Document:

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                                                                   EXHIBIT 10.28

                                   EMPLOYEE
                     CONFIDENTIALITY, INVENTION ASSIGNMENT
                           AND NON-COMPETE AGREEMENT

     THIS EMPLOYEE CONFIDENTIALITY, INVENTION ASSIGNMENT AND NON-COMPETE
AGREEMENT ("Agreement") is made as of the date set forth on the signature page
below between Inspire Pharmaceuticals, Inc. ("Inspire"), and the person whose
name is set forth on the signature page below as Employee ("Employee").

     In consideration of Employee's employment or continued employment by
Inspire, with the intention that this Agreement shall apply to the entire period
of Employee's employment with Inspire (including the period prior to the date of
this Agreement), Employee hereby agrees as follows:

1.   Confidential Information Defined.  "Confidential Information" means trade
secrets, proprietary information and materials, and confidential knowledge and
information which includes, but is not limited to, matters of a technical nature
(such as discoveries, ideas, concepts, designs, drawings, specifications,
techniques, models, diagrams, test data, scientific methods and know-how, and
materials such as reagents, substances, chemical compounds, subcellular
constituents, cell or cell lines, organisms and progeny, and mutants,
derivatives or replications derived from or relating to any of the foregoing
materials), and matters of a business nature (such as the identity of customers
and prospective customers, the nature of work being done for or discussed with
customers or prospective customers, suppliers, marketing techniques and
materials, marketing and development plans, pricing or pricing policies,
financial information, plans for further development, and any other information
of a similar nature not available to the public).

     "Confidential Information" shall not include information that: (a) was in
Employee's possession or in the public domain before receipt from the Company,
as evidenced by the then existing publication or other public dissemination of
such information in written or other documentary form; (b) becomes available to
the public through no fault of Employee; (c) is received in good faith by
Employee from a third party who is not subject to an obligation of
confidentiality to the Company or any other party; or (d) is required by a
judicial or administrative authority or court having competent jurisdiction to
be disclosed by Employee, provided that Employee shall promptly notify the
Company and allow the Company a reasonable time to oppose or limit such order.

2.   Non-Disclosure of Confidential Information of Inspire.  Employee
acknowledges that, during the period of Employee's employment with Inspire,
Employee has had or will have access to Confidential Information of Inspire.
Therefore, Employee agrees that both during and after the period of Employee's
employment with Inspire, Employee shall not, without the prior written approval
of Inspire, directly or indirectly (a) reveal, report, publish, disclose or
transfer any Confidential Information of Inspire to any person or entity, or (b)
use any Confidential Information of Inspire for any purpose or for the benefit
of any person or entity, except as may be necessary in the performance of
Employee's work for Inspire.

3.   Non-Disclosure of Confidential Information of Others.  Employee
acknowledges that, during the period of Employee's employment with Inspire,
Employee may have had or will have access to Confidential Information of third
parties who have given Inspire the right to use such Confidential Information,
subject to a non-disclosure agreement between Inspire and such third

                                      -1-
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party. Therefore, Employee agrees that both during and after the period of
Employee's employment with Inspire, Employee shall not, without the prior
written approval of Inspire, directly or indirectly (a) reveal, report, publish,
disclose or transfer any Confidential Information of such third parties to any
person or entity, or (b) use any Confidential Information of such third parties
for any purpose or for the benefit of any person or entity, except as may be
necessary in the performance of Employee's work for Inspire.

4.   Property of Inspire. Employee acknowledges and agrees that all Confidential
Information of Inspire and all reports, drawings, blueprints, materials, data,
code, notes and other documents and records, whether printed, typed,
handwritten, videotaped, transmitted or transcribed on data files or on any
other type of media, and whether or not labelled or identified as confidential
or proprietary, made or compiled by Employee, or made available to Employee,
during the period of Employee employment with Inspire (including the period
prior to the date of this Agreement) concerning Inspire's Confidential
Information are and shall remain Inspire's property and shall be delivered to
Inspire within five (5) business days after the termination of such employment
with Inspire or at any earlier time on request of Inspire. Employee shall not
retain copies of such Confidential Information, documents and records.

5.   Proprietary Notices.  Employee shall not, and shall not permit any other
person to, remove any proprietary or other legends or restrictive notices
contained in or included in any Confidential Information.

6.   Inventions.

     (a)  Employee shall promptly, from time to time, fully inform and disclose
to Inspire in writing all inventions, copyrightable material, designs,
improvements and discoveries of any kind which Employee now has made, conceived
or developed (including prior to the date of this Agreement), or which Employee
may later make, conceive or develop, during the period of Employee's employment
with Inspire, which pertain to or relate to Inspire's business or any of the
work or businesses carried on by Inspire ("Inventions"). This covenant applies
to all such Inventions, whether or not they are eligible for patent, copyright,
trademark, trade secret or other legal protection; and whether or not they are
conceived and/or developed by Employee alone or with others; and whether or not
they are conceived and/or developed during regular working hours; and whether or
not they are conceived and/or developed at Inspire's facility or not.

     (b)  Inventions shall not include any inventions made, conceived or
developed by Employee prior to Employee's employment with Inspire, a complete
list of which is set forth on Schedule A attached.

     (c)  All Inventions shall be the sole and exclusive property of Inspire,
and shall be deemed part of the Confidential Information of Inspire for purposes
of this Agreement, whether or not fixed in a tangible medium of expression.
Employee hereby assigns all Employee's rights in all Inventions and in all
related patents, copyrights and trademarks, trade secrets and other proprietary
rights therein to Inspire. Without limiting the foregoing, Employee agrees that
any copyrightable material shall be deemed to be "works made for hire" and that
Inspire shall be deemed the author of such works under the United States
Copyright Act, provided that in the event and to the extent such works are
determined not to constitute "works made for hire", Employee hereby irrevocably
assigns and transfers to Inspire all right, title and interest in such works.

                                      -2-
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     (d)  Employee shall assist and cooperate with Inspire, both during and
after the period of Employee's employment with Inspire, at Inspire's sole
expense, to allow Inspire to obtain, maintain and enforce patent, copyright,
trademark, trade secret and other legal protection for the Inventions. Employee
shall sign such documents, and do such things necessary, to obtain such
protection and to vest Inspire with full and exclusive title in all Inventions
against infringement by others. Employee hereby appoints the Secretary of
Inspire as Employee's attorney-in-fact to execute documents on Employee's behalf
for this purpose.

     (e)  Employee shall not be entitled to any additional compensation for any
and all Inventions made during the period of Employee's employment with Inspire.

7.   Covenant Not to Compete.  If Employee is, at any time during Employee's
period of employment with Inspire, employed in the discovery or development
areas of the Company in a non-clerical position, or as a director level or
higher level senior manager of the Company, then this Section 7 shall apply.
Employee and Inspire agree that the services rendered by the Employee are unique
and irreplaceable, and that competitive use and knowledge of any Confidential
Information would substantially and irreparably injure Inspire's business,
prospects and good will.  Employee and Inspire also agree that Inspire's
business is global in nature due to the type of products and/or services being
provided.  Therefore, Employee agrees that during the period of Employee's
employment with Inspire and for a period of one (1) year thereafter, Employee
shall not, directly or indirectly, through any other person, firm, corporation
or other entity (whether as an officer, director, employee, partner, consultant,
holder of equity or debt investment, lender or in any other manner or capacity):

     (a)  develop, sell, market, offer to sell products and/or services anywhere
in the world that have the same or similar technological approach or technology
platform (e.g., same receptors (such as P2Y), same mechanism of action (such as
mucociliary clearance)) as those being developed, offered or sold by Inspire on
the date of the termination of Employee's employment with Inspire for any
reason;

     (b)  solicit, induce, encourage or attempt to induce or encourage any
employee or consultant of Inspire to terminate his or her employment or
consulting relationship with Inspire, or to breach any other obligation to
Inspire;

     (d)  solicit, interfere with, disrupt, alter or attempt to disrupt or alter
the relationship, contractual or otherwise, between Inspire and any consultant,
contractor, customer, potential customer, or supplier of Inspire; or

     (d)  engage in or participate in any business in the same industry as
Inspire which is conducted under any name that shall be the same as or similar
to the name of Inspire or any trade name used by Inspire.

     Employee acknowledges that the foregoing geographic, activity and time
limitations contained in this Section 7 are reasonable and properly required for
the adequate protection of Inspire's business.  In the event that any such
geographic, activity or time limitation is deemed to be unreasonable by a court,
Employee shall submit to the reduction of either said activity or time
limitation to such activity or period as the court shall deem reasonable.  In
the event that Employee is in violation of the aforementioned restrictive
covenants, then the time limitation thereof shall be extended for a period of
time equal to the pendency of such proceedings, including appeals.

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8.   Representations.  Employee represents that Employee has the right to enter
into this Agreement, and that Employee's performance of all the terms of this
Agreement and his duties as an employee of Inspire will not breach any
confidential information agreement, non-competition agreement or other agreement
with any former employer of his services, either as an employee, consultant,
contractor or independent contractor, or with any other party.  Employee
represents that Employee will not disclose to Inspire any trade secrets or
confidential or proprietary information of any third party that are not
generally available to the public.

9.   Disclosure of this Agreement.  Employee hereby authorizes Inspire to notify
others, including but not limited to customers of Inspire and any of Employee's
future employers, of the terms of this Agreement and Employee's responsibilities
under this Agreement.

10.  Specific Performance.  Employee acknowledges that money damages alone would
not adequately compensate Inspire in the event of a breach or threatened breach
by Employee of this Agreement, and that, in addition to all other remedies
available to Inspire at law or in equity, Inspire shall be entitled to
injunctive relief for the enforcement of its rights and to an accounting of
profits made during the period of such breach.

11.  No Rights Granted.  Employee understands that nothing in this Agreement
shall be deemed to constitute, by implication or otherwise, the grant by Inspire
to the employee of any license or other right under any patent, patent
application or other intellectual property right or interest belonging to
Inspire.

12.  Severability.

     (a)  Each of the covenants provided in this Agreement are separate and
independent covenants.  If any provision of this Agreement shall be determined
to be invalid or unenforceable, the remainder of this Agreement shall not be
affected thereby and any such invalid or unenforceable provision shall be
reformed so as to be valid and enforceable to the fullest extent permitted by
law.

     (b)  It is not a defense to the enforcement of any provision of this
Agreement that Inspire has breached or failed to perform any obligation or
covenant hereunder or under any other agreement or understanding between
Employee and Inspire.

13.  Governing Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of North Carolina without regard to
conflict of law rules.  All suits and claims shall be made only in state or
federal courts located in North Carolina.

14.  Supersedes Other Agreements.  This Agreement contains the entire agreement
of the parties with respect to subject matter hereof and supersedes all previous
agreements and understandings between the parties with respect to its subject
matter.

15.  Amendments.  This Agreement may not be changed, modified, released,
discharged, abandoned or otherwise terminated in whole or in part except by an
instrument in writing, agreed to and signed by the Employee and a duly
authorized officer of Inspire.

16.  Acknowledgements.  THE EMPLOYEE ACKNOWLEDGES THAT (i) THE EMPLOYEE HAS READ
AND FULLY UNDERSTANDS THIS AGREEMENT; (ii) THE EMPLOYEE HAS BEEN GIVEN THE
OPPORTUNITY TO ASK QUESTIONS; (iii) THE

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EMPLOYEE HAS RECEIVED A COPY OF THIS AGREEMENT, THE ORIGINAL OF WHICH WILL BE
RETAINED IN THE EMPLOYEE'S PERSONNEL FILE; AND (iv) THE EMPLOYEE'S OBLIGATIONS
UNDER THIS AGREEMENT SURVIVE THE TERMINATION OF THE EMPLOYEE'S EMPLOYMENT WITH
INSPIRE FOR ANY REASON.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
set forth below.

                              INSPIRE PHARMACEUTICALS, INC.
                              4222 Emperor Boulevard
                              Durham, North Carolina  27703

                              By: /s/ Gregory J. Mossinghoff
                                  -------------------------------------
                                    Gregory J. Mossinghoff,
                                    Chief Business Officer

                              EMPLOYEE: Christy L. Shaffer
                                        -------------------------------
                                        (Print Name)

                              /s/ Christy L. Shaffer
                              -----------------------------------------
                                           (Signature Here)

                              Date: February  10, 2000
                                    -----------------------------------

                              Address:     3 Wysteria Way
                                       --------------------------------

                                           Chapel Hill, NC  27514
                              -----------------------------------------

                              _________________________________________

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                                  SCHEDULE A
                                   ----------

                               PRIOR INVENTIONS
                               ----------------

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                     UNITED PAN-EUROPE COMMUNICATIONS N.V.

                                    Issuer

                        CITIBANK, N.A. (London Branch)

                                    Trustee

                                ______________

                                   Indenture

                         11 1/2% SENIOR NOTES DUE 2010

                         Dated as of January 20, 2000

                                ______________

                  $300,000,000 11 1/2% Senior Notes Due 2010
<PAGE>

                               TABLE OF CONTENTS

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                                   ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION......................  1
     SECTION 1.1   Definitions...............................................  1
     SECTION 1.2   Compliance Certificates and Opinions...................... 39
     SECTION 1.3   Form of Documents Delivered to Trustee.................... 40
     SECTION 1.4   Acts of Holders........................................... 41
     SECTION 1.5   Notices................................................... 42
     SECTION 1.6   Notice to Holders; Waiver................................. 44
     SECTION 1.7   Effect of Headings and Table of Contents.................. 45
     SECTION 1.8   Successors and Assigns.................................... 45
     SECTION 1.9   Separability Clause....................................... 45
     SECTION 1.10  Benefits of Indenture..................................... 45
     SECTION 1.11  Governing Law............................................. 45
     SECTION 1.12  Conflict with Trust Indenture Act......................... 46
     SECTION 1.13  Legal Holidays............................................ 46
     SECTION 1.14  No Personal Liability of Board Members, Officers,
                   Employees and Shareholders................................ 46
     SECTION 1.15  Independence of Covenants................................. 47
     SECTION 1.16  Exhibits.................................................. 47
     SECTION 1.17  Counterparts.............................................. 47
     SECTION 1.18  Duplicate Originals....................................... 47
     SECTION 1.19  Agent for Service; Submission to Jurisdiction; Waiver of
                   Immunities................................................ 47
     SECTION 1.20  Judgment Currency......................................... 48

                                  ARTICLE II

SECURITY FORMS............................................................... 49
     SECTION 2.1   Forms Generally........................................... 49
</TABLE>

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                                         ARTICLE III

THE SECURITIES................................................................................ 49
     SECTION 3.1   Title and Terms............................................................ 49
     SECTION 3.2   Denominations.............................................................. 50
     SECTION 3.3   Execution, Authentication, Delivery and Dating............................. 51
     SECTION 3.4   Temporary Securities....................................................... 54
     SECTION 3.5   Registration, Registration of Transfer and Exchange........................ 54
     SECTION 3.6   Mutilated, Destroyed, Lost and Stolen Securities........................... 56
     SECTION 3.7   Payment of Interest; Interest Rights Preserved............................. 57
     SECTION 3.8   Persons Deemed Owners...................................................... 58
     SECTION 3.9   Cancellation............................................................... 58
     SECTION 3.10  Computation of Interest.................................................... 59
     SECTION 3.11  "CUSIP" and/or "ISIN" Numbers.............................................. 59
     SECTION 3.12  Book-Entry Provisions for Global Securities, Certificated Securities....... 59
     SECTION 3.13  Transfer and Exchange of Securities........................................ 60
     SECTION 3.14  Special Transfer Provisions................................................ 67

                                          ARTICLE IV

SATISFACTION AND DISCHARGE.................................................................... 68
     SECTION 4.1   Satisfaction and Discharge of Indenture.................................... 68
     SECTION 4.2   Application of Trust Money................................................. 70

                                           ARTICLE V

REMEDIES...................................................................................... 70
     SECTION 5.1   Events of Default.......................................................... 70
     SECTION 5.2   Acceleration of Maturity; Rescission and Annulment......................... 71
     SECTION 5.3   Collection of Indebtedness and Suits for Enforcement by Trustee............ 73
     SECTION 5.4   Trustee May File Proofs of Claim........................................... 73
     SECTION 5.5   Trustee May Enforce Claims Without Possession of Securities................ 74
     SECTION 5.6   Application of Money Collected............................................. 75
     SECTION 5.7   Limitation on Suits........................................................ 75
</TABLE>

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     SECTION 5.8   Unconditional Right of Holders to Receive Principal, Premium and Interest....... 76
     SECTION 5.9   Restoration of Rights and Remedies.............................................. 76
     SECTION 5.10  Rights and Remedies Cumulative.................................................. 76
     SECTION 5.11  Delay or Omission Not Waiver.................................................... 77
     SECTION 5.12  Control by Holders.............................................................. 77
     SECTION 5.13  Waiver of Past Defaults......................................................... 77
     SECTION 5.14  Waiver of Stay or Extension Laws................................................ 78

                                              ARTICLE VI

THE TRUSTEE........................................................................................ 78
     SECTION 6.1   Certain Duties and Responsibilities............................................. 78
     SECTION 6.2   Notice of Default............................................................... 79
     SECTION 6.3   Certain Rights of Trustee....................................................... 80
     SECTION 6.4   Trustee Not Responsible for Issuance of Securities.............................. 81
     SECTION 6.5   May Hold Securities............................................................. 82
     SECTION 6.6   Money Held in Trust............................................................. 82
     SECTION 6.7   Compensation and Reimbursement.................................................. 82
     SECTION 6.8   Corporate Trustee Required; Eligibility; Conflicting Interests.................. 83
     SECTION 6.9   Resignation and Removal; Appointment of Successor............................... 84
     SECTION 6.10  Acceptance of Appointment by Successor.......................................... 85
     SECTION 6.11  Merger, Conversion, Consolidation or Succession to Business..................... 86
     SECTION 6.12  Trustee Acting in Other Capacities.............................................. 86

                                             ARTICLE VII

HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY.................................................. 87
     SECTION 7.1   Disclosure of Names and Addresses of Holders.................................... 87
     SECTION 7.2   Reports by Trustee.............................................................. 87
     SECTION 7.3   Reports by Company.............................................................. 87

                                            ARTICLE VIII
</TABLE>

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CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE....................................................  87
     SECTION 8.1   Company May Consolidate, Etc., Only on Certain Terms.................................  87
     SECTION 8.2   Successor Substituted................................................................  89

                                                 ARTICLE IX

SUPPLEMENTAL INDENTURES.................................................................................  89
     SECTION 9.1   Indentures Without Consent of Holders................................................  89
     SECTION 9.2   Indentures with Consent of Holders...................................................  90
     SECTION 9.3   Execution of Indenture...............................................................  91
     SECTION 9.4   Effect of Indentures.................................................................  91
     SECTION 9.5   Conformity with Trust Indenture Act..................................................  91
     SECTION 9.6   Reference in Securities to Indentures................................................  92
     SECTION 9.7   Notice of Indentures.................................................................  92

                                                  ARTICLE X

COVENANTS...............................................................................................  92
     SECTION 10.1  Payment of Principal, Premium, if Any, and Interest..................................  92
     SECTION 10.2  Maintenance of Office or Agency......................................................  93
     SECTION 10.3  Money for Security Payments to Be Held in Trust......................................  94
     SECTION 10.4  Corporate Existence..................................................................  96
     SECTION 10.5  Payment of Taxes and Other Claims....................................................  96
     SECTION 10.6  Maintenance of Properties............................................................  96
     SECTION 10.7  Insurance............................................................................  96
     SECTION 10.8  Provision of Financial Statements....................................................  97
     SECTION 10.9  Statement by Officers as to Default..................................................  97
     SECTION 10.10 Purchase of Securities upon Change of Control........................................  98
     SECTION 10.11 Limitation on Incurrence of Additional Indebtedness and Disqualified Capital Stock... 102
     SECTION 10.12 Limitation on Restricted Payments.................................................... 104
     SECTION 10.13 Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries......... 107
     SECTION 10.14 Limitation on Liens Securing Indebtedness............................................ 109
</TABLE>

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     SECTION 10.15 Limitation on Issuances of Guarantees by Subsidiaries..........................  109
     SECTION 10.16 Limitation on Sale of Assets and Subsidiary Stock..............................  110
     SECTION 10.17 Limitation on Transactions with Affiliates.....................................  115
     SECTION 10.18 Additional Amounts.............................................................  115
     SECTION 10.19 Waiver of Stay, Extension or Usury Laws........................................  118
     SECTION 10.20 Limitation on Lines of Business................................................  118
     SECTION 10.21 Limitation on Status as an Investment Company..................................  118

                                             ARTICLE XI

REDEMPTION OF SECURITIES..........................................................................  118
     SECTION 11.1  Right of Redemption............................................................  119
     SECTION 11.2  Applicability of Article.......................................................  120
     SECTION 11.3  Election to Redeem; Notice to Trustee..........................................  120
     SECTION 11.4  Selection by Trustee of Securities to Be Redeemed..............................  120
     SECTION 11.5  Notice of Redemption...........................................................  121
     SECTION 11.6  Deposit of Redemption Price....................................................  122
     SECTION 11.7  Securities Payable on Redemption Date..........................................  122
     SECTION 11.8  Securities Redeemed in Part....................................................  122

                                            ARTICLE XII

DEFEASANCE AND COVENANT DEFEASANCE................................................................  123
     SECTION 12.1  Company's Option to Effect Defeasance or Covenant Defeasance...................  123
     SECTION 12.2  Defeasance and Discharge.......................................................  123
     SECTION 12.3  Covenant Defeasance............................................................  124
     SECTION 12.4  Conditions to Defeasance or Covenant Defeasance................................  124
     SECTION 12.5  Deposited Money and U.S. Government Securities to Be Held in Trust; Other
                   Miscellaneous Provisions.......................................................  126
     SECTION 12.6  Reinstatement..................................................................  127
</TABLE>

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<TABLE>
<S>                                                              <C>
EXHIBIT A....................................................... A-1
EXHIBIT B....................................................... B-1
EXHIBIT C....................................................... C-1
EXHIBIT D....................................................... D-1
EXHIBIT E....................................................... E-1
EXHIBIT F....................................................... F-2
EXHIBIT G....................................................... G-1
EXHIBIT H....................................................... H-1
</TABLE>

                                       vi
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          INDENTURE, dated as of January 20, 2000 by and between United Pan-
Europe Communications N.V., a public limited liability company organized and
existing under the laws of The Netherlands (herein called the "Company"), having
its principal office at Fred. Roeskestraat 123, 1076 EE Amsterdam, The
Netherlands, and Citibank, N.A. (London Branch), as Trustee (herein called the
"Trustee").  Each party agrees as follows for the benefit of the other party and
for the equal and ratable benefit of the Holders (as defined below) of the
Company's 11 1/2% Senior Notes due 2010:

                                   ARTICLE I

                       DEFINITIONS AND OTHER PROVISIONS
                            OF GENERAL APPLICATION

          SECTION 1.1    Definitions.  For all purposes of this Indenture,
                         -----------
except as otherwise expressly provided or unless the context otherwise requires:

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

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

          (c)  all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with "GAAP" as defined in this section
1.1;

          (d)  the words "herein," "hereof" and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section, paragraph or other subdivision; and

          (e)  unless otherwise indicated, references to Articles, Sections,
paragraphs or other subdivisions are references to such Articles, Sections,
paragraphs or other subdivisions of this Indenture.

                                       1
<PAGE>

          "Acceleration Notice" has the meaning set forth in Section 5.2.

          "Acquired Indebtedness" means Indebtedness (including Disqualified
Capital Stock) of any Person existing at the time such Person becomes a
Subsidiary of the Company, including by designation,  or is merged or
consolidated into or with the Company or one of its Subsidiaries.

          "Acquisition" means the purchase or other acquisition of any Person or
all or substantially all the assets of any Person by any other Person, whether
by purchase, merger, consolidation, or other transfer, and whether or not for
consideration.

          "Act," when used with respect to any Holder, has the meaning specified
in Section 1.4.

          "Additional Amounts" has the meaning specified in Section 10.18.

          "Affiliate" means any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company. For
purposes of this definition, the term "control" means the power to direct the
management and policies of a Person, directly or through one or more
intermediaries, whether through the ownership of voting securities, by contract,
or otherwise; provided that with respect to ownership interest in the Company
and its Subsidiaries, a Beneficial Owner of 10% or more of the total voting
power normally entitled to vote in the election of directors, managers or
trustees, as applicable, shall for such purposes be deemed to constitute
control.

          "Agent Member" means, with respect to any Depositary, any member of,
or participant in, such Depositary.

          "Applicable Procedures" has the meaning set forth in Section
3.13(b)(ii).

          "Annualized Consolidated EBITDA" means Consolidated EBITDA for the
Reference Period multiplied by four.

          "Asset Acquisition" means (i) an Investment or capital contribution
(by means of transfers of cash or other property to others or payments for
property or services of the account or use of others, or otherwise) by the
Company or any

                                       2
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Subsidiary in any other Person, or any acquisition or purchase of Capital Stock
of another Person by the Company or any Subsidiary, or (ii) an acquisition by
the Company or any Subsidiary of the property and assets (other than Capital
Stock) of any Person other than the Company or any Subsidiary which constitute
substantially all of a division, operating unit or line of business of such
Person or which is otherwise outside the ordinary course of business.

          "Asset Sale" has the meaning set forth in Section 10.16.

          "Average Life" means, as of the date of determination, with respect to
any security or instrument, the quotient obtained by dividing (1) the sum of the
products (a) of the number of years from the date of determination to the date
or dates of each successive scheduled principal (or redemption) payment of such
security or instrument and (b) the amount of each such respective principal (or
redemption) payment by (2) the sum of all such principal (or redemption)
payments.

          "Beneficial Owner" or "beneficial owner" for purposes of the
definition of "Change of Control" and "Affiliate" has the meaning attributed to
it in Rules 13d-3 and 13d-5 under the Exchange Act (as in effect on the Issue
Date), whether or not applicable, except that a "person" shall be deemed to have
"beneficial ownership" of all shares that any such Person has the right to
acquire, whether such right is exercisable immediately or only after the passage
of time.

          "Board Resolution" means a copy of a resolution certified by a
managing director or other authorized officer, assistant officer or
representative of the Company to have been duly adopted by the Supervisory Board
of the Company and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

          "Business Day" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in New York, New York
and Amsterdam, The Netherlands are authorized or obligated by law or executive
order to close.

          "Capital Contribution" means any contribution to the equity of the
Company from a direct or indirect parent of the Company for which no
consideration other than the issuance of Qualified Capital Stock is paid.

          "Capitalized Lease Obligation" means, as to any Person, the

                                       3
<PAGE>

obligations of such Person under a lease that are required to be classified and
accounted for as capital lease obligations under GAAP and, for purposes of this
definition, the amount of such obligations at any date shall be the capitalized
amount of such obligations at such date, determined in accordance with GAAP.

          "Capital Stock" means, with respect to any Corporation, any and all
shares, interests, rights to purchase (other than convertible or exchangeable
Indebted  ness that is not itself otherwise capital stock), warrants, options,
participations or other equivalents of or interests (however designated) in
stock issued by that Corporation.

          "Cash Equivalent" means:

     (1)  securities issued or directly and fully guaranteed or insured by (i)
     the United States of America or any agency or instrumentality thereof or
     (ii) any member of the European Economic Area or Switzerland, or any,
     agency or instrumentality thereof provided that such country, agency or
     instrumentality has a credit rating at least equal to that of the United
     States of America (provided that, in each case, the full faith and credit
     of such respective nation is pledged in support thereof), or

     (2)  time deposits and certificates of deposit and commercial paper issued
     by the parent Corporation of any domestic (United States) commercial bank
     of recognized standing having capital and surplus in excess of $500,000,000
     (or the foreign currency equivalent thereof), or

     (3)  commercial paper issued by others rated at least A-2 or the equivalent
     thereof by Standard & Poor's Corporation or at least P-2 or the equivalent
     thereof by Moody's Investors Service, Inc.

     and in the case of each of (1), (2), and (3) maturing within one year after
     the date of acquisition, or

     (4)  Euro or Dollar time deposits with maturities of six months or less
     from the date of acquisition, bankers' acceptances with maturities not
     exceeding six months, and overnight bank deposits, in each case with any
     domestic (United States) commercial bank (including the Trustee) having
     capital and surplus in excess of $500,000,000 (or the foreign currency
     equivalent thereof) and a Keefe Bank Watch Rating of "B" or better;

                                       4
<PAGE>

     provided, in the case of (1) through (4), that with respect to any non-
     domestic Person, Cash Equivalents shall also mean those investments that
     are comparable to clauses (ii) and (iv) above in such Person's country of
     organization or country where it conducts business operations.

          "Cedelbank" means Cedelbank.

          "Certificated Security" means any certificated Security in fully
registered definitive form.

          "Change of Control" means any merger or consolidation of the Company
with or into any Person or any sale, transfer or other conveyance, whether
direct or indirect, of all or substantially all of the Company's assets, on a
Consolidated basis, in one transaction or a series of related transactions,
if, immediately after giving effect to such transaction(s), either

               (A)  any "person" or "group" (other than the Parent or any of the
Principals) is or becomes the "beneficial owner," directly or indirectly, of
more than 35% of the total voting power of all classes of the Company's
securities in the aggregate normally entitled to vote in the election of
directors, managers, or trustees, as applicable, of the transferee(s) or
surviving entity or entities and such "person" or "group" beneficially owns
(after giving effect to such transaction) a greater percent age of the total
voting power than is at that time beneficially owned by Parent and the
Principals (in the aggregate) and none of the Parent nor any of the Principals
has the right or ability by voting power, contract or otherwise to elect or
nominate for elections a majority of the Company's Supervisory Board, or

               (B)  the Continuing Directors cease for any reason to constitute
a majority of the Supervisory Board of the Company then in office, or

               (C)  the Company adopts a plan of liquidation (other than a plan
of liquidation as a consequence of which (1) the Parent and the Principals (in
the aggregate) beneficially own at least the same percentage of voting power
after the consummation of such plan as before or otherwise retain the right or
ability, by voting power, to control the Person that acquires the proceeds of
such liquidation and (2) the Person that acquires the substantial majority of
the proceeds of such liquidation shall have assumed by supplemental indenture
the Company's obligations pursuant to this Indenture).

                                       5
<PAGE>

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

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

          "Company Order" or "Company Request" means a written request or order
signed in the name of the Company by a member of the Company's management board
or its supervisory board, the Chief Executive Officer, the President or a Vice
President, and by the Chief Financial Officer, the Chief Accounting Officer, the
Treasurer, an Assistant Treasurer, the Secretary, an Assistant Secretary or
other authorized representative of the Company and delivered to the Trustee.

          "Consolidated Coverage Ratio" of any Person on any date of
determination (the "Transaction Date") means the ratio, on a pro forma basis, of
(a) the aggregate amount of Consolidated EBITDA of such Person attributable to
continuing operations and businesses (exclusive of amounts attributable to
operations and business permanently discontinued or disposed of) for the
Reference Period to (b) the aggregate Consolidated Fixed Charges of such Person
(exclusive of amounts attributable to operations and businesses permanently
discontinued or disposed of, but only to the extent that the obligations giving
rise to such Consolidated Fixed Charges would no longer be obligations
contributing to such Person's Consolidated Fixed Charges subsequent to the
Transaction Date) during the Reference Period; provided that for purposes of
such calculation, (i) Acquisitions which occurred during the Reference Period or
subsequent to the Reference Period and on or prior to the Transaction Date shall
be assumed to have occurred on the first day of the Reference Period, (ii)
transactions giving rise to the need to calculate the Consolidated Coverage
Ratio shall be assumed to have occurred on the first day of the Reference
Period, (iii) the incurrence of any Indebtedness during the Reference Period or
subsequent to the Reference Period and on or prior to the Transaction Date (and
the application of the proceeds therefrom to the extent used to refinance or
retire other Indebtedness) shall be assumed to have occurred on the first day of
such Reference Period, and (iv) the Consolidated Fixed Charges of such Person
attributable to interest on any Indebtedness or dividends on any Disqualified
Capital

                                       6
<PAGE>

Stock bearing a floating interest (or dividend) rate shall be computed on a pro
forma basis as if the average rate in effect from the beginning of the Reference
Period to the Transaction Date had been the applicable rate for the entire
period, unless such person or any of its Subsidiaries is a party to an Interest
Swap or Hedging Obligation (which shall remain in effect for the 12-month period
immediately following the Transaction Date) that has the effect of fixing the
interest rate on the date of computation, in which case such rate (whether
higher or lower) shall be used.

          "Consolidated Invested Equity Capital" means, with respect to any
Person as of any date, the sum of the Invested Equity Capital of such Person as
of such date and, without duplication, the Invested Equity Capital of each of
its Subsidiaries as of such date. For purposes of calculating the Consolidated
Invested Equity Capital of any Person as of any date, in order to avoid
duplication, the Invested Equity Capital of a Subsidiary of such Person shall
not include any amounts that would be included in the Consolidated Invested
Equity Capital of any equity owner of such Subsidiary, to the extent that such
amounts were utilized by such equity owner prior to such date to permit the
incurrence of Indebtedness pursuant to clauses 2(iii) and (c)(3) of Section
10.11. For example, if a direct Subsidiary of the Company has Consolidated
Invested Equity Capital of $100 and incurs $225 of such Indebtedness, then a
direct or indirect Subsidiary of such Subsidiary will not be deemed to have any
Invested Equity Capital based on contributions or loans to it by such first
Subsidiary. In addition, the Invested Equity Capital of a Subsidiary of a Person
will never be considered to be greater than the Invested Equity Capital of such
Person, except as a result of contributions of Invested Equity Capital to such
Subsidiary by third parties.

          "Consolidation"  means, with respect to any Person, the consolidation
of the accounts of the Subsidiaries with those of such Person, all in accordance
with GAAP; provided that "Consolidation" will not include consolidation of the
accounts of any Unrestricted Subsidiary with the accounts of such Person. The
term "Consolidated" has a correlative meaning to the foregoing.

          "Consolidated EBITDA" means, with respect to any Person, for any
period, the Consolidated Net Income of such Person for such period adjusted to
add thereto (to the extent deducted from net revenues in determining
Consolidated Net Income), without duplication, the sum of

          (1)  Consolidated income tax expense,

                                       7
<PAGE>

          (2)  Consolidated depreciation and amortization expense,

          (3)  Consolidated Fixed Charges, and

          (4)  non-cash stock-based compensation,

          less the amount of all cash payments made by such Person or any of its
Subsidiaries during such period to the extent such payments relate to non-cash
charges that were added back in determining Consolidated EBITDA for such period
or any prior period; provided that Consolidated income tax expense, depreciation
and amortization of a Subsidiary that is not a Wholly Owned Subsidiary shall
only be added to the extent of the equity interest of such Person in such
Subsidiary.

