Document:

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                                                                  Exhibit 10.21

                PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED
                PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
                AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION.
                SUCH PORTIONS ARE INDICATED HEREIN BY "****".

                          [SEBEL BUSINESS LETTERHEAD]

                              Siebel Systems, Inc.
                   Value Added Industry Remarketer Agreement

                    VALUE ADDED INDUSTRY REMARKETER AGREEMENT

THIS VALUE ADDED INDUSTRY REMARKETER AGREEMENT (the "Agreement") is between
SIEBEL SYSTEMS, INC., with its principal place of business at 1855 South Grant
Street, San Mateo, CA 94402 ("Siebel"), and IMS HEALTH STRATEGIC TECHNOLOGIES,
INC. ("ST" or "Distributor"), with its principal place of business at 3445
Peachtree Road, N.E., Suite 1400, Atlanta, GA 30326.

1.   DEFINITIONS

1.1  "AFFILIATE" shall mean any corporation, company or other entity controlled
by, controlling, or under common control with ST, but limited to those business
units under the management control of ST. Such entity shall be deemed to be an
"Affiliate" only so long as such control exists. Upon request, ST agrees to
confirm the Affiliate status of a particular entity.

1.2  "ANCILLARY PROGRAMS" shall mean the third party software delivered with the
Licensed Software as specified in EXHIBIT A, an Order Form, or the
Documentation.

1.3  "CUSTOMER" or "END USER" means an entity to whom ST or the ST Group
provides a valid license to use the Licensed Software in accordance with the
terms of this Agreement for such entity's internal business purposes in
accordance with the End User License Agreement, and not for redistribution or
resale. It is understood that neither ST its Affiliates, the ST Group, nor any
corporation, company or other entity controlled by, controlling, or under common
control with any member of the ST Group shall be a Customer or an End User as
such terms are defined in this Agreement.

1.4  "DOCUMENTATION" shall mean Siebel's then current on-line help, guides, and
manuals published by Siebel and made generally available by Siebel for the
Licensed Software, excluding end user documentation in electronic form that is
made generally available by Siebel free of charge. In the event that Siebel
begins to charge a fee for such end user documentation in electronic form, the
parties will agree upon a reasonable revenue share for the distribution of such
materials. As of the Effective Date, the Documentation to be provided by Siebel
to ST is described in EXHIBIT C.

1.5  "EFFECTIVE DATE" shall mean the effective date set forth at the end of this
Agreement.

1.6  "END USER LICENSE AGREEMENT" shall mean ST's standard license agreement
pursuant to which ST or the ST Group licenses the Licensed Software to End Users
which includes the minimum terms and conditions set forth in EXHIBIT F. It is
understood and agreed that the form agreement set forth in EXHIBIT J includes
such minimum terms and conditions.

1.7  "FIRST-LINE SUPPORT" shall mean direct technical support of Licensed
Software provided to Users, as set forth in Section 3.4(a).

1.8  "LICENSED SOFTWARE" or "PROGRAMS" means the object code form of the
software programs listed on EXHIBIT A attached hereto excluding the Ancillary
Programs listed on EXHIBIT A plus any other programs that Siebel in its sole
discretion authorizes ST to distribute in accordance with this Agreement.

1.9  "LICENSE TERM" means the period commencing on the Effective Date and
continuing for the duration of the Initial Term as set forth in EXHIBIT A plus
any additional terms agreed upon by the parties pursuant to Section 12.1, unless
earlier terminated as set forth in Section 12.

1.10 "MARKETING MATERIALS" means Siebel's standard brochures, data sheets,
collateral, magazines, article reprints, industry analyst reports, videotapes,
books and other marketing materials that Siebel, in its discretion, makes
available to ST to assist in its marketing and promotion of the Licensed
Software.

1.11 "MAINTENANCE FEES" means the maintenance fees set forth in EXHIBIT A due
and payable to Siebel for the Third-Line Support provided by Siebel.

1.12 "MAINTENANCE AND SUPPORT SERVICES" shall mean the services set forth in
Section 3.4.

1.13 "ORDER FORM" shall mean the schedule or other document, which substantively
contains all the material terms in the sample order form set forth in EXHIBIT G,
that specifies the Licensed Software licensed to a particular Customer by ST or
a member of the ST Group as may be modified by Siebel in its sole discretion
from time to time, subject to applicable law.

1.14 "PRE-PRODUCTION PROGRAM" shall mean a software program which is (i) not
generally licensed for commercial use by Siebel, (ii) not listed as generally
available in Siebel's marketing literature, or (iii) designated by Siebel as an
"Alpha," "Beta," or "Pre-Production" program or release.

1.15 "SECOND-LINE SUPPORT" shall mean direct technical support of Licensed
Software provided to Customers, as set forth in Section 3.4(b).

1.16 "SOLUTION" or "JOINT OFFERING" means the Licensed Software integrated with
the Value Added Offering integrated as provided in Section 3.1.

1.16A "ST GROUP" shall mean any Affiliate or any third party reseller of ST
listed in EXHIBIT I provided that any Affiliate (a) is not a direct competitor
of Siebel, and (b) agrees in writing to be bound by the terms of this Agreement;
and provided further that any third party reseller must be approved in advance
by Siebel. It is understood and agreed that Siebel will promptly approve any
such third party reseller to be a member of the ST Group, such approval not to
be unreasonably withheld or delayed, provided that such entity (i) is not a
direct competitor of Siebel and (ii) agrees to be bound by all applicable terms
and conditions set forth herein. Siebel shall be deemed to have approved a third
party reseller in the event Siebel fails to reject such reseller by delivery of
written notice to ST within ten (10) business days from Siebel's receipt of ST's
request, provided that such reseller satisfies the terms of (i) and (ii) in the
preceding sentence.

1.17 "SUBLICENSE FEE" means the sublicense fee set forth in EXHIBIT A due and
payable to Siebel for each license of the Licensed Software to a Customer.

1.18 "SUPPORTED PLATFORM" shall mean the hardware and software platforms
(e.g., database server systems, application server systems, and client
systems) that are supported by Siebel as expressly set forth in the
Documentation. The requirements for the Supported Platform are subject to
change as specified by Siebel in its discretion with ninety (90) days prior
written notice to Customer and ST.

1.18A "TECHNICAL SERVICES" shall mean professional services other than
Maintenance and Support Services.

1.19 "TERRITORY" shall be the geographic area described in EXHIBIT A.

1.20 "THIRD-LINE SUPPORT" shall mean technical support of Licensed Software, as
set forth in Section 3.4(c).

1.21 "TRAINING MATERIALS" shall mean the standard generally available Siebel
training materials, as set forth in Technical Services schedule in effect at the
time such training materials are ordered by ST.

