15 in each year, the Trustee shall transmit
by mail to all Securityholders, as their names and addresses appear on the
register kept by the Registrar and, if any Bearer Securities are outstanding,
publish in an Authorized Newspaper, a brief report dated as of such May 15, in
accordance with, and to the extent required under, TIA Section 313.

            A copy of each report at the time of its mailing to Securityholders
of any Series shall be filed with the SEC and each stock exchange on which the
Securities of that Series are listed. The Company shall promptly notify the
Trustee when Securities of any Series are listed on any stock exchange.

      Section 7.7. Compensation and Indemnity.

            The Company shall pay to the Trustee from time to time reasonable
compensation for its services. The Trustee's compensation shall not be limited
by any law on compensation of a trustee of an express trust. The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred by it. Such expenses shall include the reasonable compensation and
expenses of the Trustee's agents and counsel.

            The Company shall indemnify the Trustee (including the cost of
defending itself) against any loss, liability or expense incurred by it except
as set forth in the next paragraph in the performance of its duties under this
Indenture as Trustee or Agent. The Trustee shall notify the Company promptly of
any claim for which it may seek indemnity. The Company shall defend the claim
and the Trustee shall cooperate in the defense. The Trustee may have separate
counsel and the Company shall pay the reasonable fees and expenses of such
counsel. The Company need not pay for any settlement made without its consent,
which consent shall not be unreasonably withheld. This indemnification shall
apply to officers, directors, employees, shareholders and agents of the Trustee.

            The Company need not reimburse any expense or indemnify against any
loss or liability incurred by the Trustee or by any officer, director, employee,
shareholder or agent of the Trustee through negligence or bad faith.

            To secure the Company's payment obligations in this Section 7.7, the
Trustee shall have a lien prior to the Securities of any Series on all money or
property held or collected

                                       29
<PAGE>
by the Trustee, except that held in trust to pay principal and interest on
particular Securities of that Series.

            When the Trustee incurs expenses or renders services after an Event
of Default specified in Section 6.1(e) or (f) occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

      Section 7.8. Replacement of Trustee.

            A resignation or removal of the Trustee and appointment of a
successor Trustee shall become effective only upon the successor Trustee's
acceptance of appointment as provided in this Section 7.8.

            The Trustee may resign with respect to the Securities of one or more
Series by so notifying the Company. The Holders of a majority in principal
amount of the Securities of any Series may remove the Trustee with respect to
that Series by so notifying the Trustee and the Company. The Company may remove
the Trustee with respect to Securities of one or more Series if:

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

            (b) the Trustee is adjudged bankrupt or insolvent or an order for
      relief is entered with respect to the Trustee under any Bankruptcy Law;

            (c) a Custodian or public officer takes charge of the Trustee or its
      property; or

            (d) the Trustee becomes incapable of acting.

            If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the then outstanding Securities may appoint
a successor Trustee to replace the successor Trustee appointed by the Company.

            If a successor Trustee with respect to the Securities of any one or
more Series does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company or the Holders of at
least 10% in principal amount of the Securities of the applicable Series may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

            If the Trustee with respect to the Securities of any one or more
Series fails to comply with Section 7.10, any Securityholder of the applicable
Series may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

            A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately after that,
the retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee subject to the lien provided for in Section 7.7, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
with respect to each

                                       30
<PAGE>
Series of Securities for which it is acting as Trustee under this Indenture. A
successor Trustee shall mail a notice of its succession to each Securityholder
of each such Series and, if any Bearer Securities are outstanding, publish such
notice on one occasion in an Authorized Newspaper. Notwithstanding replacement
of the Trustee pursuant to this Section 7.8, the Company's obligations under
Section 7.7 hereof shall continue for the benefit of the retiring trustee with
respect to reasonable expenses and liabilities incurred by it prior to such
replacement.

      Section 7.9. Successor Trustee by Merger, Etc.

            If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the
successor Trustee.

      Section 7.10. Eligibility; Disqualification.

            This Indenture shall always have a Trustee who satisfies the
requirements of TIA Section 310(a)(1), (2) and (5). The Trustee shall always
have a combined capital and surplus of at least $25,000,000 as set forth in its
most recent published annual report of condition. The Trustee shall comply with
TIA Section 310(b).