          "Consolidated Fixed Charges" of any Person means, for any period, the
aggregate amount (without duplication and determined in each case in accordance
with GAAP) of:

          (a)  interest expensed or capitalized, paid, accrued, or scheduled to
               be paid or accrued (including, in accordance with the following
               sentence, interest attributable to Capitalized Lease Obligations)
               of such Person and its Consolidated Subsidiaries during such
               period, including (1) original issue discount and non-cash
               interest payments or accruals on any Indebtedness, (2) the
               interest portion of all deferred payment obligations, and (3) all
               commissions, discounts and other fees and charges owed with
               respect to bankers' acceptances and letters of credit financings
               and currency and Interest Swap and Hedging Obligations, in each
               case to the extent attributable to such period,

          (b)  the amount of dividends accrued or payable (or guaranteed) by
               such Person or any of its Consolidated Subsidiaries in respect of
               Preferred Stock (other than by Subsidiaries of such Person to
               such Person or such Person's Wholly Owned Subsidiaries).

          For purposes of this definition, (x) interest on a Capitalized Lease
Obligation shall be deemed to accrue at an interest rate reasonably determined
in good faith by the Company to be the rate of interest implicit in such
Capitalized Lease Obligation in accordance with GAAP and (y) interest expense
attributable to any Indebtedness represented by the guaranty by such Person or a
Subsidiary of such Person of an obligation of another Person shall be deemed to
be the interest expense

                                       8
<PAGE>

attributable to the Indebtedness guaranteed.

          "Consolidated Net Income" means, with respect to any Person for any
period, the net income (or loss) of such Person and its Consolidated
Subsidiaries (determined on a Consolidated basis in accordance with GAAP) for
such period, adjusted to exclude (only to the extent included in computing such
net income (or loss) and without duplication):

          (a)  all gains (but not losses) which are either extraordinary (as
          determined in accordance with GAAP) or are nonrecurring (including any
          gain from the sale or other disposition of assets outside the ordinary
          course of business or from the issuance or sale of any capital stock),

          (b)  the net income, if positive, of any Person, other than a
          Consolidated Subsidiary, in which such Person or any of its
          Consolidated Subsidiaries has an interest, except to the extent of the
          amount of any dividends or distributions actually paid in cash to such
          Person or a Consolidated Subsidiary of such Person during such period,
          but in any case not in excess of such Person's pro rata equity
          interest share of such Person's net income for such period,

          (c)  the net income or loss of any Person acquired in a pooling of
          interests transaction for any period prior to the date of such
          acquisition, and

          (d)  the net income, if positive, of any such Person's Consolidated
          Subsidiaries to the extent that the declaration or payment of
          dividends or similar distributions is not at the time permitted by
          operation of the terms of its charter or bylaws or any other
          agreement, instrument, judgment, decree, order, statute, rule or
          governmental regulation applicable to such Consolidated Subsidiary
          other than this Indenture.

          "Consolidated Subsidiary" means, for any Person, each Subsidiary
(excluding all Unrestricted Subsidiaries) of such Person (whether now existing
or hereafter created or acquired) the financial statements of which are
Consolidated for financial statement reporting purposes with the financial
statements of such Person in accordance with GAAP.

                                       9
<PAGE>

          "Consolidated Tangible Assets" of any Person means the total amount of
assets less applicable reserves and other properly deductible items which under
GAAP would be calculated on a Consolidated balance sheet of the Person and its
Subsidiaries after deducting all goodwill, trademarks, patents, unamortized debt
discount and expense and other like intangibles, which, in each case under GAAP,
would be included on such Consolidated balance sheet.

          "Continuing Director" means during any period of 12 consecutive months
after the Issue Date, individuals who at the beginning of any such 12-month
period constituted the Supervisory Board of the Company (together with any new
supervisory directors whose election by the shareholders was from a list of
candidates drawn up by the holder or holders of the Company's priority shares
and new supervisory directors designated in or provided for in an agreement
regarding the merger, consolidation or sale, transfer or other conveyance, of
all or substantially all of the assets of the Company or the Parent, if such
agreement was approved by a vote of such majority of supervisory directors).

          "Corporate Trust Office" means the principal corporate trust office of
the Trustee, at which at any particular time its corporate trust business shall
be administered, which office at the date of execution of this Indenture is
located at 11 Old Jewry, London EC2R 8DU, except that, with respect to
presentation of Securities for payment or for registration of transfer or
exchange, such term shall mean the office or agency of the Trustee at which, at
any particular time, its corporate agency business shall be conducted.

          "Corporation" includes Corporations, associations, companies and
business trusts.

          "Credit Agreement" means the loan and note issuance agreement dated
July 27, 1999 between certain Subsidiaries of the Company and Bank of American
International Limited, CIBC World Markets plc, Citibank, N.A., MeesPierson N.V.,
Paribas, The Royal Bank of Scotland plc, Toronto Dominion Bank Europe Limited
and The Toronto Dominion Bank, including any related notes, guarantees,
collateral documents, instruments and agreements executed in connection
therewith, as such agreement and/or related documents may be amended, restated,
supplemented, renewed, replaced or otherwise modified from time to time whether
or not with the same agent, trustee, representative lenders or Holders, and,
subject to the proviso to the next succeeding sentence, irrespective of any
changes in the terms and conditions thereof. Without limiting the generality of
the foregoing, the term "Credit

                                       10
<PAGE>

Agreement" shall include agreements in respect of Interest Swap and Hedging
Obligations with lenders party to the Credit Agreement and shall also include
any amendment, amendment and restatement, renewal, extension, restructuring,
supplement or modification to any Credit Agreement and all refundings,
refinancings and replacements of any Credit Agreement, including any agreement:

          (1)  extending the maturity of any Indebtedness incurred thereunder
          or contemplated thereby,

          (2)  adding or deleting borrowers or guarantors thereunder, so long as
          borrowers and guarantors may include one or more of the Company and
          its Subsidiaries and their respective successors and assigns,

          (3)  increasing the amount of Indebtedness incurred thereunder or
          available to be borrowed thereunder; provided that on the date such
          Indebtedness is incurred it would not be prohibited by Section 10.11;
          or

          (4)  otherwise altering the terms and conditions thereof in a manner
          not prohibited by the other terms of this Indenture.

          "CT Corporation System" has the meaning specified in Section 1.19.

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

          "Defaulted Interest" has the meaning specified in Section 3.7.

          "Depositary" has the meaning specified Section 3.12.

          "Disqualified Capital Stock" means (a) except as set forth in clause
(b), with respect to any Person,  Equity Interests of such Person that, by its
terms or by the terms of any security into which it is convertible, exercisable
or exchangeable, is, or upon the happening of an event or the passage of time or
both would be, required to be redeemed or repurchased (including at the option
of the holder thereof) by such Person or any of its Subsidiaries, in whole or in
part, on or prior to 91 days following the Stated Maturity of the Securities and
(b) with respect to any Subsidiary of the Company, any Equity Interests of such
Subsidiary other than (i) any common equity with no economic preference,
privileges, or redemption or repayment

                                       11
<PAGE>

provisions or (ii) preferred stock convertible into such common equity of such
Subsidiary with no payment of dividends or liquidation preference due or payable
thereon on or prior to 91 days following the Stated Maturity of the Securities.

          "Dollars" or "$" or "U.S. Dollars" means the lawful currency of the
United States of America and, in relation to any amount to be advanced or paid
under this Indenture or the Securities, funds having immediate value.

          "DTC" means the Depository Trust Company, its nominees and successors.

          "Equity Interest" of any Person means any shares, interests,
participations or other equivalents (however designated) in such Person's
equity, and shall in any event include any Capital Stock issued by, or
partnership, participation or membership interests in, such Person.

          "Equity Offering"  means (i) an underwritten public offering or
floatation of ordinary shares of the Company which has been registered under the
Securities Act, or admitted to listing on the Amsterdam Stock Exchange or its
equivalent in any other European Union jurisdiction, in any case resulting in
Net Cash Proceeds to the Company of at least $100,000,000 (or its foreign
currency equivalent), or (ii) a sale of Qualified Capital Stock of the Company
to any Person which is (or a controlled Affiliate of a Person which is), engaged
principally in a Related Business, resulting in Net Cash Proceeds to the Company
of at least $100,000,000 (or its foreign currency equivalent); provided,
however, that a sale of Qualified Capital Stock of the Company to any subsidiary
of the Company or any Person that is a controlled Affiliate of the Company shall
not be an Equity Offering.

          "Euro" or "Euro Symbol" means the currency adopted by those countries
participating in the third stage of European monetary union.

          "Euroclear" means Morgan Guaranty Trust Company of New York, Brussels
office, as operator of the Euroclear System.

          "European Economic Area" means the member nations of the European
Economic Area pursuant to the Oporto Agreement on the European Economic Area
dated May 2, 1992 as amended.

          "European Union" means the member nations to the third stage of

                                       12
<PAGE>

economic and monetary union pursuant to the treaty of Rome establishing the
European Community, as amended by the Treaty on European Union, signed at
Maastricht on February 7, 1992.

          "Event of Default" has the meaning set forth under Section 5.1.

          "Event of Loss" means, with respect to any property or asset, any (1)
loss, destruction or damage of such property or asset or (2) any condemnation,
seizure or taking, by exercise of the power of eminent domain or otherwise, of
such property or asset, or confiscation or requisition of the use of such
property or asset.

          "Exchange Act" means the United States Securities Exchange Act of
1934, as amended (or any successor act), and the rules and regulations
thereunder (or respective successors thereto).

          "Exchange Offer" means the exchange registered with the SEC to
exchange Initial Securities for Exchange Securities pursuant to the terms of the
Registration Rights Agreement.

          "Exchange Registration Statement" means an Exchange Registration
Statement as defined in the Registration Rights Agreement.

          "Exchange Securities" means the Securities to be issued pursuant to
this Indenture in connection with the offer to exchange Securities for Initial
Securities that may be made by the Company pursuant to the Registration Rights
Agreement.

          "Exempted Affiliate Transaction" means (i) Restricted Payments
comprised of pro rata dividends paid in cash on any class of Equity Interests
and made in compliance with this Indenture, (ii) transactions, at arms-length
and as so set forth in a Board Resolution, between or among holders of any
Equity Interest of any Subsidiary of the Company and such Subsidiary, so long as
such holder is not otherwise an Affiliate of the Company, (iii) transactions
between or among the Company, and its Subsidiaries, (iv) the Company or any of
its Subsidiaries entering into or performing any employment agreement, stock
option agreement or other agreement relating to the terms of employment,
compensation or termination of employment in the ordinary course of business of
the Company or such Subsidiary, (v) any contract, agreement, arrangement or
transaction with any Affiliate in effect as of the Issue Date and any amendment,
waiver, variation or other modification in

                                       13
<PAGE>

respect of any such contract, agreement, arrangement or transaction so long as
such amendment, waiver, variation or other modification is not disadvantageous
to the Company and its Subsidiaries in any material respect, (vi) Restricted
Payments and Investments permitted under Section 10.12, (vii) transactions with
customers, clients, suppliers, or purchasers or sellers of goods or services, in
each case in the ordinary course of business and otherwise in compliance with
the terms of this Indenture which are fair to the Company and its Subsidiaries,
in the reasonable determination of the Company or Subsidiary, as the case may
be, or are on terms no less favorable to the Company or the Subsidiary than
those that could be obtained in a comparable arm's length transaction with an
entity that is not an Affiliate or Principal and is in the best interests of the
Company or the Subsidiary, and (viii) transactions with respect to network
capacity or dark or lit communications fiber capacity or telecommunications
conduit between the Company or any Subsidiary and any Unrestricted Subsidiary or
other Affiliate and joint sales and marketing pursuant to an agreement or
agreements between the Company or any Subsidiary and any Unrestricted Subsidiary
or other Affiliate, provided that in the case of this clause (viii), such
agreements are on terms that are no less favorable to the Company or the
Subsidiary than those that could be obtained in an arm's-length transaction with
an entity that is not an Affiliate or Principal and are in the best interests of
the Company and the Subsidiary entered into in the ordinary course of business.

          "Existing Agreements" means (i) any and all instruments, as in effect
on the Issue Date, between the Company or any of its Subsidiaries  and a
commercial lending institution or institutions, which makes borrowing of funds
available to the Company or any such Subsidiary from such institution or
institutions and (ii) any replacements of the instruments in clause (i) entered
into by the respective Subsidiary that was party to the instrument so replaced
or their respective successors and a commercial lending institution or
institutions for an amount up to the maximum amount of the instrument so
replaced.

          "Existing Indebtedness" means the Indebtedness of the Company and its
Subsidiaries (other than Indebtedness under the Credit Agreement) in existence
on the Issue Date, reduced to the extent such amounts are repaid.

          "Federal Bankruptcy Code" means the Bankruptcy Act of Title 11 of the
United States Code, as amended from time to time.

          "GAAP" means United States generally accepted accounting principles
set forth in the opinions and pronouncements of the Accounting Principles

                                       14
<PAGE>

Board of the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as approved by a significant segment of the
accounting profession in the United States as in effect on the Issue Date.

          "Global Security" means a Regulation S Global Security (or
Unrestricted Global Security) or a Restricted Global Security.

          "Guarantee" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Indebtedness or other obligation
of any other Person and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other obligation of such other Person (whether arising by virtue
of partnership arrangements, or by agreements to keep-well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise) or (ii) entered into for purposes of assuring
in any other manner the obligee of such Indebtedness or other obligation of the
payment thereof or to protect such obligee against loss in respect thereof (in
whole or in part); provided that the term "Guarantee" shall not include
endorsements for collection or deposit in the ordinary course of business. The
term "Guarantee" used as verb has a corresponding meaning.

          "Guarantor" is defined to mean any Person obligated under a Guarantee.

          "Holder" means a Person in whose name a Security is registered in the
Security Register.

          "Indebtedness" of any Person means, without duplication,

          (a)  all liabilities and obligations, contingent or otherwise, of such
          Person, to the extent such liabilities and obligations would appear as
          a liability upon the Consolidated balance sheet of such Person in
          accordance with GAAP, (1) in respect of borrowed money (whether or
          not the recourse of the lender is to the whole of the assets of such
          Person or only to a portion thereof), (2) evidenced by bonds, notes,
          debentures or similar instruments, (3) representing the balance
          deferred and unpaid of the purchase price of any property or services,

                                       15
<PAGE>

          except (other than accounts payable or other obligations to trade
          creditors which have remained unpaid for greater than 90 days past
          their original due date) those incurred in the ordinary course of its
          business that would constitute ordinarily a trade payable to trade
          creditors;

          (b)  all liabilities and obligations, contingent or otherwise, of such
          Person (1) evidenced by bankers' acceptances or similar instruments
          issued or accepted by banks, (2) relating to any Capitalized Lease
          Obligation, or (3) evidenced by a letter of credit or a reimbursement
          obligation of such Person with respect to any letter of credit (other
          than obligations with respect to letters of credit securing
          obligations (other than obligations described in (a)(1) through (3)
          above) entered into in the ordinary course of business of such Person
          to the extent such letters of credit are not drawn upon);

          (c)  all net obligations of such Person under Interest Swap and
          Hedging Obligations;

          (d)  all liabilities and obligations of others of the kinds described
          in the preceding clauses (a), (b) or (c) that such Person has
          guaranteed or provided credit support or that is otherwise its legal
          liability or which are secured by any assets or property of such
          Person;

          (e)  any and all deferrals, renewals, extensions, refinancing and
          refundings (whether direct or indirect) of, or amendments,
          modifications or supplements to, any liability of the kind described
          in any of the preceding clauses (a), (b), (c) or (d), or this clause
          (e), whether or not between or among the same parties; and

          (f)  all Disqualified Capital Stock of such Person (measured at the
          greater of its voluntary or involuntary maximum fixed repurchase
          price, plus accrued and unpaid dividends).

          For purposes hereof, the "maximum fixed repurchase price" of any
          Disqualified Capital Stock which does not have a fixed repurchase
          price shall be calculated in accordance with the terms of such
          Disqualified Capital Stock as if such Disqualified Capital Stock were
          purchased on any date on which Indebtedness shall be required to be

                                       16
<PAGE>

          determined pursuant to this Indenture, and if such price is based
          upon, or measured by, the fair market value of such Disqualified
          Capital Stock, such fair market value to be determined in good faith
          by the Supervisory Board of the Company.

          The amount of any Indebtedness outstanding as of any date shall be (1)
          the accreted value thereof, in the case of any Indebtedness issued
          with original issue discount, but the accretion of original issue
          discount in accordance with the original terms of Indebtedness issued
          with an original issue discount will not be deemed to be an incurrence
          and (2) the principal amount thereof, excluding any interest thereon,
          in the case of any other Indebtedness.

          "Indenture" means this instrument as originally executed and as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof.

          "Initial Purchasers" means, with respect to the Initial Securities
issued pursuant to this Indenture on the Issue Date, each of Donaldson, Lufkin &
Jenrette International and the other Initial Purchasers named as such in the
Offering Circular

          "Initial Securities" means the $300,000,000 11 1/2% Senior Notes due
2010 issued under this Indenture on the Issue Date.

          "Institutional Accredited Investor" means an institutional "Accredited
Investor," as defined in Regulation D of the Securities Act.

          "Interest Payment Date" means the Stated Maturity of an installment of
interest on the Securities.

          "Interest Rate Adjustment Event" has the meaning set forth in Section
3.1.

          "Interest Swap and Hedging Obligation" means any obligation of any
Person pursuant to any interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate exchange agreement,
currency exchange agreement or any other agreement or arrangement designed to
protect against fluctuations in interest rates or currency values, including,
without limitation, any arrangement whereby, directly or indirectly, such Person
is entitled to receive from time to time periodic payments calculated by
applying either a fixed or floating rate

                                       17
<PAGE>

of interest on a stated notional amount in exchange for periodic payments made
by such Person calculated by applying a fixed or floating rate of interest on
the same notional amount.

          "Invested Equity Capital" means, with respect to any Person as of any
date, without duplication, the sum of (i) the total dollar amount contributed in
cash plus the value of all property contributed (valued at fair market value at
the time of contribution, determined in good faith by the Supervisory Board) to
such Person since the date of its creation in the form of common equity, plus,
(ii) the total dollar amount contributed in cash plus the value of all property
contributed (valued at fair market value at the time of contribution, determined
in good faith by the Supervisory Board) to such Person since the date of
creation by the holders of its common equity (and their Affiliates) in
consideration of the issuance of preferred equity or Indebted  ness, on a basis
that is substantially proportionate to their common equity interests (with any
disproportionately large equity interests received by the Company or a
Subsidiary relative to their respective contributions being ignored for this
purpose), plus, (iii) the total dollar amount contributed in cash plus the value
of all property contributed (valued at fair market value at the time of
contribution, determined in good faith by the Supervisory Board) to such Person
since the date of its creation by the Company or a Wholly Owned Subsidiary of
the Company in consideration of the issuance of preferred equity or
Indebtedness, and less (iv) the value of all interest, returns in respect of
Indebtedness, dividends and other distributions (in whatever form and however
designated, valued at fair market value as determined in good faith by the
Supervisory Board) made by such Person since the date of its creation to the
holders of its common equity (and their Affiliates); provided that in no event
shall the aggregate amount of interest, dividends and other distributions made
to any holder of common equity of a Person (or its Affiliates) operate to reduce
the Invested Equity Capital of such Person by more than the total contributions
to such Person (per clauses (i) through (iii) above) by such equity holder (and
its Affiliates).

          "Investment" by any Person in any other Person means (without
duplication):

          (a)  the acquisition (whether by purchase, merger, consolidation or
          otherwise) by such Person (whether for cash, property, services,
          securities or otherwise) of capital stock, bonds, notes, debentures,
          partnership or other ownership interests or other securities,
          including any options or warrants, of such other Person or any
          agreement to

                                       18
<PAGE>

          make any such acquisition;

          (b)  the making by such Person of any deposit with, or advance, loan
          or other extension of credit to, such other Person (including the
          purchase of property from another Person subject to an understanding
          or agreement, contingent or otherwise, to resell such property to such
          other Person) or any commitment to make any such advance, loan or
          extension (but excluding accounts receivable, endorsements for
          collection or deposits arising in the ordinary course of business);

          (c)  other than guarantees of Indebtedness of the Company or to the
          extent permitted by Section 10.11, the entering into by such Person of
          any guarantee of, or other credit support or contingent obligation
          with respect to, Indebtedness or other liability of such other Person;

          (d)  the making of any capital contribution by such Person to such
          other Person; and

          (e)  the designation by the Supervisory Board of the Company of any
          Person to be an Unrestricted Subsidiary.

          The Company shall be deemed to make an Investment in an amount equal
          to the fair market value of the net assets of any Subsidiary (or, if
          neither the Company nor any of its Subsidiaries has theretofore made
          an Investment in such subsidiary, in an amount equal to the
          Investments being made), at the time that such Subsidiary is
          designated an Unrestricted Subsidiary, and any property transferred to
          an Unrestricted Subsidiary from the Company or a Subsidiary of the
          Company shall be deemed an Investment valued at its fair market value
          at the time of such transfer. Investments shall be measured by the
          fair market value attributed to the Investment at the time made or re
          turned, as applicable.

          "Issue Date" means the date of first issuance of the Initial
Securities hereunder.

          "Leverage Ratio" on any date of determination (the "Transaction Date")
for any Person means the ratio, on a pro forma basis, of (a) the aggregate

                                       19
<PAGE>

amount of Indebtedness of such Person and its Subsidiaries on a Consolidated
basis to (b) the aggregate amount of Annualized Consolidated EBITDA of such
Person attributable to continuing operations and business (exclusive of amounts
attributable to operations and businesses permanently discontinued or disposed
of); provided that for purposes of calculating Annualized Consolidated EBITDA
for this definition,

          (1)  acquisitions which occurred during the Reference Period or
               subsequent to the Reference Period and on or prior to the
               Transaction Date shall be assumed to have occurred on the first
               day of the Reference Period,

          (2)  transactions giving rise to the need to calculate the Leverage
               Ratio shall be assumed to have occurred on the first day of the
               Reference Period,

          (3)  the incurrence of any Indebtedness or issuance of any
               Disqualified Capital Stock during the Reference Period or
               subsequent to the Reference Period and on or prior to the
               Transaction Date (and the application of the proceeds therefrom
               to the extent used to refinance or retire other Indebtedness)
               shall be assumed to have occurred on the first day of the
               Reference Period, and

          (4)  the Consolidated Fixed Charges of such Person attributable to
               interest on any Indebtedness or dividends on any Disqualified
               Capital Stock bearing a floating interest (or dividend) rate
               shall be computed on a pro forma basis as if the average rate in
               effect from the beginning of the Reference Period to the
               Transaction Date had been the applicable rate for the entire
               period, unless such Person or any of its Subsidiaries is a party
               to an Interest Swap or Hedging Obligation (which shall remain in
               effect for the 12-month period immediately following the
               Transaction Date) that has the effect of fixing the interest rate
               on the date of computation, in which case such rate (whether
               higher or lower) shall be used.

          "Lien" means any mortgage, charge, pledge, lien (statutory or
otherwise), privilege, security interest, hypothecation or other encumbrance
upon or

                                       20
<PAGE>

with respect to any property of any kind, real or personal, movable or
immovable, now owned or hereafter acquired.  For purposes of this definition,
the sale, lease, conveyance, or other transfer by the Company or any Subsidiary
of the Company, in the ordinary course of its business and not constituting a
security interest in assets serving as collateral for any of their respective
obligations, including the granting of indefeasible rights of use or equivalent
arrangements with respect to, network capacity, communications fiber capacity or
conduit, shall not be a Lien.

          "Liquidated Damages" means all liquidated damages then owing pursuant
to the Registration Rights Agreement.

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

          "Net Cash Proceeds" means the aggregate amount of cash or Cash
Equivalents received by the Company in the case of a sale, or Capital
Contribution in respect, of Qualified Capital Stock and by the Company and its
Subsidiaries in respect of an Asset Sale, plus, in the case of an issuance of
Qualified Capital Stock upon any exercise, exchange or conversion of securities
(including options, warrants, rights and convertible or exchangeable debt) of
the Company that were issued for cash on or after July 30, 1999, the amount of
cash originally received by the Company upon the issuance of such securities
(including options, warrants, rights and convertible or exchangeable debt) less,
in each case, the sum of all payments, fees, commissions and (in the case of
Asset Sales, reasonable and customary) expenses (including, without limitation,
the fees and expenses of legal counsel and investment banking fees and expenses)
incurred in connection with such Asset Sale or sale of Qualified Capital Stock,
and, in the case of an Asset Sale only, less the amount (estimated reasonably
and in good faith by the Company) of income, franchise, sales and other
applicable taxes required to be paid by the Company or any of its respective
Subsidiaries in connection with such Asset Sale in the taxable year that such
sale is consummated or in the immediately succeeding taxable year, the
computation of which shall take into account the reduction in tax liability
resulting from any available operating losses and net operating loss carryovers,
tax credits and tax credit carryforwards, and similar tax attributes.

          "New Acquisitions" means the acquisition by the Company or its
subsidiaries of @Entertainment, Inc., A2000 Holding N.V., Time Warner Cable

                                       21
<PAGE>

France S.A., Reseaux Cables de France S.A., Videopole S.A., Kabel Plus, a.s.,
SBS Broadcasting S.A., GelreVision N.V., SKT spol. s.r.o. and NBS Broadband
Services AB, all substantially as described in the Offering Circular (and each
such Person's respective subsidiaries).

          "Non-Recourse Indebtedness" means Indebtedness of a Person to the
extent that under the terms thereof and pursuant to applicable law, no personal
recourse could be had against the Company or its Subsidiaries (giving effect to
the designations of such Person as an Unrestricted Subsidiary) for the Payment
of the principal of or interest or premium or other amounts with respect to such
Indebted  ness or for any claim based on such Indebtedness and that enforcement
of obligations on such Indebtedness is limited solely to recourse against
interests in specified assets.

          "Obligation" means any principal, premium or interest payment, or
monetary penalty, or damages, due by the Company under the terms of the
Securities or this Indenture, including any Liquidated Damages due pursuant to
the terms of the Registration Rights Agreement.

          "Offering" means the offering of the Securities by the Company.

          "Offering Circular" means the offering memorandum, dated January 14,
2000, pursuant to which the Securities were offered and sold.

          "Officers' Certificate" means a certificate signed by a member of the
Company's management board or its Supervisory Board, the Chief Executive Officer
or a Vice President, and by the Chief Financial Officer, the Chief Accounting
Officer, the Treasurer, an Assistant Treasurer, the Secretary, an Assistant
Secretary or other authorized representative of the Company and delivered to the
Trustee in the form substantially similar to Exhibit E attached hereto, which
shall comply with the Indenture, except in the case of an authentication order
pursuant to Section 3.3, which must only be signed by one of the above noted
persons.

          "Opinion of Counsel" means an opinion of counsel in the form
substantially similar to Exhibit F attached hereto, who may be counsel to the
Company, including an employee of the Company.

          "Other Senior Notes" means the Company's $600,000,000 11 1/4% Senior
Notes due 2010, its (Euro) 200,000,000 11 1/4% Senior Notes due 2010 and
its

                                       22
<PAGE>

$1,000,000,000 13 3/4% Senior Discount Notes due 2010 pursuant to the Other
Senior Notes Indenture.

          "Other Senior Notes Indenture" means one or more Indentures, dated as
of January 20, 2000, between the Company and Citibank, N.A. as trustee, pursuant
to which any of the Other Senior Notes were issued.

          "Outstanding," when used with respect to Securities, means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:

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

               (ii)  Securities, or portions thereof, for whose payment or
     redemption U.S. Dollars in the necessary amount have been theretofore
     deposited with the Trustee or any Paying Agent (other than the Company) in
     trust or set aside and segregated in trust by the Company (if the Company
     shall act as its own Paying Agent) for the Holders of such Securities;
     provided that, if such Securities are to be redeemed, notice of such
     redemption has been duly given pursuant to this Indenture;

               (iii) Securities, except to the extent provided in Sections 12.2
     and 12.3, with respect to which the Company has effected Defeasance and/or
     Covenant Defeasance as provided in Article Twelve; and

               (iv)  Securities which have been paid pursuant to Section 3.6 or
     in exchange for or in lieu of which other Securities have been
     authenticated and delivered pursuant to this Indenture, other than any such
     Securities in respect of which there shall have been presented to the
     Trustee proof satisfactory to it that such Securities are held by a bona
     fide purchaser in whose hands the Securities are valid obligations of the
     Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
authorization, direction, consent, notice or waiver hereunder, and for the
purpose of making the

                                       23
<PAGE>

calculations required by TIA Section 313, Securities owned by the Company or any
other obligor upon the Securities or any Affiliate of the Company or such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in making such calculation or
in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Securities which any Responsible Officer of the Trustee
knows to be so owned shall be so disregarded. Securities so owned which have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right so to act
with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or such other
obligor.

          "Parent" means UnitedGlobalCom, Inc. and its successor(s).

          "Parent Stock Instrument" means either (a) Indebtedness (including
Disqualified Capital Stock) and Qualified Capital Stock of the Company that is
convertible or exchangeable into, at the option of the Company or any holder
thereof, or secured by, or whose value to the holder thereof is dependent upon
any shares of Parent's Capital Stock that were owned by the Company or any of
its Subsidiaries as of July 30, 1999; provided that such Indebtedness and
Capital Stock of the Company shall have been issued in consideration of cash,
the net proceeds of which shall have been received by the Company or (b) the
Class A Common Stock of Parent owned by the Company or any of its Subsidiaries
as of July 30, 1999 or any like number of shares of Class B Common Stock of
Parent issued in exchange for the shares of the Class A Common Stock of Parent
held as of July 30, 1999.

          "Participants" means institutions that have accounts with DTC or its
nominee and with respect to the Regulation S Global Securities, institutions
that have accounts with Euroclear or Cedelbank or their respective nominees.

          "Paying Agent" means any Person (including the Company acting as
Paying Agent) authorized by the Company to pay the principal of (and premium, if
any) or interest on any Securities on behalf of the Company.

          "Payment Date" means any date on which a payment of principal,
premium, if any, interest (or Liquidated Damages, if any) is due to be paid on
any of the Securities.

          "Permitted Indebtedness" means that:

                                       24
<PAGE>

          (a)  the Company may incur Indebtedness evidenced by the Securities
          and issued pursuant to this Indenture and Indebtedness evidenced by
          the Other Senior Notes and issued pursuant to the Other Senior Notes
          Indenture up to the amounts being issued on the original Issue Date;

          (b)  the Company may incur Refinancing Indebtedness with respect to
          any Indebtedness (including Disqualified Capital Stock), described in
          clause (a) or this clause (b) of this definition or incurred pursuant
          to clause (1)(ii) of Section 10.11, and any Subsidiary may incur
          Refinancing Indebtedness (including Disqualified Capital Stock),
          described in this clause (b) or clause (2)(c) of Section 10.11 and the
          Company and its Subsidiaries may incur Refinancing Indebtedness with
          respect to Indebtedness which is outstanding on the Issue Date (after
          giving effect to the New Acquisitions) (less the amount of any such
          Existing Indebtedness repaid on or after the Issue Date or which was
          refinanced pursuant to this clause (b));

          (c)  the Company and its Subsidiaries may incur Indebtedness solely in
          respect of bankers acceptances, letters of credit and performance and
          surety bonds and completion guarantees (to the extent that such
          incurrence does not result in the incurrence of any obligation to
          repay any obligation relating to borrowed money of others), all in the
          ordinary course of business in accordance with customary industry
          practices, in amounts and for the purposes customary in the Company's
          industry;

          (d)  the Company may incur Indebtedness to any Subsidiary, and any
          Subsidiary may incur Indebtedness to any other Subsidiary or to the
          Company; provided that in the case of Indebtedness of the Company,
          such obligations shall be unsecured and subordinated in all respects
          to the Company's obligations pursuant to the Securities and the Other
          Senior Notes and any event that causes such Subsidiary no longer to be
          a Subsidiary (including by designation to be an Unrestricted
          Subsidiary) shall be deemed to be a new incurrence of such
          Indebtedness, if then outstanding, subject to Section 10.11;

          (e)  the Company and its Subsidiaries may incur Interest Swap and
          Hedging Obligations that are incurred for the purpose of fixing or

                                       25
<PAGE>

          hedging interest rate or currency risk with respect to any fixed or
          floating rate Indebtedness that is permitted by this Indenture to be
          outstanding or any receivable or liability the payment of which is
          determined by reference to a foreign currency; provided that the
          notional amount of any such Interest Swap and Hedging Obligation does
          not exceed the principal amount of Indebtedness to which such Interest
          Swap and Hedging Obligation relates;

               (f)  the Company and its Subsidiaries may guarantee Indebtedness
          of any of the Company's Subsidiaries, provided that the incurrence of
          such Indebtedness by such Subsidiary is permitted under this
          Indenture; and

               (g)  Subsidiaries of the Company may issue preferred stock or
          Indebtedness to the holders (or their Affiliates) of the common equity
          of such Subsidiary on a basis that is substantially proportionate to
          their common equity interests (with any disproportionately large
          equity interests received by the Company or a Subsidiary of the
          Company relative to their respective contributions being ignored for
          this purpose).