1.22 "UPDATE" means an updated or enhanced version of any of the software
programs listed on EXHIBIT A, in object code format, that is generally released
by Siebel, in its discretion, to its distributors and customers. Updates shall
not include any release, option, future product, or any upgrade in features,
functionality or performance of the Licensed Software which Siebel licenses
separately or offers only for an additional fee; provided, however, that, as
long as Customer is current on Maintenance fee obligations, Updates shall
include all (i) bug fixes, patches, and maintenance releases, (ii) new point
releases denoted by a change to the right of the first decimal point (e.g., v3.0
to 3.1), and (iii) new major version releases denoted by a change to the left of
the first decimal point (e.g., v3.0 to 4.0).

1.23 "USER" shall mean the named or specified (by password or other user
identification) individuals authorized by Customer to use Licensed Software,
regardless of whether the individual is actively using the Licensed Software at
any given time. The maximum number of Users that may use the Licensed Software
shall be specified in an Order Form. Users may include the employees of Customer
or third parties, provided that such third party is limited to use of the
Licensed Software (i) only as configured and deployed by Customer, and (ii)
solely in connection with Customer's business operations as conducted by or
through such third party, including but not limited to the installation,
administration or implementation of the Licensed Software for Customer. ST
agrees that it is responsible for ensuring that any third party usage is
authorized by Customer in accordance with the terms and conditions of this
Agreement. Notwithstanding the foregoing, Users shall exclude any individuals
employed by, or acting on behalf or under the direction or control of, any
entity listed in EXHIBIT E hereto.

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1.24 "VALUE ADDED OFFERING" means the hardware, software, and/or services, as
described in EXHIBIT A, that ST provides to Customers in connection with the
Licensed Software.

1.25 ADDITIONAL DEFINITIONS. The following additional definitions apply to
this Agreement:

     (a) "Cornerstone" and "Premiere" mean the products and services marketed
and licensed by ST and the ST Group under those names as modified from time
to time.

     (b) "Life Sciences Industries" means the pharmaceutical, biotechnology,
medical diagnostics and medical/surgical supply industries.

     (c) "Net License Fees" means the license fees due and payable by the
Customer to ST or a member of the ST Group.

2.   GRANT OF RIGHTS

2.1  LICENSE GRANT. Subject to the terms and conditions of this Agreement,
Siebel hereby appoints ST as a distributor of the Licensed Software and grants
to ST and the ST Group the following non-transferable rights, all of which may
be exercised only by ST or the ST Group in the Territory and during the License
Term. This appointment shall be on a non-exclusive basis, except as expressly
set forth in Section 9 of EXHIBIT A hereto. These rights may not be sublicensed
except as expressly permitted in this Section 2.1.

     (a) To reproduce, exactly as provided by Siebel, object code copies of the
Licensed Software and Ancillary Programs or portions thereof solely to exercise
the rights granted in this Section 2.1;

     (b) To distribute and sublicense to Customers the right to use the Licensed
Software, Updates and Ancillary Programs or portions thereof on a perpetual
license basis only in accordance with the terms of the End User License
Agreement, subject to the restrictions in Section 5;

     (c) To use the Licensed Software and Ancillary Programs for the sole
purposes of operating the Licensed Software to (i) test and evaluate the
Licensed Software, (ii) train ST's or the ST Group's personnel in the marketing
and sales of the Licensed Software, (iii) demonstrate and promote the Licensed
Software to potential Customers, and (iv) provide First-Line Support and
Second-Line Support to Customers by using the License Software in a test
environment to (1) diagnose reported problems or performance deficiencies of the
Licensed Software, and (2) resolve such problems or deficiencies.
Notwithstanding the foregoing, ST may (i) not use the Licensed Software
internally in a production capacity to run any of its business operations
including the sales and customer service activities associated with its End User
Customers, or (ii) use the Siebel Tools Programs set forth in EXHIBIT A solely
in accordance with the Documentation for the limited purpose of configuring the
Licensed Software for distribution with the Value Added Offering and not for
general application development purposes. Notwithstanding the foregoing, ST may
prepare object definitions contained in the Siebel object repository of the
Licensed Software solely by using the Siebel Tools Programs ("Customer Object
Definitions"); provided that (i) ST may not modify any portion of the Licensed
Software; (ii) ST shall retain all title, copyright and any other rights in and
to any Customer Object Definitions, provided however that ST may use the
Customer Object Definitions solely to support Customers in conjunction with
Customer's use of the Licensed Software; (iii) any Customer Object Definitions
shall be licensed by ST under the same terms as the Licensed Software; (iv)
Siebel may not use or license the Customer Object Definitions during the License
Term unless Siebel independently develops the same or similar object definitions
without use of or reference to the Customer Object Definitions; (v) ST shall
distribute Customer Object Definitions in accordance with this Agreement only if
Customer Object Definitions are used solely in conjunction with the Licensed
Software and ST does not separate any Customer Object Definitions from the
Licensed Software in any manner; and (vi) ST's license to the Siebel Tools
Programs shall be perpetual provided that ST shall only use the Siebel Tools
Programs to support Customers in conjunction with their use of the Licensed
Software. It is further understood and agreed that ST must provide a license to
use the Siebel Tools Programs to all Customers;

     (d) To distribute to Customers, exactly as provided by Siebel, any
Documentation, Training Materials and Marketing Materials provided by Siebel,
subject to the payment of fees set forth in Section 6.2. ST shall not reproduce
the Documentation, Training Materials, or Marketing Materials for any purpose,
except as expressly set forth in Section 2.1(e); and

     (e) To create, reproduce and distribute to Customers translations of the
Documentation; provided, that notwithstanding any provision to the contrary in
this Agreement: (i) ST shall have sole responsibility for the accuracy of such
translations and shall indemnify and hold Siebel harmless against any claim
resulting from such translations to the extent that the translation deviates
from the original document and the claim arises from or is related to such
deviation, and (ii) Siebel does not and shall not warrant or represent that such
translation shall be suitable for any purpose and the warranty for Documentation
as set forth in this Agreement shall not apply to such translations to the
extent that the translation deviates from the original document.

2.2  END USER LICENSE AGREEMENT. ST or a member of the ST Group shall enter into
a written End User License Agreement with each Customer to whom ST or such
member of the ST Group grants any rights to use Licensed Software or Ancillary
Programs. Each End User License Agreement shall (i) contain the minimum terms
attached hereto as EXHIBIT F and (ii) be at least as protective of Siebel's
rights and interests as the terms of EXHIBIT F. Each End User License Agreement
shall specify the maximum number of Users permitted to use the Licensed Software
and Ancillary Programs. ST shall ensure that Customer does not exceed the
maximum number of Users set forth in the End User License Agreement.

2.3  SOURCE CODE ESCROW. ST, members of the ST Group or Customers shall have the
right to become a beneficiary to the Master Preferred Escrow Agreement between
Siebel and Data Securities International, Inc., a copy of which will be provided
to ST, members of the ST Group or Customers upon request and which will be
incorporated by reference into this Agreement when ST, such members of the ST
Group or Customers, as the case may be, execute an Acceptance Form pursuant to
the Master Preferred Escrow Agreement. All rights and licenses granted under or
pursuant to this Agreement are and shall otherwise be deemed to be, for purposes
of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to
"intellectual property" as defined under section 101(56) of the U.S. Bankruptcy
Code. Copies of the Licensed Software (as well as Updates thereto) shall be
deposited by Siebel in source code form in accordance with the terms of the
Master Preferred Escrow Agreement.