      Section 7.11. Preferential Collection of Claims Against Company.

            The Trustee is subject to TIA Section 311(a), 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.

                                  ARTICLE VIII.
                     SATISFACTION AND DISCHARGE; DEFEASANCE

      Section 8.1. Satisfaction and Discharge of Indenture.

            This Indenture shall upon Company Order cease to be of further
effect (except as hereinafter provided in this Section 8.1), and the Trustee, at
the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

            (a) either

                  (i) all Securities theretofore authenticated and delivered
            (other than Securities that have been destroyed, lost or stolen and
            that have been replaced or paid) have been delivered to the Trustee
            for cancellation; or

                  (ii) all such Securities not theretofore delivered to the
            Trustee for cancellation pursuant to (i) above

                        (1) have become due and payable, or

                        (2) will become due and payable at their Stated Maturity
                  within one year, or

                                       31
<PAGE>
                        (3) are to be called for redemption within one year
                  under arrangements satisfactory to the Trustee for the giving
                  of notice of redemption by the Trustee in the name, and at the
                  expense, of the Company, or

                        (4) are deemed paid and discharged pursuant to Section
                  8.3, as applicable;

and the Company, in the case of (1), (2) or (3) above, has deposited or caused
to be deposited with the Trustee as trust funds in trust an amount sufficient
for the purpose of paying and discharging the entire indebtedness on such
Securities not theretofore delivered to the Trustee for cancellation, for
principal and interest to the date of such deposit (in the case of Securities
which have become due and payable on or prior to the date of such deposit) or to
the Stated Maturity or redemption date, as the case may be;

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

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

            Notwithstanding the satisfaction and discharge of this Indenture,
the obligations of the Company to the Trustee under Section 7.7, and, if money
shall have been deposited with the Trustee pursuant to clause (a) of this
Section, the provisions of Sections 2.5, 2.8, 2.9, 8.1, 8.2 and 8.5 shall
survive.

      Section 8.2. Application of Trust Funds; Indemnification.

            (a) Subject to the provisions of Section 8.5, all money deposited
      with the Trustee pursuant to Section 8.1, all money and U.S. Government
      Obligations or Foreign Government Obligations deposited with the Trustee
      pursuant to Section 8.3 or 8.4 and all money received by the Trustee in
      respect of U.S. Government Obligations or Foreign Government Obligations
      deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held
      in trust and applied by it, in accordance with the provisions of the
      Securities and this Indenture, to the payment, either directly or through
      any Paying Agent (including the Company acting as its own Paying Agent) as
      the Trustee may determine, to the persons entitled thereto, of the
      principal and interest for whose payment such money has been deposited
      with or received by the Trustee or to make mandatory sinking fund payments
      or analogous payments as contemplated by Sections 8.3 or 8.4.

            (b) The Company shall pay and shall indemnify the Trustee against
      any tax, fee or other charge imposed on or assessed against U.S.
      Government Obligations or Foreign Government Obligations deposited
      pursuant to Sections 8.3 or 8.4 or the interest and principal received in
      respect of such obligations other than any payable by or on behalf of
      Holders.

            (c) The Trustee shall deliver or pay to the Company from time to
      time upon Company Request any U.S. Government Obligations or Foreign
      Government Obligations

                                       32
<PAGE>
      or money held by it as provided in Sections 8.3 or 8.4 which, in the
      opinion of a nationally recognized firm of independent certified public
      accountants expressed in a written certification thereof delivered to the
      Trustee, are then in excess of the amount thereof which then would have
      been required to be deposited for the purpose for which such U.S.
      Government Obligations or Foreign Government Obligations or money were
      deposited or received. This provision shall not authorize the sale by the
      Trustee of any U.S. Government Obligations or Foreign Government
      Obligations held under this Indenture.

      Section 8.3. Legal Defeasance of Securities of any Series.