          "Permitted Investment" means:

          (a)  Cash Equivalents;

          (b)  intercompany Indebtedness to the extent permitted under clause
          (d) of the definition of "Permitted Indebtedness";

          (c)  an Investment by the Company or a Subsidiary of the Company in a
          Person engaged primarily in a Related Business if as a result of such
          Investment such Person becomes a Subsidiary of the Company or is
          merged with or into the Company or a Subsidiary of the Company, so
          long as the surviving entity is the Company or a Subsidiary of the
          Company;

          (d)  an Investment in any Subsidiary of the Company;

          (e)  other Investments in any Person or Persons engaged primarily in a
          Related Business with respect to which the Company maintains

                                       26
<PAGE>

          the power to influence or participate in the management of such Person
          by virtue of representation on such Person's board or directors or
          through a contractual relationship with such Person or its holders of
          Capital Stock;

          (f)  other Investments in any Person or Persons engaged primarily in a
          Related Business with respect to which the Supervisory Board of the
          Company or of the relevant Subsidiary determines in its good faith
          reasonable judgement that the Company or any of its Subsidiaries will
          receive as a result of such Investment commensurate network services
          benefits (including by becoming a customer, client, supplier,
          purchaser or seller of goods or services of or to such Person or
          Persons) from the arrangements entered into as a result of such
          Investment;

          (g)  other Investments in any Person or Persons engaged primarily in a
          Related Business; provided that, after giving pro forma effect to each
          such Investment, the amount of all such Investments made solely in
          reliance upon this clause (g) on and after July 30, 1999 that are
          Outstanding at any time does not exceed in the aggregate $100,000,000
          (or the foreign currency equivalent thereof measured on the date of
          the making of such Investment), plus, unless such amounts shall have
          been credited under clause (3) of Section 10.12 and utilized to make a
          Restricted Payment, (w) the amount of the Net Cash Proceeds to the
          Company from the sale of Qualified Capital Stock (other than (i) to a
          Subsidiary of the Company, and (ii) to the extent applied in a
          Qualified Exchange), (x) an amount equal to 50% of the Net Cash
          Proceeds from Special Character Asset Sales, (y) an amount equal to
          the Net Cash Proceeds to the Company or any of its Subsidiaries of any
          sale of securities constituting a Parent Stock Instrument (other than
          (i) to a Subsidiary of the Company, and (ii) to the extent applied in
          connection with a Qualified Exchange) and (z) the amount of
          Investments made pursuant to this clause (g) after July 30, 1999 that
          are returned to the Company or any Subsidiary on or prior to the date
          of any such calculation, which amount shall be the lesser of (i) the
          amount of the cash invested plus the value of all noncash investments
          (valued at the fair market value at the time of the Investment,
          determined in the good faith reasonable judgment of the Company or the
          relevant Subsidiary) and (ii) the amount of the Net

                                       27
<PAGE>

          Cash Proceeds received plus the value of noncash proceeds received
          (valued at the fair market value at the time of the return of such
          Investment, deter mined in the good faith reasonable judgment of the
          Company or the relevant Subsidiary);

          (h)  Investments made in the ordinary course of business as partial or
          full payment for constructing a network relating principally to a
          Related Business of the Company or any Subsidiary;

          (i)  Investments solely in the form and consisting of Capital Stock of
          the Company (other than Disqualified Capital Stock);

          (j)  any Investment acquired by the Company or any of its restricted
          Subsidiaries (a) in exchange for any other Investment or accounts
          receivable held by the Company or any such restricted Subsidiary in
          connection with or as a result of a bankruptcy, workout,
          reorganization or recapitalization of the issuer of such other
          investment or accounts receivable or (b) as a result of a foreclosure
          by the Company or any of its restricted Subsidiaries with respect to
          any secured Investment or other transfer of title with respect to any
          secured Investment in default;

          (k)  an Investment in prepaid expenses and lease, utility and workers'
          compensation, performance and other similar deposits in the ordinary
          course of business;

          (l)  loans, advances, or extensions of credit to employees, officers,
          directors made in the ordinary course of business;

          (m)  the net obligations of any counterparty under Interest Swap and
          Hedging Obligations obtained in conformity with industry practices;

          (n)  Investments made on or after July 30, 1999 in SBS Broadcasting
          S.A. not to exceed the amounts required to be made by the Company
          pursuant to the Investment Agreement by and between, SBS Broadcasting
          S.A., the Company and United International Holdings Inc., dated June
          29, 1999, relating to the acquisition by the Company of Equity
          Interests in SBS Broadcasting S.A.; and

                                       28
<PAGE>

          (o)  Investments made on or after July 30, 1999 directly or
          indirectly, in ARA Cable Services Inc. or ARA Programming &
          Distribution Ltd. of Saudi Arabia, not to exceed $75,000,000.

          "Permitted Lien" means:

          (a)  Liens existing on the Issue Date;

          (b)  Liens securing the Securities and the Other Senior Notes;

          (c) Liens securing Indebtedness, or any agreement (including any
          Equity Interest) relating to any property, asset, or business
          acquired, of a Person existing at the time such Person becomes a
          Subsidiary (including by designation) or is merged with or into the
          Company or a Subsidiary or Liens securing Indebtedness incurred in
          connection with an Acquisition, provided that such Liens were in
          existence prior to the date of such acquisition, merger or
          consolidation, were not incurred in anticipation thereof, and do not
          extend to any other assets than those of the Person (or its
          businesses) being acquired (or so designated);

          (d)  leases or subleases granted to other Persons in the ordinary
          course of business not materially interfering with the conduct of the
          business of the Company or any of its Subsidiaries or materially
          detracting from the value of the relative assets of the Company or any
          Subsidiary;

          (e)  Liens arising from precautionary Uniform Commercial Code
          financing statement filings regarding operating leases entered into by
          the Company or any of its Subsidiaries in the ordinary course of
          business;

          (f)  Liens securing Refinancing Indebtedness incurred to refinance any
          Indebtedness that was previously so secured in a manner no more
          adverse to the Holders of the Securities than the terms of the Liens
          securing such refinanced Indebtedness, provided that the Indebtedness
          secured is not increased and the Lien is not extended to any
          additional assets or property that would not have been security for
          the Indebtedness refinanced;

                                       29
<PAGE>

          (g)  Liens securing Indebtedness incurred under the Credit Agreement
          and other Indebtedness solely of Subsidiaries of the Company incurred
          in accordance with the terms of this Indenture;

          (h)  Liens in favor of the Company or Liens on assets of Subsidiaries
          of the Company in favor of other such Subsidiaries;

          (i)  Liens securing Refinancing Indebtedness that complies with the
          definition of "Refinancing Indebtedness";

          (j)  Liens securing Acquired Indebtedness and Indebtedness assumed in
          acquiring Related Assets, provided that such Liens were not put in
          place in contemplation of the incurrence by the Company or its
          Subsidiaries of such Indebtedness, such Liens do not extend to any
          property or assets of the Company or any of its Subsidiaries other
          than those acquired in connection therewith, and the Investment that
          is the subject of such acquisition is a Permitted Investment;

          (k)  statutory liens of carriers, warehousemen, mechanics,
          materialmen, landlords, repairmen or other like Liens arising by
          operation of law in the ordinary course of business, provided that (1)
          the underlying obligations are not overdue for a period of more than
          30 days, or (2) such Liens are being contested in good faith and by
          appropriate proceedings and adequate reserves with respect thereto are
          maintained on the books of the Company in accordance with GAAP; and

          (l)  Liens not otherwise permitted by this Indenture in an amount not
          to exceed 5% of the Company's Consolidated Tangible Assets.

          "Person" means any Corporation, individual, limited liability company,
joint stock company, joint venture, partnership, limited liability partnership,
unincorporated association, governmental regulatory entity, country, state or
political subdivision thereof, trust, municipally or other entity.

          "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same Indebtedness as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 3.6 in exchange for a
mutilated

                                       30
<PAGE>

security or in lieu of a lost, destroyed or stolen Security shall be deemed to
evidence the same Indebtedness as the mutilated, lost, destroyed or stolen
Security.

          "Preferred Stock" means any Equity Interest of any class or classes of
a Person (however designated) which is preferred as to payments of dividends, or
as to distributions upon any liquidation or dissolution, over Equity Interests
of any other class of such Person.

          "Principals" means Albert M. Carollo, Lawrence F. DeGeorge, Lawrence
J. DeGeorge, Curtis Rochelle, Marian Rochelle, Rochelle Investments, Ltd. (so
long as it is controlled by Curtis or Marian Rochelle), Gene W. Schneider, G.
Schneider Holdings, Co. and The Gene W. Schneider Family Trust (so long as each
is controlled by Gene W. Schneider or trustees appointed by him), Janet S.
Schneider and Mark L. Schneider, and with respect to any such Person means: (A)
any controlling stockholder or 80% (or more) owned Subsidiary of such Person, or
with respect to each individual Person, (i) family partnerships, Corporations or
other entities holding Equity Interests in the Company, the transferee(s) or the
surviving entities or entities solely for the benefit of such Person or any of
the Persons listed in (iii) such Person's children, grandchildren,
stepchildren, step grandchildren and their spouses, (iv) heirs, legatees and
devisees, and (v) trusts solely for the benefit of any of the foregoing; or (B)
any trust Corporation, partnership or other entity, the beneficiaries,
stockholders, partners, owners or Persons beneficially holding an 80% or more
controlling interest of which consist of such Person and/or such other Persons
referred to in the immediately preceding clause (A).

          "Pro Forma" or "pro forma" shall have the meaning set forth in
Regulation S-X of the Securities Act, unless otherwise specifically stated
herein.

          "Purchase Money Indebtedness" of any Person means any Indebted  ness
of such Person to any seller or other Person incurred solely to finance the
acquisition (including in the case of a Capitalized Lease Obligation, the
lease), construction, installation or improvement of any after acquired real or
personal tangible property which, in the reasonable good faith judgment of the
Supervisory Board of the Company, is directly related to a Related Business.

          "Qualified Capital Stock" means any Capital Stock of the Company that
is not Disqualified Capital Stock.

                                       31
<PAGE>

          "Qualified Exchange" means:

          (a)  any legal defeasance, redemption, retirement, repurchase or other
          acquisition of Capital Stock, or Indebtedness of the Company issued on
          or after July 30, 1999 with the Net Cash Proceeds received by the
          Company from the substantially concurrent sale of its Qualified
          Capital Stock or, to the extent used to retire Indebtedness (other
          than Disqualified Capital Stock) of the Company issued on or after
          July 30, 1999, Subordinated Indebtedness of the Company,

          (b)  any exchange of Qualified Capital Stock of the Company for any
          Capital Stock or Indebtedness of the Company issued on or after July
          30, 1999, or

          (c)  any issuance of Subordinated Indebtedness of the Company in
          exchange for Indebtedness (other than Disqualified Capital Stock) of
          the Company issued on or after July 30, 1999.

          "Qualified Institutional Buyer" or "QIB" has the meaning specified in
Rule 144A.

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

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

          "Reference Period" with regard to any Person means the full fiscal
quarter ended immediately preceding any date upon which any determination is to
be made pursuant to the terms of the Securities or this Indenture, for which
Consolidated financial statements of the Company are available.

          "Refinancing Indebtedness" means Indebtedness (including Disqualified
Capital Stock) (a) issued in exchange for, or the proceeds from the issuance and
sale of which are used substantially concurrently to repay, redeem, defease,
refund, refinance, discharge or otherwise retire for value, in whole or in part,
or (b) constituting an amendment, modification or supplement to, or a deferral
or renewal of ((a) and (b) above are, collectively, a "Refinancing"), any
Indebtedness

                                       32
<PAGE>

(including Disqualified Capital Stock and Refinancing Indebtedness) in a
principal amount (or, if issued with an original issue discount, an original
accreted value, determined in accordance with GAAP) or, in the case of
Disqualified Capital Stock, liquidation preference, not to exceed (after
deduction of reasonable and customary fees and expenses incurred in connection
with the Refinancing and the amount of any premium paid in connection with such
Refinancing in accordance with the terms of the documents governing the
Indebtedness (including Disqualified Capital Stock and Refinancing Indebtedness)
refinanced without giving effect to any modification thereof made in connection
with or in contemplation of such refinancing) the lesser of (1) the principal
amount or, in the case of Disqualified Capital Stock, liquidation preference, of
the Indebtedness (including Disqualified Capital Stock and Refinancing
Indebtedness) so Refinanced and (2) if such Indebtedness being Refinanced was
issued with an original issue discount, the accreted value thereof (as
determined in accordance with GAAP) at the time of such Refinancing; provided
that (A) such Refinancing Indebtedness shall only be used to refinance
Outstanding Indebtedness (including Disqualified Capital Stock) of such Person
issuing such Refinancing Indebtedness (except that the Company may refinance
Outstanding Indebtedness of a Subsidiary), (B) such Refinancing Indebtedness
shall (x) not have an Average Life shorter than the Indebtedness (including
Disqualified Capital Stock) to be so refinanced at the time of such Refinancing
and (y) in all respects, be no less contractually subordinated or junior, if
applicable, to the rights of Holders of the Securities than was the Indebtedness
(including Disqualified Capital Stock) to be refinanced, (C) such Refinancing
Indebtedness shall have a final stated maturity or redemption date, as
applicable, no earlier than the final stated maturity or redemption date, as
applicable, of the Indebtedness (including Disqualified Capital Stock) to be so
refinanced, and (D) such Refinancing Indebtedness shall be secured (if secured)
in a manner no more adverse to the Holders of the Securities than the terms of
the Liens (if any) securing such refinanced Indebtedness, including, without
limitation, the amount of Indebtedness secured shall not be increased.

          "Registrar" means an office or agency of the Company in London, where
Securities may be presented for registration of transfer or exchange.

          "Registration Rights Agreement" means the Registration Rights
Agreement dated the date hereof, between the Initial Purchasers and the Company.

          "Registration Statement" means the Registration Statement as defined
in the Registration Rights Agreement.

                                       33
<PAGE>

          "Regular Record Date" for the interest payable on any Interest Payment
Date means January 15 or July 15 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date.

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

          "Regulation S Global Security" has the meaning specified in Section
3.3.

          "Related Assets" means all assets, rights, contractual or otherwise,
and properties, whether tangible or intangible, used or intended for use in
connection with a Related Business; provided that Related Assets shall not
include any Equity Interests or indebtedness of, or interests in, any Person.

          "Related Business" means the business of constructing, creating,
developing, marketing or operating one or more cable, telephone or
communications systems, including, without limitation, any system for
transmitting, or providing service or product for the transmission of, voice,
video or data through transmission facilities, Internet service providers or any
business reasonably related to any of the foregoing and any business conducted
by the Company or any Subsidiary of the Company on the Issue Date; provided that
the determination of what constitutes a Related Business shall be made in good
faith by the Supervisory Board of the Company.

          "Related Business Acquisition" means an Asset Acquisition of (i)
properties or assets to be used in a Related Business, of any Person that
becomes a restricted Subsidiary as a result of such Asset Acquisition or (iii)
of the Capital Stock of any Person that becomes an Unrestricted Subsidiary as a
result of such Asset Acquisition, but only if such Asset Acquisition would be
permitted pursuant to Section 10.12 or as a Permitted Investment; provided that,
in the case of clauses (ii) and (iii), such Person's assets and properties
consist principally of properties or assets that will be used in a Related
Business.

          "Replacement Assets" means property or assets that will be used in a
Related Business of the Company or any Subsidiary and Equity Interests of a
Person that becomes a Subsidiary of the Company.

          "Responsible Officer" shall mean, when used with respect to the
Trustee, any officer within the corporate trust department of the Trustee,
including

                                       34
<PAGE>

any vice-president, assistant vice president, assistant secretary, assistant
treasurer, trust officer or any other officer of the Trustee who customarily
performs functions similar to those performed by the Persons who at the time
shall be such officers, respectively, or to whom any corporate trust mater is
referred because of such person's knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the
administration of this Indenture.

          "Restricted Global Security" has the meaning specified in Section 3.3.

          "Restricted Investment" means, in one or a series of related
transactions, any Investment, other than other Permitted Investments.

          "Restricted Payment" means, with respect to any Person:

          (a)  the declaration or payment of any dividend or other distribution
          in respect of Equity Interests of such Person or any parent or
          Subsidiary of such Person,

          (b)  any payment on account of the purchase, redemption or other
          acquisition or retirement for value of Equity Interests of such Person
          or any Subsidiary or parent of such Person,

          (c)  other than with the proceeds from the substantially concurrent
          sale of, or in exchange for, Refinancing Indebtedness, any purchase,
          redemption, or other acquisition or retirement for value of, any
          payment in respect of any amendment of the terms of or any defeasance
          of, any Subordinated Indebtedness, directly or indirectly, by such
          Person or a parent or Subsidiary of such Person prior to the scheduled
          maturity, any scheduled repayment of principal, or scheduled sinking
          fund payment, as the case may be, of such Indebtedness and

          (d)  any Restricted Investment by such Person;

provided, however, that the term "Restricted Payment" does not include (1) any
dividend, distribution or other payment on or with respect to Equity Interests
of a Person or the parent of such Person to the extent payable solely in shares
of Qualified Capital Stock of such Person, or (2) any dividend, distribution or
other payment to the Company or any of its Subsidiaries by the Company or any of
its Subsidiaries, or

                                       35
<PAGE>

(3) any payment on account of the exchange of shares of Common Stock of Parent
for a like number of substantially identical (except with regard to voting
rights) shares of Common Stock of Parent, or (4) payments to or for the account
of the Stichting Administratiekantor UPC (the "Foundation") or its successors of
amounts related to taxes payable upon the grant of options to certain employees
in shares of the Company held by the Foundation, provided that, for purposes of
this clause (4), neither the Company nor any of its Subsidiaries shall be liable
to any Person in respect of such amounts, other than for the payment of such
amounts actually received or to be received by it, to the Foundation.

          "Restricted Period" means the period through and including the 40/th/
day after the later of the commencement of the Offering and the Issue Date of
the Initial Securities.

          "Restricted Securities" means Restricted Global Securities and
Regulation S Global Securities.

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

          "SEC" means the United States Securities and Exchange Commission.

          "Securities" means, collectively, the "Securities" issued under this
Indenture, including the Initial Securities and the Exchange Securities.

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

          "Security Register" and "Security Registrar" have the respective
meanings specified in Section 3.5.

          "Shelf Registration Statement" means the Shelf Registration Statement
as defined in the Registration Rights Agreement.

          "Significant Subsidiary" shall have the meaning provided under
Regulation S-X of the Securities Act, as in effect on the Issue Date.

          "Special Character Asset Sale" means any Asset Sale solely consisting
of assets and property or interests therein comprising its interests in chello
broad band, UPCtv or Priority Telecom determined by the Company in its good
faith

                                       36
<PAGE>

reasonable judgment.

          "Special Record Date" for the payment of any Defaulted Interest means
a date fixed by the Trustee pursuant to Section 3.7.

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

          "Subordinated Indebtedness" means Indebtedness of the Company that is
subordinated in right of payment by its terms or the terms of any document or
instrument relating thereto to the Securities, in any respect or when used in
the definitions of Restricted Payment or Qualified Exchange has a final stated
maturity on (except for the Securities) or after the Stated Maturity.

          "Subsidiary," with respect to any Person, means (1) a Corporation a
majority of whose Equity Interests with voting power, under ordinary
circumstances, to elect directors is at the time, directly or indirectly, owned
by such Person, by such Person and one or more Subsidiaries of such Person or by
one or more Subsidiaries of such Person, (2) any other Person (other than a
Corporation) in which such Person, one or more Subsidiaries of such Person, or
such Person and one or more Subsidiaries of such Person, directly or indirectly,
at the date of determination thereof has majority ownership interest, or (3) a
partnership in which such Person or a Subsidiary of such Person is, at the time,
a general partner and in which such Person, directly or indirectly, at the date
of determination thereof has a majority ownership interest.  Notwithstanding the
foregoing, an Unrestricted Subsidiary shall not be a Subsidiary of the Company
or of any Subsidiary of the Company.  Unless the context requires otherwise,
Subsidiary means each direct and indirect Subsidiary of the Company.

          "Supervisory Board" means, with respect to any Person, the supervisory
board of directors of such Person or any committee of the supervisory board of
directors of such Person authorized, with respect to any particular matter, to
exercise the power of the supervisory board of directors of such Person.

          "Tax" or "Taxes" means any and all present or future taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, and all liabilities
with respect thereto, together with any penalties, interest, or additions
thereto.

                                       37
<PAGE>

          "Tax Event" means that as a result of any change in or amendment to
the laws, treaties or regulations of any Taxing Authority (or any official or
administrative pronouncement or action or judicial decision) interpreting or
applying such laws, treaties or regulations where such change or amendment is
proposed and becomes effective on or after the Issue Date, in making any payment
due or to become due under the Securities, the Company is or would be required
on the next succeeding payment date to pay Additional Amounts and the payment of
such Additional Amounts cannot be avoided by the use of any reasonable measures
available to the Company.

          "Taxing Authority" means any nation or government or any political
subdivision thereof or any agency or instrumentality therein and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

          "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939
as in force at the date as of which this Indenture was executed, except as
provided in Section 9.5.

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

          "Unrestricted Global Security" has the meaning set forth in Section
3.3(d).

          "Unrestricted Securities" means an Unrestricted Global Security and
all other Securities that are not Restricted Securities, including Exchange
Securities.

          "Unrestricted Subsidiary" means any subsidiary of the Company that
does not own any Equity Interest of, or own or hold any Lien on any property of,
the Company or any other Subsidiary of the Company and that, at the time of
determination, shall be an Unrestricted Subsidiary (as designated by the
Supervisory Board of the Company); provided that such Subsidiary at the time of
such designation (a) has no Indebtedness other than Non-Recourse Indebtedness;
(b) is not party to any agreement, contract, arrangement or understanding with
the Company or any Subsidiary of the Company, unless the terms of any such
agreement, contract, arrangement or understanding are no less favorable to the
Company or such

                                       38
<PAGE>

Subsidiary than those that might be obtained at the time from Persons who are
not Affiliates of the Company; (c) is a Person with respect to which neither the
Company nor any of its Subsidiaries has any direct or indirect obligation (x) to
subscribe for additional Equity Interests or (y) to maintain or preserve such
Person's financial condition or to cause such Person to achieve any specified
levels of operating results; and (d) has not guaranteed or otherwise directly or
indirectly provided credit support for any Indebtedness of the Company or any of
its Subsidiaries. The Supervisory Board of the Company may designate any
Unrestricted Subsidiary to be a Subsidiary, pro vided that (1) no Default or
Event of Default is existing or will occur as a consequence thereof and (2)
immediately after giving effect to such designation, on a pro forma basis, the
Company could incur at least $1.00 (or its foreign currency equivalent) of
Indebtedness pursuant to the Debt Incurrence Ratio of Section 10.11. Each such
designation shall be evidenced by filing with the Trustee a certified copy of
the resolution giving effect to such designation and an Officer's Certificate
certifying that such designation complied with the foregoing conditions.

          "U.S. Government Obligations" means direct non-callable obligations
of, or noncallable obligations guaranteed by, the United States of America for
the payment of which obligation or guarantee the full faith and credit of the
United States of America is pledged.

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

          "Wholly Owned Subsidiary" means a Subsidiary all the Equity Interests
of which (other than directors' qualifying shares) are owned by the Company or
one or more Wholly Owned Subsidiaries of the Company.

          SECTION 1.2  Compliance Certificates and Opinions.  Upon any
                       ------------------------------------
application or request by the Company to the Trustee to take any action under
any provision of this Indenture, the Company shall furnish to the Trustee an
Officers' Certificate stating that all conditions precedent, if any, provided
for in this Indenture (including any covenant compliance with which constitutes
a condition precedent) relating to the proposed action have been complied with
and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional

                                       39
<PAGE>

certificate or opinion need be furnished.

          Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than pursuant to
Section 10.9(a)) shall include:

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

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

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

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

          SECTION 1.3  Form of Documents Delivered to Trustee.  In any case
                       --------------------------------------
where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified
by, or covered by the opinion of, only one such Person, or that they be so
certified or covered by only one document, but one such Person may certify or
give an opinion with respect to some matters and one or more other such Persons
as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

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

                                       40
<PAGE>

matters is in the possession of the Company, unless such counsel knows, or in
the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous.

          Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be Consolidated (with
proper identification of each matter covered therein) and form one instrument.

          SECTION 1.4  Acts of Holders.
                       ---------------

          (a)  Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agents duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 6.1) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.

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

          (c)  The principal amount and serial numbers of Securities held by any
Person, and the date of holding the same, shall be proved by the Security
Register.

                                       41
<PAGE>

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

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

          SECTION 1.5  Notices. Any notice or communication shall be
                       -------
sufficiently given if in writing and delivered in person, by facsimile and
confirmed by overnight courier, or mailed by first-class mail addressed as
follows:

if to the Company:

United Pan-Europe Communications N.V.
P.O. Box 74763
1070 BT Amsterdam
The Netherlands

Attention: General Counsel and Treasurer

                                       42
<PAGE>

Facsimile: 31 20 778 9841
Telephone: 31 20 778 9840

with a copy to:

Holme, Roberts & Owen LLP
Heathcoat House
20 Savile Row
London W1X 1AE
England

Attention: Paul G. Thompson

Facsimile: 44 171 287 9344
Telephone: 44 171 494 5600

if to the Trustee or Paying Agent:

Citibank, N.A.
5 Carmelite Street
London EC4Y 0PA

copies of notices to the Trustee should also go to:

Citibank, N.A.
11 Old Jewry
London EC2R 8DU

Attention: Global Agency and Trust Services

Facsimile: 44 171 508 3879
Telephone: 44 171 508 3815

if to the Luxembourg Paying and Transfer Agent:

Banque International a Luxembourg
69 route d'Esch
Luxembourg L-2953
c/o the Trustee

                                       43
<PAGE>

     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 mailed, first-class, postage prepaid, to a
Holder including any notice delivered in connection with TIA Section 310(b), TIA
Section 313(c), TIA Section 314(a) and TIA Section 315(b), shall be mailed to
him at his address as set forth on the Security Register and shall be
sufficiently given to him if so mailed within the time prescribed. To the extent
required by the TIA, any notice or communication shall also be mailed to any
Person described in TIA Section 313(c).

     Failure to mail a notice or communication to a Holder or any defect in it
shall not affect its sufficiency with respect to other Holders. Except for a
notice to the Trustee, which is deemed given only when received, if a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

          SECTION 1.6  Notice to Holders; Waiver.  Where this Indenture provides
                       -------------------------
for notice of any event to Holders by the Company or the Trustee, such notice
shall be sufficiently given (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, to each Holder affected by such
event, at the address of such Holder as it appears in the Security Register, not
later than the latest date, and not earlier than the earliest date, prescribed
for the giving of such notice. As long as the Securities are listed on the
Luxembourg Stock Exchange and notice is required by the rules of the Luxembourg
Stock Exchange, such notice shall be sufficiently given by publication of such
notice to Holders of the Securities in English will be in a leading newspaper
having general circulation in Luxembourg (which is expected to be the Luxembourg
Wort) or, if such publication is not practicable, in one other leading English
language daily newspaper with general circulation in Europe, such newspaper
being published on each business day in morning editions, whether or not it
shall be published in Saturday, Sunday or holiday editions. In any case where
notice to Holders is given by mail, neither the failure to mail such notice, nor
any defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Any notice mailed to a
Holder in the manner herein prescribed shall be conclusively deemed to have been
received by such Holder, whether or not such Holder actually receives such
notice. Where this Indenture provides for notice in any manner, such notice

                                       44
<PAGE>

may be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

          In case by reason of the suspension of or irregularities in regular
mail service or by reason of any other cause, it shall be impracticable to mail
notice of any event to Holders when such notice is required to be given pursuant
to any provision of this Indenture, then any manner of giving such notice as
shall be satisfactory to the Trustee shall be deemed to be a sufficient giving
of such notice for every purpose hereunder.

          SECTION 1.7  Effect of Headings and Table of Contents.  The Article
                       ----------------------------------------
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

          SECTION 1.8  Successors and Assigns.  All covenants and agreements in
                       ----------------------
this Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.

          SECTION 1.9  Separability Clause.  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 1.10 Benefits of Indenture.  Nothing in this Indenture or in
                       ---------------------
the Securities, express or implied, shall give to any Person, other than the
parties hereto, any Paying Agent, any Security Registrar and their successors
hereunder and the Holders any legal or equitable right, remedy or claim under
this Indenture.

          SECTION 1.11 Governing Law.  This Indenture and the Securities shall
                       -------------
be governed by and construed in accordance with the law of the State of New York
including without limitation Section 5-1401 and 5-1402 of the New York General
Obligation Law and New York Civil Practice Laws and Rules 327(b), as applied to
contracts made and performed within the State of New York, without regard to
conflicts of law. The Company hereby irrevocably submits to the jurisdiction of
any New York State court sitting in the borough of Manhattan in the city of New
York or any federal court sitting in the borough of Manhattan in the city of New
York in respect of any suit, action or proceeding arising out of or relating to

                                       45
<PAGE>

this Indenture and the Securities, and irrevocably accepts for itself and in
respect of its property, generally and unconditionally, jurisdiction of the
aforesaid courts. The Company irrevocably waives, to the fullest extent they may
effectively do so under applicable law, trial by jury and any objection which
they may now or hereafter have to the laying of the venue of any such suit,
action or proceeding bought in any such court and any claim that any such suit,
action or proceeding brought in any such court has been brought in an
inconvenient forum. Nothing herein shall affect the right of the Trustee or any
Holder to serve process in any other manner permitted by law or to commence
legal proceedings or otherwise proceed against the Company in any other
jurisdiction.

          SECTION 1.12 Conflict with Trust Indenture Act.  Prior to the issuance
                       ---------------------------------
of the Exchange Securities or the effectiveness of the Shelf Registration
Statement, the Trust Indenture Act shall apply as a matter of contract to this
Indenture for purposes of interpretation, construction and defining the rights
and obligations hereunder. Upon the issuance of the Exchange Securities or the
effectiveness of the Shelf Registration Statement, this Indenture shall be
subject to the provisions of the Trust Indenture Act that are required to be
part of this Indenture and shall, to the extent applicable, be governed by such
provisions. If any provision hereof limits, qualifies or conflicts with any
provision of the Trust Indenture Act or another provision which is required or
deemed to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such provision or requirement of the Trust Indenture Act shall
control.

          If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act that may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified or excluded,
as the case may be.

          SECTION 1.13 Legal Holidays.  In any case where any Interest Payment
                       --------------
Date, Redemption Date, or Stated Maturity or Maturity of any Security shall not
be a Business Day at a place of payment, then (notwithstanding any other
provision of this Indenture or of the Securities) payment of principal of (or
premium, if any) or interest need not be made on such date, but may be made on
the next succeeding Business Day with the same force and effect as if made on
the Interest Payment Date or Redemption Date or at the Stated Maturity or
Maturity; provided that no interest shall accrue solely by virtue of such delay
for the period from and after such Interest Payment Date, Redemption Date,
Stated Maturity or Maturity, as the case may be.

                                       46
<PAGE>

          SECTION 1.14 No Personal Liability of Board Members, Officers,
                       -------------------------------------------------
Employees and Shareholders.  No board member, director, officer, employee,
--------------------------
agent, authorized representative, incorporator or shareholder of the Company, as
such, shall have any liability for any obligations of the Company under the
Securities or this Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation, solely by reason of its status as
a board member, director, officer, employee, agent, authorized representative,
incorporator or shareholder of the Company. By accepting a Security, the Trustee
on behalf of each Holder waives and releases all such liability (but only such
liability). The waiver and release are part of the consideration for issuance of
the Securities.

          SECTION 1.15 Independence of Covenants.  All covenants and agreements
                       -------------------------
in this Indenture shall be given independent effect so that if a particular
action or condition is not permitted by any of such covenants, the fact that it
would be permitted by an exception to, or be otherwise within the limitations
of, another covenant shall not avoid the occurrence of a Default if such action
is taken or condition exists.

          SECTION 1.16 Exhibits.  All exhibits attached hereto are by this
                       --------
reference made a part hereof with the same effect as if herein set forth in
full.

          SECTION 1.17 Counterparts.  This Indenture may be executed in any
                       ------------
number of counterparts, each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument.

          SECTION 1.18 Duplicate Originals.  The parties may sign any number of
                       -------------------
copies of this Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

          SECTION 1.19 Agent for Service; Submission to Jurisdiction; Waiver of
                       --------------------------------------------------------
Immunities. By the execution and delivery of this Indenture, the Company (i)
----------
acknowledges that it has, by separate written instruments, designated and
appointed CT Corporation System, 1633 Broadway, New York, NY 10019 ("CT
Corporation System") (and any successor entity), as its authorized agent upon
which process may be served in any suit or proceeding arising out of or relating
to this Indenture that may be instituted in any federal or state court in the
Borough of Manhattan, City of New York, State of New York or brought under
federal or state securities laws, and represent and warrant that CT Corporation
System has accepted

                                       47
<PAGE>

such designation, (ii) submits to the jurisdiction of any such court in any such
suit or proceeding and (iii) agrees that service of process upon CT Corporation
System and written notice of said service to the Company, in accordance with
Section 1.5 shall be deemed in every respect effective service of process upon
the Company in any such suit or proceeding. The Company further agrees to take
any and all action, including the execution and filing of any and all such
documents and instruments, as may be necessary to continue such designation and
appointment of CT Corporation System in full force and effect for as long as any
of the Securities remain Outstanding (subject to the limitation set forth in
clause (i)); provided, however, that the Company may, and to the extent CT
Corporation System ceases to be able to be served on the basis contemplated
herein shall, by written notice to the Trustee, designate such additional or
alternative agent for service of process under this Section 1.19 that (i)
maintains an office located in the Borough of Manhattan City of New York, State
of New York, and (ii) is either (x) United States counsel for the Company or (y)
a corporate service company which acts as agent for service of process for other
persons in the ordinary course of its business. Such written notice shall
identify the name of such agent for service of process and the address of the
office of such agent for service of process in the Borough of Manhattan, City of
New York, State of New York.

     To the extent that the Company has or hereafter may acquire any immunity
from jurisdiction of any court of (i) any jurisdiction in which the Company owns
or leases property or assets, (ii) the United States or the State of New York or
(iii) the Netherlands or from any legal process (whether through service of
notice, attachment prior to judgment, attachment in aid of execution, execution
or otherwise) with respect to itself or its property and assets or this
Agreement or any of the Notes or actions to enforce judgments in respect of any
thereof, the Company hereby irrevocably waives such immunity in respect of its
obligations under the above-referenced documents, to the extent permitted by
law.

          SECTION 1.20 Judgment Currency.  The Company hereby agrees to
                       -----------------
indemnify the Trustee, its directors, its officers and each person, if any, who
controls the Trustee within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act against any loss incurred by such person as a
result of any judgment or order being given or made against the Company for any
U.S. Dollar amount due under this Agreement and such judgment or order being
expressed and paid in a currency (the "Judgment Currency") other than U.S.
Dollars and as a result of any variation as between (i) the rate of exchange at
which the United States Dollar amount is converted into the Judgment Currency
for the purpose of such judgment or

                                       48
<PAGE>

order and (ii) the spot rate of exchange in The City of New York at which such
party on the date of payment of such judgment or order is able to purchase
United States Dollars with the amount of the Judgment Currency actually received
by such party. The foregoing indemnity shall continue in full force and effect
notwithstanding any such judgment or order as aforesaid. The term "spot rate of
exchange" shall include any premiums and costs of exchange payable in connection
with the purchase of, or conversion into, United States Dollars.

                                  ARTICLE II

                                SECURITY FORMS

          SECTION 2.1  Forms Generally.  The Securities and the Trustee's
                       ---------------
certificate of authentication with respect thereto shall be in substantially the
form set forth in Exhibit A hereto, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply
with the rules of any securities exchange or system on which the Securities may
be listed or eligible for trading or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution of the Securities. Any portion of the text of any Security may be set
forth on the reverse thereof, with an appropriate reference thereto on the face
of the Security.

          The Certificated Securities shall be printed, lithographed or engraved
on steel-engraved borders or may be produced in any other manner permitted by
the rules of any securities exchange or system on which the Securities may be
listed or eligible for trading, all as determined by the managing directors,
officers and authorized representatives of the Company executing such
Securities, as evidenced by their execution of such Securities.