3.   ST OBLIGATIONS

3.1  ST'S VALUE ADDED OFFERING. Notwithstanding anything to the contrary in this
Agreement, ST and Siebel understand and agree that during the License Term, ST
and members of the ST Group shall distribute the Licensed Software to Customers
only in conjunction and concurrently with a Value Added Offering and not on a
standalone basis; provided, however, that this requirement shall not apply to
ST's distribution of Updates to the Licensed Software to an existing Customer
who has licensed the Licensed Software in connection with the Value Added
Offering. The Value Added Offering shall materially differentiate the Solution
from the Licensed Software; provided, however, that nothing contained in this
Section or in this Agreement shall in any way limit or restrict the freedom of
ST or a member of the ST Group to determine the resale price for the Solution as
set forth in Section 3.2. It is understood and agreed that incorporating the ST
products or services as part of the Solution materially differentiates the
Solution from the Value Added Offering.

3.2  ST'S PRICING OF THE SOLUTION. ST shall be free to determine list pricing
and any volume or other applicable discounts for the Solution.

3.3  INSTALLATION AND TRAINING SERVICES. ST shall be responsible for conducting
all activities required to install the Licensed Software at its Customers'
locations and may be responsible for providing training to such Customers and
any system integrators involved in such installation. All such activities shall
be conducted with a high level of professionalism and quality. It is understood
that ST is not permitted to provide such training unless and until ST and an
authorized representative of Siebel agree on the terms under which ST will
provide such training. At ST's request, Siebel shall provide to ST the
Documentation and Training Materials at Siebel's list prices in effect as of the
date such Documentation and Training Materials are ordered, less a discount of
ten percent (10%).

3.4  MAINTENANCE AND SUPPORT SERVICES. ST shall provide Maintenance and Support
Services to all of its Customers of Licensed Software as set forth in Sections
3.4(a) and 3.4(b) below. ST may require Customers to provide their own
First-Line Support; however, in no event shall Siebel be responsible for
First-Line or Second-Line Support. Subject to ST's payment of the Maintenance
Fees set forth in EXHIBIT A, Siebel shall provide Third-Line Support to ST in
accordance with Siebel's then current Maintenance and Support Services Policy
but not materially less than those set forth in EXHIBIT B. ST shall be
responsible for all support related to the Value Added Offering.

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     (a) FIRST-LINE SUPPORT. ST and each member of the ST Group shall either (1)
provide First-Line Support to all of its Customers of the Licensed Software or
(2) inform its Customers that they must provide their own First-Line Support.
First-Line Support means direct technical support of Licensed Software,
including but not limited to (a) a direct response to Customer and User
inquiries concerning the performance, functionality or operation of the Licensed
Software, (b) a direct response to reported problems or performance deficiencies
with the Licensed Software, (c) a diagnosis of problems or performance
deficiencies of the Licensed Software, and (d) a resolution of problems or
performance deficiencies of the Licensed Software. First Line Support includes
the support described as "First Line Support" in EXHIBIT B. First-Line Support
shall include the provision of telephone and other appropriate contact points so
that Customers may contact ST or a member of the ST Group regarding technical
and support questions and other problems regarding use of the Licensed Software.
ST or the ST Group shall inform Customers that if, after using its reasonable
commercial efforts, the Customer is not able to answer a support question or to
correct a reported problem in the Licensed Software, the Customer may contact ST
or a member of the ST Group for Second-Line Support, as provided below.

     (b) SECOND-LINE SUPPORT. ST or a member of the ST Group will offer second
line support ("Second-Line Support") to Customers in the form of web-based and
telephone and other support at least at the level of Second Line Support
described in Siebel's then current Maintenance and Support Services Policy. A
copy of Siebel's Maintenance and Support Services Policy as of the date of this
Agreement is set forth in EXHIBIT B. Siebel reserves the right to alter such
policies from time to time, in its reasonable discretion, on ninety (90) days'
prior notice to ST, subject to ST's approval, which shall not be unreasonably
withheld. ST and each member of the ST Group are hereby authorized to distribute
to their respective Customers, as a part of Second-Line Support, any and all
Updates that Siebel provides ST.

     (c) THIRD-LINE SUPPORT. In consideration for the payment of Siebel
Maintenance Fees set forth in EXHIBIT A, Siebel shall provide ST and members of
the ST Group third line support ("Third-Line Support") for the Licensed Software
in accordance with Siebel's then current Maintenance and Support Services
Policy. This shall include web-based and telephone support to respond to
questions that are due solely to the failure of the Licensed Software to perform
in any material respect the functions described in the Documentation when
operated on a Supported Platform. Before requesting Third-Line Support, ST or a
member of the ST Group shall use reasonable commercial efforts to resolve
support questions and to correct reported problems in the Licensed Software and
to ensure that the issue is not related to any other part of the Solution. If ST
or a member of the ST Group requests Siebel to provide services at a customer
site, at ST, or at the site of a member of the ST Group, ST agrees to pay Siebel
for such services in accordance with Siebel's list prices for such services as
of the date such services are delivered and accepted by ST, such acceptance not
to be unreasonably withheld or delayed, and to reimburse Siebel for all its
out-of-pocket expenses, including travel and accommodations, in providing such
services. In the event that Siebel does not meet its obligations under this
Agreement with respect to such services or (i) an acceptable workaround for a
Severity 1 error/issue is not found within forty-eight (48) hours from when it
was first reported to Siebel, or (ii) an acceptable workaround for a Severity 2
error/issue is not found within five business days from when it was first
reported to Siebel, then the error/issue will be escalated to the respective
members of senior management of each party (i.e., a Vice President or more
senior person) responsible for the maintenance of the Licensed Software, and
such persons shall agree upon a plan for resolving such error/issue. Siebel
shall use reasonably commercial efforts to promptly implement any such plan in
accordance with its terms.

3.5  SIEBEL CERTIFICATION OF ST TECHNICAL SUPPORT STAFF. ST shall hire and
maintain sufficient technical support personnel as are needed to support the
Licensed Software and achieve the Customer satisfaction levels required under
Section 3.7. ST agrees to hire and maintain at all times during the term of this
Agreement, at a minimum, two technical support engineers who have successfully
completed the following Siebel training certification ("Siebel Certification
Training"): (i) the Siebel training program as described in Siebel's then
current program description, (ii) the required competency testing, and (iii) one
week of additional training with Siebel technical support engineers at the
Siebel support center designated by Siebel. ST will be responsible for all
training fees and costs associated with obtaining Siebel Certification Training.
ST's support staff must be fluent in English.

