TOWN & COUNTRY CORPORATION,
                                    as Issuer

                                       AND

                    TOWN & COUNTRY FINE JEWELRY GROUP, INC.,
                L.G. BALFOUR COMPANY, INC. and GOLD LANCE, INC.,
                                  as Guarantors

                                       AND

            FLEET NATIONAL BANK (as successor to Shawmut Bank, N.A.),
                                   as Trustee

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

                          THIRD SUPPLEMENTAL INDENTURE

                            Dated as of March 4, 1997

                                       to

                                    INDENTURE

                            Dated as of May 14, 1993

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

                                   $30,000,000

               11-1/2% Senior Secured Notes Due September 15, 1997


<PAGE>


                          THIRD SUPPLEMENTAL INDENTURE


     THIRD SUPPLEMENTAL INDENTURE dated as of March 4, 1997, by and among
TOWN & COUNTRY CORPORATION, a Massachusetts corporation (the "Issuer"),
FLEET NATIONAL BANK (as successor to Shawmut Bank, N.A.), a national banking
association, as Trustee (the "Trustee"), and TOWN & COUNTRY FINE JEWELRY
GROUP, INC., L.G. BALFOUR COMPANY, INC. and GOLD LANCE, INC. (the
"Guarantors").

     WHEREAS, all capitalized terms used in this Third Supplemental Indenture
have the respective meanings set forth in the Indenture; and

     WHEREAS, the Issuer, the Guarantors and the Trustee entered into that
certain Indenture dated as of May 14, 1993 (as amended by the First Supplemental
Indenture dated as of August 31, 1993 and the Second Supplemental Indenture
dated as of November 13, 1996, the "Indenture"), which authorized the issuance
of $30,000,000 11-1/2% Senior Secured Notes due September 15, 1997 (the
"Securities");

     WHEREAS, Section 9.02 of the Indenture provides, among other things, that
the Issuer, the Trustee and the Guarantors may amend the Indenture as provided
herein with the written consent of the Holders of at least a majority in
principal amount of the outstanding Securities; and

     WHEREAS, all acts and proceedings required by law, the Indenture, the
articles of organization and the by-laws of the Issuer and the Guarantors to
authorize, approve and constitute this Third Supplemental Indenture as a valid
and binding agreement for the uses and purposes set forth herein, in accordance
with its terms, have been done and taken, and the execution and delivery of this
Third Supplemental Indenture have in all respects been duly authorized by the
Issuer and the Guarantors.

     NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the Issuer,
the Guarantors and the Trustee hereby agree as follows:

     (1) Section 4.10(b) of the Indenture is hereby amended by adding the
following paragraph (6):

     "(6) the Company or any such Subsidiary from purchasing, redeeming or
     otherwise acquiring or retiring for value, in one or more related or
     unrelated transactions in compliance with applicable rules and regulations
     of the Thailand Stock Exchange, Capital Stock of Essex International
     Company Limited that the Company and its Subsidiaries do not own so long as
     the aggregate cash


<PAGE>

     consideration paid by the Company and its Subsidiaries in connection with
     such purchase, redemption, acquisition or retirement does not exceed $3.5
     million.

     (2) The Trustee accepts the amendment of the Indenture effected by this
Third Supplemental Indenture. Without limiting the generality of the foregoing,
the Trustee has no responsibility for the correctness of the recitals of fact
herein contained which shall be taken as the statements of the Issuer and the
Guarantors.

     (3) This Third Supplemental Indenture shall become valid, binding and
effective upon its execution by the Issuer, the Guarantors and the Trustee.

     (4) Except as expressly amended hereby, the Indenture is in all respects
ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect.

     (5) This Third Supplemental Indenture shall form a part of the Indenture
for all purposes, and every Holder of Securities heretofore or hereafter
authenticated and delivered shall be bound hereby.

     (6) This Third Supplemental Indenture may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
and all of such counterparts shall together constitute one and the same
instrument.

     (7) The laws of The Commonwealth of Massachusetts shall govern this Third
Supplemental Indenture without regard to principles of conflicts of law.

     (8) Nothing contained in this Third Supplemental Indenture shall operate as
a waiver or release of any right, remedy, claim or privilege against the
Company, the Guarantors or any other person as to matters not specifically
addressed by this Third Supplemental Indenture, and all such rights, remedies,
claims and privileges are hereby expressly preserved.

                          [End of Text]

                                       2

<PAGE>


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

                                   TOWN & COUNTRY CORPORATION


                                   By:       /s/ William Schawbel
                                             _____________________________
                                   Name:     William Schawbel
                                   Title:    Interim President


                                   TOWN & COUNTRY FINE JEWELRY GROUP, INC.


                                   By:      /s/ William Schawbel
                                             _____________________________

                                             Name:     William Schawbel
                                             Title:    Interim President

                                   L.G. BALFOUR COMPANY, INC.


                                   By:       /s/ William Schawbel
                                             _____________________________

                                             Name:     William Schawbel
                                             Title:    Interim President

                                   GOLD LANCE, INC.


                                   By:       /s/ Richard E. Floor
                                             _____________________________

                                             Name:     Richard E. Floor
                                             Title:    Clerk

                                   BANKERS TRUST COMPANY, as
                                   Trustee


                                   By:       /s/ Terrence Rawlins
                                             _____________________________

                                             Name:     Terrence Rawlins
                                             Title:    Assistant Treasurer