                                       49
<PAGE>

                                  ARTICLE III

                                THE SECURITIES

          SECTION 3.1  Title and Terms.  The aggregate principal amount of
                       ---------------
Securities which may be authenticated and delivered under this Indenture is
initially limited to $300,000,000, except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities pursuant to Section 3.4, 3.5, 3.6, 9.6, 10.10, 10.16 or 11.8.

          The Initial Securities shall be known and designated as the
"$300,000,000 11 1/2% Senior Notes due 2010" and the Exchange Securities shall
be known as the "$300,000,000 11 1/2% Series B Senior Notes". The final Stated
Maturity of the Securities shall be February 1, 2005 2010. Except as set forth
in the next paragraph of this Section 3.1, interest on the Securities will
accrue at a rate of 11 1/2% per annum from January 20, 2000 or from the most
recent Interest Payment Date to which cash interest has been paid or duly
provided for, and will be payable semiannually in arrears on February 1 and
August 1 of each year, commencing August 1, 2000 to the Holders of record on the
immediately preceding Regular Record Date. Interest on the Securities will be
computed on the basis of a 360-day year comprised of twelve 30-day months.

          In the event that, at any time prior to 180 days following the Issue
Date, the Company (x) issues or sells, or (y) offers or negotiates to issue or
sell, for cash, any debt securities (other than debt securities convertible or
exchangeable into Capital Stock of the Company) to Qualified Institutional
Buyers who, as a regular part of their business, purchase debt securities
comparable to the Securities or the Other Senior Notes (any of the events
described in (x) or (y) at any time during such 180 day period, an "Interest
Rate Adjustment Event"), the interest rate otherwise applicable to the
Securities shall, on and after the date of such Interest Rate Adjustment Event,
be increased by 25 basis points such that on and after the date of such Interest
Rate Adjustment Event, interest on the Securities will accrue at a rate of 11
3/4% per annum. Any amounts owing as a result of such increase shall be paid to
the Holders of record as of the Regular Record Date next following any such
Interest Rate Adjustment Event, on the immediately following Interest Payment
Date, and thereafter will be payable semiannually in arrears on February 1 and
August 1 of each year to the Holders of record on the immediately preceding
Regular Record Date.

                                       50
<PAGE>

          Promptly following the occurrence of an Interest Rate Adjustment
Event, the Company shall give notice of the occurrence thereof to the Trustee,
to the Paying Agent and to each Holder of Securities in the manner provided for
in Section 1.6. Such notice shall include the amount to be paid to the Holders
of record as of such Regular Record Date on the next following Interest Payment
Date.

          Principal of, premium, if any, and interest on the Securities will be
payable, and the Securities may be exchanged or transferred, at the office or
agency of the Company in The City of New York and in London, which, unless
otherwise provided by the Company, will be the offices of the Trustee. At the
option of the Company, interest may be paid by check mailed to addresses of the
Persons entitled thereto as such addresses shall appear on the Security
Register.

          The Securities shall be redeemable as provided in Article Eleven.

          At the election of the Company, the entire Indebtedness on the
Securities or certain of the Company's obligations and covenants and certain
Events of Default thereunder may be defeased as provided in Article Twelve.

          The Securities will be general, senior, unsecured obligations of the
Company, ranking pari passu in right of payment with each other.

          SECTION 3.2  Denominations.   The Securities (including any Global
                       -------------
Security) shall be issuable only in registered form without coupons and only in
denominations of US$1,000 or any integral multiple of US$1,000 above such
amount. The Securities shall not be issuable in bearer form. No service charge
shall be made for any registration of transfer or exchange of Securities, but
the Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

          SECTION 3.3  Execution, Authentication, Delivery and Dating.
                       ----------------------------------------------

          (a)  The Securities shall be executed on behalf of the Company by its
Chief Executive Officer, its President, a Vice President or a managing director
(being an executive officer of the Company with due authority granted by the
management board of the Company to execute Securities) of the Company. The
signature of any of these officers or directors on the Securities may be manual
or facsimile signatures of the present or any future such authorized officer or
director and may be imprinted or otherwise reproduced on the Securities.

                                       51
<PAGE>

          Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers or directors of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Securities or
did not hold such offices at the date of such Securities.  In addition, any
Security may be signed on behalf of the Company by such Persons as, at the
actual date of the execution of such Security, shall be the proper officers or
directors of the Company, although at the date of such Security or of the
execution of this Indenture any such Person was not such officer or director.

          At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities executed by the Company to
the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with such Company Order shall authenticate and deliver such Securities.

          Each Security shall be dated the date of its authentication.  No
Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security a certificate
of authentication substantially in the form provided for herein duly executed by
the Trustee by manual signature of an authorized signatory, and such certificate
upon any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture.

          On the Issue Date the Trustee shall authenticate Initial Securities
for original issue in the aggregate principal amount not to exceed $300,000,000,
upon a written order of the Company in the form of an Officer's Certificate.
Such order shall specify the amount of the Initial Securities to be
authenticated and the date on which the original issue of Initial Securities is
to be authenticated.  In addition, the Trustee shall authenticate Exchange
Securities for original issue in the aggregate principal amount of up to
$300,000,000 upon a written order of the Company in the form of an Officer's
Certificate, provided that such Exchange Securities shall be issuable only upon
the valid surrender for cancellation of Initial Securities of a like aggregate
principal amount in accordance with the Registration Rights Agreement. The
Officer's Certificate shall specify the amount of Exchange Securities to be
authenticated and the date on which the Exchange Securities are to be
authenticated. Upon the written order of the Company in the form of an Officer's
Certificate, the Trustee shall authenticate Securities in substitution of
Securities originally issued to

                                       52
<PAGE>

reflect any name change of the Company.

          (b)  The terms and provisions contained in the form of Securities
shall constitute, and are hereby expressly made, a part of this Indenture and,
to the extent applicable, the Company and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and to
be bound thereby.

          (c)  Restricted Global Securities. (i)  The Initial Securities offered
               ----------------------------
and sold in reliance on Rule 144A shall be issued in the form of one or more
global securities (the "Restricted Global Security") in definitive, fully
registered form without interest coupons, with such applicable legends as are
provided for in Exhibit A hereto, except as otherwise permitted herein.

               (ii)  Each Restricted Global Security shall be registered in the
     name of DTC or its nominee and deposited with the Trustee, at its Corporate
     Trust Office, as custodian for DTC, duly executed by the Company and
     authenticated by the Trustee as herein after provided. The aggregate
     principal amount of a Restricted Global Security may from time to time be
     increased or decreased by adjustments made on the records of the Trustee,
     as custodian for DTC, in connection with a corresponding decrease or
     increase in the aggregate principal amount of a Security that is a
     Regulation S Global Security (as defined below) or a Security that is an
     Unrestricted Global Security (as defined below), as hereinafter provided.

          (d)  Regulation S Global Securities.  (i)  Initial Securities offered
               ------------------------------
and sold in reliance on Regulation S shall be initially issued in the form of
one or more Global Securities in definitive, fully registered form without
interest coupons, with such applicable legends as are provided for in Exhibit A
hereto, except as otherwise permitted herein.  Until such time as the Restricted
Period shall have terminated, such Global Securities shall be referred to herein
as the "Regulation S Global Security."  After such time as the Restricted Period
shall have terminated, such Regulation S Global Securities shall be referred to
herein, as the "Unrestricted Global Securities."

               (ii)  Each Regulation S Global Security and Unrestricted Global
     Security shall be registered in the name of DTC or its nominee and
     deposited with the Trustee, at its Corporate Trust Office, as custodian for
     DTC, duly executed by the Company and

                                       53
<PAGE>

     authenticated by the Trustee as hereinafter provided, for credit to the
     respective accounts at DTC of the depositaries for Euroclear or Cedelbank.
     The aggregate principal amount of each Regulation S Global Security (or
     Unrestricted Global Security) may from time to time be increased or
     decreased by adjustments made on the records of the Trustee, as custodian
     for DTC, in connection with a corresponding decrease or increase in the
     aggregate principal amount of a Restricted Global Security, as hereinafter
     provided.

          (e)  The Exchange Securities which are issued in exchange for Initial
Securities shall be issued initially in the form of one or more permanent Global
Securities in definitive, fully registered form without interest coupons,
substantially in the form set forth in Exhibit A, deposited with the Trustee, as
custodian for DTC, and shall bear the applicable legends relating to Global
Securities set forth in Exhibit A that are required to appear on such
Securities.  Exchange Securities shall constitute Unrestricted Securities.

          (f)  In case the Company, pursuant to Article Eight, shall be
Consolidated or merged with or into any other Person or shall convey, transfer,
lease or otherwise dispose of its properties and assets substantially as an
entirety to any Person, and the successor Person resulting from such
consolidation, or surviving such merger, or into which the Company shall have
been merged, or the Person which shall have received a conveyance, transfer,
lease or other disposition as aforesaid, shall have executed an indenture
supplemental hereto with the Trustee pursuant to Article Eight, any of the
Securities authenticated or delivered prior to such consolidation, merger,
conveyance, transfer, lease or other disposition may, from time to time, at the
request of the successor Person, be exchanged for other Securities executed in
the name of the successor Person with such changes in phraseology and form as
may be appropriate, but otherwise in substance of like tenor as the Securities
surrendered for such exchange and of like principal amount; and the Trustee,
upon Company Request of the successor Person, shall authenticate and deliver
Securities as specified in such request for the purpose of such exchange. If
Securities shall at any time be authenticated and delivered in any new name of a
successor Person pursuant to this Section in exchange or substitution for or
upon registration of transfer of any Securities, such successor Person, at the
option of the Holders but without expense to them, shall provide for the
exchange of all Securities at the time Outstanding for Securities authenticated
and delivered in such new name.

          SECTION 3.4  Temporary Securities.  Pending the preparation of
                       --------------------

                                       54
<PAGE>

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

          If temporary Securities are issued, the Company will cause definitive
Securities to be prepared without unreasonable delay. After the preparation of
definitive Securities, the temporary Securities shall be exchangeable for
definitive Securities upon surrender of the temporary Securities at the office
or agency of the Company designated for such purpose pursuant to Section 10.2,
without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Securities of authorized denominations. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities.

          SECTION 3.5  Registration, Registration of Transfer and Exchange.  The
                       ---------------------------------------------------
Company shall cause to be kept at the Corporate Trust Office of the Trustee a
register (the register maintained in such office and in any other office or
agency designated pursuant to Section 10.2 being herein sometimes referred to as
the "Security Register") in which, subject to such reasonable regulations as it
may prescribe, the Company shall provide for the registration of Securities and
of transfers and exchange of Securities.  The Security Register shall be in
written form or any other form capable of being converted into written form
within a reasonable time.  At all reasonable times, the Security Register shall
be open to inspection by the Trustee.  The Trustee is hereby initially appointed
as security registrar (the "Security Registrar") for the purpose of registering
Securities and transfers and exchanges of Securities as herein provided.

          Upon surrender for registration of transfer of any Security at the
office or agency of the Company designated pursuant to Section 10.2, the Company
shall execute, the Trustee shall authenticate and deliver, and the Security
Registrar shall register, if the requirements, of such transfer are met, in the
name of the designated transferee or transferees, one or more new Securities of
any authorized denomination or denominations of a like aggregate principal
amount.

                                       55
<PAGE>

          At the option of the Holder, Securities may be exchanged for other
Securities of any authorized denomination and of a like currency and aggregate
principal amount (including an exchange of Initial Securities for Exchange
Securities), upon surrender of the Securities to be exchanged at such office
or agency. Whenever any Securities are so surrendered for exchange, the Company
shall execute, the Trustee shall authenticate and deliver, and the Security
Registrar shall register, the Securities which the Holder making the exchange is
entitled to receive, provided that no exchange of Initial Securities for
Exchange Securities shall occur until an Exchange Registration Statement shall
have been declared effective by the SEC (confirmed in an Officer's Certificate)
and that the Initial Securities to be exchanged for the Exchange Securities
shall be cancelled by the Trustee.

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

          Every Security presented or surrendered for registration of transfer
or for exchange shall (if so required by the Company or the Security Registrar)
be duly endorsed, or be accompanied by a written instrument of transfer, in form
satisfactory to the Company and the Security Registrar, duly executed by the
Holder thereof or his attorney duly authorized in writing.

          No service charge shall be made for any registration of transfer or
exchange or redemption of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 3.4, 9.6, 10.10, 10.16 or 11.8 not involving
any transfer.

          The Company shall not be required (i) to issue, register the transfer
of or exchange any Security during a period beginning at the opening of business
15 days before the selection of Securities to be redeemed under Section 11.4 and
ending at the close of business on the day of such mailing of the relevant
notice of redemption or (ii) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed
portion of any Security being redeemed in part.

          SECTION 3.6  Mutilated, Destroyed, Lost and Stolen Securities.  If
                       ------------------------------------------------

                                       56
<PAGE>

(i) any mutilated Security is surrendered to the Trustee or (ii) the Company and
the Trustee receive evidence to their satisfaction of the destruction, loss or
theft of any Security, and there is delivered to the Company and the Trustee
such security or indemnity as may be required by them to save each 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 Company Order the Trustee shall authenticate and deliver, in exchange
for any such mutilated Security or in lieu of any such destroyed, lost or stolen
Security, a new Security of like tenor and principal amount, 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, 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 issued pursuant to this Section 3.6 in lieu of any
mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the mutilated,
destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

          The provisions of this Section 3.6 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities.

          SECTION 3.7  Payment of Interest; Interest Rights Preserved. Interest
                       ----------------------------------------------
on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name such
Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest at the office or agency of
the Company maintained for such purpose pursuant to Section 10.2; provided,
however, that each installment of interest may at the Company's option be paid
(i) by mailing a check for such interest, payable to or upon the written order
of the Person entitled thereto pursuant to Section 3.8, to the address of such
Person as it appears in the Security

                                       57
<PAGE>

Register, or (ii) by wire transfer of such interest in immediately available
funds to an account located in the United States maintained by the DTC.

          Any interest on any Security which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date shall forthwith cease to
be payable to the Holder on the Regular Record Date by virtue of having been
such Holder, and such defaulted interest and (to the extent lawful) interest on
such defaulted interest at the rate borne by the Securities (such defaulted
interest and interest thereon herein collectively called "Defaulted Interest")
must be paid by the Company, at its election in each case, as provided in
paragraph (1) or (2) below:

          (1) The Company may elect to make payment of any Defaulted Interest to
the Persons in whose names the Securities (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security and the date of the
proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of U.S. Dollars equal to the aggregate amount proposed to be
paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such U.S. Dollars, when deposited to be held in trust for the benefit
of the Persons entitled to such Defaulted Interest as in this clause provided.
Thereupon the Trustee shall fix a Special Record Date for the payment of such
Defaulted Interest which shall be not more than 15 days and not less than 10
days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such Special Record Date, and in the name
and at the expense of the Company, shall cause notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor to be given in the
manner provided for in Section 1.6, not less than 10 days prior to such Special
Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been so given, such Defaulted Interest shall
be paid to the Persons in whose names the Securities (or their respective
Predecessor Securities) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following
paragraph(2).

          (2) The Company may make payment of any Defaulted Interest in any
other lawful manner not inconsistent with the requirements of any securities
exchange or system on which the Securities may be listed or eligible for
trading, and

                                       58
<PAGE>

upon such notice as may be required by such exchange or system, if, after
written notice given by the Company to the Trustee of the proposed payment
pursuant to this clause, such manner of payment shall be deemed practicable by
the Trustee.

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

          SECTION 3.8  Persons Deemed Owners.  Prior to the due presentment of
                       ---------------------
a Security for registration of transfer, the Company, the Trustee and any agent
of the Company or the Trustee may treat the Person in whose name such Security
is registered as the owner of such Security for the purpose of receiving payment
of principal of (and premium, if any) and (subject to Sections 3.5 and 3.7)
interest on such Security and for all other purposes whatsoever, whether or not
such Security be overdue, and none of the Company, the Trustee or any agent of
the Company or the Trustee shall be affected by notice to the contrary.

          SECTION 3.9  Cancellation.  All Securities surrendered for payment,
                       ------------
redemption, registration of transfer or exchange shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee and shall be promptly
cancelled by it.  The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and may deliver to
the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the Company
has not issued and sold, and all Securities so delivered shall be promptly
cancelled by the Trustee. If the Company shall so acquire any of the Securities,
however, such acquisition shall not operate as a redemption or satisfaction of
the Indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided
in this Section, except as expressly permitted by this Indenture. All cancelled
Securities held by the Trustee shall be disposed of by the Trustee in accordance
with its customary procedures and certification of their disposal delivered to
the Company unless by Company Order the Company shall direct that cancelled
Securities be returned to it.

          SECTION 3.10 Computation of Interest.  Interest on the Securities
                       -----------------------
shall be computed on the basis of a 360-day year comprised of twelve 30-day

                                       59
<PAGE>

months.

          SECTION 3.11 "CUSIP" and/or "ISIN" Numbers.  The Company in issuing
                       -----------------------------
the Securities may use a "CUSIP" and/or "ISIN" number (if then generally in
use), and if so, the Trustee shall use "CUSIP" and/or "ISIN" numbers in notices
of redemption or exchange as a convenience to Holders; provided, however, that
any such notice may state that no representation is made as to the correctness
or accuracy of such numbers either as printed in the notice or on the
Securities, and that reliance may be placed only on the other identification
numbers printed on the Securities. The Company shall promptly notify the Trustee
in writing of any change in the "CUSIP" or "ISIN" numbers of the Securities.

          SECTION 3.12 Book-Entry Provisions for Global Securities, Certificated
                       ---------------------------------------------------------
Securities.
----------

          Except as indicated below in this Section 3.12, the Securities shall
be represented only by Global Securities.  The Global Securities shall be
deposited with a Depositary for such Securities (and shall be registered in the
name of such Depositary or its nominee). The Depositary for the Securities shall
be DTC unless the Company appoints a successor Depositary by delivery of a
Company Order to the Trustee specifying such successor Depositary.

          All payments on a Global Security will be made to DTC or its nominee,
as the case may be, as the registered owner and Holder of such Global Security.
The Company will be fully discharged by payment to or to the order of such
Depositary from any responsibility or liability in respect of each amount so
paid.  Upon receipt of any such payment in respect of a Global Security, DTC
will credit Participants' accounts with payments in amounts proportionate to
their respective beneficial interests in the principal amount of such Global
Security as shown on the records of DTC.

          Unless and until it is exchanged in whole or in part for Certificated
Securities, a Global Security may not be transferred except as a whole by the
relevant Depositary or nominee thereof to another nominee of the Depositary or
to a successor of the Depositary or a nominee of such successor.

          Owners of beneficial interests in Global Securities shall be entitled
or required, as the case may be, but only under the circumstances described in
this Section 3.12, to receive physical delivery of Certificated Securities.

                                       60
<PAGE>

          Interests in a Global Security shall be exchangeable or transferable,
as the case may be, for Certificated Securities if (i) DTC notifies the Company
that it is unwilling or unable to continue as Depositary for such Global
Security, or DTC ceases to be a "Clearing Agency" registered under the United
States Securities Exchange Act of 1934, and a successor depositary is not
appointed by the Company within one hundred and twenty (120) days or (ii) in the
case of any Global Security, an Event of Default has occurred and is continuing
with respect thereto and the owner of a beneficial interest therein requests
such exchange or transfer.  Upon the occurrence of any of the events described
in the preceding sentence, the Company shall cause the appropriate Certificated
Securities to be delivered to the owners of beneficial interests in the Global
Securities or the Participants in DTC, Euroclear or Cedelbank through which such
owners hold their beneficial interest.  Certificated Securities shall be
exchangeable or transferable for interests in other Certificated Securities as
described herein.

          SECTION 3.13 Transfer and Exchange of Securities.
                       -----------------------------------

          (a) Obligations with Respect to Transfers and Exchanges of Securities.
              -----------------------------------------------------------------
Upon surrender for registration of transfer of any Security of a series to the
appropriate Registrar, and subject to the other provisions of this Section 3.13,
the Company shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new Securities
of such series of any authorized denominations and of a like aggregate principal
amount.

          At the option of the Holder, and subject to the other provisions of
this Section 3.13, Securities of any series may be exchanged for other
Securities of such series of any authorized denominations and of a like
aggregate principal amount, upon surrender of the Securities to be exchanged at
such office or agency.  Whenever any Securities are so surrendered for exchange,
and subject to the other provisions of this Section 3.13, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which
the Holder making the exchange is entitled to receive.

          All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
Indebtedness, and subject to the other provisions of this Section 3.13, entitled
to the same benefits under this Indenture, as the Securities surrendered upon
such registration of transfer or exchange.

                                       61
<PAGE>

          Every Security presented or surrendered for registration of transfer
or for exchange shall (if so required by the Company or the Trustee) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company or the appropriate Registrar and be duly executed by
the Holder thereof or his attorney duly authorized in writing.

          No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or governmental charge payable in connection with any
registration of transfer or exchange of Securities.

          (b)  Transfer and Exchange of Global Securities.  Notwithstanding any
               ------------------------------------------
provisions of this Indenture or the Securities, transfers of a Global Security,
in whole or in part, transfers and exchanges of interests therein of the kinds
described in clauses (ii), (iii) and (iv) below and exchange of interests in
Global Securities or of other Securities as described in clause (v) below, shall
be made only in accordance with this Section 3.13(b).  Transfers and exchanges
subject to this Section 3.13 shall also be subject to the other provisions of
this Indenture that are not inconsistent with this Section 3.13.

               (i)  General. A Global Security may not be transferred,
                    -------
     in whole or in part, to any Person other than DTC or a nominee
     thereof or a successor to DTC or its nominee, and no such
     transfer to any such other Person may be registered; provided
     that this clause (i) shall not prohibit any transfer of a
     Security that is issued in exchange for a Global Security but is
     not itself a Global Security. No transfer of a Security of any
     series to any Person shall be effective under this Indenture or
     the Securities of such series unless and until such Security has
     been registered in the name of such Person. Nothing in this
     Section 3.13(b)(i) shall prohibit or render ineffective any
     transfer of a beneficial interest in a Global Security effected
     in accordance with the other provisions of this Section 3.13(b).

               (ii) Restricted Global Security to Regulation S Global
                    -------------------------------------------------
     Security. If the Holder of a beneficial interest in a Restricted
     --------
     Global Security of any series wishes at any time to transfer such
     interest to a Person who wishes to take delivery thereof in the
     form of a beneficial interest in a Regulation S Global Security
     of such series, such transfer may be effected, subject to the
     rules and procedures of

                                       62
<PAGE>

     DTC, Euroclear and Cedelbank, in each case to the extent
     applicable (the "Applicable Procedures"), only in accordance with
     the provisions of this Section 3.13(b)(ii). Upon receipt by the
     Registrar of (A) written instructions given in accordance with
     the Applicable Procedures from an Agent Member directing the
     Registrar, to credit or cause to be credited to a specified Agent
     Member's account a beneficial interest in a Regulation S Global
     Security in a principal amount equal to that of the beneficial
     interest in a Restricted Global Security to be so transferred;
     (B) a written order given in accordance with the Applicable
     Procedures containing information regarding the account of the
     Agent Member to be credited with, and the account of the Agent
     Member to be debited for, such beneficial interest; and (C) a
     certificate in substantially the form set forth in Exhibit B
     given by the Holder of such beneficial interest, the principal
     amount of a Restricted Global Security shall be reduced, and the
     principal amount of a Regulation S Global Security shall be
     increased, by the principal amount of the beneficial interest in
     a Restricted Global Security to be so transferred, in each case
     by means of an appropriate adjustment on the records of the
     Registrar, and the Registrar shall instruct DTC or its authorized
     representative to make a corresponding adjustment to its records
     and to credit or cause to be credited to the account of the
     Person specified in such instructions a beneficial interest in a
     Regulation S Global Security having a principal amount equal to
     the amount so transferred.

               (iii) Restricted Global Security to Unrestricted Global
                     -------------------------------------------------
     Security. If the Holder of a beneficial interest in a Restricted
     --------
     Global Security of any series wishes at any time to transfer such
     interest to a Person who wishes to take delivery thereof in the
     form of a beneficial interest in an Unrestricted Global Security
     of such series, such transfer may be effected, subject to the
     Applicable Procedures, only in accordance with this Section
     3.13(b)(iii). Upon receipt by the Registrar, of (A) written
     instructions given in accordance with the Applicable Procedures
     from an Agent Member directing the Registrar to credit or cause
     to be credited to a specified Agent Member's account a beneficial
     interest in an Unrestricted Global Security in a principal amount
     equal to that of the beneficial interest in a Restricted Global
     Security to be so transferred, (B) a written order given in
     accordance with the Applicable Procedures containing information

                                       63
<PAGE>

     regarding the account of the Agent Member to be credited with,
     and the account of the Agent Member to be debited for, such
     beneficial interest, and (C) a certificate in substantially the
     form set forth in Exhibit C given by the Holder of such
     beneficial interest, the principal amount of the Restricted
     Global Security shall be reduced, and the principal amount of an
     Unrestricted Global Security shall be increased, by the principal
     amount of the beneficial interest in a Restricted Global Security
     to be so transferred, in each case by means of an appropriate
     adjustment on the records of the Registrar and the Registrar
     shall instruct DTC or its authorized representative to make a
     corresponding adjustment to its records and to credit or cause to
     be credited to the account of the Person specified in such
     instructions a beneficial interest in an Unrestricted Global
     Security having a principal amount equal to the amount so
     transferred.

               (iv) Regulation S Global Security or Unrestricted
                    --------------------------------------------
     Global Security to Restricted Global Security. If the Holder of a
     ---------------------------------------------
     beneficial interest in a Regulation S Global Security of any
     series or an Unrestricted Global Security of any series wishes at
     any time to transfer such interest to a Person who wishes to take
     delivery thereof in the form of a beneficial interest in a
     Restricted Global Security of such series, such transfer may be
     effected, subject to the Applicable Procedures, only in
     accordance with this Section 3.13(b)(iv). Upon receipt by the
     Registrar of (A) written instructions given in accordance with
     the Applicable Procedures from an Agent Member directing the
     Registrar to credit or cause to be credited to a specified Agent
     Member's account a beneficial interest in a Restricted Global
     Security in a principal amount equal to that of the beneficial
     interest in a Regulation S Global Security or an Unrestricted
     Global Security to be so transferred, (B) a written order given
     in accordance with the Applicable Procedures containing
     information regarding the account of the Agent Member to be
     credited with, and the account of the Agent Member to be debited
     for, such beneficial interest, and (C) with respect to a transfer
     of a beneficial interest in a Regulation S Global Security (but
     not an Unrestricted Global Security) to a Person whom the
     transferor reasonably believes is a QIB, a certificate in
     substantially the form set forth in Exhibit D given by the Holder
     of such beneficial interest, the principal amount of a Restricted
     Global Security shall be increased, and the principal amount of a
     Regulation

                                       64
<PAGE>

     S Global Security or an Unrestricted Global Security shall be
     reduced, by the principal amount of the beneficial interest in a
     Restricted Global Security to be so transferred, in each case by
     means of an appropriate adjustment on the records of the
     Registrar and the Registrar shall instruct DTC or its authorized
     representative to make a corresponding adjustment to its records
     and to credit or cause to be credited to the account of the
     Person specified in such instructions a beneficial interest in
     the Restricted Global Security having a principal amount equal to
     the amount so transferred.

               (v)  Exchanges of Global Security for Non-Global
                    -------------------------------------------
     Security. In the event that a Global Security or any portion
     --------
     thereof is exchanged for Securities other than Global Securities,
     such other Securities may in turn be exchanged (on transfer or
     otherwise) for Securities that are not Global Securities or for
     beneficial interests in a Global Security (if any is then
     Outstanding) only in accordance with such procedures, which shall
     be substantially consistent with the provisions of clauses (i)
     through (iv) above and (vi) below (including the certification
     requirements intended to insure that transfers and exchanges of
     beneficial interests in a Global Security comply with Rule 144A,
     Rule 144 or Regulation S, as the case may be) and any Applicable
     Procedures, as may be from time to time adopted by the Company
     and the Trustee.

               (vi) Interest in Regulation S Global Security to be
                    ----------------------------------------------
     Held Through Euroclear or Cedelbank. Until the termination of the
     -----------------------------------
     Restricted Period with respect thereto, interests in a Regulation
     S Global Security may be held only through Agent Members acting
     for and on behalf of Euroclear and Cedelbank, provided that this
     clause (vi) shall not prohibit any transfer in accordance with
     Section 3.13(b)(iv) hereof.

          (c)  Legends.  Each Restricted Security and Global Security issued
               -------
hereunder shall, upon issuance, bear the legends set forth in Exhibit A hereto
that are required to be applied to such a Security and such required legends
shall not be removed from such Security except as provided in the next sentence
or Section 3.13(e).  The legend required for a Restricted Security may be
removed from a Security if there is delivered to the Company and the appropriate
Registrar such satisfactory evidence, which may include an opinion of
independent counsel licensed

                                       65
<PAGE>

to practice law in the State of New York, as may be reasonably required by the
Company that neither such legend nor the restrictions on transfer set forth
therein are required to ensure that transfers of such Security will not violate
the registration requirements of the Securities Act. Upon provision of such
satisfactory evidence, the Trustee, at the direction of the Company, shall
authenticate and deliver in exchange for such Security another security or
securities having an equal aggregate principal amount that does not bear such
legend. If such a legend required for a Restricted Security has been removed
from a Security as provided above, it shall not be a Restricted Security and no
other Security issued in exchange for all or any part of such Security shall
bear such legend, unless the Company has reasonable cause to believe that such
other security is a "restricted security" within the meaning of Rule 144 and
instructs the Trustee in writing to cause a legend to appear thereon.

          (d)  Global Securities.  The provisions of clauses (i), (ii), (iii),
               -----------------
and (iv) below shall apply only to Global Securities;

               (i)  General. Each Global Security authenticated under
                    -------
     this Indenture shall be registered in the name of the appropriate
     Depositary or a nominee thereof and delivered to such Depositary
     or a nominee thereof or custodian therefor.

               (ii) Transfer to Persons other than Depositary.
                    -----------------------------------------
     Notwithstanding any other provision in this Indenture or the
     Securities, no Global Security may be exchanged in whole or in
     part for Securities registered, and no transfer of a Global
     Security in whole or in part may be registered, in the name of
     any person other than the appropriate Depositary or a nominee
     thereof unless (A) DTC notifies the Company that it is unwilling
     or unable to continue as Depositary for such Global Security, or
     DTC ceases to be a "Clearing Agency" registered under the United
     States Securities Exchange Act of 1934, and a successor
     depositary is not appointed by the Company within one hundred and
     twenty (120) days or (B) an Event of Default has occurred and is
     continuing with respect thereto and the owner of a beneficial
     interest therein requests such exchange or transfer. Any Global
     Security exchanged pursuant to clause (A) above shall be so
     exchanged in whole and not in part and any Global Security
     exchanged pursuant to clause (B) above may be exchanged in whole or
     from time to time in part as directed by DTC. Any Security issued
     in exchange for a Global Security or any portion thereof shall be
     a

                                       66
<PAGE>

     Global Security, provided that any such Security so issued that
     is registered in the name of a Person other than the appropriate
     Depositary or a nominee thereof shall not be a Global Security.

               (iii) Global Security to Certificated Security.
                     ----------------------------------------
     Securities issued in exchange for a Global Security or any
     portion thereof pursuant to clause (ii) above shall be issued in
     definitive, fully registered form without interest coupons, shall
     have an aggregate principal amount equal to that of such Global
     Security or portion thereof to be so exchanged, shall be
     registered in such names and be in such authorized denominations
     as the appropriate Depositary shall designate and shall bear any
     legends required hereunder. Any Global Security to be exchanged
     in whole shall be surrendered by the appropriate Depositary to
     the Security Registrar. With regard to any Global Security to be
     exchanged in part, either such Global Security shall be so
     surrendered for exchange or, in the case of a Global Security, if
     the Trustee is acting as custodian for DTC or its nominee with
     respect to such Global Security or, the principal amount thereof
     shall be reduced, by an amount equal to the portion thereof to be
     so exchanged, by means of an appropriate adjustment made on the
     records of the Trustee, as Authenticating Agent. Upon any such
     surrender or adjust adjustment, the Trustee shall authenticate
     and deliver the Security issuable on such exchange to or upon the
     order of the Depositary or an authorized representative thereof.

               (iv)  In the event of the occurrence of any of the
     events specified in clause (ii) above, the Company will promptly
     make available to the Trustee a supply of Certificated Securities
     in definitive, fully registered form, without interest coupons,
     sufficient to meet the Trustee's requirements hereunder.

               (v)   No Rights of Agent Members in Global Security. No
                     ---------------------------------------------
     Agent Member of any Depositary nor any other Persons on whose
     behalf Agent Members may act shall have any rights under the
     Indenture with respect to any Global Security, or under any
     Global Security, and each Depositary or its nominee, as the case
     may be, may be treated by the Company, the Trustee and any agent
     of the Company or the Trustee as the absolute owner and Holder of
     such Global Security for all purposes whatsoever. Notwithstanding
     the foregoing,

                                       67
<PAGE>

     nothing herein shall prevent the Company, the Trustee or any
     agent of the Company or the Trustee from giving effect to any
     written certification, proxy or other authorization furnished by
     the applicable Depositary or such nominee, as the case may be, or
     impair, as between DTC, Euroclear and Cedelbank, their respective
     Agent Members and any other person on whose behalf an Agent
     Member may act, the operation of customary practices of such
     Persons governing the exercise of the rights of a Holder of any
     Security.

          SECTION 3.14  Special Transfer Provisions.
                        ---------------------------

          (a)  Transfers to Institutional Accredited Investors.  If Securities
               -----------------------------------------------
are being transferred to an Institutional Accredited Investor, the Securities
shall be accompanied by delivery of a transferee certificate for Institutional
Accredited Investors substantially in the form of Exhibit G hereto and an
opinion of counsel reasonably satisfactory to the Company to the effect that
such transfer is in compliance with the Securities Act.

          (b)  Other Transfers.  If a Holder proposes to transfer a Security
               ---------------
pursuant to any exemption from the registration requirements of the Securities
Act other than as provided for above, the Security Registrar shall only register
such transfer or exchange if such transferor delivers to the Security Registrar
and the Trustee an Opinion of Counsel satisfactory to the Company and the
Security Registrar that such transfer is in compliance with the Securities Act
and the terms of this Indenture; provided that the Company may, based upon the
opinion of its counsel, instruct the Security Registrar by a Company Order not
to register such transfer in any case where the proposed transferee is not a
QIB, an Institutional Accredited Investor or a non-U.S. Person.

          (c)  General.  By its acceptance of any Security bearing Legends, each
               -------
Holder of such a Security acknowledges the restrictions on transfer of such
Security set forth in this Indenture and in the Legends and agrees that it will
transfer such Security only as provided in this Indenture.