3.6  ST MAINTENANCE REPORTING REQUIREMENTS. ST will maintain proper records of
Maintenance and Support Services provided to Customers. Siebel may audit any
such records to verify ST's performance of its support obligations. On a monthly
basis, to the extent permitted by applicable law, ST will provide Siebel a
report to Siebel containing the following new customer information: (i) Customer
name, (ii) Customer hardware and software configurations, (iii) Customer support
contact names, (iv) Customer support contact information, including address,
telephone number, and email address, and (v) term of Customer's Maintenance and
Support Services Agreement. Within thirty (30) days of the end of each quarter,
ST shall provide Siebel a report in a form specified by Siebel showing in detail
(i) the number of support calls received during such quarterly period with the
associated severity level, (ii) the overall average response time by severity
level for such support calls, (iii) the overall average resolution time by
severity level for such support calls; and (iv) other information reasonably
requested by Siebel.

3.7  CUSTOMER SATISFACTION REQUIREMENT. Siebel may, at its discretion and only
through ST or a third party, survey Customers to determine the level of Customer
satisfaction with the Licensed Software and the Maintenance and Support Services
and other services provided by ST. It is understood and agreed that Siebel will
provide ST in advance the questions contained in such surveys and ST will
designate the appropriate contacts at the Customers for such surveys. If the
results of the survey indicate a level of dissatisfaction with ST's Customers
(e.g., a gap of more than 2 on a 10 point scale in any surveyed category where
the gap represents the difference between the importance level to the customer
and customer's satisfaction), then (i) Siebel will notify ST, and (ii) the
parties will work together to develop an improvement plan for both parties to
improve Customer satisfaction. The parties shall use commercially reasonable
means to implement such improvement plan in accordance with its terms.

3.8  SIEBEL TECHNICAL SERVICES. Siebel shall provide Technical Services to ST,
subject to availability, as agreed to from time to time by the parties, in
accordance with Siebel's Technical Services schedule in effect at the time such
services are ordered (available upon request) less a discount of ten percent
(10%). ST shall pay Siebel's reasonable and actual out-of-pocket expenses
associated with Siebel's delivery of Technical Services less a discount of ten
percent (10%).

3.9  CUSTOMER VISITS. Siebel may visit ST's or a member of the ST Group's
Customers from time to time upon reasonable advance notice to ST and with such
Customer's approval, to stay abreast of customer requirements and to evaluate
features for potential future products. ST agrees to provide Siebel reasonable
assistance in arranging such visits with such Customers. The parties agree that
within thirty (30) days after the Effective Date, Siebel and ST will develop
mutually acceptable rules of engagement for such customer visits; provided,
however, that Siebel shall refrain from making any such visits after the
Effective Date until such rules have been agreed upon in writing. Siebel and ST
shall use commercially reasonable efforts to abide by such rules of engagement.

3.10 ST WARRANTIES. ST represents and warrants that as of the Effective Date and
continuing throughout the License Term:

     (a) ST will, on its own and through members of the ST Group, maintain the
facilities, resources and experienced personnel necessary to market and
distribute Licensed Software and to perform the necessary installation, training
and maintenance services related to such Licensed Software and otherwise to
fulfill its obligations under this Agreement;

     (b) ST is not precluded by any existing arrangement, contractual or
otherwise, from entering into this Agreement and performing hereunder;

     (c) ST will make no representations or warranties related to the Licensed
Software in excess of Siebel's representations or warranties contained in
Section 10 of this Agreement;

     (d) ST has not relied on any promises or representations other than those
promises or representations expressly made in writing in this Agreement, or in
the Siebel Alliance Program Master Agreement or the Software License and
Services Agreement entered into contemporaneously herewith;

     (e) If ST becomes aware of any actual or suspected unauthorized use,
copying or disclosure of the Licensed Software or Ancillary Programs, ST will
promptly notify Siebel and will assist Siebel, at Siebel's expense and request,
in the investigation and prosecution of such unauthorized use, copying or
disclosure; and

     (f) ST has the full right, power and authority to enter into this Agreement
and to carry out its obligations hereunder, and there are no impediments known
to ST that would prevent ST compliance with all the terms of this Agreement.

3.11 ST INDEMNITY. Subject to the limitation of liability set forth in Section
11, ST will indemnify Siebel for, and hold Siebel harmless from, any loss,
expense, damages, claims, demands, or liability arising from any claim, suit,
action or

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demand resulting from: (a) the negligence, error, omission or willful misconduct
of ST or its representatives; (b) the breach of any terms of this Agreement; (c)
the use of the Licensed Software and Ancillary Programs by any Customer of ST
except for claims which arise directly from or relate directly to breaches of
Siebel's obligations under this Agreement or fall within Siebel's
indemnification obligations under this Agreement, including but not limited to
Siebel's warranties with respect to the Licensed Software; or (d) any claim
related to the Value Added Offering.

3.11A SIEBEL INDEMNITY. Subject to the limitation of liability set forth in
Section 11 (`Limitation of Liability") and any exclusive remedies expressly set
forth in this Agreement, Siebel will indemnify ST for, and hold ST harmless
from, any loss, expense, attorney's fees, damages, claims, demands, or liability
arising from any claim, settlement, suit, action or demand resulting from: (a)
material breach of Section 10 ("Siebel Warranties") or 13.1 ("Nondisclosure");
or (b) the use of the Licensed Software and Ancillary Programs by any Customer
of ST to the extent such claims arise directly from or relate directly to
breaches of Siebel's obligations under this Agreement or fall within Siebel's
indemnification obligations under this Agreement, including but not limited to
Siebel's warranties with respect to the Licensed Software.

3.12 MARKETING AND SALES EFFORTS. ST shall use reasonable efforts to promote and
market the Licensed Software to Customers and potential Customers in order to
maximize the licensing and distribution of the Licensed Software to Customers.
Such marketing efforts shall include, but not be limited to the following:
preparation and presentation of an annual Marketing and Sales Plan. Such annual
Marketing and Sales Plan shall be presented to Siebel within 30 days from the
Effective Date (and each year thereafter on the anniversary date of the
Effective Date); provided, however, that ST shall have no obligation to share
any marketing or sales plans with Siebel during the Wind Down Period;
establishment of a marketing and sales force to promote and distribute the
Licensed Software; advertising the Licensed Software in a commercially
appropriate and reasonable manner; and promoting the Licensed Software at
seminars, trade shows and conferences. ST agrees further that its marketing and
advertising efforts with respect to the Licensed Software will be of a high
quality and shall endeavor to preserve the professional image and reputation of
Siebel and the Licensed Software. Within ninety (90) calendar days from the
Effective Date, ST agrees to appoint and train, to the reasonable satisfaction
of Siebel, sufficient sales persons and/or technical support consultants as are
needed to satisfy ST's obligation to use its reasonable efforts to market and
sell the Licensed Software. ST agrees that its staff shall achieve a level of
competence in the Licensed Software and will participate in applicable
certification programs that Siebel may establish. Each party shall appoint a
channel manager to manage the relationship described in this Agreement and to
assist in addressing issues that may arise. Each party shall use reasonable
efforts to provide the other party with qualified leads related to the products
and services distributed by the other party. It is understood and agreed that
the provisions of this Section 3.12 shall apply except as otherwise set forth in
EXHIBIT A hereto or in a business plan agreed to by the parties. Notwithstanding
any of the foregoing to the contrary, the obligations of the parties pursuant to
this Section 3.12 shall be suspended during the Wind Down Period except for
those obligations relating to advertising and the appointment of a channel
manager.