            Unless this Section 8.3 is otherwise specified, pursuant to
subparagraph 2.2.21, to be inapplicable to Securities of any Series, the Company
shall be deemed to have paid and discharged the entire indebtedness on all the
outstanding Securities of such Series on the 91st day after the date of the
deposit referred to in subparagraph (c)(1) hereof, and the provisions of this
Indenture, as it relates to such outstanding Securities of such Series, shall no
longer be in effect (and the Trustee, at the expense of the Company, shall, at
Company Request, execute proper instruments acknowledging the same), except as
to:

            (a) the rights of Holders of Securities of such Series to receive,
      from the trust funds described in subparagraph (c)(1) hereof, (i) payment
      of the principal of and each installment of principal of and interest on
      the outstanding Securities of such Series on the Stated Maturity of such
      principal or installment of principal or interest and (ii) the benefit of
      any mandatory sinking fund payments applicable to the Securities of such
      Series on the day on which such payments are due and payable in accordance
      with the terms of this Indenture and the Securities of such Series;

            (b) the provisions of Sections 2.5, 2.8, 2.9, 8.2, 8.3 and 8.5; and

            (c) the rights, powers, trust and immunities of the Trustee
      hereunder;

provided that, the following conditions shall have been satisfied:

                  (1) the Company shall have deposited or caused to be deposited
            irrevocably with the Trustee as trust funds in trust for the purpose
            of making the following payments, specifically pledged as security
            for and dedicated solely to the benefit of the Holders of such
            Securities (i) in the case of Securities of such Series denominated
            in Dollars, cash in Dollars (or such other money or currencies as
            shall then be legal tender in the United States) and/or U.S.
            Government Obligations, or (ii) in the case of Securities of such
            Series denominated in a Foreign Currency (other than a composite
            currency), money and/or Foreign Government Obligations, which
            through the payment of interest and principal in respect thereof, in
            accordance with their terms, will provide (and without reinvestment
            and assuming no tax liability will be imposed on such Trustee), not
            later than one day before the due date of any payment of money, an
            amount in cash, sufficient, in the opinion of a nationally
            recognized firm of independent public accountants expressed in a
            written certification thereof delivered to the Trustee, to pay and
            discharge each installment of principal (including mandatory

                                       33
<PAGE>
            sinking fund or analogous payments) of and interest, if any, on all
            the Securities of such Series on the dates such installments of
            interest or principal are due;

                  (2) 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 is a party or by which it is
            bound;

                  (3) no Default or Event of Default with respect to the
            Securities of such Series shall have occurred and be continuing on
            the date of such deposit or during the period ending on the 91st day
            after such date;

                  (4) the Company shall have delivered to the Trustee an
            Officers' Certificate and an Opinion of Counsel to the effect that
            (i) the Company has received from, or there has been published by,
            the Internal Revenue Service a ruling, or (ii) since the date of
            execution of this Indenture, there has been a change in the
            applicable Federal income tax law, in either case to the effect
            that, and based thereon such Opinion of Counsel shall confirm that,
            the Holders of the Securities of such Series will not recognize
            income, gain or loss for Federal income tax purposes as a result of
            such deposit, defeasance and discharge and will be subject to
            Federal income tax on the same amount and in the same manner and at
            the same times as would have been the case if such deposit,
            defeasance and discharge had not occurred;

                  (5) the Company shall have delivered to the Trustee an
            Officers' Certificate stating that the deposit was not made by the
            Company with the intent of preferring the Holders of the Securities
            of such Series over any other creditors of the Company or with the
            intent of defeating, hindering, delaying or defrauding any other
            creditors of the Company;

                  (6) such deposit shall not result in the trust arising from
            such deposit constituting an investment company (as defined in the
            Investment Company Act of 1940, as amended), or such trust shall be
            qualified under such Act or exempt from regulation thereunder; and

                  (7) the Company shall have delivered to the Trustee an
            Officers' Certificate and an Opinion of Counsel, each stating that
            all conditions precedent provided for relating to the defeasance
            contemplated by this Section 8.3 have been complied with.

      Section 8.4. Covenant Defeasance.