          The Security Registrar shall retain copies of all letters, notices and
other written communications received pursuant to Section 3.12 or this Section
3.14 for a period of two years, after which time such letters, notices and other
written communications shall at the written request of the Company be delivered
to the Company.  The Company shall have the right to inspect and make copies of
all such

                                       68
<PAGE>

letters, notices or other written communications at any reasonable time upon the
giving of reasonable prior written notice to the Security Registrar.

                                  ARTICLE IV

                          SATISFACTION AND DISCHARGE

          SECTION 4.1  Satisfaction and Discharge of Indenture.  This Indenture
                       ---------------------------------------
shall upon Company Request cease to be of further effect (except as to surviving
rights of registration of transfer or exchange of Securities expressly provided
for herein or pursuant hereto) and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture when

          (1)  either

          (a)  all Securities theretofore authenticated and delivered (other
     than (i) Securities which have been destroyed, lost or stolen and which
     have been replaced or paid as provided in Section 3.6 and (ii) Securities
     for whose payment U.S. Dollars have theretofore been deposited in trust
     with the Trustee or any Paying Agent or segregated and held in trust by the
     Company and thereafter repaid to the Company or discharged from such trust
     as provided in Section 10.3) have been delivered to the Trustee for
     cancellation; or

          (b)  (i) all such Securities not theretofore delivered to the Trustee
     for cancellation have become due and payable, or (ii) the Company has given
     irrevocable and unconditional notice of redemption for all of the
     Outstanding Securities within 60 days of such notice pursuant to the
     redemption provisions of this Indenture,

     and the Company, in the case of (i) or (ii) above, has irrevocably
     deposited or caused to be deposited with the Trustee as trust funds in
     trust for such purpose an amount sufficient to pay and discharge the
     entire Indebtedness on such Securities not theretofore delivered to the
     Trustee for cancellation, for principal (and premium, if any) and accrued
     interest (and Liquidated Damages, if any,) to the date of such deposit;

                                       69
<PAGE>

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

          (3)  the Company has delivered irrevocable instructions to the Trustee
to apply the deposited U.S. Dollars toward the payment of the Securities at
Maturity or the Redemption Date, as the case may be, which must be within 60
days thereof;

          (4)  the Holders of the Securities have a valid, perfected, exclusive
security interest in such trust; and

          (5)  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 6.7 and, if U.S. Dollars
shall have been deposited with the Trustee pursuant to clause(1)(b) of this
Section 4.1, the obligations of the Trustee under Section 4.2 and the last
paragraph of Section 10.3 shall survive.

          SECTION 4.2  Application of Trust Money.
                       --------------------------

          Subject to the provisions of the last paragraph of Section 10.3, all
money deposited with the Trustee pursuant to Section 4.1 shall be held in trust
and applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the
Trustee; but such money need not be segregated from other funds except to the
extent required by law.

                                   ARTICLE V

                                   REMEDIES

          SECTION 5.1  Events of Default.  "Event of Default," wherever used
                       -----------------

                                       70
<PAGE>

herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

          (1)  default in the payment of any interest (or Liquidated Damages, if
any) on any Security when it becomes due and payable, and continuance of such
default for a period of 30 days;

          (2)  default in the payment of the principal of (or premium, if any,
on) any Security as and when the same becomes payable at its Maturity, or upon
redemption, by acceleration or otherwise, including, without limitation, payment
of the Change of Control Purchase Price or the Asset Sale Offer Price, or
otherwise on Securities validly tendered and not properly withdrawn pursuant to
a Change of Control Offer or Asset Sale Offer, as applicable; or

          (3)  failure to perform any other covenant or agreement of the Company
under this Indenture or Securities and, except for the provisions under Section
10.10, 10.16, Article Eight and Section 10.12, continued for 30 days after
written notice to the Company by the Trustee or to the Company and the Trustee
by Holders of at least 25% in aggregate principal amount of the Outstanding
Securities;

          (4)  a default in Indebtedness of the Company or any of its
Subsidiaries with an aggregate amount Outstanding in excess of $50,000,000 (or
its foreign currency equivalent) (a) resulting from the failure to pay principal
at maturity or otherwise at end of any applicable grace period for such payment
pursuant to the original terms of such Indebtedness or (b) as a result of which
the maturity of such Indebtedness has been accelerated prior to its stated
maturity; or

          (5)  the rendering of a final judgment or final judgments not covered
by insurance in an amount in excess of $50,000,000 (or its foreign currency
equivalent) at any one time against the Company or any of its Subsidiaries by a
court or courts of competent jurisdiction, which judgment or judgments remain
unbonded, undischarged or unstayed for a period of 60 days after the date on
which the right to appeal all such judgments has expired; or

          (6)  the entry of a decree or order by a court having jurisdiction in
the premises adjudging the Company or any Significant Subsidiary a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization,

                                       71
<PAGE>

arrangement, adjustment or composition of or in respect of the Company or any
Significant Subsidiary or any other applicable federal, state or foreign law, or
appointing a receiver, liquidator, assignee, trustee or sequestrator (or other
similar official) of the Company or any Significant Subsidiary or of any
substantial part of its property, or ordering the winding up or liquidation of
its affairs, and the continuance of any such decree or order unstayed and in
effect for a period of 60 consecutive days; or

          (7)  the institution by the Company or any Significant Subsidiary of
proceedings to be adjudicated a bankrupt or insolvent, or the consent by it to
the institution of bankruptcy or insolvency proceedings against it, or the
filing by it of a petition or answer or consent seeking reorganization or relief
under the U.S. Federal Bankruptcy Code or any other applicable federal, state or
foreign law, or the consent by it to the filing of any such petition or to the
appointment of a receiver, liquidator, assignee, trustee or sequestrator (or
other similar official) of the Company or any Significant Subsidiary or of any
substantial part of its property, or the making by it of an assignment for the
benefit of creditors, or the admission by it in writing of its inability to pay
its Indebtedness generally as they become due.

          SECTION 5.2  Acceleration of Maturity; Rescission and Annulment.  If
                       --------------------------------------------------
an Event of Default (other than an Event of Default specified in Section 5.1(6)
or 5.1 (7) relating to the Company) occurs and is continuing, then and in every
such case the Trustee or the Holders of not less than 25% in principal amount of
the Outstanding Securities may declare the principal and accrued interest (and
Liquidated Damages, if any) of all the Securities to be due and payable
immediately by a notice in writing to the Company (and to the Trustee if given
by Holders) (an "Acceleration Notice"), and upon any such declaration such
principal, accrued interest (and Liquidated Damages, if any) shall become
immediately due and payable. If an Event of Default specified in Section 5.1(6)
or 5.1(7) relating to the Company occurs and is continuing, then the principal
and accrued interest (and Liquidated Damages, if any) of all the Securities
shall ipso facto become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder.

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

                                       72
<PAGE>

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

               (A)  all overdue interest on all Outstanding Securities,

               (B)  all unpaid principal of (and premium, if any, on) any
Outstanding Securities which has become due otherwise than by such declaration
of acceleration, and interest on such unpaid principal at the rate borne by the
Securities,

               (C)  to the extent that payment of such interest is lawful,
interest on overdue interest at the rate borne by the Securities, and

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

          (2)  all existing Events of Default, other than the non-payment of
amounts of principal, (or premium, if any,) and interest on the Securities which
have become due solely by such declaration of acceleration, and except a Default
with respect to any provision requiring a supermajority approval to amend, which
Default may only be waived by such a supermajority, have been cured or waived as
provided in Section 5.13.

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

          SECTION 5.3  Collection of Indebtedness and Suits for Enforcement by
                       -------------------------------------------------------
Trustee.  The Company covenants that if
-------

          (a)  default is made in the payment of any installment of interest on
any 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 the principal of (or premium,
if any, on) any Security at the Maturity thereof, the Company will, upon demand
of the Trustee, pay to the Trustee for the benefit of the Holders of such
Securities the whole amount then due and payable on such Securities for
principal (and premium, if any) and interest, and interest on any overdue
principal (and

                                       73
<PAGE>

premium, if any) and, to the extent that payment of such interest shall be
legally enforceable, upon any overdue installment of interest, at the rate borne
by the 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 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 the Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or any other obligor upon the Securities, wherever
situated.

          If an Event of Default occurs and is continuing, the Trustee may in
its discretion proceed to protect and enforce its rights and the rights of the
Holders 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 5.4  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 herein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue principal, premium, if any, or interest) shall be
entitled and empowered, by intervention in such proceeding or otherwise,

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

                                       74
<PAGE>

     such judicial proceeding, and

               (ii) to collect and receive any moneys or other
     property payable or deliverable on any such claims and to
     distribute the same;

and any custodian, receiver, assignee, trustee, liquidator or 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 the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee and its agents and counsel, and any
other amounts due the Trustee under Section 6.7.

          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 5.5  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 and as trustee of an express trust, and any recovery of judgment
shall, after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee and its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

          SECTION 5.6  Application of Money Collected.  Any money collected by
                       ------------------------------
the Trustee pursuant to this Article Five shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal (or premium, if any) or
interest, 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 6.7;

                                       75
<PAGE>

     SECOND: To the payment of the amounts then due and unpaid for principal of
(and premium, if any) and interest (and Liquidated Damages, if any) 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 premium, if any)
and interest, respectively; and

     THIRD: The balance, if any, to the Person or Persons entitled thereto.

          SECTION 5.7  Limitation on Suits.  No Holder of any Securities shall
                       -------------------
have any right to institute any proceeding, judicial or otherwise, with respect
to this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless

          (1)  the Holder has previously given written notice to the Trustee of
a continuing Event of Default;

          (2)  the Holders of not less than 25% in aggregate principal amount of
the Outstanding Securities 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;

          (3)  the Trustee is indemnified and/or secured (whether by payment in
advance or otherwise) to its reasonable satisfaction;

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

          (5)  no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a majority or
more in aggregate principal amount of the Outstanding Securities; it being
understood and intended that no one or more Holders shall have any right in any
manner whatsoever by virtue of, or by availing of, any provision of this
Indenture to affect, disturb or prejudice the rights of any other Holders, or to
obtain or to seek to obtain priority or preference over any other Holders or to
enforce any right under this Indenture, except in the manner herein provided and
for the equal and ratable benefit of all the Holders.

          SECTION 5.8  Unconditional Right of Holders to Receive Principal,
                       ----------------------------------------------------

                                       76
<PAGE>

Premium 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 as provided herein (including, if applicable,
Article Twelve) and in such Security of the principal of (and premium, if any)
and (subject to Section 3.7) interest (and Liquidated Damages, if any) on such
Security on the respective Stated Maturities expressed in such Security (or, in
the case of redemption, on the Redemption Date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without
the consent of such Holder.

          SECTION 5.9   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 5.10  Rights and Remedies Cumulative.  Except as otherwise
                        ------------------------------
provided with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities in the last paragraph of Section 3.6, 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 5.11  Delay or Omission Not Waiver.  No delay or omission of
                        ----------------------------
the Trustee or of any Holder of any Security to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article Five 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 5.12  Control by Holders.  The Holders of not less than a
                        ------------------
majority in aggregate principal amount of the Outstanding Securities shall have
the

                                       77
<PAGE>

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, provided that

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

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

          (3)  the Trustee need not take any action which might involve it in
personal liability or be unjustly prejudicial to the Holders not consenting
unless it has received indemnity reasonably satisfactory to it.

          SECTION 5.13  Waiver of Past Defaults.  The Holders of a majority in
                        -----------------------
aggregate principal amount of the Outstanding Securities may on behalf of the
Holders of all the Securities waive any past Default hereunder and its
consequences, except a Default

          (1)  in respect of the payment of the principal of (or premium, if
any) or interest (and Liquidated Damages, if any) on any Security, or

          (2)  in respect of a covenant or provision hereof which cannot be
modified or amended without the approval of a supermajority, which Default may
only be waived by such a supermajority; or

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

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

          SECTION 5.14  Waiver of Stay or Extension Laws.  The Company covenants
                        --------------------------------
(to the extent that it may lawfully do so) that it shall not at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force,

                                       78
<PAGE>

which may affect the covenants or the performance of this Indenture; and the
Company (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law and covenants that it shall not hinder,
delay or impede the execution of any power herein granted to the Trustee, but
shall suffer and permit the execution of every such power as though no such law
had been enacted.

                                  ARTICLE VI

                                  THE TRUSTEE

          SECTION 6.1  Certain Duties and Responsibilities.
                       -----------------------------------

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

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

          (2)  in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the
Trustee and con  forming to the requirements of this Indenture; but, in the case
of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be under
a duty to examine the same to determine whether or not they reasonably conform
to the requirements of this Indenture.

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

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

          (1)  this paragraph (c) shall not be construed to limit the effect of
paragraph (a) of this Section 6.1;

                                       79
<PAGE>

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

          (3)  the Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in good faith in accordance with the direction of
the Holders of the requisite amount of the Outstanding Securities 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; and

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

          (d)  Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this
Section 6.1.

          SECTION 6.2  Notice of Default.  Within 60 days after being notified
                       -----------------
or becoming aware of the occurrence of any Default hereunder, the Trustee shall
transmit, in the manner and to the extent provided in TIA Section 313(c), notice
of such Default hereunder known to any Responsible Officer of the Trustee,
unless such Default shall have been cured or waived; provided, however, that,
except in the case of a Default in the payment of the principal of (or premium,
if any) or interest on any Security, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee or a trust committee of directors and/or Responsible Officers of the
Trustee in good faith determines that the with  holding of such notice is in the
interest of the Holders.

          SECTION 6.3  Certain Rights of Trustee.  Subject to Section 6.1 and to
                       -------------------------
the provisions of TIA Sections 315(a) through 315(d):

          (1)  the Trustee may conclusively rely and shall be fully protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,

                                       80
<PAGE>

debenture, note, other evidence of Indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties;

          (2)  any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or Company Order and any resolution
of the Supervisory Board of the Company may be sufficiently evidenced by a Board
Resolution;

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

          (4)  the Trustee may consult with counsel and other professional
advisers and the written advice of such counsel or advisers 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;

          (5)  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 pursuant to this Indenture, unless the Trustee is indemnified
and/or secured (whether by payment in advance or otherwise) to its reasonable
satisfaction;

          (6)  the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of Indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney;

          (7)  the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents, nominees,
custodians, delegates or attorneys and the Trustee shall not be responsible for
supervising the actions of such agent, nominee, custodian, delegate or attorney,
nor

                                       81
<PAGE>

for any misconduct or negligence on the part of any agent, nominee, custodian,
delegate or attorney appointed with due care by it hereunder;

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

          (9)  the Trustee shall be entitled to assume that there has been no
Event of Default and that the Company has complied with all of its obligations
hereunder, unless a Responsible Officer of the Trustee has knowledge to the
contrary thereof.

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

          SECTION 6.4  Trustee Not  Responsible for Issuance of Securities.
                       ---------------------------------------------------

     The Trustee makes no representations as to the validity or sufficiency of
this Indenture or of the Securities, except that the Trustee represents that it
is duly authorized to execute and deliver this Indenture, authenticate the
Securities and perform its obligations hereunder.  The Trustee shall not be
accountable for the use or application by the Company of Securities or the
proceeds thereof.

          SECTION 6.5  May Hold Securities.  The Trustee, any Paying Agent, any
                       -------------------
Security Registrar or any other agent of the Company or of the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Securities
and, subject to TIA Sections 310(b) and 311, may otherwise deal with the Company
with the same rights it would have if it were not Trustee, Paying Agent,
Security Registrar or such other agent.

          SECTION 6.6  Money Held in Trust.  Money held by the Trustee in trust
                       -------------------
hereunder need not be segregated from other funds except to the extent required
by law.  The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company.

                                       82
<PAGE>

          SECTION 6.7  Compensation and Reimbursement.  The Company agrees:
                       ------------------------------

          (1)  to pay to the Trustee from time to time compensation for all
services rendered by it hereunder (which compensation shall not be limited by
any provision of law in regard to the compensation of a trustee of an express
trust) as agreed in writing between the Company and the Trustee;

          (2)  except as otherwise expressly provided herein, to reimburse the
Trustee upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any provision of this
Indenture (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to the Trustee's gross negligence or bad
faith; and

          (3)  to indemnify the Trustee and its directors, officers, employees
and agents for, and to hold them harmless against, any loss, liability or
expense (including counsel's fees and expenses) without gross negligence or bad
faith on the part of any of them, arising out of or in connection with the
acceptance or administration of this trust, including the costs and expenses of
defending itself or them selves against any claim or liability in connection
with the exercise or performance of any of its or their powers or duties
hereunder.

          Upon the occurrence of an Event of Default or a potential Event of
Default or upon the Trustee being required, or considering it necessary, to
undertake duties outside the usual scope of a Trustee, the Trustee will be
entitled to charge additional fees as agreed upon in writing with the Company.

          The obligations of the Company under this Section 6.7 to compensate
the Trustee, to pay or reimburse the Trustee for expenses, disbursements and
advances and to indemnify and hold harmless the Trustee shall constitute
additional Indebtedness hereunder and shall survive the satisfaction and
discharge of this Indenture or the earlier resignation or removal of the
Trustee. As security for the performance of such obligations of the Company, the
Trustee shall have a claim prior to the Securities upon all property and funds
held or collected by the Trustee as such.

          When the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Section 5.1(6) or (7), the expenses
(including the reasonable charges and expenses of its counsel) of and the
compensation for such

                                       83
<PAGE>

services are intended to constitute expenses of administration under any
applicable federal or state bankruptcy, insolvency or other similar law.

          The provisions of this Section 6.7 shall survive the termination of
this Indenture or the earlier resignation or removal of the Trustee.

          SECTION 6.8  Corporate Trustee Required; Eligibility; Conflicting
                       ----------------------------------------------------
Interests.
---------

          (a)  There shall be at all times a Trustee hereunder which shall be
subject to and comply with the provisions of Section 310(a)(1) of the Trust
Indenture Act and shall have a combined capital and surplus of at least
$50,000,000. If such Corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of federal, state, territorial
or District of Columbia supervising or examining authority, then, for the
purposes of this Section 6.8, the combined capital and surplus of such
Corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section
6.8, it shall resign immediately in the manner and with the effect hereinafter
specified in this Article Six.

          (b)  The Trustee shall be subject to and comply with Section 310(b) of
the Trust Indenture Act.

          SECTION 6.9  Resignation and Removal; Appointment of Successor.
                       -------------------------------------------------

          (a)  No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 6.10.

          (b)  The Trustee may resign at any time by giving 60 days' written
notice thereof to the Company and without assigning any reason thereto or being
responsible for any costs or expenses occasioned thereby.  If the instrument of
acceptance by a successor Trustee required by Section 6.10 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may on behalf of the Company, appoint in its
place a reputable financial institution and the Company shall not unreasonably
object to such appointment or may petition any court of competent jurisdiction
for the appointment

                                       84
<PAGE>

of a successor Trustee.

          (c)  The Trustee may be removed at any time by Act of the Holders of
not less than a majority in aggregate principal amount of the Outstanding
Securities, delivered to the Trustee and to the Company.

          (d)  If at any time:

          (1)  the Trustee shall fail to comply with the provisions of TIA
Section 310(b) after written request therefor by the Company or by any Holder
who has been a bona fide Holder of a Security for at least six months (in the
case of Global Securities, as evidenced in writing to the Trustee by the
relevant Depositary or Euroclear or Cedelbank), or

          (2)  the Trustee shall cease to be eligible under Section 6.8(a) and
shall fail to resign after written request therefor by the Company or by any
Holder who has been a bona fide Holder of a Security for at least six months (in
the case of Global Securities, as evidenced in writing to the Trustee by the
relevant Depositary or Euroclear or Cedelbank), or

          (3)  the Trustee shall become incapable of acting or shall be adjudged
a bankrupt or insolvent or a receiver of the Trustee or of its property shall be
appointed or any public officer shall take charge or control of the Trustee or
of its property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, (i)the Company, by a Board Resolution, may
remove the Trustee or (ii)subject to TIA Section 315(e), any Holder who has been
a bona fide Holder of a Security for at least six months, (in the case of Global
Securities, as evidenced in writing to the Trustee by the relevant Depositary or
Euroclear or Cedelbank), may on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

          (e)  If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, the
Company, by a Board Resolution, shall promptly appoint a successor Trustee.
If, within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee shall be appointed by Act of the
Holders of a majority in aggregate principal amount of the Outstanding
Securities delivered to the Company and the retiring Trustee, the successor
Trustee so appointed shall, forthwith

                                       85
<PAGE>

upon its acceptance of such appointment, become the successor Trustee and
supersede the successor Trustee appointed by the Company. If no successor
Trustee shall have been so appointed by the Company or the Holders and accepted
appointment in the manner hereinafter provided, any Holder who has been a bona
fide Holder of a Security for at least six months, (in the case of Global
Securities) as evidenced in writing to the Trustee by the relevant Depositary or
Euroclear or Cedelbank), may on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee.

          (f)  The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor Trustee to the
Holders of Securities in the manner provided for in Section 1.6. Each notice
shall include the name of the successor Trustee and the address of its Corporate
Trust Office.

          (g)  The retiring Trustee shall not be liable for any of the acts or
omissions of any successor Trustee appointed hereunder.

          SECTION 6.10  Acceptance of Appointment by Successor.  Every successor
                        --------------------------------------
Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee; but, on request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its fees, costs, expenses,
charges and any other amounts owed to it hereunder, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and
trusts of the retiring Trustee and shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee
hereunder. Upon request of any such successor Trustee, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirm ing
to such successor Trustee all such rights, powers and trusts.

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

          SECTION 6.11  Merger, Conversion, Consolidation or Succession to
                        --------------------------------------------------
Business.  Any Corporation into which the Trustee may be merged or converted or
--------
with which it may be Consolidated, or any Corporation resulting from any merger,

                                       86
<PAGE>

conversion or consolidation to which the Trustee shall be a party, or any
Corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such Corporation shall be otherwise qualified and eligible under
this Article Six, without the execution or filing of any paper or any further
act on the part of any of the parties hereto. In case any Securities shall have
been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Securities so authenticated with
the same effect as if such successor Trustee had itself authenticated such
Securities. In case at that time any of the Securities shall not have been
authenticated, any successor Trustee may authenticate such Securities either in
the name of any predecessor hereunder or in the name of the successor Trustee.
In all such cases such certificates shall have the full force and effect which
this Indenture provides that the certificate of authentication of the Trustee
shall have; provided, however, that the right to adopt the certificate of
authentication of any predecessor Trustee or to authenticate Securities in the
name of any predecessor Trustee shall apply only to its successor or successors
by merger, conversion or consolidation.

          SECTION 6.12  Trustee Acting in Other Capacities.  To the extent that
                        -----------------------------------
the Trustee, Banque Internationale a Luxembourg or any other Person appointed
hereunder as Trustee or Paying Agent is acting as Securities Registrar,
Depositary or Paying Agent hereunder, the rights, privileges, immunities and
indemnities set forth in this Article Six shall apply to the Trustee in the
additional capacities listed above.

                                  ARTICLE VII

               HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

          SECTION 7.1   Disclosure of Names and Addresses of Holders. Every
                        --------------------------------------------
Holder of Securities, by receiving and holding the same, agrees with the Company
and the Trustee that none of the Company or the Trustee or any agent of either
of them shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders in accordance with TIA
Section 3.12, regardless of the source from which such information was derived,
and that the Trustee shall not be held accountable by reason of mailing any
material pursuant to a request made under TIA Section 312(b).

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          SECTION 7.2  Reports by Trustee.  Within 60 days after May 30 of each
                       ------------------
year commencing with the first May 30 after the first issuance of Securities,
the Trustee shall transmit to the Holders, in the manner and to the extent
provided in TIA Section 313(c), a brief report dated as of such May 30 if
required by TIA Section 313(a).

          SECTION 7.3  Reports by Company.  The Company shall file with the
                       ------------------
Trustee and deliver to the Holders of Securities the reports and other
information required to be provided by it pursuant to Section 10.8.

                                  ARTICLE VII

             CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

          SECTION 8.1  Company May Consolidate, Etc., Only on Certain Terms.
                       ----------------------------------------------------
The Company shall not, in a single transaction or a series of related
transactions, (i) consolidate with or merge into any other Person or Persons or
(ii) directly or indirectly, sell, lease, convey or transfer all or
substantially all of its assets (computed on a Consolidated basis) to any other
Person or group of affiliated Persons, unless:

          (1)  either (a) the Company is the continuing entity or (b) the
resulting, surviving or transferee entity is a Corporation organized under the
laws of The Netherlands or of the United States of America or any state or the
District of Columbia, any member of the European Economic Area or Switzerland
and ex pressly assumes by supplemental indenture all of the obligations of the
Company in connection with the Securities and this Indenture;

          (2)  no Default or Event of Default shall exist or shall occur
immediately after giving effect on a pro forma basis to such transaction;

          (3)  unless such transaction is solely the merger of the Company and
one of its previously existing Wholly Owned Subsidiaries and which transaction
is not in connection with any other transaction, immediately after giving effect
to such transaction, on a pro forma basis, the Consolidated resulting, surviving
or transferee entity would immediately thereafter be permitted to incur at least
$1.00 of additional Indebtedness pursuant to the Debt Incurrence Ratio set forth
in Section 10.11 or, if not, the Leverage Ratio would immediately thereafter be
no greater than

                                       88
<PAGE>

the Leverage Ratio immediately prior thereto;

          (4)  each Subsidiary Guarantor, unless such Subsidiary Guarantor is
the Person with which the Company has entered into a transaction under this
section, shall have by amendment to its Guarantee of the Securities confirmed
that its Guarantee of the Securities shall apply to the obligations of the
Company or the surviving entity in accordance with the Securities and this
Indenture; and

          (5)  the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each in form attached hereto as Exhibits
F and G respectively, stating that such consolidation, merger, conveyance,
transfer, lease or acquisition and, if a supplemental indenture is required in
connection with such transaction, such supplemental indenture, complies with
this Article and that all conditions precedent herein provided for relating to
such transaction have been complied with, and, with respect to such Officers'
Certificate.

          For purposes of this Section 8.1, the transfer (by lease, assignment,
sale or otherwise) of all or substantially all of the properties and assets of
one or more Subsidiaries, the Company's interest in which constitutes all or
substantially all of the properties and assets of the Company, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
the Company.

          SECTION 8.2  Successor Substituted.  Upon any consolidation of the
                       ---------------------
Company with or merger of the Company with or into any other Corporation or any
conveyance, transfer or lease of the properties and assets of the Company
substantially as an entirety to any Person or Persons in accordance with
Section 8.1, the successor Person formed by such consolidation or into which the
Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and (except in the case of a lease) be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor Person had been named as the Company herein,
and, in the event of any such conveyance or transfer (except in the case of a
lease), the Company shall be discharged of all obligations under this Indenture
and the Securities except with respect to any obligations that arise from, or
are related to, such transaction.

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                                  ARTICLE IX

                            SUPPLEMENTAL INDENTURES

          SECTION 9.1  Indentures Without Consent of Holders.   Without the
                       -------------------------------------
consent of any Holders, the Company,  when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form and substance satisfactory to the
Trustee, for any of the following purposes:

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

          (2)  to add to the covenants of the Company for the benefit of the
Holders or to surrender any right or power herein conferred upon the Company; or

          (3)  to add any additional Events of Default; or

          (4)  to provide for uncertificated Securities in addition to or in
place of certificated Securities; or

          (5)  to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee pursuant to the requirements of Section 6.10;
or

          (6)  to cure any ambiguity, to correct or supplement any provision
herein which may be inconsistent with any other provision herein, or to make any
other provisions with respect to matters or questions arising under this
Indenture; provided that such action shall not adversely affect the interests of
the Holders in any material respect; or

          (7)  to provide for collateral securing the Company's obligations
under this Indenture and the Securities; or

          (8)  to provide for Guarantees by any other Person of the Company's
obligations pursuant to this Indenture and the Securities;

provided such actions shall not adversely affect the interests of Holders in any
material respect.

                                       90
<PAGE>

          SECTION 9.2  Indentures with Consent of Holders.   With the consent of
                       ----------------------------------
the Holders of not less than a majority in aggregate principal amount of the
Outstanding Securities, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee may
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders under this Indenture; provided, however, that:

          (i)  no such modification may, without the consent of Holders of at
          least 66 2/3% in aggregate principal amount of Outstanding Securities,
          modify the provisions of Section 10.10 (including the defined terms
          used therein) in a manner adverse to the Holders; and

          (ii) no such modification shall, without the consent of the Holder of
               each Outstanding Security affected thereby:

          (1)  change the Stated Maturity of any Security, or reduce the
principal amount thereof or the rate of interest (or extend the time for payment
of interest, if any) thereon or any premium payable upon the redemption thereof
at the option of the Company, or change the place of payment where, or the coin
or currency in which, any Security or any premium or the interest thereon is
payable, or impair the right to institute suit for the enforcement of any such
payment on or after the Stated Maturity thereof (or, in the case of redemption
at the option of the Company, on or after the Redemption Date), or reduce the
Change of Control Purchase Price or the Asset Sale Offer Price after the
corresponding Change of Control or Asset Sale has occurred or alter the
provisions (including the defined terms used therein) regarding the right of the
Company to redeem the Securities in a manner adverse to the Holders, or

          (2)  reduce the percentage in principal amount of the Outstanding
Securities, the consent of whose Holders is required for any such amendment,
supplemental indenture or waiver provided for in this Indenture, or

          (3)  modify any of the waiver provisions, except to increase any
required percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby, or

                                       91
<PAGE>

          (4)  cause the Securities to become subordinate in right of payment to
any other Indebtedness.

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

          SECTION 9.3  Execution of Indentures.  In executing, or accepting the
                       -----------------------
additional trusts created by, any supplemental indenture permitted by this
Article Nine or the modifications thereby of the trusts created by this
Indenture, the Trustee shall receive, and shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is permitted by this Indenture and an Officers' Certificate stating
that all conditions precedent to the execution of such supplemental indenture
have been fulfilled. The Trustee may, but shall not be obligated to, enter into
any such supplemental indenture which affects the Trustee's own rights, duties
or immunities under this Indenture or otherwise.

          SECTION 9.4  Effect of Indentures.  Upon the execution of any
                       --------------------
supplemental indenture under this Article Nine, this Indenture shall be modified
in accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby.

          SECTION 9.5  Conformity with Trust Indenture Act.  Every supple mental
                       -----------------------------------
indenture executed pursuant to this Article Nine shall conform as a matter of
contract or law to the requirements of the Trust Indenture Act as then in
effect.

          SECTION 9.6  Reference in Securities to Indentures.  Securities
                       -------------------------------------
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article Nine may bear a notation in form approved by the
Trustee and the Company as to any matter provided for in such supplemental
indenture.  If the Company shall so determine, new Securities so modified as to
conform, in the opinion of the Trustee and the Company, to any such supplemental
indenture may be prepared and executed by the Company and authenticated  and
delivered by the Trustee in exchange for Outstanding Securities.

          SECTION 9.7  Notice of Indentures.  Promptly after the execution by
                       --------------------
the Company and the Trustee of any supplemental indenture pursuant to the

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<PAGE>

provisions of Section 9.2, the Company shall give notice thereof to the Holders
of each Outstanding Security affected, in the manner provided for in Section
1.6, setting forth in general terms the substance of such supplemental
indenture.

                                   ARTICLE X

                                   COVENANTS

          SECTION 10.1 Payment of Principal, Premium, if Any, and Interest.
                       ---------------------------------------------------

          (1)  The Company covenants and agrees for the benefit of the Holders
that it shall duly and punctually pay the principal of (and premium, if any) and
interest on the Securities in accordance with the terms of the Securities and
this Indenture.

          (2)  For the purpose set forth in paragraph (1) above, the Company
shall, no later than 10:00 a.m., New York time, on the Business Day first
preceding each Payment Date, transfer to an account specified by the Trustee
such amount in immediately available and freely transferable U.S. Dollar funds
as shall be sufficient for the purposes of the payment of principal of (and
premium, if any) and interest (and Liquidated Damages, if any) due to be paid on
the Securities on that date.

          (3)  The Company shall ensure that not later than the second Business
Day immediately preceding the date on which any payment is to be made to the
Trustee pursuant to this Section 10.1, the Company shall procure that a copy of
an irrevocable payment instruction to the bank through which the payment is to
be made shall be sent to the Trustee.

          (4)  Unless and until the full amount of any payment due on the
Securities has been made to the Trustee, or unless and until the Trustee is
satisfied that such payment will be made, neither it nor the other Paying Agents
shall be bound to make payments in respect of the Securities hereunder.

          (5)  If the Trustee or a Paying Agent pays any amounts to the Holders
or to any other Agent at a time when it has not received payment in full from
the Company in respect of such Securities, the Company shall, in addition to
paying amounts due under Section 10.1(2), pay to the Trustee on demand interest
thereon at such a rate as the Trustee shall certify as the aggregate of 1% per
annum and the cost

                                       93
<PAGE>

of funding any such payment made by it (as determined by the Trustee) until the
receipt in full by the Trustee of the funds due to it pursuant to Section
10.1(2).

          SECTION 10.2  Maintenance of Office or Agency.  The Company shall
                        -------------------------------
maintain in The City of New York and London, and for so long as the Securities
are listed on the Luxembourg Stock Exchange, in Luxembourg, an office or agency
where Securities may be presented or surrendered for payment, where Securities
may be surrendered for registration of transfer or exchange and where notices
and demands (other than service of process) to or upon the Company in respect of
the Securities and this Indenture may be served. The Corporate Trust Office of
the Trustee shall be such office or agency of the Company, unless the Company
shall designate and maintain some other office or agency for one or more of such
purposes. The Company shall give prompt written notice to the Trustee of any
change in the location of any such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, and the Company hereby appoints the Trustee as its agent to receive all
such presentations, surrenders, notices and demands.

          The Company hereby initially designates (1) the Trustee at its address
set forth in Section 1.5 hereof as its office or agency in London and Citibank,
N.A. (New York branch), 111 Wall Street, New York, New York as its office or
agency in New York, for such purposes, (ii) Banque Internationale a Luxembourg,
at its office or agency in Luxembourg for such purposes and (iii) the Paying
Agent at its address set forth in Section 1.5 hereof.

          The Company may also from time to time designate one or more other
offices or agencies (in or outside of The City of New York) where the Securities
may be presented or surrendered for any or all such purposes and may from time
to time rescind any such designation; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency in The City of New York and, for so
long as the Securities are listed on the Luxembourg Stock Exchange, in
Luxembourg, for such purposes. The Company shall give prompt written notice to
the Trustee of any such designation or rescission and any change in the location
of any such other office or agency.