3.13 POLICY CHANGES. From time to time Siebel may institute new or revised
policies and procedures (i) regarding the distribution and licensing of the
Licensed Software Updates, Documentation and Ancillary Programs (e.g., technical
measures to reduce piracy, order processing), and (ii) to ensure Siebel's
intellectual property rights and other rights (e.g., right to receive timely
payment, right to ensure appropriate levels of end user customer satisfaction)
are fully protected. Siebel will provide written notice of such policies and
procedures to ST, and ST agrees to implement such policies and procedures upon
approval by ST, such approval not to be unreasonably withheld.

3.14 THIRD PARTY PERFORMANCE. ST agrees that none of its obligations under this
Agreement, including but not limited to its minimum order, payment, warranty and
indemnification obligations to Siebel, are conditioned in any way on any third
party's performance or nonperformance of its payment or other obligations to ST.

3.15 THIRD PARTY RESELLER OBLIGATIONS. Each third party reseller that is an
authorized member of the ST Group (excluding Affiliates) shall enter into a
written agreement confirming such member's agreement to (i) comply with all of
ST's obligations under this Agreement, and (ii) be jointly and severally liable
to Siebel for all obligations related to its exercise of the license rights or
receipt of Confidential Information under this Agreement, including but not
limited to the payment of Sublicense Fees for the Licensed Software. Such
written agreement is a condition for such third party reseller to exercise any
of the rights sublicensed by ST to such third party reseller. For avoidance of
doubt, it is understood that Affiliates that are members of the ST Group may
exercise all of the ST Group's rights under this Agreement without entering into
such separate written agreement.

3.16 AFFILIATE OBLIGATIONS. Each Affiliate that is an authorized member of the
ST Group shall comply with all of ST's obligations under this Agreement. ST
shall be jointly and severally liable to Siebel for any breaches of this
Agreement by such Affiliates.

4.   DELIVERY Within ten (10) days of the Effective Date, Siebel shall deliver
to ST master copies on diskette or CD-ROM of the Licensed Software and Ancillary
Programs. Siebel will promptly provide ST with master copies on diskette or
CD-ROM of any Updates Siebel makes available, and ST agrees that it will
incorporate such Updates into the Licensed Software which it provide to new
Customers promptly as possible, and in no event more than six (6) months after
ST's receipt of each such Update. From time to time during the License Term,
Siebel will, upon request and subject to availability, provide ST a reasonable
number of copies of Marketing Materials for distribution to potential customers.

5.   RESTRICTIONS REGARDING THE LICENSED SOFTWARE

5.1  LICENSE RESTRICTIONS. ST acknowledges that, except as explicitly stated
in this Agreement, the Agreement does not grant ST any right or license to
the Licensed Software or Ancillary Programs or any proprietary rights
therein, and no license or other rights shall be created by implication or
estoppel. In particular, but without limiting the generality of the
foregoing, no right or license in or to source code for the Licensed Software
or Ancillary Programs is granted hereunder. ST covenants that it shall not
(i) sublicense or otherwise permit access or use of the Licensed Software or
Ancillary Programs on a commercial time-sharing, lease, rental, or service
bureau basis; (ii) allow or otherwise permit access or use of the Programs or
Ancillary Programs on a commercial time-sharing, lease, rental, or service
bureau basis; or (iii) allow an End User to reassign or otherwise transfer
the Licensed Software to a third party; provided, however, that that End User
may assign the Licensed Software (and the End User License Agreement) in
connection with a merger, acquisition or sale of all or substantially all of
its assets unless the surviving entity is an entity listed in EXHIBIT E
hereto. ST covenants that it shall not prepare, and it shall not permit any
others to prepare, any derivative works of the Licensed Software or Ancillary
Programs, or otherwise modify or revise any materials received from Siebel.
ST covenants that it shall not use, reproduce, distribute or sell the
Licensed Software or Ancillary Programs in any manner or for any purpose
except as specifically permitted under this Agreement.

5.2  PROHIBITION ON DECOMPILING. ST acknowledges that the Licensed Software and
Ancillary Programs contain the valuable information of Siebel and its licensors,
and ST agrees not to cause or permit the modification, reverse engineering,
translation, disassembly, or decompilation of, or otherwise to attempt to derive
the source code of the Licensed Software or Ancillary Programs, whether in whole
or in part. If required under applicable law, upon Customer's request, Siebel
shall provide information necessary for Customer to achieve interoperability
between the Licensed Software and other software for a nominal administrative
charge.

5.3  PROPRIETARY NOTICES. In order to protect Siebel's and its licensors'
copyright and other ownership interests in the Licensed Software and Ancillary
Programs, ST agrees that as a condition of its rights hereunder, each copy of
the Licensed Software or Ancillary Programs reproduced by or on behalf of ST
shall contain the same proprietary notices on the media, within the code and on
the Documentation which appear on the media or within the code of the Licensed
Software or Ancillary Programs, or on the Documentation delivered by Siebel to
ST and as otherwise reasonably required by Siebel. ST will not remove or obscure
any proprietary notices from any Documentation, Training Materials, or Marketing
Materials provided by Siebel.

5.4  CHANNEL MANAGEMENT. Except as otherwise agreed to by the parties, ST and
Siebel will meet at least monthly to jointly review the list of qualified sales
opportunities that ST is pursuing to identify any potential sales channel
conflicts and determine the appropriate party to handle the sales opportunity.
In the event of a disagreement with respect to a particular sales opportunity,
the resolution of which party should be responsible for handling the sales
opportunity will be escalated within ST's and Siebel's respective organizations
for resolution after consideration of all relevant factors including the best
interests of the prospective customer and the resources previously allocated to
the sales opportunity by both parties. As soon as reasonably possible after
signature of this Agreement, the parties will meet to jointly establish
procedures for managing sales channel conflicts.

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5.5  RESERVED TERRITORY. Notwithstanding anything to the contrary contained in
this Agreement, Siebel retains the exclusive right to distribute the Licensed
Software to the companies listed in EXHIBIT E. If ST wishes to license,
distribute, show, or demonstrate the Licensed Software to any company listed on
EXHIBIT E, ST shall notify Siebel in writing and obtain Siebel's prior written
approval.