            Unless this Section 8.4 is otherwise specified pursuant to
subparagraph 2.2.21 to be inapplicable to Securities of any Series, on and after
the 91st day after the date of the deposit referred to in subparagraph (a)
hereof, the Company may omit to comply with any term, provision or condition set
forth under Sections 4.2, 4.3, 4.4, 4.5, 4.6, and 5.1 as well as any additional
covenants contained in a supplemental indenture hereto for a particular Series
of Securities or a Board Resolution or an Officers' Certificate delivered
pursuant to Section 2.2.21 (and the failure to comply with any such covenants
shall not constitute a Default or Event of Default under Section 6.1) and the
occurrence of any event described in clause (e) of Section 6.1

                                       34
<PAGE>
shall not constitute a Default or Event of Default hereunder, with respect to
the Securities of such Series, provided that the following conditions shall have
been satisfied:

            (a) With reference to this Section 8.4, the Company has deposited or
      caused to be irrevocably deposited (except as provided in Section 8.2(c))
      with the Trustee as trust funds in trust, specifically pledged as security
      for, and dedicated solely to, the benefit of the Holders of such
      Securities (i) in the case of Securities of such Series denominated in
      Dollars, cash in Dollars (or such other money or currencies as shall then
      be legal tender in the United States) and/or U.S. Government Obligations,
      or (ii) in the case of Securities of such Series denominated in a Foreign
      Currency (other than a composite currency), money and/or Foreign
      Government Obligations, which through the payment of interest and
      principal in respect thereof, in accordance with their terms, will provide
      (and without reinvestment and assuming no tax liability will be imposed on
      such Trustee), not later than one day before the due date of any payment
      of money, an amount in cash, sufficient, in the opinion of a nationally
      recognized firm of independent certified public accountants expressed in a
      written certification thereof delivered to the Trustee, to pay principal
      and interest, if any, on and any mandatory sinking fund in respect of the
      Securities of such Series on the dates such installments of interest or
      principal are due;

            (b) 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 is a party or by which it is bound;

            (c) No Default or Event of Default with respect to the Securities of
      such Series shall have occurred and be continuing on the date of such
      deposit or during the period ending on the 91st day after such date;

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

            (e) the Company shall have delivered to the Trustee an Officers'
      Certificate stating the deposit was not made by the Company with the
      intent of preferring the Holders of the Securities of such Series over any
      other creditors of the Company or with the intent of defeating, hindering,
      delaying or defrauding any other creditors of the Company; and

            (f) The Company shall have delivered to the Trustee an Officers'
      Certificate and an Opinion of Counsel, each stating that all conditions
      precedent herein provided for relating to the defeasance contemplated by
      this Section 8.4 have been complied with.

      Section 8.5. Repayment to Company.

            The Trustee and the Paying Agent shall pay to the Company upon
request any money held by them for the payment of principal and interest that
remains unclaimed for two years. After that, Securityholders entitled to the
money must look to the Company for payment as general creditors unless an
applicable abandoned property law designates another person.

                                       35
<PAGE>
                                  ARTICLE IX.
                             AMENDMENTS AND WAIVERS

      Section 9.1. Without Consent of Holders.

            The Company and the Trustee may amend or supplement this Indenture
or the Securities of one or more Series without the consent of any
Securityholder:

            (a) to cure any ambiguity, defect or inconsistency;

            (b) to comply with Article V;

            (c) to provide for uncertificated Securities in addition to or in
      place of certificated Securities, and to convey, transfer, assign,
      mortgage or pledge to the Trustee as security for the Securities of one or
      more Series any property or assets;

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

            (e) to provide for the issuance of and establish the form and terms
      and conditions of Securities of any Series as permitted by this Indenture;

            (f) to evidence and provide for the acceptance of appointment
      hereunder by a successor Trustee with respect to the Securities of one or
      more Series and to add to or change any of the provisions of this
      Indenture as shall be necessary to provide for or facilitate the
      administration of the trusts hereunder by more than one Trustee; or

            (g) to comply with requirements of the SEC in order to effect or
      maintain the qualification of this Indenture under the TIA.

      Section 9.2. With Consent of Holders.

            The Company and the Trustee may enter into a supplemental indenture
with the written consent of the Holders of at least a majority in principal
amount of the outstanding Securities of each Series affected by such
supplemental indenture (including consents obtained in connection with a tender
offer or exchange offer for the Securities of such Series), for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying in
any manner the rights of the Securityholders of each such Series. Except as
provided in Section 6.13, the Holders of at least a majority in principal amount
of the outstanding Securities of each Series affected by such waiver by notice
to the Trustee (including consents obtained in connection with a tender offer or
exchange offer for the Securities of such Series) may waive compliance by the
Company with any provision of this Indenture or the Securities with respect to
such Series.