          SECTION 10.3  Money for Security Payments to Be Held in Trust.  If the
                        -----------------------------------------------
Company shall at any time act as its own Paying Agent, it shall, on or before

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<PAGE>

each due date of the principal of (or premium, if any) or interest on any of the
Securities, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal of (or premium, if any) or
interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and shall promptly notify the Trustee
of its action or failure so to act.

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

          The Company shall cause each Paying Agent (other than the Trustee) to
execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee, subject to the provisions of this Section 10.3,
that such Paying Agent shall:

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

          (2)  give the Trustee notice of any default by the Company (or any
other obligor upon the Securities) in the making of any payment of principal,
premium, if any, or interest, of which it is aware;

          (3)  at any time during the continuance of any such default, upon the
written request of the Trustee, forthwith act under the direction of the Trustee
and pay to the Trustee all sums so held in trust by such Paying Agent; and

          (4)  indemnify the Trustee and its officers,  directors, employees and
agents against any loss, cost or liability caused by, or incurred as a result
of, such Paying Agent's acts or omissions.

          The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust

                                       95
<PAGE>

by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such sums.

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

          SECTION 10.4  Corporate Existence.  Subject to Article Eight, the
                        -------------------
Company shall do or cause to be done all things necessary to preserve and keep
in full force and effect the corporate existence, rights (charter and statutory)
and franchises of the Company and each Subsidiary; provided, however, that the
Company shall not be required to preserve, with respect to the Company, any
such right or franchise or, with respect to any Subsidiary (subject to all the
other covenants in this Indenture), any such corporate existence, right or
franchise, if the Supervisory Board of the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries as a whole and that the loss thereof is not
disadvantageous in any material respect to the Holders.

          SECTION 10.5  Payment of Taxes and Other Claims. The Company shall pay
                        ---------------------------------
or discharge or cause to be paid or discharged, before the same shall become
delinquent, (a) all taxes, assessments and governmental charges levied or
imposed upon the Company or any Subsidiary or upon the income, profits or
property of the Company or any Subsidiary and (b) all lawful claims for labor,

                                       96
<PAGE>

materials and supplies which, if unpaid, might by law become a lien upon the
property of the Company or any Subsidiary; provided, however, that the Company
shall not be required to pay or discharge or cause to be paid or discharged any
such tax, assessment, charge or claim whose amount, applicability or validity is
being contested in good faith by appropriate proceedings.

          SECTION 10.6  Maintenance of Properties.  The Company shall cause all
                        -------------------------
properties owned by the Company or any Subsidiary or used or held for use in the
conduct of its business or the business of any Subsidiary to be maintained and
kept in good condition, repair and working order and supplied with all necessary
equipment and shall cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided,
however, that nothing in this Section 10.6 shall prevent the Company from
discontinuing the maintenance of any of such properties if such discontinuance
is, in the judgment of the Company, desirable in the conduct of its business or
the business of any Subsidiary and not disadvantageous in any material respect
to the Holders.

          SECTION 10.7  Insurance.  The Company shall at all times keep all of
                        ---------
its and its Subsidiaries' properties which are of an insurable nature insured
with insurers, believed by the Company to be responsible, against loss or damage
to the extent that property of similar character is usually so insured by
Corporations similarly situated and owning like properties.

          SECTION 10.8  Provision of Financial Statements.  The Company has
                        ---------------------------------
agreed that, for so long as any Securities remain Outstanding, whether or not
the Company is subject to the reporting requirements of Section 13 or 15(d) of
the Exchange Act, the Company will deliver to the Trustee and, to each Holder
and to prospective purchasers of Securities identified to the Company, within 15
days after the Company is or would have been (if the Company were subject to
such reporting obligations) required to file such with the SEC, annual and
quarterly financial statements substantially equivalent to financial statements
that would have been included in reports filed with the SEC, if the Company were
subject to the requirements of Section 13 or 15(d) of the Exchange Act,
including, with respect to annual information only, a report thereon by the
Company's certified independent public accountants as such would be required in
such reports to the SEC, and, in each case, together with a management's
discussion and analysis of financial condition and results of operations which
would be so required and, unless the SEC will not

                                       97
<PAGE>

accept such reports, file with the SEC the annual, quarterly and other reports
which it is or would have been required to file with the SEC.

          Following the effectiveness of the Registration Statement, the Company
will file with the Trustee, at the time it files them with the SEC, copies of
the annual and quarterly reports and the information, documents and other
reports that the Company is required to file with the SEC under Section 13(a) or
15(d) of the Exchange Act.  If the Company ceases to be required to file SEC
reports under the Exchange Act, the Company will nevertheless continue to file
such reports with the Trustee.  The Company will furnish copies of the SEC
reports to investors who request them in writing.

          SECTION 10.9  Statement by Officers as to Default.
                        -----------------------------------

          (a)  The Company shall deliver to the Trustee, on the date of delivery
of each quarterly report to be delivered pursuant to Section 10.8, and within 14
days of a request by the Trustee, a brief certificate from the principal
executive officer, principal financial officer or principal accounting officer
as to his or her knowledge of the Company's compliance with all conditions and
covenants under this Indenture.  For purposes of this Section 10.9(a), such
compliance shall be determined without regard to any period of grace or
requirement of notice under this Indenture.

          (b)  When any Default has occurred and is continuing under this
Indenture, or if the Trustee for or the Holder of any other evidence of
Indebtedness of the Company or any Subsidiary gives any notice or takes any
other action with respect to a claimed default (other than with respect to
Indebtedness in the principal amount of less than $50,000,000), the Company
shall deliver to the Trustee by registered or certified mail or by facsimile
transmission an Officers' Certificate specifying such event, notice or other
action within five Business Days of its occurrence.

          SECTION 10.10 Purchase of Securities upon Change of Control.
                        ---------------------------------------------

          (1)  (a)  Upon the occurrence of a Change of Control, the Company will
be required to make an offer to each Holder to purchase for cash all or a
portion of such Holder's Securities (provided that the principal amount of such
Securities must be $1,000 or an integral multiple thereof) pursuant to the offer
described below (the "Change of Control Offer"), at a purchase price in cash
equal to

                                       98
<PAGE>

101% of the principal amount thereof plus accrued and unpaid interest (and
Liquidated Damages, if any) to the date of purchase (the "Change of Control
Purchase Price").

          (b)  Within 10 Business Days following a Change of Control, the
Company must send a notice to each Holder which notice shall govern the terms of
the Change of Control Offer. Such notice shall state, among other things, the
purchase date, which must be no later than 35 Business Days from the date of the
Change of Control, other than as may be required by law (the "Change of Control
Purchase Date"). The Change of Control Offer shall remain open for 20 Business
Days following its commencement (the "Change of Control Offer Period"). Upon
expiration of the Change of Control Offer Period, the Company shall promptly
purchase all Notes properly tendered in response to the Change of Control Offer.
Holders electing to have a Security purchased pursuant to a Change of Control
Offer will be required to surrender the Security, by delivery of a form entitled
"Option of Holder to Elect Purchase," obtainable from the Trustee or any Paying
Agent substantially in the form of Exhibit H, completed, to the Paying Agent at
the address specified in the notice prior to the close of business on the third
Business Day prior to the Change of Control Purchase Date. The Paying Agent
promptly will pay the Holders of Securities so accepted an amount equal to the
Change of Control Purchase Price (together with accrued and unpaid interest and
Liquidated Damages, if any) and the Trustee promptly will authenticate and
deliver to such Holders a new Security equal in principal amount to any
unpurchased portion of the Security surrendered. The Company will publicly
announce the results of the Change of Control Offer on or as soon as practicable
after the Change of Control Purchase Date.

          The notice referred to above shall be a written offer (the "Offer")
sent by the Company by first class mail, postage prepaid, to each Holder of
Securities at its address appearing in the Security Register on the date of the
Offer offering to purchase up to the principal amount of Securities specified in
such Offer at the Change of Control Purchase Price. Unless otherwise required by
applicable law, the Offer shall specify an expiration date (the "Expiration
Date") of the Change of Control Offer which shall be, subject to any contrary
requirements of applicable law, 20 Business Days after the date of the Offer and
a settlement date (the "Change of Control Purchase Date") for purchase of
Securities within five Business Days after the Expiration Date. The Company
shall notify the Trustee in writing at least 15 Business Days, or a shorter
period that is acceptable to the Trustee, prior to the mailing of the Offer of
the Company's obligation to make a Change of Control Offer, and the Offer shall
be mailed by the Company or, at the Company's request, by the

                                       99
<PAGE>

Trustee in the name and at the expense of the Company. The Offer shall contain
information concerning the business of the Company and its Subsidiaries which
the Company in good faith believes will enable the Holders to make an informed
decision with respect to the Change of Control Offer, which at a minimum will
include (i) the most recent annual and quarterly financial statements and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" contained in the documents required to be filed with the Trustee
pursuant to Section 10.8 (which requirements may be satisfied by delivery of the
documents together with the Offer), (ii) a description of material developments
in the Company's business subsequent to the date of the latest of the financial
statements referred to in clause (i) (including a description of the events
requiring the Company to make the Change of Control Offer), (iii) if applicable,
appropriate pro forma financial information concerning the Change of Control
Offer and the events requiring the Company to make the Change of Control Offer
and (iv) any other information required by applicable law to be included
therein. The Offer shall contain all instructions and materials necessary to
enable the Holders to tender Securities pursuant to the Change of Control Offer.
The Offer shall also state:

          (a)  the Section of this Indenture pursuant to which the Offer to
Purchase is being made;

          (b)  the Expiration Date and the Change of Control Purchase Date;

          (c)  the aggregate principal amount of the Outstanding Securities
offered to be purchased by the Company in the Change of Control Offer,
including, if less than 100%, the manner by which the amount has been determined
pursuant to the Section hereof requiring the Change of Control Offer (the
"Purchase Amount");

          (d)  the Change of Control Purchase Price;

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

          (f)  the place or places where the Securities are to be surrendered
for tender pursuant to the Change of Control Offer;

          (g)  that any of the Securities not tendered or tendered but not
purchased by the Company will continue to accrue interest;

                                      100
<PAGE>

          (h)  that on the Change of Control Purchase Date the Purchase Price
will become due and payable upon the Securities being accepted for payment
pursuant to the Change of Control Offer and that any interest shall cease to
accrue on and after the Change of Control Purchase Date;

          (i)  that each Holder electing to tender the securities in the
purchase will be required to surrender the Securities at the place or places
specified in the Offer prior to the close of business on the Expiration Date
with the Securities being, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Trustee duly
signed by, the Holder or his attorney duly authorized in writing;

          (j)  that Holders will be entitled to withdraw all or any portion of
the Securities tendered if the Company or its Paying Agent receives, not later
than the close of business on the Expiration Date, a facsimile transmission or
letter setting forth the name of the Holder, the principal amount of the
Securities the Holder tendered, the certificate number of the Securities the
Holder tendered and a statement that such Holder is withdrawing all or a portion
of his tender;

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

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

          Any Offer to Purchase shall be governed by and effected in accordance
with the Offer for such Change of Control Offer.

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<PAGE>

          The Company will not be required to make an offer to purchase any
series of Securities upon a Change of Control if, before the Change of Control
occurs, it has exercised its right to redeem all of the Securities of such
series as described under Section 11.1.

          (2)  On or before the Change of Control Purchase Date, the Company
shall (i) accept for payment Securities or portions thereof tendered pursuant to
the Change of Control Offer, (ii) deposit with the Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 10.3) cash sufficient to pay the purchase price (together
with accrued and unpaid interest and Liquidated Damages, if any) of all
Securities or portions thereof so accepted and (iii) deliver or cause to be
delivered to the Trustee all Securities so tendered together with an Officers'
Certificate stating the Securities or portions thereof accepted for payment by
the Company.

          (3)  In the event that the Company makes a Change of Control Offer,
the Company shall comply with any applicable securities laws and regulations,
including any applicable requirements of Section 14(e) of, and Rule 14e-1 under,
the Exchange Act.

          (4)  If the Change of Control Purchase Date hereunder is on or after
an interest payment Record Date and on or before the associated Interest Payment
Date, any accrued and unpaid interest (and Liquidated Damages, if any) due on
such Interest Payment Date will be paid to the Person in whose name a Security
is registered at the close of business on such Record Date, and such interest
(and Liquidated Damages, if applicable) will not be payable to Holders who
tender the Securities pursuant to the Change of Control Offer.

          Notwithstanding anything contained in this Indenture to the contrary,
the Company will not, and will not permit any of its Subsidiaries to, incur any
Indebtedness that is contractually subordinate to any other Indebtedness of the
Company unless such Indebtedness is at least as subordinate to the Securities.

          SECTION 10.11 Limitation on Incurrence of Additional Indebtedness and
                        -------------------------------------------------------
Disqualified Capital Stock. (1) The Company may not, and may not permit any
--------------------------
Subsidiary to, directly or indirectly, issue, assume, guaranty, incur, become
directly or indirectly liable with respect to (including as a result of an
Acquisition), or otherwise become responsible for, contingently or otherwise
(individually and collectively, to "incur" or, as appropriate, an "incurrence"),
any

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<PAGE>

Indebtedness (including Disqualified Capital Stock and Acquired Indebtedness),
other than Permitted Indebtedness. Notwithstanding the foregoing if:

          (i)  no Default or Event of Default shall have occurred and be
continuing at the time of, or would occur after giving effect on a pro forma
basis to, such incurrence of Indebtedness; and

          (ii) on the date of such incurrence (the "Incurrence Date"), either
(i) the Leverage Ratio of the Company for the Reference Period immediately
preceding the Incurrence Date, after giving effect on a pro forma basis to such
incurrence of such Indebtedness and, to the extent set forth in the definition
of Leverage Ratio, the use of proceeds thereof, would not exceed 7.0 to 1.0 (the
"Debt Incurrence Ratio"), (ii) the Consolidated Coverage Ratio of the Company
for the Reference Period immediately preceding the Incurrence Date, after giving
effect on a pro forma basis to such incurrence of such Indebtedness and, to the
extent set forth in the definition of Consolidated Coverage Ratio, the use of
proceeds thereof, would not be less than 1.75 to 1.0, or (iii) after giving
effect on a pro forma basis to such incurrence of Indebtedness, and, to the
extent used to retire other Indebtedness, the use of proceeds therefrom, the
amount of Indebtedness Outstanding of the Company would not exceed 225% of the
Consolidated Invested Equity Capital of the Company,

then the Company may incur such Indebtedness (including Disqualified Capital
Stock and Acquired Indebtedness).

     (2)  The foregoing limitations of paragraph (1) of this Section 10.11 will
not prohibit:

          (a)  if no Event of Default shall have occurred and be continuing, the
incurrence by the Company or its Subsidiaries of Indebtedness in an aggregate
amount incurred and Outstanding at any time pursuant to this subparagraph (a)
(plus any refinancing indebtedness incurred to retire, defease, refinance,
replace or refund such Indebtedness) of up to $400,000,000 (or the equivalent
thereof, at the time of incurrence, in the applicable foreign currencies);

          (b)  the incurrence by the Company and its Subsidiaries of
Indebtedness pursuant to the Credit Agreement in an aggregate amount incurred
and Outstanding at any time pursuant to this paragraph (b) (plus any refinancing
indebtedness incurred to retire, defease, refinance, replace or refund such
Indebtedness) of up to (Euro)1 billion, minus the amount of any such
Indebtedness (i)

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retired with the Net Cash Proceeds from any Asset Sale applied to reduce
permanently the Outstanding amounts or the commitments with respect to such
Indebtedness pursuant to Section 10.16 or (ii) assumed by a transferee in an
Asset Sale;

          (c)  the incurrence by any Subsidiary of Indebtedness, if on the
Incurrence Date either (1) the Leverage Ratio of such Subsidiary of the Company
for the Reference Period immediately preceding the Incurrence Date, after giving
effect on a pro forma basis to such incurrence of such Indebtedness and to the
extent set forth in the definition of Leverage Ratio, the use of proceeds
thereof, would be no more than 7.0 to 1.0, or (2) the Consolidated Coverage
Ratio of such Subsidiary for the Reference Period immediately preceding the
Incurrence Date, after giving effect on a pro forma basis to such incurrence of
such Indebtedness and, to the extent set forth in the definition of Consolidated
Coverage Ratio, the use of proceeds thereof, would be no less than 1.75 to 1.00,
or (3) after giving effect on a pro forma basis to such incurrence of such
Indebtedness, and, to the extent used to retire other Indebted ness, the use of
proceeds therefrom, the amount of Indebtedness Outstanding of such Subsidiary
would not exceed 225% of the Consolidated Invested Equity Capital of such
Subsidiary, provided in the case of each of clauses (c)(1), (2) and (3), the net
proceeds therefrom are used in a Related Business of the Company or any
affiliated company of the Company, and provided, further, that for the purposes
of this clause (c) a Subsidiary may be a co-obligor or guarantor on such
Indebtedness of another Subsidiary of the Company (A) if such co-obligor or
guarantor Subsidiary owns (either directly or indirectly through one or more
Subsidiaries of the Company) all or a portion of the Equity Interests of the
Subsidiary of the Company that incurred such Indebtedness, (B) if all or a
portion of the Equity Interests of such co-obligor or guarantor Subsidiary is
owned (either directly or indirectly through one or more Subsidiaries of the
Company) by the Subsidiary that incurred such Indebtedness or (C) if such co-
obligor or guarantor Subsidiary owns (either directly or indirectly through one
or more Subsidiaries of the Company) all or a portion of the business that will
use the proceeds of such Indebtedness; and

          (d)  if no Event of Default shall have occurred and be continuing, the
incurrence by Subsidiaries of the Company of Indebtedness pursuant to the
Existing Agreements up to, but not in excess of the maximum applicable amounts
of Indebtedness available for borrowing pursuant to the terms of each such
Existing Agreement as in effect on the date of the Indenture; provided that, in
determining

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the maximum applicable amounts available, it shall be assumed that the Company
satisfies any applicable conditions to borrowing.

     Indebtedness (including Disqualified Capital Stock) of any Person which is
Outstanding at the time such Person becomes a Subsidiary of the Company
(including upon designation of any subsidiary or other Person as a Subsidiary)
or is merged with or into or Consolidated with the Company or a Subsidiary of
the Company shall be deemed to have been incurred at the time such Person
becomes such a Subsidiary of the Company or is merged with or into or
Consolidated with the Company or a Subsidiary of the Company, as applicable.

     Upon each incurrence, the Company may designate pursuant to which provision
of this Section 10.11 such Indebtedness is being incurred and such Indebtedness
shall not be deemed to have been incurred or Outstanding under any other
provision of this Section 10.11, except as stated otherwise in the foregoing
provisions.

          SECTION 10.12  Limitation on Restricted Payments.  (1) The Company may
                         ---------------------------------
not, and may not permit any of its Subsidiaries to, directly or indirectly, make
any Restricted Payment if, after giving effect to such Restricted Payment on a
pro forma basis:

     (A)  a Default or an Event of Default shall have occurred and be
continuing,

     (B)  the Company is not permitted to incur at least $1.00 (or its foreign
currency equivalent) of additional Indebtedness pursuant to the Debt Incurrence
Ratio in Section 10.11, or

     (C)  the aggregate amount of all Restricted Payments made by the Company
and its Subsidiaries, including after giving effect to such proposed Restricted
Payment, on and after July 30, 1999, would exceed, without duplication (and
except to the extent otherwise credited pursuant to clause (g) of the definition
of "Permitted Investment"), the sum of:

          (a)  (i) the amount of the cumulative Consolidated EBITDA of the
Company, if positive, less 150% of the cumulative Consolidated Fixed Charges of
the Company, for the period (taken as one accounting period), commencing on the
first day of the first full fiscal quarter commencing after July 30, 1999, to
and

                                      105
<PAGE>

including the last day of the fiscal quarter ended immediately prior to the date
of each such calculation for which Consolidated financial statements of the
Company are available, provided that such sum shall not be deemed to result in
an amount less than zero for purposes of any calculation pursuant to this clause
(C)(a)(i); or (ii) if such cumulative Consolidated EBITDA of the Company is zero
or less, then the amount of such cumulative Consolidated EBITDA for such period;
plus

          (b)  the aggregate Net Cash Proceeds received by the Company from the
sale of its Qualified Capital Stock (other than (i) to a Subsidiary of the
Company and (ii) to the extent applied in connection with a Qualified Exchange),
after July 30, 1999; plus

          (c)  to the extent that any Investment (other than a Permitted
Investment) that was made after July 30, 1999 is sold for cash or Cash
Equivalents or otherwise liquidated or repaid for cash or Cash Equivalents, the
amount of cash or Cash Equivalents received by the Company, but only to the
extent of the lesser of (i) the cash or Cash Equivalents transferred as a return
of capital with respect to such Investment and (ii) the initial amount of such
Investment (in either case, less the cost of disposition, if any); plus

          (d)  in the event an Unrestricted Subsidiary is designated as a
Subsidiary, an amount equal to fair market value, at such time, of the
Investment of the Company and its Subsidiaries made after July 30, 1999;
provided, however, that such amount shall not exceed the amount of Investments
previously made in such Subsidiary that were counted as Restricted Payments
pursuant to this covenant.

          (2)(a) The foregoing clauses (B) and (C) of Section 10.12(1), however,
will not prohibit: (i) any dividend, distribution or payment of dividends on
Disqualified Capital Stock permitted by Section 10.11; and (ii) any repurchase
by the Company of any shares of any class or options to acquire such shares from
any current, future or former directors, officers or employees of the Company or
any of its Subsidiaries or Affiliates, provided that the aggregate amount of all
the repurchases made under this clause shall not exceed $10,000,000 in any
twelve-month period (with unused amounts in any calendar year being carried over
to succeeding calendar years subject to a maximum (without giving effect to the
following proviso) of $14,000,000 in any calendar year); provided, further, that
such amount in any calendar year may be increased by an amount not to exceed (1)
the cash proceeds from the sale of Capital Stock of the Company to its
Supervisory Board members, management board members or officers of the Company
and its

                                      106
<PAGE>

Subsidiaries that occurs after July 30, 1999, plus (2) the cash proceeds of key
man life insurance policies received by the Company and its Subsidiaries after
July 30, 1999;

and (b) the foregoing clauses (A), (B) and (C) of Section 10.12(1) will not
prohibit:

          (i)   any dividend, distribution or other payments by any Subsidiary
of the Company on its Equity Interests that is paid pro rata to all holders of
such Equity Interests;

          (ii)  a Qualified Exchange;

          (iii) the payment of any dividend on Qualified Capital Stock within 60
days after the date of its declaration if such dividend could have been made on
the date of such declaration in compliance with the foregoing provisions; or

          (iv)  the payment of dividends by the Company in cash or Qualified
Capital Stock pursuant to the terms of any Parent Stock Instrument that is
incurred or issued (as applicable) in compliance with this Indenture.

          The full amount of any Restricted Payment made pursuant to paragraphs
2(a)(i), (ii) and 2(b)(i), (iii) and (iv), but not pursuant to paragraph
2(b)(ii), however, will be counted as Restricted Payments made for purposes of
the calculation of the aggregate amount of Restricted Payments available to be
made referred to in Section 10.12(1)(C).

          For purposes of this section, the amount of any Restricted Payment
made or returned, if other than in cash, shall be the fair market value thereof,
as determined in the good faith reasonable judgment of the Company's Supervisory
Board, unless stated otherwise, at the time made or returned, as applicable.
Additionally, on the date of each Restricted Payment, the Company shall deliver
an Officers' Certificate to the respective Trustee describing in reasonable
detail the nature of such Restricted Payment, stating the amount of such
Restricted Payment, stating in reasonable detail the provisions of this
Indenture pursuant to which such Restricted Payment was made and certifying that
such Restricted Payment was made in compliance with the terms of this Indenture.

          SECTION 10.13 Limitation on Dividend and Other Payment Restrictions
                        -----------------------------------------------------
Affecting Subsidiaries.  (1)  The Company may not, and may not permit
----------------------

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<PAGE>

any Subsidiary to, directly or indirectly, create or otherwise cause or suffer
to exist or become effective any consensual restriction on the ability of any
Subsidiary:

          (i)   to pay dividends, in cash or otherwise, or make any other
distributions to or on behalf of or pay any obligation to or on behalf of the
Company or any Subsidiary of the Company;

          (ii)  to make or pay loans or advances to or on behalf of the Company
or any Subsidiary of the Company; or

          (iii) to transfer property or assets to or on behalf of the Company or
any Subsidiary of the Company,

except:

          (a)   restrictions imposed by the Securities or the Other Senior Notes
or the Indenture or the Other Senior Notes Indenture or by other Indebtedness of
the Company ranking pari passu with the Securities and the Other Senior Notes,
provided that such restrictions are no more restrictive than those imposed by
the Indenture and the Securities;

          (b)   restrictions imposed by applicable law;

          (c)   restrictions under Indebtedness outstanding on July 30, 1999,
including pursuant to the Credit Agreement;

          (d)   restrictions under any Acquired Indebtedness not incurred in
violation of the Indenture or any agreement (including any Equity Interest)
relating to any property, asset, or business acquired by the Company or any of
its Subsidiaries, which restrictions in each case existed at the time of
acquisition, were not put in place in connection with or in anticipation of such
acquisition, and are not applicable to any Person, other than the Person
acquired, or to any property, asset or business, other than the property, assets
and business so acquired;

          (e)   any such restriction or requirement imposed by Indebtedness
incurred under the Credit Agreement pursuant to Section 10.11, provided that
such restriction or requirement is no more restrictive than that imposed by the
Credit Agreement as of July 30, 1999;

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<PAGE>

          (f)  with respect solely to a Subsidiary of the Company imposed
pursuant to a binding agreement which has been entered into for the sale or
disposition of all or substantially all of the Equity Interests or assets of
such Subsidiary, provided that such restrictions apply solely to the Equity
Interests or assets of such Subsidiary which are being sold;

          (g)  restrictions under Purchase Money Indebtedness not incurred in
violation of the Indenture, provided that such restrictions relate only to the
property financed with such Indebtedness;

          (h)  with respect to any Subsidiary, restrictions contained in the
terms of any Indebtedness incurred in compliance with the Indenture, or any
agreement pursuant to which such Indebtedness was issued, if (A) the encumbrance
or restriction applies only in the event of a payment default or a default with
respect to a financial covenant contained in such Indebtedness or agreement, (B)
the Company shall have reasonably determined that the encumbrance or restriction
is not materially more disadvantageous to the Holders of the Securities than is
customary in comparable financings, and (C) the Company shall have reasonably
determined that any such encumbrance or restriction will not materially affect
the Company's ability to make principal or interest payments on the Securities;
and

          (i)  in connection with and pursuant to permitted Refinancings,
replacements of restrictions imposed pursuant to clauses (a), (c), (d), or (g),
or this clause (i), of this paragraph that are not more restrictive than those
being replaced and do not apply to any other Person or assets than those that
would have been covered by the restrictions in the Indebtedness so refinanced.

          (2)  Notwithstanding the provisions of Section 10.13(1), (a) customary
provisions restricting subletting, assignment or transfer of any lease, license,
conveyance, or similar document or instrument entered into in the ordinary
course of business, consistent with industry practice and (b) any asset or
property subject to a Lien which is not prohibited to exist with respect to such
asset pursuant to the terms of this Indenture may be subject to customary
restrictions on the transfer or disposition thereof pursuant to such Lien.

          SECTION 10.14  Limitation on Liens Securing Indebtedness. The Company
                         -----------------------------------------
may not, and may not permit any Subsidiary to, create, incur, assume or suffer
to exist any Lien of any kind, other than Permitted Liens, upon any of their
respective assets now owned or acquired on or after the date of this Indenture
or

                                      109
<PAGE>

upon any income or profits therefrom securing any Indebtedness of the Company,
unless the Company provides, and causes its Subsidiaries to provide,
concurrently therewith, that the Securities are equally and ratably so secured;
provided that if such Indebtedness is Subordinated Indebtedness, the Lien
securing such Subordinated Indebtedness shall be subordinate and junior to the
Lien securing the Securities with the same relative priority as such
Subordinated Indebtedness shall have with respect to the Securities.

          SECTION 10.15  Limitation on Issuances of Guarantees by Subsidiaries.
                         -----------------------------------------------------
(1) Notwithstanding the other provisions of this Indenture, the Company may not
permit any Subsidiary to, directly or indirectly, Guarantee any Indebtedness of
the Company (other than Indebtedness incurred pursuant to the Credit Agreement
in accordance with the terms of this Indenture) ("Guaranteed Indebtedness"),
then such Subsidiary must become a Guarantor (a "Subsidiary Guarantor") of the
Securities on a basis such that the Subsidiary's Guarantee of the Securities
shall stand in substantially the same relative ranking in right of payment to
the guarantee of such other Indebtedness as the Securities stand in relative
ranking to such other Indebtedness; provided that this paragraph shall not be
applicable to any guarantee by any Subsidiary that (a) existed at the time such
Person became a Subsidiary of the Company and (b) was not incurred in connection
with, or in contemplation of, such Person becoming a Subsidiary of the Company.

          (2)  Subsidiary Guarantees shall be automatically released upon (i)
the sale or other disposition of all or substantially all of the Company's and
its Subsidiaries' beneficial interest in the Equity Interests or assets of such
Subsidiary Guarantor, provided that thereafter such Subsidiary Guarantor shall
cease to be a Subsidiary of the Company, (ii) the consolidation or merger of any
such Subsidiary Guarantor with any Person other than the Company or a Subsidiary
of the Company if, as a result of such consolidation or merger, such Subsidiary
Guarantor ceases to be a Subsidiary of the Company (and shall not be a
Subsidiary of the successor to the Company), (iii) a Legal Defeasance, or (iv)
the unconditional and complete release of such Subsidiary Guarantor from its
Guarantee of all Guaranteed Indebtedness.

          SECTION 10.16  Limitation on Sale of Assets and Subsidiary Stock.
                         -------------------------------------------------

          (1)  The Company may not, and may not permit any Subsidiary to, in one
or a series of related transactions, convey, sell, transfer, assign or otherwise
dispose of, directly or indirectly, any of the Company's or such Subsidiary's
property, business or assets (including by merger or consolidation in the case
of a Subsidiary

                                      110
<PAGE>

of the Company), and including any sale or other transfer or issuance of any
Equity Interests of any Subsidiary of the Company, whether by the Company or a
Subsidiary or through the issuance, sale or transfer of Equity Interests by a
Subsidiary of the Company, and including any sale and leaseback transaction (any
of the foregoing, an "Asset Sale"), unless:

               (A)  (1) the amount equal to the Net Cash Proceeds there from
(the "Asset Sale Offer Amount") is applied

                    (i)  within 360 days (1,825 days in the case of an Asset
     Sale resulting from the underwritten public sale of equity securities of
     chello broadband or 540 days in the case of any other Special Character
     Asset Sale) after the date of such Asset Sale to the optional redemption of
     the Securities in accordance with the terms of the Indenture and other
     Indebtedness of the Company ranking pari passu in right of payment with the
     Securities and with similar provisions requiring the Company to redeem such
     Indebtedness with the proceeds from such Asset Sale, pro rata in proportion
     to the respective principal amounts (or accreted values in the case of
     Indebtedness issued with original issue discount) of the Securities and
     such other Indebtedness then Outstanding, or

                    (ii) within 360 days (1,825 days in the case of an Asset
     Sale resulting from the underwritten public sale of equity securities of
     chello broadband or 540 days in the case of any other Special Character
     Asset Sale) after the date of such Asset Sale to the repurchase of the
     Securities and such other Indebtedness ranking pari passu in right of
     payment with the Securities and with similar provisions requiring the
     Company to make an offer to purchase such Indebtedness with the proceeds
     from such Asset Sale pursuant to a cash offer (subject only to conditions
     required by applicable law, if any) pro rata in proportion to the
     respective principal amounts (or accreted values in the case of
     Indebtedness issued with original issue discount) of the Securities and
     such other Indebtedness then Outstanding (the "Asset Sale Offer") at a
     purchase price of 100% of principal amount (or accreted value in the case
     of Indebtedness issued with original issue discount) (the "Asset Sale Offer
     Price") together with accrued and unpaid interest and Liquidated Damages,
     if any, to the date of payment, made within 360 days (1,825 days in the
     case of an Asset Sale resulting from the underwritten public sale of equity
     securities of chello broadband or 540

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<PAGE>

     days in the case of any other Special Character Asset Sale) of such Asset
     Sale, or

                    (iii) within 360 days (1,825 days in the case of an Asset
     Sale resulting from the underwritten public sale of equity securities of
     chello broadband or 540 days in the case of any other Special Character
     Asset Sale), to the repayment of Indebtedness then Outstanding pursuant to
     the Credit Agreement or, if required by the terms of such Indebtedness, of
     Indebtedness issued by a Subsidiary of the Company (in respect of which
     Indebtedness the Company is not a direct or contingent obligor except by
     virtue of the Company's pledge of Equity Interests of, and other interests
     of or claim on, such Subsidiary or the Company's guarantee of such
     Subsidiary's Indebtedness to the extent, in either case, the recourse
     against the Company is limited to such Equity Interests or claim), or

                    (2)   within 360 days (1,825 days in the case of an Asset
Sale resulting from the underwritten public sale of equity securities of chello
broadband or 540 days in the case of any other Special Character Asset Sale)
following such Asset Sale, the Asset Sale Offer Amount is invested in assets and
property which in the good faith reasonable judgment of the Company will
immediately constitute or be a part of a Related Business of the Company or such
Subsidiary (if it continues to be a Subsidiary) immediately following such
transaction or is used to make Permitted Investments in the Company or a
Subsidiary of the Company (other than Cash Equivalents or securities of the
Company or any Person controlling the Company except as permitted by the
Indenture), provided that (i) 50% of the Net Cash Proceeds from Special
Character Asset Sales and 100% of the net proceeds from any Asset Sale of an
Investment made in reliance on clause (g) of the definition of "Permitted
Investments" may be reinvested in any Permitted Investment (other than, in
either case, Cash Equivalents or securities of the Company or any Person
controlling the Company except as permitted by the Indenture) which in the good
faith reasonable judgment of the Company will immediately constitute or be a
part of a Related Business and (ii) 100% of the net proceeds from an Asset Sale
constituting the sale of an Investment in any Person (excluding a Person that
would be Consolidated with the Company under GAAP and excluding Related Assets
of the Company or any of its Subsidiaries) in which the Company or any of its
Subsidiaries has an Equity Interest may be reinvested in Investments permitted
by clause (e) or (f) of the definition of "Permitted Investments,"

                                      112
<PAGE>

               (B)  at least 75% of the total consideration for such Asset Sale
or series of related Asset Sales consists of cash, Cash Equivalents, Replacement
Assets or the assumption of Indebtedness of a Subsidiary. For purposes of this
subparagraph (B), total consideration received means the total consideration
received for such Asset Sales, minus the amount of (a) Purchase Money
Indebtedness secured solely by the assets sold and assumed by a transferee,
provided that the Company and the Subsidiaries are released from any obligation
in connection therewith; and (b) property that within 30 days of such Asset Sale
is converted into cash or Cash Equivalents, provided that such cash and Cash
Equivalents shall be treated as Net Cash Proceeds attributable to the original
Asset Sale for which such property was received.