5.6  COMPETITIVE ACTIVITY. As a material and fundamental term of this Agreement
and in order to protect Siebel's trade secret and other confidential information
from inadvertent or inevitable misappropriation or disclosure, ST agrees that
neither it nor the ST Group will, directly or indirectly, design, specify,
develop, integrate, market, license, distribute or host as an application
service provider any products that are directly competitive with the Licensed
Software (collectively referred to as "Competitive Activity"). ST shall notify
Siebel of any Competitive Activity that any of ST's Affiliates that is not a
member of the ST Group engages in of which ST or the ST Group becomes aware.

Notwithstanding the foregoing, (i) ST may continue to provide additional
licenses, services and support to existing Cornerstone and Premiere customers,
provided that ST shall use commercially reasonable efforts to migrate such
customers to the Licensed Software; (ii) ST may market, license, distribute or
host to a new customer ST's products that are directly competitive with the
Licensed Software only if the Licensed Software does not support such customer's
platform or if such new customer requires ST to do so, provided that ST has used
commercially reasonable efforts to promote and market the Licensed Software to
such new customer; (iii) during the first six (6) months of this Agreement (the
"Initial Transition Period"), in the event that the Solution does not reasonably
satisfy a customer's requirements, ST may integrate, market, license, distribute
or host directly competitive ST software products to or for such Customer to
augment the Solution; (iv) during the Wind-Down Period (as defined in Section 2
of EXHIBIT A), ST may design and develop its own directly competitive products
and may integrate, market, license, distribute or host as an application service
provider such directly competitive products that it has designed or developed or
those of a third party; and (v) ST may create new technical releases of the
latest versions of its Cornerstone and Premiere software to correct errors and
maintain compatibility with required third party hardware and software, but not
to add new functionality.

In the event that a program within the Licensed Software is not competitive
on an overall basis with a product required by an actual or prospective
customer when considering all relevant factors, including but not limited to
market factors, features, functionality, performance, quality and supported
platforms, given due consideration for market demand regionally or globally
and cost, the parties will agree on an commercially reasonable enhancement
plan for such program.

In the event that the functionality of a Program is enhanced or altered
resulting in such Program becoming directly competitive with a product then
currently offered by ST which product (i) was not directly competitive to the
Program prior to the enhancement or alteration, and (ii) ST was not
restricted from offering prior to the enhancement or alteration, ST and the
ST Group may continue to offer such directly competitive product; provided
that neither ST nor any member of the ST Group shall have the right to
distribute or otherwise sublicense such Program without Siebel's approval,
such approval not to be unreasonably withheld.

ST hereby represents and warrants that no entity other than ST or the members
of the ST Group is authorized or will be authorized to distribute or
otherwise license ST's current product offerings.

6.   PAYMENT

6.1  SUBLICENSE FEES. For each license of all or any portion of the Licensed
Software distributed to, produced, deployed, made available to or otherwise used
by a Customer pursuant to an agreement or understanding with ST, ST shall pay
the Sublicense Fees set forth in EXHIBIT A. ST shall report any distribution,
reproduction or use of the Licensed Software by an Customer as set forth in
Section 6.5.

6.2  DOCUMENTATION AND TRAINING MATERIALS. For each copy of Documentation or
Training Materials provided to ST by Siebel, ST shall pay Siebel's list prices
in effect as of the date such Documentation and Training Materials are ordered,
less a discount of ten percent (10%). It is agreed that Siebel will provide to
ST ten (10) copies of technical Documentation free of charge, provided that such
copies are used solely by ST for development purposes.

6.3  ST MAINTENANCE FEES. ST shall pay Siebel the Siebel Maintenance Fees for
Third-Line Support set forth in EXHIBIT A. Such Maintenance Fees shall be
payable within thirty (30) days following the end of the month in which the
related Sublicense Fee accrued.

6.4  PAYMENT TERMS. Sublicense Fees are payable within sixty (60) days of the
end of each calendar month in which they accrued, accompanied by the report set
forth in Section 6.5. Except as otherwise provided in this Agreement, all fees
or other charges shall be payable thirty (30) days from receipt of the
applicable invoice.

6.5  REPORTS AND PAYMENTS. Unless otherwise agreed to by the parties, within
five (5) business days of the receipt at ST's headquarters of the completed
documentation of each Customer transaction, ST shall submit to Siebel for each
transaction a copy of the Order Form, the current version of which is set forth
at EXHIBIT G. Such document shall show in detail (i) the number of copies or
units of Licensed Software reproduced, distributed, deployed or otherwise used
by a Customer of ST during the previous month, (ii) the amount owing Siebel
therefor including the ST Sublicense Fees and ST Maintenance Fees, and (iii) the
names and locations of the Customers. Within thirty (30) days before the end of
each quarter, ST will use its reasonable efforts to provide Siebel a non-binding
forecast of Sublicense Fees and other fees to be due to Siebel for that quarter.

6.6  TAXES. The specified amounts listed in this Agreement do not include taxes,
duties or fees; if Siebel is required by the tax authorities to pay (i) sales,
use, property, value-added, or other taxes, (ii) any customs or other duties, or
(iii) any import, warehouse or other fees associated with the importation or
delivery of the Licensed Software, Documentation, or Training Materials or based
on the rights and licenses granted by Siebel to ST in this Agreement or on ST's
use of Licensed Software, Documentation or Training Materials or any services
provided by Siebel to ST hereunder, then such taxes, duties or fees shall be
billed to and paid by ST. If ST is permitted to declare any such taxes, ST shall
declare and pay such taxes and Siebel shall not be required to invoice ST. This
Section shall not apply to taxes based on Siebel's net income.

6.7  RECORDS AND INSPECTION RIGHTS. ST will keep and maintain proper records and
books of account relating to its distribution and sublicensing of Licensed
Software to Customers. Siebel may have a nationally recognized independent audit
firm reasonably acceptable to ST inspect and audit on its behalf, any such
records to verify ST's compliance with its payment obligations hereunder. Any
such inspection will be conducted during regular business hours, upon at least
fifteen (15) business days advance written notice (unless the parties agree
otherwise on a shorter period of time), at ST's offices in a manner that does
not unreasonably interfere with ST's business activities. The person or entity
conducting such audit must execute an appropriate confidentiality agreement with
respect to ST's non-public or proprietary information. Such inspection shall be
at Siebel's cost and expense, unless the inspection reveals that ST underpaid
the amount actually owing by ten percent (10%) or more, in which case ST shall
pay all reasonable costs and expenses, as evidenced by copies of relevant
receipts, incurred by Siebel. Such audits may be conducted no more than once in
any twelve (12) month period and shall not include within the scope of the audit
any period previously audited hereunder or any period more than fifteen months
from the start of the audit. The auditors shall limit the disclosure to Siebel
of information obtained from any audit to the following: (a) a description of
the scope of the audit, (b) the difference, if any, between the amount paid by
ST and the amount which, by the auditor's calculation(s), should have been paid,
and (c) a brief description of any transaction resulting in the variance
reflected in response to Section (b) above, if any. In the event that Siebel
wishes to inspect such books and records, ST will make all relevant records
available to such audit firm. ST shall use reasonable commercial efforts to
compel its Customers to permit Siebel through an independent, nationally
recognized audit firm to inspect the records of such Customer as provided in
this Section. ST shall owe simple interest at the rate of ten percent (10%) per
year on any past due balances (unless reasonably disputed) pursuant to this
Agreement.