            It shall not be necessary for the consent of the Holders of
Securities under this Section 9.2 to approve the particular form of any proposed
supplemental indenture or waiver, but it shall be sufficient if such consent
approves the substance thereof. After a supplemental indenture or waiver under
this Section 9.2 becomes effective, the Company shall mail to the Holders of
Securities affected thereby and, if any Bearer Securities affected thereby are

                                       36
<PAGE>
outstanding, publish on one occasion in an Authorized Newspaper, a notice
briefly describing the supplemental indenture or waiver. Any failure by the
Company to mail or publish such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture or waiver.

      Section 9.3. Limitations.

            Nothwithstanding the foregoing, without the consent of each
Securityholder affected, an amendment or waiver may not:

            (a) change the amount of Securities whose Holders must consent to an
      amendment, supplement or waiver;

            (b) reduce the rate of or extend the time for payment of interest
      (including default interest) on any Security;

            (c) reduce the principal or change the Stated Maturity of any
      Security or reduce the amount of, or postpone the date fixed for, the
      payment of any sinking fund or analogous obligation;

            (d) reduce the principal amount of Discount Securities payable upon
      acceleration of the maturity thereof;

            (e) waive a Default or Event of Default in the payment of the
      principal of or interest, if any, on any Security (except a rescission of
      acceleration of the Securities of any Series by the Holders of at least a
      majority in principal amount of the outstanding Securities of such Series
      and a waiver of the payment default that resulted from such acceleration);

            (f) make the principal of or interest, if any, on any Security
      payable in any currency other than that stated in the Security;

            (g) make any change in Sections 6.8, 6.13, 9.3 (this sentence),
      10.15 or 10.16; or

            (h) waive a redemption payment with respect to any Security or
      change any of the provisions with respect to the redemption of any
      Securities.

      Section 9.4. Compliance with Trust Indenture Act.

            Every amendment to this Indenture or the Securities of one or more
Series shall be set forth in a supplemental indenture hereto that complies with
the TIA as then in effect.

      Section 9.5. Revocation and Effect of Consents.

            Until an amendment or waiver becomes effective, a consent to it by a
Holder of a Security is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder's Security, even if notation of the consent is not made on
any Security. However, any such Holder or subsequent

                                       37
<PAGE>
Holder may revoke the consent as to his Security or portion of a Security if the
Trustee receives the notice of revocation before the date the amendment or
waiver becomes effective.

            Any amendment or waiver once effective shall bind every
Securityholder of each Series affected by such amendment or waiver unless it is
of the type described in any of clauses (a) through (h) of Section 9.3. In that
case, the amendment or waiver shall bind each Holder of a Security who has
consented to it and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder's Security.

      Section 9.6. Notation on or Exchange of Securities.

            The Trustee may place an appropriate notation about an amendment or
waiver on any Security of any Series thereafter authenticated. The Company in
exchange for Securities of that Series may issue and the Trustee shall
authenticate upon request new Securities of that Series that reflect the
amendment or waiver.

      Section 9.7. Trustee Protected.

            In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article IX 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. The Trustee shall sign all
supplemental indentures, except that the Trustee need not sign any supplemental
indenture that adversely affects its rights.

                                   ARTICLE X.
                                  MISCELLANEOUS

      Section 10.1. Trust Indenture Act Controls.

            If any provision of this Indenture limits, qualifies, or conflicts
with another provision which is required or deemed to be included in this
Indenture by the TIA, such required or deemed provision shall control.

      Section 10.2. Notices.

            Any notice or communication by the Company or the Trustee to the
other is duly given if in writing and delivered in person or mailed by
first-class mail:

if to the Company:

                      Kramont Realty Trust
                      Plymouth Plaza
                      580 West Germantown Pick
                      Plymouth Meeting, Pennsylvania 19462
                      Attention: President and Chief Executive Officer

                                       38
<PAGE>
if to the Trustee:

                      [Name of Trustee]
                      [Address]
                      __________________

                      __________________

                      Attention: _______________

            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 a Securityholder shall be mailed by
first-class mail to his or her address shown on the register kept by the
Registrar and, if any Bearer Securities are outstanding, published in an
Authorized Newspaper. Failure to mail a notice or communication to a
Securityholder of any Series or any defect in it shall not affect its
sufficiency with respect to other Securityholders of that or any other Series.

            If a notice or communication is mailed, personally delivered or
published in the manner provided above, within the time prescribed, it is duly
given, whether or not the Securityholder receives it.