               (C)  no Default or Event of Default shall have occurred and be
continuing at the time of, or would occur after giving effect to, on a pro forma
basis, such Asset Sale, and

               (D)  in the case of a transaction or series of related
transactions exceeding $15,000,000 (or the foreign currency equivalent on the
date of the transaction) of consideration to any party thereto, the Supervisory
Board of the Company determines in its good faith reasonable judgment that the
Company or such Subsidiary, as applicable, receives fair market value for such
Asset Sale.

          (2)  An acquisition of Securities pursuant to an Asset Sale Offer may
be deferred until the accumulated Net Cash Proceeds from Asset Sales not applied
to the uses set forth in 1(a)(i), (iii), or 1(b) above (the "Excess Proceeds")
exceeds $50,000,000 (or the foreign currency equivalent thereof), provided that,
in the case of an Asset Sale by a Subsidiary of the Company that is not a Wholly
Owned Subsidiary, only the Company's and its Subsidiaries' pro rata portion of
such Net Cash Proceeds shall constitute Net Cash Proceeds subject to the
provisions of this Section 10.16. Each Asset Sale Offer shall remain open for 20
Business Days following its commencement (the "Asset Sale Offer Period"). Upon
expiration of the Asset Sale Offer Period, the Company shall apply the Asset
Sale Offer Amount, plus an amount equal to accrued and unpaid interest and
Liquidated Damages, if any, to the purchase of all Indebtedness properly
tendered (on a pro rata basis if the Asset Sale Offer Amount is insufficient to
purchase all Indebtedness so tendered) at the Asset Sale Offer Price (together
with accrued interest and Liquidated Damages, if any). To the extent that the
aggregate amount of Securities and such other pari passu Indebtedness tendered
pursuant to an Asset Sale Offer is less than the Asset Sale Offer Amount, the
Company may apply any remaining Net Cash Proceeds to any

                                      113
<PAGE>

purpose consistent with this Indenture, and following the consummation of each
Asset Sale Offer the Excess Proceeds amount shall be reset to zero.

          Notwithstanding, and without complying with, the foregoing provisions
of this Section 10.16:

               (u)  the Company and its Subsidiaries may, in the ordinary course
     of business, (a) convey, sell, transfer, assign or otherwise dispose of
     inventory and other assets acquired and held for resale in the ordinary
     course of business and (b) liquidate and otherwise dispose of Cash
     Equivalents;

               (v)  the Company and its Subsidiaries may convey, sell, transfer,
     assign or otherwise dispose of property, businesses, or assets pursuant to
     and in accordance with Article Eight.

               (w)  the Company and its Subsidiaries may sell or dispose of
     damaged, worn out or other obsolete personal property in the ordinary
     course of business so long as such property is no longer necessary for the
     proper conduct of the business of the Company or such Subsidiary, as
     applicable, and the Company and its Subsidiaries may replace personal
     property in the ordinary course of business so long as the replacement
     property is necessary for the proper conduct of the business of the Company
     or such Subsidiary, as applicable, and sell or dispose of such replaced
     property in the ordinary course;

               (x)  the Company and its Subsidiaries may convey, sell, transfer,
     assign or otherwise dispose of property, businesses, or assets to the
     Company or any of its Subsidiaries;

               (y)  the Company and each of its Subsidiaries may surrender or
     waive contract rights or settle, release or surrender contract, tort or
     other claims of any kind in the ordinary course of business or grant Liens
     not otherwise prohibited by the Indenture;

               (z)  the Company and its Subsidiaries may exchange assets for
     property, businesses, or assets held by any Person (including by merger or
     consolidation in the case of a Subsidiary of the Company); provided that
     (a) property, businesses and assets, which in one or

                                      114
<PAGE>

     a series of related transactions exceeds $15,000,000 in value, received by
     the Company or such Subsidiaries in any such exchange in the good faith
     reasonable judgment of the Supervisory Board of the Company will
     immediately constitute, be a part of, or be used in, a Related Business of
     the Company or such Subsidiaries, (b) the Supervisory Board of the Company
     has determined that the terms of any exchange, which in one or a series of
     related transactions exceeds $15,000,000 in fair market value, are fair and
     reasonable, and (c) any cash or Cash Equivalents received by the Company or
     any Subsidiary in such exchange shall be treated as having been received as
     a result of an Asset Sale.

     All Net Cash Proceeds from an Event of Loss shall be used all within the
period and as otherwise provided above in clause (1) of the first paragraph of
this Section 10.16.

          (3)  Any Asset Sale Offer shall be made in compliance with all
applicable laws, rules, and regulations, including, if applicable, Regulation
14E of the Exchange Act and the rules and regulations thereunder and all other
applicable Federal and state securities laws. To the extent that the provisions
of any applicable securities laws, rules, or regulations conflict with the
provisions of this section, compliance by the Company or any of its subsidiaries
with such laws, rules or regulations shall not in and of itself cause a breach
of its obligations under this section.

          (4)  If the payment date in connection with an Asset Sale Offer
hereunder is on or after an interest payment Record Date and on or before the
associated Interest Payment Date, any accrued and unpaid interest (and
Liquidated Damages, if any, due on such Interest Payment Date) will be paid to
the Person in whose name a Security is registered at the close of business on
such Record Date, and such interest (or Liquidated Damages, if applicable) will
not be payable to Holders who tender Securities pursuant to such Asset Sale
Offer.

          SECTION 10.17  Limitation on Transactions with Affiliates. The Company
                         ------------------------------------------
may not, and may not permit any Subsidiary on or after the Issue Date to, enter
into any contract, agreement, arrangement or transaction with any Affiliate of
the Company (an "Affiliate Transaction"), or any series of related Affiliate
Transactions, other than Exempted Affiliate Transactions,

                                      115
<PAGE>

          (1)  unless it is determined by the Supervisory Board as evidenced by
a Board Resolution that the terms of such Affiliate Transaction are fair and
reasonable to the Company and no less favorable to the Company than could have
been obtained in an arm's length transaction with a non-Affiliate, and

          (2)  if involving consideration to either party in excess of
$15,000,000 (or its foreign currency equivalent), unless such Affiliate
Transaction(s) is evidenced by an Officers' Certificate addressed and delivered
to the Trustee certifying that such Affiliate Transaction (or Affiliate
Transactions) has been approved by a majority of the members of the Supervisory
Board of the Company that are disinterested in such transaction, if there are
any directors who are so disinterested, and

          (3)  if involving consideration to either party in excess of
$15,000,000 or $30,000,000 if there are disinterested directors (or in each case
its foreign currency equivalent), unless in addition the Company, prior to the
consummation thereof, obtains a written favorable opinion as to the fairness of
such transaction to the Company from a financial point of view from an
independent investment banking firm of national reputation in the United States
or, if pertaining to a matter for which such investment banking firms do not
customarily render such opinions, an appraisal or valuation firm of national
reputation in the United States.

          SECTION 10.18  Additional Amounts.  All payments made by the Company
                         ------------------
under or with respect to the Securities will be made free and clear of and
without withholding or deduction for or on account of any present or future
Taxes imposed or levied by or on behalf of any Taxing Authority within The
Netherlands, or within any other jurisdiction in which the Company is organized
or engaged in business, or any other jurisdiction if payments on the Securities
are made from within such jurisdiction (each of the above, a "Relevant Taxing
Jurisdiction"), unless the Company is required to withhold or deduct Taxes by
law or by the interpretation or administration thereof.

          If the Company is required to withhold or deduct any amount for or on
account of Taxes (other than any estate, inheritance, gift, sales, excise,
transfer, wealth or personal property tax, or any similar non-income tax,
assessment or governmental charge) imposed by a Taxing Authority within a
Relevant Taxing Jurisdiction, from any payment made under or with respect to the
Securities, the Company will pay such additional amounts ("Additional Amounts")
as may be necessary so that the net amount received by each Holder of Securities
(including

                                      116
<PAGE>

Additional Amounts) after such withholding or deduction (including any
withholding or deduction in respect of such Additional Amounts) will not be less
than the amount the Holder would have received if such Taxes had not been
withheld or deducted; provided that no such Additional Amounts shall be payable
with respect to a payment made to a Holder with respect to any Tax or portion
thereof that would not have been imposed, payable or due:

          (1)  but for the existence of any present or former connection between
the Holder (or the beneficial owner of, or person ultimately entitled to obtain
an interest in, such Securities) and The Netherlands or other jurisdiction in
which the Company is organized or engaged in business other than the holding of
the Securities;

          (2)  but for the failure of the Holder to use its reasonable best
efforts to comply upon written notice by the Company delivered 60 days prior to
any payment date with a request by the Company to satisfy any certification,
identification or other reporting requirements which shall include any
applicable forms or instructions whether imposed by statute, treaty, regulation
or administrative practice concerning the nationality or residence of the Holder
or the connection of the Holder with The Netherlands or other jurisdiction in
which the Company is organized or engaged in business:

               (i)  provided that Holder's failure to comply with the
     60 day requirement described above shall not relieve the Company
     of the Company's obligation to pay Additional Amounts if the
     Holder's application for any requested certification,
     identification or other reporting requirement remains Outstanding
     or is otherwise pending and the Holder continues to use its
     reasonable best efforts to obtain such information;

               (ii) provided, further, that the Company shall pay any
     Additional Amounts not paid on any payment date as a result of
     the operation of this clause (2) upon the satisfaction of the
     relevant certification, identification or other reporting
     requirements within 30 days after such payment date, provided
     that the Company shall not, as a result of such satisfaction
     occurring after the payment date, have already irrevocably paid
     to the relevant taxing authority the withheld or deducted amount
     in respect of which such Additional Amounts would have been
     payable;

                                      117
<PAGE>

          (3)  but for the failure of the Holder (or the beneficial individual
owner of, or individual ultimately entitled to obtain an interest in, such
Securities) who is an individual citizen or resident of a member state of the
European Union to comply with a written notice by the Company delivered 60 days
prior to any payment date with a request by the Company to provide any
certification, identification or other reporting requirement, whether imposed by
statute, treaty, regulation or administrative practice, if such action would
otherwise eliminate the requirement for the withholding or deduction of Taxes;
or

          (4)  if the beneficial owner of, or person ultimately entitled to
obtain an interest in, such Securities had been the Holder of the Securities and
would not be entitled to the payment of Additional Amounts (excluding the impact
of book entry procedures by the Depositary).

          In addition, Additional Amounts will not be payable with respect to
any Tax which is payable and so paid otherwise than by withholding or deduction
from payments of, or in respect of principal of, or any interest or Liquidated
Damages on, the Securities. The Company will remit the full amount of any
withholdings or deductions for or on account of Taxes to the relevant Taxing
Authority in accordance with applicable law. The Company will make reasonable
efforts to obtain certified copies of tax receipts evidencing the payment of any
Taxes so deducted or withheld from each Taxing Authority imposing such Taxes.
The Company will furnish to the Holders, within 60 days after the date the
payment of any Taxes so deducted or withheld are due pursuant to applicable law,
either certified copies of tax receipts evidencing such payment by the Company
or, if such receipts are not obtainable, other evidence of such payments by the
Company. At least 30 days prior to each date on which any payment under or with
respect to the Securities is due and payable, if the Company will be obligated
to pay Additional Amounts with respect to such payment, the Company will deliver
to the respective Trustee an Officers' Certificate stating (i) the fact that
such Additional Amounts will be payable, (ii) the amounts so payable and (iii)
such other information necessary to enable the Trustee to pay such Additional
Amounts to the Holders of Securities on the Interest Payment Date.

     Wherever in this Indenture there is mentioned, in any context, the payment
of amounts based upon the principal amount of the Securities, or of principal,
premium, if any, interest or Liquidated Damages, if any, or of any other amount
payable under or with respect to any of the Securities, such mention shall be
deemed to include

                                      118
<PAGE>

mention of the payment of Additional Amounts to the extent that, in such
context, Additional Amounts are, were or would be payable in respect thereof.

          SECTION 10.19  Waiver of Stay, Extension or Usury Laws.  The Company
                         ---------------------------------------
covenants (to the extent that it may lawfully do so) that it shall not at any
time insist upon, plead, or in any manner whatsoever claim or take the benefit
or advantage of, any stay or extension law or any usury law or other law, which
would prohibit or forgive the Company from paying all or any portion of the
principal of and/or interest, if any, on the Securities as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Indenture; and (to the extent that it may
lawfully do so) the Company hereby expressly waives all benefit or advantage of
any such law, and covenants that it shall not hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

          SECTION 10.20  Limitation on Lines of Business. Neither the Company
                         -------------------------------
nor any of its Subsidiaries shall directly or indirectly engage to any
substantial extent in any line or lines of business activity other than that
which, in the reasonable good faith judgment of the Supervisory Board, is a
Related Business.

          SECTION 10.21  Limitation on Status as an Investment Company. The
                         ---------------------------------------------
Company and its Subsidiaries shall not take any action or conduct their business
and operations in such a way as would cause them to be required to register as
an "investment company" (as that term is defined in the Investment Company Act
of 1940, as amended), or would otherwise cause them to become subject to
regulation under the Investment Company Act.

                                  ARTICLE XI

                           REDEMPTION OF SECURITIES

          SECTION 11.1   Right of Redemption.
                         -------------------

          (1)  Optional Redemption of the Securities

          The Securities will be redeemable at the option of the Company, in
whole or in part, at any time or from time to time on or after February 1, 2005,
upon not less than 30 nor more than 60 days' prior notice, at the redemption
prices

                                      119
<PAGE>

(expressed as a percentage of principal amount) set forth below, plus accrued
and unpaid interest (and Liquidated Damages, if any,) thereon, if any, to the
date of redemption:

                              Security Redemption
                                      Price
YEAR
----                          --------------------

2005........................       107.260%
2006........................       104.840%
2007........................       102.420%
2008 and thereafter.........       100.000%

          The Company will publish a redemption notice in accordance with the
procedures described under Section 1.6.

          (2)  Redemption Upon Equity Offering

          Prior to February 1, 2003, upon an Equity Offering of Common Stock for
cash of the Company, up to 35% of the aggregate principal amount of the
Securities may be redeemed at the Company's option within 90 days of such Equity
Offering, on not less than 30 days, but not more than 60 days', notice to each
Holder of the Securities to be redeemed, with cash in an amount not in excess of
the Net Cash Proceeds of such Equity Offering, at a redemption price equal to
111.500% of the principal amount together with accrued and unpaid interest and
Liquidated Damages, if any, thereon to the Redemption Date; provided, however,
that immediately following such redemption not less than 65% of the aggregate
principal amount of the Securities originally issued remain Outstanding; and
provided, further, that such redemption shall occur within 90 days after the
date of the closing of such Equity Offering.

          (3)  Redemption For Changes In Withholding Taxes

          The Company may, at its option, redeem all, but not less than all, of
the Securities then Outstanding, in each case at 100% of the principal amount
thereof, plus accrued and unpaid interest and Liquidated Damages, if any, to the
Redemption Date, if a Tax Event has occurred and is continuing. Notice of any
such redemption must be given within not less than 30 days nor more than 60 days
prior to the redemption date. No redemption pursuant to this paragraph (3) may
be made

                                      120
<PAGE>

unless, prior to the publication of any notice of redemption as a result of a
Tax Event, the Company delivers to the Trustee (i) an Officer's Certificate
stating that a Tax Event has occurred (irrespective of whether the amendment or
change is then effective), describing the facts leading thereto and stating that
the Company cannot avoid the requirement to pay Additional Amounts by taking
reasonable measures available to it and (ii) an opinion of counsel reasonably
acceptable to the Trustee to the effect that the Company is or will become
obligated to pay Additional Amounts as a result of such change or amendment.

          (4)  Mandatory Redemption

          The Company is not required to make mandatory redemption payments or
sinking fund payments with respect to the Securities.

          SECTION 11.2  Applicability of Article.  Redemption of Securities at
                        ------------------------
the election of the Company or otherwise, as permitted or required by any
provision of this Indenture, shall be made in accordance with such provision and
this Article Eleven.

          SECTION 11.3  Election to Redeem; Notice to Trustee.  The election of
                        -------------------------------------
the Company to redeem any Securities pursuant to Section 11.1 shall be evidenced
by a Board Resolution.  In case of any redemption at the election of the
Company, the Company shall, at least 60 days prior to the Redemption Date fixed
by the Company (unless a shorter notice shall be satisfactory to the Trustee),
notify the Trustee of such Redemption Date and of the principal amount of
Securities to be redeemed and shall deliver to the Trustee such documentation
and records as shall enable the Trustee to select the Securities to be redeemed
pursuant to Section 11.4.

          SECTION 11.4  Selection by Trustee of Securities to Be Redeemed. If
                        -------------------------------------------------
less than all the Securities are to be redeemed, the particular Securities to be
redeemed shall be selected not more than 30 days prior to the Redemption Date by
the Trustee, from the Outstanding Securities not previously called for
redemption pro rata, by lot or by such method as the Trustee shall deem fair and
appropriate and which may provide for the selection for redemption of portions
of the principal amount of Securities; provided, however, that no such partial
redemption shall reduce the portion of the principal amount of a Security not
redeemed to less than $1,000.

                                      121
<PAGE>

          The Trustee shall promptly notify the Company in writing of the
Securities selected for redemption and, in the case of any Securities selected
for partial redemption, the principal amount thereof to be redeemed.

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

          SECTION 11.5  Notice of Redemption.  Notice of redemption shall be
                        --------------------
given in the manner provided for in Section 1.6 not less than 30 nor more than
60 days prior to the Redemption Date, to each Holder of Securities to be
redeemed.

          Each notice of redemption shall state:

          (1)  the Redemption Date,

          (2)  the Redemption Price and the amount of accrued interest to the
Redemption Date payable as provided in Section 11.7, if any,

          (3)  if less than all Outstanding Securities are to be redeemed, the
identification (and, in the case of a partial redemption, the principal amount)
of the particular Securities to be redeemed,

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

          (5)  that on the Redemption Date the Redemption Price (and accrued
interest, if any, to the Redemption Date payable as provided in Section 11.7)
will become due and payable upon each such Security, or the portion thereof, to
be redeemed, and that interest thereon will cease to accrue on and after said
date, and

          (6)  the place or places where such Securities are to be presented and
surrendered for payment of the Redemption Price and accrued interest, if any.

                                      122
<PAGE>

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

          SECTION 11.6  Deposit of Redemption Price.  Prior to any Redemption
                        ---------------------------
Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if
the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 10.3) an amount of U.S. Dollars sufficient to pay the
Redemption Price of, and accrued interest on, all the Securities which are to be
redeemed on that date.

          SECTION 11.7  Securities Payable on Redemption Date.  Notice of
                        -------------------------------------
redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified (together with accrued interest and Liquidated Damages, if
any, to the Redemption Date), and from and after such date (unless the Company
shall default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest.  Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by
the Company at the Redemption Price, together with accrued interest, if any, to
the Redemption Date; provided, however, that installments of interest whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the
Holders of such Securities, or one or more Predecessor Securities, registered as
such at the close of business on the relevant Record Dates according to their
terms and the provisions of Section 3.7.

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

          SECTION 11.8  Securities Redeemed in Part. Any Security which is to be
                        ---------------------------
redeemed only in part shall be surrendered at the office or agency of the
Company maintained for such purpose pursuant to Section 10.2 (with, if the
Company or the Trustee so requires, due endorsement by, or a written instrument
of transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or such Holder's attorney duly authorized in writing),
and the Company shall execute, and the Trustee shall authenticate and deliver to
the Holder of such Security without service charge, a new Security or
Securities, of any authorized denomination as requested by such Holder, in
aggregate principal amount

                                      123
<PAGE>

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

                                  ARTICLE XII

                      DEFEASANCE AND COVENANT DEFEASANCE

          SECTION 12.1  Company's Option to Effect Defeasance or Covenant
                        -------------------------------------------------
Defeasance.  The Company may, at its option by Board Resolution, at any time
----------
prior to the Stated Maturity of the Securities, with respect to the Securities,
elect to have either Section 12.2 or Section 12.3 be applied to all Outstanding
Securities upon compliance with the conditions set forth below in this Article
Twelve.

          SECTION 12.2  Defeasance and Discharge.  Upon the Company's exercise
                        ------------------------
under Section 12.1 of the option applicable to this Section 12.2, the Company
shall be deemed to have been discharged from its obligations with respect to all
Outstanding Securities on the date the conditions set forth in Section 12.4 are
satisfied (hereinafter, "Defeasance"). For this purpose, Legal Defeasance means
that the Company shall be deemed to have paid and discharged the entire
Indebtedness represented by the Outstanding Securities, which shall thereafter
be deemed to be "Outstanding" only for the purposes of Section 12.5 and the
other Sections of this Indenture referred to in clauses (A) and (B) below, and
to have satisfied all its other obligations under such Securities and this
Indenture insofar as such Securities are concerned (and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging the
same), except for the following which shall survive until otherwise terminated
or discharged hereunder: (A) the rights of Holders of Outstanding Securities to
receive, solely from the trust fund described in Section 12.4 and as more fully
set forth in such Section, payments in respect of the principal of, premium, if
any, and interest (and Liquidated Damages, if any) on such Securities when such
payments are due and any rights of the Holders with respect to such amounts, (B)
the Company's obligations with respect to such Securities under Sections 3.4,
3.5, 3.6, 10.2 and 10.3; (C) the rights, powers, trusts, duties and immunities
of the Trustee hereunder and (D) this Article Twelve. Subject to compliance with
this Article Twelve, the Company may exercise its option under this Section 12.2
notwithstanding the prior exercise of its option under Section 12.3 with respect
to the Securities.

                                      124
<PAGE>

          SECTION 12.3  Covenant Defeasance.  Upon the Company's exercise under
                        -------------------
Section 12.1 of the option applicable to this Section 12.3, the Company shall be
released from its obligations under any covenant contained in Section 8.1 and in
Sections 10.8 through 10.18 with respect to the Outstanding Securities
("Covenant Defeasance") on and after the date the conditions set forth below are
satisfied, and the Securities shall thereafter be deemed not to be "Outstanding"
for the purposes of any direction, waiver, consent or declaration or Act of
Holders (and the consequences of any thereof) in connection with such covenants,
but shall continue to be deemed "Outstanding" for all other purposes hereunder.
For this purpose, Covenant Defeasance means that, with respect to the
Outstanding Securities, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default under Section
5.1(3), 5.1(4) and 5.1(5), but, except as specified above, the remainder of this
Indenture and such Securities shall be unaffected thereby.

          SECTION 12.4  Conditions to Defeasance or Covenant Defeasance.  The
                        -----------------------------------------------
following shall be the conditions to application of either Section 12.2 or
Section 12.3 to the Outstanding Securities:

          (1)  The Company shall irrevocably have deposited or caused to be
deposited with the Trustee (or another Trustee satisfying the requirements of
Section 6.8 who shall agree to comply with the provisions of this Article Twelve
applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Securities: (A) U.S. legal tender, or (B)
U.S. Government Obligations or (C) a combination thereof, sufficient, in the
opinion of a firm of independent public accountants that is nationally
recognized in the United States expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which shall be applied by
the Trustee (or other qualifying Trustee) to pay and discharge, the principal of
(and premium, if any) and interest on the Outstanding Securities on the Stated
Maturity (or Redemption Date, if applicable) of such principal (and premium, if
any) or installment of interest; provided that the Holders of Securities must
have a valid, perfected, exclusive security interest in such trust.

          (2)  No Default or Event of Default shall have occurred and be

                                      125
<PAGE>

continuing on the date of such deposit or, insofar as paragraphs (6) and (7) of
Section 5.1 are concerned, at any time during the period ending on the 91st day
after the date of such deposit (it being understood that this condition shall
not be deemed satisfied until the expiration of such period).

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

          (4)  In the case of an election under Section 12.2, the Company shall
have delivered to the Trustee an opinion of counsel reasonably acceptable to the
Trustee stating that (x) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (y) since the date of
this Indenture, there has been a change in the applicable U.S. federal income
tax law, in either case to the effect that, and based thereon such opinion shall
confirm that, the Holders of the Outstanding Securities will not recognize
income, gain or loss for U.S. federal income tax purposes as a result of such
Defeasance and will be subject to U.S. federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if such
Defeasance had not occurred.

          (5)  In the case of an election under Section 12.3, the Company shall
have delivered to the Trustee an opinion of counsel reasonably acceptable to the
Trustee to the effect that (i) the Holders of the Outstanding Securities will
not recognize income, gain or loss for U.S. federal income tax purposes as a
result of such Covenant Defeasance and will be subject to U.S. federal income
tax on the same amounts, in the same manner and at the same times as would have
been the case if such Covenant Defeasance had not occurred.

          (6)  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 such Outstanding Securities over any other of the
Company's creditors or with the intent of defeating, hindering, delaying or
defrauding any other of the Company's creditors or others; and

          (7)  The Company shall have delivered to the Trustee an Officers'
Certificate stating that all conditions precedent provided for relating to
either the Defeasance under Section 12.2 or the Covenant Defeasance under
Section 12.3 (as the case may be) have been complied with; and, in the case of
the opinion of counsel,

                                      126
<PAGE>

that paragraphs (1) (with respect to the validity and perfection of the security
interest), (2), (3) and (5) of this Section 12.4 have been complied with, and
the Company shall have delivered to the Trustee an Officers' Certificate,
subject to such qualifications and exceptions as the Trustee deems appropriate,
to the effect that, assuming no Holder of the Securities is an insider of the
Company, the trust funds will not be subject to the effect of any applicable
Federal bankruptcy, insolvency, reorganization or similar laws affecting
creditors' rights generally.

          SECTION 12.5  Deposited Money and U.S. Government Securities to Be
                        ----------------------------------------------------
Held in Trust; Other Miscellaneous Provisions. Subject to the provisions of the
---------------------------------------------
last paragraph of Section 10.3, all money and U.S. Government Obligations
(including the proceeds thereof) deposited with the Trustee (or other qualifying
Trustee, collectively for purposes of this Section 12.5, the "Trustee") pursuant
to Section 12.4 in respect of the Outstanding Securities shall be held in trust
and applied by the Trustee, in accordance with the provisions of such Securities
and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities of all sums due and to become due
thereon in respect of principal, premium, if any, and interest, but such money
need not be segregated from other funds except to the extent required by law.

          The Company shall pay and indemnify the Trustee and (if applicable)
its officers, directors, employees and agents against any tax, fee or other
charge imposed on or assessed against the U.S. Government Securities deposited
pursuant to Section 12.4 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of the Outstanding Securities.

          Anything in this Article Twelve to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 12.4 which, in the opinion of a firm of independent public accountants
that is nationally recognized in the United States expressed in a written
certification thereof delivered to the Trustee, are in excess of the amount
thereof which would then be required to be deposited to effect an equivalent
Defeasance or Covenant Defeasance, as applicable, in accordance with this
Article Twelve.

          SECTION 12.6  Reinstatement.  If the Trustee or any Paying Agent is
                        -------------
unable to apply any money in accordance with Section 12.5 by reason of any order
or

                                      127
<PAGE>

judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Company's obligations under
this Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to Section 12.2 or 12.3, as the case may be, until
such time as the Trustee or Paying Agent is permitted to apply all such money in
accordance with Section 12.5; provided, however, that if the Company makes any
payment of principal of, premium, if any, or interest on any Security following
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money
held by the Trustee or Paying Agent.

                                      128
<PAGE>

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

                    UNITED PAN-EUROPE COMMUNICATIONS N.V.

                    By:____________________________________
                    Name:
                    Title:

                    Citibank, N.A. (London Branch), Trustee

                    By:_____________________________________
                    Name:
                    Title:
<PAGE>

                                   EXHIBIT A

                             [FORM OF SECURITIES]

          [If a Global Security, then insert:] THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY ("DTC"), EUROCLEAR OR
CEDELBANK (EACH, A "DEPOSITARY") OR A NOMINEE OF A DEPOSITARY OR A SUCCESSOR
DEPOSITARY. THIS SECURITY IS NOT EXCHANGEABLE FOR SECURITIES REGISTERED IN THE
NAME OF A PERSON OTHER THAN A DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY
(OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY A DEPOSITARY TO A NOMINEE
OF A DEPOSITARY OR BY A NOMINEE OF A DEPOSITARY TO A DEPOSITARY OR ANOTHER
NOMINEE OF A DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE.

          [If a Global Security, then insert:] UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF A DEPOSITARY, TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF SUCH DEPOSITARY OR A NOMINEE OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF A DEPOSITARY (AND
ANY PAYMENT IS MADE TO ITS NOMINEE OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF A DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, A NOMINEE OF A DEPOSITARY, HAS AN INTEREST HEREIN.

          [If a Restricted Global Security, then insert:] THIS SECURITY (OR ITS
PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR ANY STATE OR OTHER SECURITIES LAWS. NEITHER
THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR

                                      A-1
<PAGE>

OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT. BY ITS ACCEPTANCE HEREOF, THE HOLDER: (1) REPRESENTS THAT IT
IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A")) (A "QIB"), OR IS OTHERWISE ACQUIRING THIS SECURITY
PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, (2) AGREES THAT IT WILL NOT PRIOR TO (X) THE DATE WHICH IS TWO
YEARS (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(K) UNDER THE
SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER) AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF (OR ANY PREDECESSOR OF THIS SECURITY) OR THE LAST DAY
ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) AND (Y) SUCH LATER DATE, IF ANY,
AS MAY BE REQUIRED BY APPLICABLE LAWS (THE "RESALE RESTRICTION TERMINATION
DATE") OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO THE COMPANY
OR ANY OF ITS SUBSIDIARIES, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT
REASONABLY BELIEVES IS A QIB AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QIB TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO PERSONS
THAT ARE NOT U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH THE REQUIREMENTS OF REGULATIONS UNDER THE
SECURITIES ACT ("REGULATION S") OR (E) PURSUANT TO AN OTHER AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
OR ANY APPLICABLE JURISDICTION AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON
TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND. OFFERS, SALES OR OTHER TRANSFERS OF THIS SECURITY UNDER CLAUSES
(C), (D) AND (E) ABOVE ARE SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S RIGHT

                                      A-2
<PAGE>

PRIOR TO ANY SUCH OFFERS, SALES OR OTHER TRANSFERS TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH
OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE. AS USED HEREIN, THE TERMS "OFFSHORE
TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE RESPECTIVE MEANINGS
GIVEN TO THEM BY REGULATIONS.

          [If a Regulation S Security, then insert:] THIS SECURITY HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND, PRIOR TO THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE
PERIOD (DEFINED AS 40 DAYS AFTER THE ISSUE DATE WITH RESPECT TO THE SECURITIES)
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT
(A)(1) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF
REGULATION S OR (2) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A") IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF
THE UNITED STATES. BY ITS ACCEPTANCE HEREOF, THE HOLDER AGREES THAT IT WILL GIVE
TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
THE EFFECT OF THIS LEGEND.

          THIS SECURITY MAY NOT BE OFFERED, TRANSFERRED OR SOLD AS PART OF ITS
INITIAL DISTRIBUTION, OTHER THAN TO INDIVIDUALS OR LEGAL ENTITIES, SITUATED IN
OR OUTSIDE THE NETHERLANDS, WHO OR WHICH TRADE OR INVEST IN SECURITIES IN THE
CONDUCT OF THEIR PROFESSION OR BUSINESS (WHICH INCLUDES BANKS, BROKERS, DEALERS,
INSURANCE COMPANIES, PENSION FUNDS, OTHER INSTITUTIONAL INVESTORS AND OTHER
PARTIES (INCLUDING TREASURY DEPARTMENTS OF COMMERCIAL ENTERPRISE AND FINANCE
COMPANIES OR GROUPS), WHICH REGULARLY TRADE OR INVEST IN SECURITIES).

                                      A-3
<PAGE>

                                      A-4
<PAGE>

                     United Pan-Europe Communications N.V.

                  $300,000,000 11 1/2% Senior Notes Due 2010

[CUSIP] [ISIN] [Common Code]:  [    ]

No. [   ]                                                                 $[   ]

          United Pan-Europe Communications N.V., a public company with limited
liability organized and existing under the laws of The Netherlands (the
"Company," which term includes any successor corporation), for value received,
hereby promises to pay to the registered holder, Cede & Co., as nominee of The
Depository Trust Company or registered assigns, the principal sum of [ ] DOLLARS
or such amount as may be increased or decreased in accordance with the terms of
the Indenture and as set forth on the Schedule of Interest but not to exceed
$300,000,000 on February 1, 2010.

          Interest Payment Dates: February 1 and August 1.

          Record Dates: January 15 and July 15.

          Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

                                      A-5
<PAGE>

          IN WITNESS WHEREOF, the Company has caused this instrument to be
signed manually or by facsimile by its duly authorized officer.

Dated:  January 20, 2000

                     UNITED PAN-EUROPE COMMUNICATIONS N.V.

                         By:________________________
                         Authorized Signatory

                                      A-6
<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          Dated: January 20, 2000

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

          CITIBANK, N.A.
          Not in its individual capacity, but solely as Trustee

          By:___________________________
                Authorized Signatory

                                      A-7
<PAGE>

                               [REVERSE OF NOTE]

                     UNITED PAN-EUROPE COMMUNICATIONS N.V.

                                 $300,000,000
                         11 1/2% SENIOR NOTE DUE 2010

          1. Interest.  United Pan-Europe Communications N.V., a public limited
             --------
liability company organized and existing under the laws of The Netherlands (the
"Company"), promises to pay, until the principal hereof is paid or made
available for payment, interest on the principal amount set forth on the face
hereof at a rate of 11 1/2% per annum. Interest hereon will accrue from and
including the most recent date to which interest has been paid or, if no
interest has been paid, from and including January 20, 2000 to but excluding the
date on which interest is paid. Interest shall be payable in arrears semi-
annually on each February 1 and August 1, commencing on August 1, 2000. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. The
Company shall pay interest on overdue principal and on overdue interest (to the
full extent permitted by law) at the rate borne by the Securities.

          In the event that, at any time prior to 180 days following the Issue
Date, the Company (x) issues or sells, or (y) offers or negotiates to issue or
sell, for cash, any debt securities (other than debt securities convertible or
exchangeable into Capital Stock of the Company) to Qualified Institutional
Buyers who, as a regular part of their business, purchase debt securities
comparable to the Securities or the Other Senior Notes (any of the events
described in (x) or (y) at any time during such 180 day period, an "Interest
Rate Adjustment Event"), the interest rate otherwise applicable to the
Securities shall, on and after the date of such Interest Rate Adjustment Event,
be increased by 25 basis points such that on and after the date of such Interest
Rate Adjustment Event, interest on the Securities will accrue at a rate of 11
3/4% per annum. Any amounts owing as a result of such increase shall be paid to
the Holders of record as of the Regular Record Date next following any such
Interest Rate Adjustment Event, on the immediately following Interest Payment
Date, and thereafter will be payable semiannually in arrears on February 1 and
August 1 of each year to the Holders of record on the immediately preceding
Regular Record Date.