7.   LIMITED RIGHT TO USE TRADEMARKS

7.1  GRANT OF LICENSE. Siebel hereby grants to ST and the ST Group under the
terms set forth in this Section 7, a non-exclusive license to use the trademarks
and trade names set forth in EXHIBIT D (the "Trademarks"), solely in connection
with the marketing, distribution and support of the Licensed Software and only
in the manner prescribed in this Agreement. ST agrees that it will use the
appropriate Trademarks to refer to the Licensed Software in connection with its
marketing, distribution and support of the Licensed Software. ST agrees that the
Licensed Software and any related services will be marketed under the Siebel
brand name and U.S. Trademarks on a worldwide basis. Any other proposed use of
the Trademarks must be approved in writing by Siebel in advance of such use.

7.2  FORM OF USE. ST shall only use the Trademarks in the form(s) approved in
writing by Siebel, including the -TM- symbol (and, upon registration of

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any registered trademark, the -Registered Trademark- symbol), and an indication
that Siebel is the owner of the Trademarks.

7.3  NO USE OF IDENTICAL OR SIMILAR NAMES. ST shall not use as its company name
or a component thereof or on other products a mark or name identical with or
confusingly similar to the Trademarks.

7.4  PRIOR SUBMISSION OF SAMPLES. ST shall submit to Siebel samples of
advertising or other items bearing the Trademarks prior to the use of such
advertising or other items. Siebel shall have the right to make reasonable
written objections to any such sample within fifteen (15) calendar days of its
submission on the grounds that Siebel believes in good faith that the use of
such advertising or other items by ST will be damaging to the recognition value
or reputation for quality associated with the Trademarks or that the advertising
or other items do not meet the standards of quality reasonably required by
Siebel. In the event of such an objection, ST shall modify the advertising or
other items in accordance with the objection of Siebel prior to the use of such
advertising or other items. Failure by Siebel to provide written objection
within the fifteen (15) day period referenced above shall be deemed a grant of
approval for use of the provided samples.

7.5  LOCAL REGISTRATION OF TRADEMARKS; NO OBJECTIONS TO VALIDITY. Siebel will,
in its sole discretion, retain the exclusive right to register the Trademarks.
ST agrees not to raise or cause to be raised any questions concerning or
objections to the validity of the Trademarks or to the respective rights of
Siebel.

7.6  NOTIFICATION OF ADVERSE USE. ST shall promptly notify Siebel of any adverse
use by a third party of any of the Trademarks or of a mark or name confusingly
similar to any of the Trademarks and agrees to take no action of any kind with
respect thereto except with the prior written authorization of Siebel. ST
further agrees to provide full cooperation at Siebel's reasonable expense with
any legal or equitable action by Siebel to protect its rights, title and
interest in the Trademarks.

7.7  INFRINGEMENT PROCEEDINGS. In the event of infringement of the Trademarks by
a third party, Siebel shall have the sole right to bring proceedings (including
notifications to the Customs Department objecting to the importation of
infringing goods) at its expense against the infringing party and to retain any
damages recovered in such proceedings. ST shall cooperate with Siebel in the
prosecution of any such infringement proceedings. ST shall promptly notify
Siebel in writing of any such proceeding and shall provide complete authority,
information and assistance to Siebel in connection with such proceeding. Siebel
shall have the sole and exclusive authority and obligation to defend and/or
settle any proceeding with respect to the Trademarks.

7.8  LOGO LICENSE RIGHTS. ST agrees to the terms of the Logo License Addendum
set forth in EXHIBIT H hereto as well as the terms of the Logo Usage Guidelines,
as such guidelines may be promulgated by Siebel from time to time in its sole
discretion ("Logo Usage Guidelines").

8.   OWNERSHIP AND PROPRIETARY RIGHTS

Siebel and its suppliers shall retain all title, copyright and other
proprietary rights in and to the Licensed Software. ST does not acquire any
rights, express or implied, in the Licensed Software, other than the sole and
exclusive property of Siebel, free from any restriction imposed upon Siebel
by the provisions of Section 13.1. Unless expressly agreed otherwise, ST and
its suppliers shall retain all title, copyright and other proprietary rights
in and to the software provided by ST as part of the Value Added Offering.

In the event Siebel requests ST to furnish Siebel with engineering or other
technical resources in connection with future development work for the
Licensed Software (above and beyond suggestions to Siebel regarding new
features, functionality or performance), ST's development role, compensation
and ownership rights, if any, for the provision of such services will be
addressed in a separate written agreement. In the event ST: (i) has
independently developed or acquired rights to products or other works which
it believes may be complementary to the Licensed Software, and (ii) desires
Siebel to evaluate the usefulness of such products or other works, the
parties shall enter into an evaluation and non-disclosure agreement before ST
makes any disclosures of proprietary or confidential information to Siebel in
connection with such products or other works.

9.   INDEMNIFICATION

9.1  INTELLECTUAL PROPERTY INFRINGEMENT. If a third party makes a claim against
ST, the ST Group or a Customer that the Licensed Software directly infringes any
registered patent or any copyright, trade secret or trademark ("IP Claim");
Siebel will defend ST, such member of the ST Group or such Customer against the
IP Claim and pay all costs, damages and expenses (including reasonable legal
fees) finally awarded against ST, such member of the ST Group or such Customer
by a court of competent jurisdiction or agreed to in a written settlement
agreement signed by Siebel arising out of such IP Claim; PROVIDED THAT: (i) ST,
such member of the ST Group or such Customer promptly notifies Siebel in writing
within a reasonable time period after its receipt of notification of a potential
claim; (ii) Siebel may assume sole control of the defense of such claim and all
related settlement negotiations; and (iii) ST, or such member of the ST Group
and such Customer provides Siebel, at Siebel's request and expense, with
reasonable assistance, information and authority necessary to perform Siebel's
obligations under this Section. Notwithstanding the foregoing, Siebel shall have
no liability for any claim of infringement based on (a) the use of a superseded
or altered release of Licensed Software if the infringement would have been
avoided by the use of a current unaltered release of the Licensed Software,
which Siebel provided to ST, (b) the modification of the Licensed Software, or
(c) the use of the Licensed Software other than in accordance with the
Documentation.