            If the Company mails a notice or communication to Securityholders,
it shall mail a copy to the Trustee and each Agent at the same time.

      Section 10.3. Communication by Holders with Other Holders.

            Securityholders of any Series may communicate pursuant to TIA
Section 312(b) with other Securityholders of that Series or any other Series
with respect to their rights under this Indenture or the Securities of that
Series or all Series. The Company, the Trustee, the Registrar and anyone else
shall have the protection of TIA Section 312(c).

      Section 10.4. Certificate and Opinion as to Conditions Precedent.

            Upon any request or application by the Company to the Trustee to
take any action under this Indenture, the Company shall furnish to the Trustee:

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

            (b) an Opinion of Counsel stating that, in the opinion of such
      counsel, all such conditions precedent have been complied with.

                                       39
<PAGE>
      Section 10.5. Statements Required in Certificate or Opinion.

            Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than a certificate
provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of
TIA Section 314(e) and shall include:

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

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

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

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

      Section 10.6. Rules by Trustee and Agents.

            The Trustee may make reasonable rules for action by or a meeting of
Securityholders of one or more Series. Any Agent may make reasonable rules and
set reasonable requirements for its functions.

      Section 10.7. Legal Holidays.

            Unless otherwise provided by Board Resolution, Officers' Certificate
or supplemental indenture for a particular Series, a "Legal Holiday" is any day
that is not a Business Day. If a payment date is a Legal Holiday at a place of
payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening period.

      Section 10.8. No Recourse Against Others.

            A trustee, officer, employee or stockholder, as such, of the Company
shall not have any liability for any obligations of the Company under the
Securities or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. Each Securityholder by accepting a
Security waives and releases all such liability. The waiver and release are part
of the consideration for the issue of the Securities. All Securities, including
Global Securities, shall bear a legend in a form substantially setting forth the
foregoing statements in this Section 10.8.

      Section 10.9. Counterparts.

            This Indenture may be executed in any number of counterparts and by
the 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.

                                       40
<PAGE>
      Section 10.10. Governing Laws.

            THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF
THE STATE OF MARYLAND APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH
STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

      Section 10.11. No Adverse Interpretation of Other Agreements.

            This Indenture may not be used to interpret another indenture, loan
or debt agreement of the Company or a Subsidiary. Any such indenture, loan or
debt agreement may not be used to interpret this Indenture.

      Section 10.12. Successors.

            All agreements of the Company in this Indenture and the Securities
shall bind its successor. All agreements of the Trustee in this Indenture shall
bind its successor.

      Section 10.13. Severability.

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

      Section 10.14. Table of Contents, Headings, Etc.

            The Table of Contents, Cross Reference Table, and headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof, and shall in no way
modify or restrict any of the terms or provisions hereof.

      Section 10.15. Securities in a Foreign Currency.

            Unless otherwise specified in a Board Resolution, a supplemental
indenture hereto or an Officers' Certificate delivered pursuant to Section 2.2
of this Indenture with respect to a particular Series of Securities, whenever
for purposes of this Indenture any action may be taken by the Holders of a
specified percentage in aggregate principal amount of Securities of all Series
or all Series affected by a particular action at the time outstanding and, at
such time, there are outstanding Securities of any Series which are denominated
in a coin or currency other than Dollars (including Euros), then the principal
amount of Securities of such Series which shall be deemed to be outstanding for
the purpose of taking such action shall be that amount of Dollars that could be
obtained for such amount at the Market Exchange Rate at such time. For purposes
of this Section 10.15, "Market Exchange Rate" shall mean the noon Dollar buying
rate in New York City for cable transfers of that currency as published by the
Federal Reserve Bank of New York. If such Market Exchange Rate is not available
for any reason with respect to such currency, the Trustee shall use, in its sole
discretion and without liability on its part, such quotation of the Federal
Reserve Bank of New York, as of the most recent available date, or quotations
from one or more major banks in the City of New York, London or in the country
of issue of the currency in question or such other quotations as the Trustee,
upon consultation with

                                       41
<PAGE>
the Company, shall deem appropriate. The provisions of this paragraph shall
apply in determining the equivalent principal amount in respect of Securities of
a Series denominated in currency other than Dollars in connection with any
action taken by Holders of Securities pursuant to the terms of this Indenture.