          Promptly following the occurrence of an Interest Rate Adjustment

                                      A-8
<PAGE>

Event, the Company shall give notice of the occurrence thereof to the Trustee,
to the Paying Agent and to each Holder of Securities in the manner provided for
in Section 1.6 of the Indenture. Such notice shall include the amount to be paid
to the Holders of record as of such Regular Record Date on the next following
Interest Payment Date.

          2. Method of Payment.  The Company will pay interest hereon (except
             -----------------
defaulted interest) to the Persons who are registered Holders at the close of
business on January 15 or July 15 next preceding the Interest Payment Date
(whether or not a Business Day). Holders must surrender Securities to a Paying
Agent to collect principal payments. The Company will pay principal and interest
in money of the United States of America that at the time of payment is legal
tender for payment of public and private Indebtedness. Interest may be paid by
check mailed to the Holder entitled thereto at the address indicated on the
register maintained by the Registrar for the Securities.

          3. Paying Agent and Registrar.  Initially, Citibank, N.A. (London
             --------------------------
Branch) (the "Trustee") and Citibank, N.A. (New York Branch) will act as Paying
Agent and Registrar and Banque Internationale a Luxembourg will act as Paying
Agent in Luxembourg. The Company may change any Paying Agent or Registrar
without notice. The Company or any of its Subsidiaries may, subject to certain
exceptions, act as Registrar.

          4. Indenture.  The Company issued $300,000,000 11 1/2% Senior Notes
             ---------
due 2010 under an Indenture dated as of January 20, 2000 (the "Indenture")
between the Company and the Trustee. This is one of an issue of Securities of
the Company issued, or to be issued, under the Indenture. The terms of the
Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code (S)(S)
77aaa-77bbbb), as amended from time to time. The Securities are subject to all
such terms, and Holders are referred to the Indenture and such Act for a
statement of them. Capitalized and certain other terms used herein and not
otherwise defined have the meanings set forth in the Indenture. To the extent of
any conflict between the terms of the Securities and the Indenture, the
applicable terms of the Indenture shall govern.

          5. Additional Amounts.  The Company will pay to the Holders of
             ------------------
Securities such Additional Amounts as may become payable under Section 10.18 of
the Indenture.

                                      A-9
<PAGE>

          6. Optional Redemption of the Securities.  The Securities will be
             -------------------------------------
redeemable at the option of the Company, in whole or in part, at any time or
from time to time on or after February 1, 2005, upon not less than 30 nor more
than 60 days' prior notice to each Holder of Securities, at the Redemption
Prices (expressed as a percentage of principal amount) if redeemed during the
12- month period commencing on February 1 of the years indicated below, plus
accrued and unpaid interest and Liquidated Damages, if any, thereon to the
Redemption Date:

                                        Security Redemption
          YEAR                                Price
          ----                          -------------------

          2005                               107.260%
          2006                               104.840%
          2007                               102.420%
          2008 and thereafter                100.000%

          7. Redemption Upon Equity Offering.  Prior to February 1, 2003, upon
             -------------------------------
an Equity Offering of Common Stock for cash of the Company, up to 35% of the
aggregate principal amount of each of the Securities may be redeemed at the
Company's option within 90 days of such Equity Offering, on not less than 30
days', but not more than 60 days', notice to each Holder of the Securities to be
redeemed, with cash in an amount not in excess of the Net Cash Proceeds of such
Equity Offering, at a Redemption Price equal to 111.500% of the principal amount
of the Securities redeemed, together with accrued and unpaid interest and
Liquidated Damages, if any, thereon to the Redemption Date; provided, however,
that immediately following such redemption not less than 65% of the aggregate
principal amount of the Securities originally issued remain Outstanding; and
provided, further, that such redemption shall occur within 90 days after the
date of the closing of such Equity Securities.

          8. Redemption for Changes in Withholding Taxes. The Company may, at
             -------------------------------------------
its option, redeem all, but not less than all, of the Securities then
Outstanding, at 100% of the principal amount thereof, plus accrued and unpaid
interest and Liquidated Damages, if any, thereon to the Redemption Date, if a
Tax Event has occurred and is continuing.

          9. Mandatory Redemption.  The Company is not required to make
             --------------------
mandatory redemption payments or sinking fund payments with respect to the
Securities.

                                     A-10
<PAGE>

          10. Notice of Redemption.  Notice of redemption will be mailed within
              --------------------
not less than 30 days nor more than 60 days prior to the Redemption Date to each
Holder of Securities to be redeemed at his registered address. On and after the
Redemption Date, unless the Company defaults in making the redemption payment,
interest ceases to accrue on Securities or portions thereof called for
redemption.

          11. Purchase of Securities upon Change of Control. The Indenture
              ---------------------------------------------
provides that upon the occurrence of a Change of Control and subject to further
limitations contained therein, the Company shall make an offer to purchase Out
standing Securities in accordance with the procedures set forth in the
Indenture.

          12. Registration Rights.  Pursuant to a Registration Rights Agreement,
              -------------------
dated January 20, 2000, among the Company and the Initial Purchasers named
therein, the Company will be obligated to consummate an Exchange Offer pursuant
to which the Holder of this Security shall have the right to exchange this
Security for notes of a separate series issued under the Indenture which have
been registered under the Securities Act, in like principal amount and having
substantially identical terms as the Securities.  The Holders shall be entitled
to receive certain payments in the event such Exchange Offer is not consummated
("Liquidated Damages") and upon certain other conditions, all pursuant to and in
accordance with the terms of the Registration Rights Agreement.

          13. Denominations, Transfer, Exchange. The Securities are in
              ---------------------------------
registered form, without coupons, in denominations of $1,000 and integral
multiples of $1,000.  A Holder may transfer or exchange Securities in accordance
with the Indenture. The Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay to it any
taxes and fees required by law or permitted by the Indenture.  Under certain
circumstances set forth in the Indenture, the Registrar need not register the
transfer of or exchange any Securities.

          14. Persons Deemed Owners.  The registered Holder of this Security may
              ---------------------
be treated as the owner of this Security for all purposes.

          15. Unclaimed Money.  If money for the payment of principal or
              ---------------
interest remains unclaimed for two years, the Trustee and the Paying Agent will
pay the money back to the Company at its written request. After that, all
liability of the Trustee and any such Paying Agent with respect to such money
shall cease.

                                     A-11
<PAGE>

          16. Amendment, Supplement, Waiver, Etc.  The Company and the Trustee
              ----------------------------------
may, without the consent of the Holders of any Outstanding Securities, amend,
waive or supplement the Indenture or the Securities for certain specified
purposes, including, among other things, curing ambiguities, defects or
inconsistencies. Other amendments and modifications of the Indenture or the
Securities may be made by the Company and the Trustee with the consent of the
Holders of not less than a majority of the aggregate principal amount of the
Outstanding Securities and with other holders of notes of other series issued
under the Indenture, subject to certain exceptions requiring the consent of the
Holders of the particular Securities to be affected.

          17. Restrictive Covenants.  The Indenture imposes certain limitations
              ---------------------
on the ability of the Company and its Subsidiaries to, among other things, incur
additional Indebtedness, make Restricted Payments, make certain Investments,
create or incur Liens, enter into transactions with Affiliates, enter into
agreements restricting the ability of Subsidiaries to pay dividends and make
distributions and on the ability of the Company to merge or consolidate with any
other person or transfer all or substantially all of the Company's assets. Such
limitations are subject to a number of important qualifications and exceptions.
Pursuant to the Indenture, the Company must annually report to the Trustee on
compliance with such limitations.

          18. Defaults and Remedies. Events of Default are set forth in the
              ---------------------
Indenture.  Subject to certain limitations in the Indenture, if an Event of
Default (other than certain events of bankruptcy, insolvency or reorganization
affecting the Company) occurs and is continuing, the Trustee or the Holders of
not less than 25% in aggregate principal amount of the Outstanding Securities
under the Indenture may, by written notice to the Trustee and the Company, and
the Trustee upon the request of the Holders of not less than 25% in aggregate
principal amount of the Outstanding Securities shall, declare all principal of
and accrued interest on all Securities to be immediately due and payable and
such amounts shall become immediately due and payable.

          19. Trustee Dealings with Company.  The Trustee, in its individual or
              -----------------------------
any other capacity, may make loans to, accept deposits from, and perform
services for the Company or its Affiliates and may otherwise deal with the
Company or its Affiliates, as if it were not Trustee.

          20. No Recourse Against Others.  No board member, director, officer,
              --------------------------
employee, agent, authorized representative, incorporator or shareholder of the

                                     A-12
<PAGE>

Company shall have any liability for any obligations of the Company under the
Securities or the Indenture for a claim based on, in respect of, or by reason
of, such obligations or their creation by reason of his, her or its status as
such. Each Holder of Securities by accepting a Security waivers and releases all
such liability. The waiver and release are part of the consideration for the
issuance of the Securities.

          21. Discharge.  The Company's obligations pursuant to the Indenture
              ---------
will be discharged, except for obligations pursuant to certain provisions
thereof, subject to the terms of the Indenture, upon the payment of all the
Securities or upon the irrevocable deposit with the Trustee of U.S. Dollars or
U.S. Government Securities denominated in U.S. Dollars sufficient to pay when
due principal of and interest on the Securities to maturity or redemption.

          22. Authentication.  This Security shall not be valid until the
              --------------
Trustee signs the certificate of authentication on the other side of this
Security.

          23. Governing Law.  THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED
              -------------
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK INCLUDING WITHOUT
LIMITATION SECTION 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATION LAW AND
NEW YORK CIVIL PRACTICE LAWS AND RULES 327(B), AS APPLIED TO CONTRACTS MADE AND
PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW.  THE
COMPANY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE
COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL
COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF
ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE AND
THE SECURITIES, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS.
THE COMPANY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO
UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY OBJECTION WHICH THEY MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
BOUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  NOTHING
HEREIN SHALL AFFECT THE RIGHT OF THE TRUSTEE OR ANY HOLDER TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE
PROCEED AGAINST THE COMPANY IN ANY OTHER JURISDICTION.  The Trustee, the Company
and the Holders agree to submit to the jurisdiction of the courts of the State
of New

                                     A-13
<PAGE>

York in any action or proceeding arising out of or relating to the Indenture or
the Securities.

          24. Abbreviations.  Customary abbreviations may be used in the name of
              -------------
a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

          25. Currency of Account.  U.S. Dollars are the sole currency of
              -------------------
account and payment for all sums payable by the Company under the Securities.

          26. CUSIP, ISIN and Common Code Numbers.  The Company has caused
              -----------------------------------
CUSIP, ISIN or Common Code numbers, as applicable, to be printed on the
Securities and the Trustee may use CUSIP, ISIN or Common Code numbers, as
applicable, in notices of redemption as a convenience to Holders.  No
representation is made as to the accuracy of such numbers either as printed on
the Securities or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed hereon.

          The Company will furnish to any Holder upon written request and
without charge a copy of the Indenture. Requests may be made to:

               United Pan-Europe Communications N.V.
               P.O. Box 74763
               1070 BT Amsterdam
               The Netherlands
               Attn:  Treasurer

                                     A-14
<PAGE>

                              FORM OF ASSIGNMENT

If you, the holder, want to assign this Security, fill in the form below and
have your signature guaranteed:

I or we assign and transfer this Security to:

             (Insert assignee's social security or tax ID number)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
             (Print or type assignee's name, address and zip code)

and irrevocably appoint ________________________________________________________
of _____________________________________________________________________________
Agent to transfer this Security on the books of the Company. The Agent may
substitute another to act for such agent.

     In connection with any transfer of this Security occurring prior to the
date which is the earlier of (i) the date of the declaration by the United
States Securities and Exchange Commission of the effectiveness of a registration
statement under the Securities Act of 1933, as amended (the "Securities Act"),
covering resales of this Security (which effectiveness shall not have been
suspended or terminated at the date of the transfer) and (ii) the date two years
(or such shorter period of time as may be permitted by Rule 144(k) under the
Securities Act or any successor provision thereunder) after the later of the
original issuance date appearing on the face of this Security (or any
Predecessor Security) or the last date on which the Company or any Affiliate of
the Company was the owner of this Security (or any Predecessor Security), the
undersigned confirms that it has not utilized any general solicitation or
general advertising in connection with the transfer and that:

                                  [Check One]

[_]  (a) this Security is being transferred in compliance with the exemption
     from registration under the Securities Act provided by Rule 144A
     thereunder.

                                      or

                                     A-15
<PAGE>

[_]  (b) this Security is being transferred other than in accordance with (a)
     above and documents, including a transferee certificate substantially in
     the form attached hereto, are being furnished which comply with the
     conditions of transfer set forth in this Security and the Indenture.

     If neither of the foregoing boxes is checked and, in the case of (b) above,
if the appropriate document is not attached or otherwise furnished to the
Trustee, the Trustee or Registrar shall not be obligated to register this
Security in the name of any person other than the Holder hereof unless and until
the conditions to any such transfer or registration set forth herein and in
Section 3.13 and Section 3.14 of the Indenture shall have been satisfied.

Dated: _________         Your signature: _________________________________
                         (Sign exactly as your name appears on the other
                         side of this Security)

                         By:______________________________________________
                         NOTICE: To be executed by an executive officer

Signature Guaranteed:_____________________________________________________
                     Participant in a recognized Signature Guarantee Medallion
                     Program (or other signature guarantor program acceptable to
                     the Trustee)

                                     A-16
<PAGE>

             TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED:

          The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act
and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A (including the information
specified in Rule 144A(d)(4)) or has determined not to request such information
and that it is aware that the transferor is relying upon the undersigned's
foregoing representations in order to claim the exemption from registration
provided by Rule 144A.

Dated:_____________________   __________________________________________________
                              NOTICE:  To be executed by an executive officer

                                     A-17
<PAGE>

           SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY

                                               Principal
                   Amount of     Amount of       Amount
                  decrease in   increase in   at maturity
                    Principal    Principal      of this
                     Amount        Amount        Global
                  at maturity   at maturity     Security        Signature of
                    of this       of this       following        authorized
  Date of            Global        Global     such decrease      officer of
 Exchange           Security      Security    (or increase)        Trustee
-------------     -----------   -----------   -------------     ------------
Initial                                       $
balance as of
20/1/00

                                     A-18
<PAGE>

                                   EXHIBIT B

                        FORM OF TRANSFER CERTIFICATE --
                         RESTRICTED GLOBAL SECURITY TO
                         REGULATION S GLOBAL SECURITY
         (Transfers pursuant to Sections 3.13(b)(ii) of the Indenture)

Citibank, N.A.
as Trustee
5 Carmelite Street
London EC4Y 0PA
Attention:  Global Agency & Trust Services

     Re:  United Pan-Europe Communications N.V. 11 1/2% Senior Notes Due 2010
          (the "Securities")

     Reference is hereby made to the Indenture, dated as of January 20, 2000
between the Company and Citibank, N.A., as trustee, (the "Indenture"). Terms
used but not defined herein and defined in Regulation S under the U.S.
Securities Act of 1933 (the "Securities Act") or in the Indenture shall have the
meanings given to them in Regulation S or the Indenture, as the case may be.

     This certificate relates to [U.S.$]______ principal amount of Securities,
which are evidenced by the following certificate(s) (the "Specified
Securities"):

     [CUSIP][CINS][ISIN] No(s). ________________________________

     CERTIFICATE No(s). _________________________

     The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial owner
of the Specified Securities or (ii) it is acting on behalf of all the beneficial
owners of the Specified Securities and is duly authorized by them to do so. Such
beneficial owner or owners are referred to herein collectively as the "Owner".
If the Specified Securities are represented by a Global Security, they are held
through the appropriate Depositary or an Agent Member in the name of the
Undersigned, as or on behalf of the Owner.

                                      B-1
<PAGE>

     The Owner has requested that the Specified Securities be transferred to a
person (the "Transferee") who will take delivery in the form of an interest in
the Regulation S Global Security. In connection with such transfer, the Owner
hereby certifies that such transfer is being effected in accordance with Rule
904 under the Securities Act and with all applicable securities laws of the
states of the United States and other jurisdictions. Accordingly, the Owner
hereby further certifies as follows:

     1.   the Owner is not a distributor of the Specified Securities, an
Affiliate of the Company or any such distributor or a person acting on behalf of
any of the foregoing;

     2.   the offer of the Specified Securities was not made to a person in the
United States;

     3    either:

          (a)  at the time the buy order was originated, the Transferee was
outside the United States or the Owner and any person acting on its behalf
reasonably believed that the Transferee was outside the United States; or

          (b)  the transaction is being executed in, on or through the
facilities of the Eurobond market, as regulated by the Association of
International Bond Dealers, or another designated offshore securities market and
neither the Owner nor any person acting on its behalf knows that the
transactions have been prearranged with a buyer in the United States;

     4.   no directed selling efforts have been made in the United States by or
on behalf of the Owner or any Affiliate thereof;

     5.   if the Owner is a dealer in securities or has received a selling
concession, fee or other remuneration in respect of the Specified Securities,
and the transfer is to occur during the Restricted Period, then the requirements
of Rule 904(c)(1) have been satisfied;

     6.   the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act; and

     7.   upon completion of the transaction, the beneficial interest being

                                      B-2
<PAGE>

transferred will be held through an Agent Member acting for and on behalf of
Euroclear or Cedelbank.

     This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and the Initial Purchasers under the
Purchase Agreement.

Dated:
                              _______________________________________________
                              (Print the name of the Undersigned, as such
                              term is defined in the second paragraph of this
                              certificate.)

                              By:____________________________________________
                                 Name:
                                 Title:

                              (If the Undersigned is a Corporation, partnership
                              or fiduciary, the title of the person signing on
                              behalf of the Undersigned must be stated.)

                                      B-3
<PAGE>

                                   EXHIBIT C

                        FORM OF TRANSFER CERTIFICATE --
                  RESTRICTED GLOBAL SECURITY TO UNRESTRICTED
                                GLOBAL SECURITY
        (Transfers Pursuant to Sections 3.13(b)(iii) of the Indenture)

Citibank, N.A.
as Trustee
5 Carmelite Street
London EC4Y 0PA
Attention:  Global Agency & Trust Services

     Re:  United Pan-Europe Communications N.V. 11 1/2% Senior Notes Due 2010
          (the "Securities")

     Reference is hereby made to the Indenture, dated as of January 20, 2000
between the Company and Citibank, N.A., as trustee, (the "Indenture"). Terms
used but not defined herein and defined in Regulation S under the U.S.
Securities Act of 1933 (the "Securities Act") or in the Indenture shall have the
meanings given to them in Regulation S or the Indenture, as the case may be.

     This certificate relates to [U.S.$]_____ principal amount of Securities,
which are evidenced by the following certificate(s) (the "Specified
Securities"):

     [CUSIP][CINS][ISIN] No(s). _________________________

     CERTIFICATE No(s). __________________

     The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial owner
of the Specified Securities or (ii) it is acting on behalf of all the beneficial
owners of the Specified Securities and is duly authorized by them to do so. Such
beneficial owner or owners are referred to herein collectively as the "Owner".
If the Specified Securities are represented by a Global Security, they are held
through the appropriate Depositary or an Agent Member in the name of the
Undersigned, as or on behalf of the Owner.

     The Owner has requested that the Specified Securities be transferred to a

                                      C-1
<PAGE>

person (the "Transferee") who will take delivery in the form of an interest in
the Regulation S Global Security.  In connection with such transfer, the Owner
hereby certifies that such transfer is being effected in accordance with Rule
904 or Rule 144 under the Securities Act and with all applicable securities laws
of the states of the United States and other jurisdictions.  Accordingly, the
Owner hereby further certifies as follows:

          (1) Rule 904 Transfers. If the transfer is being effected in
     accordance with Rule 904:

               (A)  the Owner is not a distributor of the Specified Securities,
          an Affiliate of the Company or any such distributor or a person acting
          on behalf of any of the foregoing;

               (B)  the offer of the Specified Securities was not made to a
          person in the United States;

               (C)  either:

                         (i)  at the time the buy order was originated, the
               Transferee was outside the United States or the Owner and any
               person acting on its behalf reasonably believed that the
               Transferee was outside the United States; or

                         (i)  the transaction is being executed in, on or
               through the facilities of the Eurobond market, as regulated by
               the Association of International Bond Dealers, or another
               designated offshore securities market and neither the Owner nor
               any person acting on its behalf knows that the transactions has
               been prearranged with a buyer in the United States;

               (D)  no directed selling efforts have been made in the United
          States by or on behalf of the Owner or any Affiliate thereof;

               (E)  if the Owner is a dealer in securities or has received a
          selling concession, fee or other remuneration in respect of the
          Specified Securities, and the transfer is to occur during the
          Restricted Period, then the requirements of Rule 904(c)(1) have been
          satisfied; and

                                      C-2
<PAGE>

               (F)  the transaction is not part of a plan or scheme to evade the
          registration requirements of the Securities Act.

          (2)  Rule 144 Transfers. If the transfer is being effected pursuant to
     Rule 144:

               (A)  the transfer is occurring after [date one year after the
          latest date of issuance of any of the Specified Securities] and is
          being effected in accordance with the applicable amount, manner of
          sale and notice requirements of Rule 144; or

               (B)  the transfer is occurring after [date two years after the
          latest date of issuance of any of the Specified Securities] and the
          Owner is not, and during the preceding three months has not been, an
          Affiliate of the Company.

     This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and the Initial Purchasers under the
Purchase Agreement.

Dated:                         _________________________________________________
                               (Print the name of the Undersigned, as such term
                               is defined in the second paragraph of this
                               certificate.)

                               By:______________________________________________
                                  Name:
                                  Title:

                               (If the Undersigned is a Corporation, partnership
                               or fiduciary, the title of the person signing on
                               behalf of the Undersigned must be stated.)

                                      C-3
<PAGE>

                                   EXHIBIT D

                        FORM OF TRANSFER CERTIFICATE --
                        REGULATION S GLOBAL SECURITY TO
                          RESTRICTED GLOBAL SECURITY
     (Transfers to QIBs Pursuant to Sections 3.13(b)(iv) of the Indenture)

Citibank, N.A.
as Trustee
5 Carmelite Street
London EC4Y 0PA
Attention:  Global Agency & Trust Services

     Re:  United Pan-Europe Communications N.V. 11 1/2% Senior Notes Due 2010
          (the "Securities")

     Reference is hereby made to the Indenture, dated as of January 20, 2000
between the Company and Citibank, N.A. as trustee, (the "Indenture").  Terms
used but not defined herein and defined in Regulation S under the U.S.
Securities Act of 1933 (the "Securities Act") or in the Indenture shall have the
meanings given to them in Regulation S or the Indenture, as the case may be.

     This certificate relates to [U.S.$]______ principal amount of Securities,
which are evidenced by the following certificate(s) (the "Specified
Securities"):

     [CUSIP][CINS][ISIN] No(s). _________________________

     CERTIFICATE No(s). __________________

     The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial owner
of the Specified Securities or (ii) it is acting on behalf of all the
beneficial owners of the Specified Securities and is duly authorized by them to
do so. Such beneficial owner or owners are referred to herein collectively as
the "Owner". If the Specified Securities are represented by a Global Security,
they are held through the appropriate Depositary or an Agent Member in the name
of the Undersigned, as or on behalf of the Owner.

                                      D-1
<PAGE>

     The Owner has requested that the Specified Securities be transferred to a
person (the "Transferee") who will take delivery in the form of an interest in
the Restricted Global Security. In connection with such transfer, the Owner
hereby certifies that such transfer is being effected in accordance with Rule
144A under the Securities Act and with all applicable securities laws of the
states of the United States and other jurisdictions. Accordingly, the Owner
hereby further certifies as follows:

          (1)  the Specified Securities are being transferred to a person that
     the Owner and any person acting on its behalf reasonably believe is a
     "qualified institutional buyer" within the meaning of Rule 144A, acquiring
     for its own account or for the account of a qualified institutional buyer;
     and

          (2)  the Owner and any person acting on its behalf have taken
     reasonable steps to ensure that the Transferee is aware that the Owner may
     be relying on Rule 144A in connection with the transfer.

     This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and the Initial Purchasers under the
Purchase Agreement.

Dated:                                  _______________________________________
                                        (Print the name of the Undersigned, as
                                        such term is defined in the second
                                        paragraph of this certificate.)

                                        By:____________________________________
                                           Name:
                                           Title:

                                        (If the Undersigned is a Corporation,
                                        partnership or fiduciary, the title of
                                        the person signing on behalf of the
                                        Undersigned must be stated.)

                                      D-2
<PAGE>

                                   EXHIBIT E

                               UNITED PAN-EUROPE
                              COMMUNICATIONS N.V.

                             OFFICERS' CERTIFICATE

     [Name], [title(s)] of United Pan-Europe Communications N.V., a public
limited liability company organized and existing under the laws of The
Netherlands (the "Company"), and [name], [title(s)] of the Company, hereby
certify pursuant to Sections ____ and ____ of the Indenture, dated as of January
20, 2000 (the "Indenture"), between the Company and Citibank, N.A., as trustee
(the "Trustee"), that:

     (i)  he or she has read and understands the provisions of the Indenture and
the definitions relating thereto, (ii) the statements made in this Officers'
Certificate are based upon an examination of the provisions of the Indenture and
upon the relevant books and records of the Company, (iii) in his or her opinion,
he or she has made such examination or investigation as is necessary to enable
him or her to express an informed opinion as to whether or not the covenants and
conditions of the Indenture relating to the [authentication of the Securities]
[execution of the Indenture] [OTHER] have been complied with and (iv) in his or
her opinion, such covenants and conditions have been complied with.

     IN WITNESS WHEREOF, each of the undersigned has executed this Certificate
on this ____ day of ____________, ____.

                              By:_______________________________
                              Name:
                              Titles:

                              By:_______________________________
                              Name:
                              Titles:

                                      E-1
<PAGE>

                                   EXHIBIT F

[Date]

Citibank, N.A.
5 Carmelite Street
London EC4Y 0PA
Attention:  Global Agency & Trust Services

Ladies and Gentlemen:

     We have acted as special counsel to United Pan-Europe Communications N.V.,
a public company with limited liability organized and existing under the laws of
The Netherlands (the "Company"), in connection with the [initial issuance and
sale by the Company of $300,000,000 aggregate principal amount of the Company's
11 1/2% Senior Notes due 2010 (the "Securities"), which will be issued under an
Indenture, dated as of January 20, 2000 (the "Indenture"), between the Company
and Citibank, N.A. as trustee (the "Trustee")].

     This opinion is being furnished to your pursuant to Sections ____ and ____
of the Indenture.

     In our examination, we have assumed the legal capacity of all natural
persons, the genuineness of all signatures, the authenticity of all documents
submitted to us as originals, the conformity to original documents of all
documents submitted to us as certified or photostatic copies and the
authenticity of the originals of such letter documents. In making our
examination of documents executed by parties other than the Company, we have
assumed that such parties had the power, corporate or other, to enter into and
perform all obligations thereunder and have also assumed the due authorization
by all requisite action, corporate or other, and execution and delivery by such
parties of such documents and the validity and binding effect thereof. As to any
facts material to the opinions expressed herein which we did not independently
establish or verify, we have relied upon oral or written statements or
representations of officers and other representatives of the Company and others.

     Pursuant to Sections ____ and ____ of the Indenture, we advise you that in

                                      F-2
<PAGE>

our opinion:

     1.   We have reviewed Article __ of the Indenture setting forth certain
provisions of general application, and in particular, the pertinent provisions
of Section ___ of the Indenture setting forth the definitions of certain terms,
and Sections ___ and ___ of the Indenture providing that the Trustee is entitled
to receive an Officers' Certificate and an Opinion of Counsel in connection with
any request by the Company to take any action and setting forth certain
requirements with respect to the forms of such documents.  We have also reviewed
Article ___ of the Indenture, pertaining to ____.

     2.   In our opinion, we have made such examination or investigation
(including an examination of the Officers' Certificate of the Company, dated as
of the date hereof, as to the matters addressed in Sections ___ and ___ of the
Indenture) as we deem necessary to enable us to express an informed opinion as
to whether or not the conditions precedent to [the authentication of the
Securities] [the execution of the Indenture] [OTHER] under Section ___ of the
Indenture have been complied with.

     3.   In our opinion, the conditions precedent to be satisfied with respect
to the [authentication of the Securities] [execution of the Indenture] [OTHER]
under Section __ of the Indenture have been complied with.

     Members of our firm are admitted to the bar in the States of ______ and New
York, and we do not express any opinion as to the laws of any jurisdiction other
than the laws of such States and the General Corporation Law of the State of
Delaware and the laws of the United States of America.

     This opinion is furnished to you solely for your benefit in connection with
the [authentication of the Securities] [execution of the Indenture] [OTHER] and
is not to be relied upon by any other person without our express written
permission.

                               Very truly yours,

                                      F-3
<PAGE>

                                   EXHIBIT G

                           FORM OF CERTIFICATE TO BE
                         DELIVERED IN CONNECTION WITH
                TRANSFERS TO INSTITUTIONAL ACCREDITED INVESTORS
           (Transfers Pursuant to Section 3.14(a) of the Indenture)

Citibank, N.A.
as Trustee
5 Carmelite Street
London EC4Y 0PA
Attention:  Global Agency & Trust Services

     Re:  United Pan-Europe Communications N.V. 11 1/2% Senior Notes Due 2010
          (the "Securities")

Ladies and Gentlemen:

          Reference is hereby made to the Indenture, dated as of January 20,
2000 between the Company and Citibank, N.A. as trustee (the "Indenture"). Terms
used but not defined herein have the meanings given to them in the Indenture.

          This certificate relates to [U.S. $] [____] principal amount of
Securities, which are evidenced by the following certificate(s) (the
"Securities"):

          1.   We understand that the Securities have not been registered under
the Securities Act of 1933, as amended (the "Securities Act"), and may not be
sold except as permitted in the following sentence.  We understand and agree, on
our own behalf and on behalf of any accounts for which we are acting as
hereinafter stated, (x) that such Securities are being offered only in a
transaction not involving any public offering within two years after the date of
the original issuance of the Securities or if within three months after we cease
to be an affiliate (within the meaning of Rule 144 under the Securities Act) of
the Company, such Securities may be resold, pledged or transferred only (i) to
the Company, (ii) so long as the Securities are eligible for resale pursuant to
Rule 144A under the Securities Act ("Rule 144A"), to a person whom we reasonably
believe is a "qualified institution buyer" (as defined in Rule 144A) ("QIB")
that purchases for its own account or for the account of a QIB to whom notice is
given that the resale, pledge or transfer is

                                      G-1
<PAGE>

being made in reliance on Rule 144A (as indicated by the box checked by the
transferor on the Certificate of Transfer on the reverse of the certificate for
the Securities), (iii) in an offshore transaction in accordance with Regulation
S under the Securities Act (as indicated by the box checked by the transferor on
the Certificate of Transfer on the reverse of the Note if the Note is not in
book-entry form), and, if such transfer is being effected by certain transferors
prior to the expiration of the "40-day distribution compliance period" (within
the meaning of Rule 903(b)(2) of Regulation S under the Securities Act), a
certificate that may be obtained from the Trustee is delivered by the
transferee, (iv) to an institution that is an "accredited investor" as defined
in Rule 501(a)(1), (2), (3) or (7) under the Securities Act (as indicated by the
box checked by the transferor on the Certificate of Transfer on the reverse of
the certificate for the Securities) which has certified to the Company and the
Trustee for the Securities that it is such an accredited investor and is
acquiring the Securities for investment purposes and not for distribution
(provided that no Securities purchased from a foreign purchaser or from any
person other than a QIB or an institutional accredited investor pursuant to this
clause (iii) shall be permitted to transfer any Securities so purchased to an
institutional accredited investor pursuant to this clause (iv) prior to the
expiration of the "applicable restricted period" (within the meaning of
Regulation S under the Securities Act), (v) pursuant to an exemption from
registration under the Securities Act provided by Rule 144 (if applicable) under
the Securities Act, or (vi) pursuant to an effective registration statement
under the Securities Act, in each case in accordance with any applicable
securities laws of any state of the United States, and we will notify any
purchaser of the Securities from us of the above resale restriction, if then
applicable. We further understand that in connection with any transfer of the
Securities by us that the Company and the Trustee for the Securities may
request, and if so requested we will furnish, such certificates, legal opinions
and other information as they may reasonably require to confirm that any such
transfer complies with the foregoing restrictions.

          2.   We are able to fend for ourselves in the transactions
contemplated by this Offering Circular, we have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Securities, and we and any accounts for which we
are acting are each able to bear the economic risk of our or its investment and
can afford the complete loss of such investment.

          3.   We understand that the Company, Donaldson, Lufkin & Jenrette
Securities International and the other Initial Purchasers named as such in the
Offering Circular as the initial purchasers of the Securities ("Initial
Purchasers"), and others will rely upon the truth and accuracy of the foregoing
acknowledgments,

                                      G-2
<PAGE>

representations and agreements and we agree that if any of the acknowledgments,
representations and warranties deemed to have been made by us by our purchase of
Securities, for our own account or of one or more accounts as to each of which
we exercise sole investment discretion, are no longer accurate, we shall
promptly notify the Company and the Initial Purchasers.

          4.   We are acquiring the Securities purchased by us for investment
purposes and not for distribution of our own account or for one or more accounts
as to each of which we exercise sole investment discretion and we are or such
account is an institutional "accredited investor" (as defined in rule 501(a)(1),
(2), (3) or (7) of Regulation D under the Securities Act).

          5.   You are entitled to rely upon this letter and you are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceeding or official inquiry with respect to the
matters covered hereby.

                              Very truly yours,

                              _______________________________
                              (Name of Purchaser)

                              By:____________________________

                              Date:__________________________

                                      G-3
<PAGE>

                                   EXHIBIT H

                      OPTION OF HOLDER TO ELECT PURCHASE

     If you wish to have this Security purchased by the Company pursuant to
Section 10.10 of the Indenture, check the box:

          [_]  Section 10.10

     If you wish to have a portion of this Security purchased by the Company
pursuant to Section 10.10 of the Indenture, state the amount:
[$_____________(multiple of $1000)]
[(Euro)________(multiple of (Euro)1000)]

Dated:_____________________        Your Signature:______________________________
                                   (Sign exactly as your name appears on the
                                   other side of this Security)

Signature Guaranteed:___________________________________________________________
                     Participant in a recognized Signature Guarantee Medallion
                     Program (or other signature guarantor program acceptable to
                     the Trustee)

                                      H-1

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