            All decisions and determinations of the Trustee regarding the Market
Exchange Rate or any alternative determination provided for in the preceding
paragraph shall be in its sole discretion and shall, in the absence of manifest
error, be conclusive to the extent permitted by law for all purposes and
irrevocably binding upon the Company and all Holders.

      Section 10.16. Judgment Currency.

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

                                   ARTICLE XI.
                                  SINKING FUNDS

      Section 11.1. Applicability of Article.

            The provisions of this Article XI shall be applicable to any sinking
fund for the retirement of the Securities of a Series, except as otherwise
permitted or required by any form of Security of such Series issued pursuant to
this Indenture.

            The minimum amount of any sinking fund payment provided for by the
terms of the Securities of any Series is herein referred to as a "mandatory
sinking fund payment" and any other amount provided for by the terms of
Securities of such Series is herein referred to as an

                                       42
<PAGE>
"optional sinking fund payment." If provided for by the terms of Securities of
any Series, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 11.2. Each sinking fund payment shall be
applied to the redemption of Securities of any Series as provided for by the
terms of the Securities of such Series.

      Section 11.2. Satisfaction of Sinking Fund Payments with Securities.

            The Company may, in satisfaction of all or any part of any sinking
fund payment with respect to the Securities of any Series to be made pursuant to
the terms of such Securities (1) deliver outstanding Securities of such Series
to which such sinking fund payment is applicable (other than any of such
Securities previously called for mandatory sinking fund redemption) and (2)
apply as credit Securities of such Series to which such sinking fund payment is
applicable and which have been redeemed either at the election of the Company
pursuant to the terms of such Series of Securities (except pursuant to any
mandatory sinking fund) or through the application of permitted optional sinking
fund payments or other optional redemptions pursuant to the terms of such
Securities, provided that such Securities have not been previously so credited.
Such Securities shall be received by the Trustee, together with an Officers'
Certificate with respect thereto, not later than 15 days prior to the date on
which the Trustee begins the process of selecting Securities for redemption, and
shall be credited for such purpose by the Trustee at the price specified in such
Securities for redemption through operation of the sinking fund and the amount
of such sinking fund payment shall be reduced accordingly. If as a result of the
delivery or credit of Securities in lieu of cash payments pursuant to this
Section 11.2, the principal amount of Securities of such Series to be redeemed
in order to exhaust the aforesaid cash payment shall be less than $100,000, the
Trustee need not call Securities of such Series for redemption, except upon
receipt of a Company Order that such action be taken, and such cash payment
shall be held by the Trustee or a Paying Agent and applied to the next
succeeding sinking fund payment, provided, however, that the Trustee or such
Paying Agent shall from time to time upon receipt of a Company Order pay over
and deliver to the Company any cash payment so being held by the Trustee or such
Paying Agent upon delivery by the Company to the Trustee of Securities of that
Series purchased by the Company having an unpaid principal amount equal to the
cash payment required to be released to the Company.

      Section 11.3. Redemption of Securities for Sinking Fund.

            Not less than 45 days (unless otherwise indicated in the Board
Resolution, supplemental indenture hereto or Officers' Certificate in respect of
a particular Series of Securities) prior to each sinking fund payment date for
any Series of Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing mandatory sinking fund
payment for that Series pursuant to the terms of that Series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting of
Securities of that Series pursuant to Section 11.2. and the optional amount, if
any, to be added in cash to the next ensuing mandatory sinking fund payment, and
the Company shall thereupon be obligated to pay the amount therein specified.
Not less than 30 days (unless otherwise indicated in the Board Resolution,
Officers' Certificate or supplemental indenture in respect of a particular
Series of Securities) before each such sinking fund payment date the Trustee
shall select the Securities to be redeemed upon such sinking fund payment date
in the manner specified in Section 3.2 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the
manner provided in Section

                                       43
<PAGE>
3.3. Such notice having been duly given, the redemption of such Securities shall
be made upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.

                                       44
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed as of the day and year first above written.

                                         KRAMONT REALTY TRUST

                                         By:____________________________________
                                            Name:
                                            Title:

                                         [Name of Trustee]

                                         By:____________________________________
                                            Name:
                                            Title:

                                       45

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