If, due to an IP Claim, (i) the Licensed Software is held by a court of
competent jurisdiction or are believed by Siebel to infringe, or (ii) ST
receives a valid court order enjoining ST from using the Licensed Software,
Siebel shall in its reasonable judgment, and at its expense, (a) replace or
modify the Licensed Software to be non-infringing; (b) obtain for ST and/or its
Customers a license to continue using the Licensed Software; or (c) if Siebel
through commercially reasonable efforts cannot obtain the remedies in (a) or
(b), terminate the license for the infringing Licensed Software and refund, upon
its return by ST and at ST's Election (as defined below), either two (2) times
the license fees paid to Siebel by ST for such Licensed Software or the license
fees paid to ST or the ST Group by Customers for such Licensed Software,
provided, however, that during the first year after the Effective Date only, in
the event that (i) the termination of the license for the infringing Licensed
Software would result in a loss of functionality that materially adversely
impacts ST's overall ability to distribute the Licensed Software and (ii) ST
immediately terminates this Agreement without the application of the Wind-Down
Period, Siebel will refund to ST the greater of (y) one and one-half (1.5) times
the license fees paid for such Licensed Software or (z) $10,000,000.This Section
9 states Siebel's entire liability and ST's exclusive remedy for any claim of
infringement. It is understood and agreed that (i) as used in this Section 9.1,
"ST's Election" means a one-time election by ST of the remedies set forth above,
and (ii) the remedy elected will apply to the claim of infringement at issue and
any subsequent claims of infringement.

9.2  MUTUAL INDEMNIFICATION. If a third party makes a claim against a party (the
"Indemnified Party") based on a breach by the other party (the "Indemnifying
Party") of its warranties as stated in Section 3.10 and Section 10, the
Indemnifying Party will defend the Indemnified Party against that claim at the
Indemnifying Party's expense and pay any finally awarded damages or amounts
agreed to in a written settlement agreement approved by the Indemnifying Party.
The obligation of the Indemnifying Party to defend the Indemnified Party against
a claim under this Section 9 is conditioned on performance of the following by
the Indemnified Party. The Indemnified Party must:

     (a)  promptly provide the Indemnifying Party with written notice for the
          claim;

     (b)  provide the Indemnifying Party reasonable assistance in the defense of
          the claim, at the Indemnifying Party's expense, and

     (c)  allow the Indemnifying Party to control and cooperate with it in the
          defense of the claim and settlement negotiations.

The Indemnified Party may participate in the proceedings at its option and
expense.

                                                                          Page 6
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10.  LIMITED WARRANTIES AND DISCLAIMERS

10.1 LIMITED PROGRAM WARRANTY. Siebel warrants for a period of one (1) year from
the date on which the copy of the Licensed Software is first delivered to a
Customer hereunder, that the unmodified version of the Licensed Software will
perform in all material respects the functions described in the Documentation
when operated on a Supported Platform. The parties agree and acknowledge that
the foregoing warranty only applies to Licensed Software first delivered to ST
or to a Customer and not to any Updates subsequently provided to ST or such
Customer. In the event of a breach of this warranty, ST's sole and exclusive
remedy and Siebel's sole liability shall be for Siebel to use its commercially
reasonable efforts to correct or provide a workaround for reproducible errors
that cause breach of this warranty, or if Siebel is unable to make the Licensed
Software operate as warranted within a reasonable period of time considering the
severity of the error and its impact on ST, ST shall be entitled to recover one
and one-half times the fees paid to Siebel for the applicable Licensed Software
as well as for fees for applicable Licensed Software, the functionality of which
is reasonably affected by the Licensed Software breaching this warranty.

10.2 LIMITED MEDIA WARRANTY. Siebel warrants that the tapes, diskettes or other
media upon which the master copy of the Licensed Software is delivered by Siebel
to those specified in this Agreement. In the event that ST makes suggestions to
Siebel regarding new features, functionality or performance that Siebel adopts
for the Licensed Software, such new features, functionality or performance shall
become ST to be free of defects in materials and workmanship under normal use
for one (1) year from the date of delivery by Siebel. In the event of a breach
of this warranty, ST's sole and exclusive remedy and Siebel's sole liability
shall be the replacement of the defective media, PROVIDED THAT ST shall acquire
an RMA number from Siebel before returning defective media to Siebel.

10.3 LIMITED SERVICES WARRANTY. Siebel warrants that any services contracted to
be performed by Siebel pursuant to this Agreement shall be performed in a
professional and workmanlike manner consistent with generally accepted industry
standards. This warranty shall be valid for one hundred twenty (120) days from
the date of invoice for such service. In the event of a breach of this warranty,
ST's sole and exclusive remedy and Siebel's sole liability shall be the
reperformance of the services, or if Siebel is unable to perform the services as
warranted, ST shall be entitled to recover the fees paid to Siebel for the
unsatisfactory services.

10.4 ANTI-VIRUS WARRANTY. Siebel represents and warrants that to the best of its
knowledge after employing reasonable technical means to detect computer viruses,
the Licensed Software does not contain any virus or other computer software
code, routines or hardware components (other than as set forth in the
Documentation) designed to disable, damage, impair, or erase the Licensed
Software or other software or data. In the event of a breach of this warranty,
ST's sole and exclusive remedy and Siebel's sole liability shall be to
immediately replace all copies of the affected Licensed Software, or if Siebel
is unable to make the Licensed Software operate as warranted within a reasonable
period of time considering the severity of the error and its impact on ST, ST
shall be entitled to recover one and one-half times the fees paid to Siebel for
the applicable Licensed Software.

10.5 ANCILLARY PROGRAM WARRANTIES. Siebel assigns to ST and ST shall have the
benefit of any and all third party warranties, service agreements and
infringement indemnities available to end users of the Ancillary Programs;
provided, however, that ST's sole remedy for breach of any such warranty,
indemnification, service agreement, or other rights and causes of action shall
be against the third party offering such rights and not against Siebel. Siebel
warrants the Ancillary Programs to the extent that Siebel will demand of the
manufacturer or distributor of the Ancillary Programs the delivery of a version
of the Ancillary Program free of material errors. Siebel will use commercially
reasonable efforts to ensure that the manufacturer or distributor of the
Ancillary Programs provides such a replacement version. Siebel is not obligated
to modify the Ancillary Programs. The foregoing states Siebel's entire liability
and ST's sole and exclusive remedy with respect to a breach of warranty
concerning the Ancillary Programs.

10.6 YEAR 2000 WARRANTY. Siebel warrants that the Licensed Software, as provided
by Siebel, is capable of processing, recording, storing and presenting data
containing four-digit years after December 31, 1999 in substantially the same
manner and with substantially the same functionality as before January 1, 2000.
Siebel assumes no responsibilities or obligations to cause third-party products
or services, including but not limited to the Value Added Offering, to function
with the Licensed Software. Siebel will not be in breach of this warranty for
any failure of the Licensed Software to correctly create or process date-related
data if such failure results from the inability of any software, hardware, or
systems of ST or Customer or any other third party (including any underlying
database engines, operating systems, and related drivers) either to correctly
create or process date-related data or to create or process such date-related
data in a manner consistent with the method in which the Licensed Software
create or process date-related data. In the event of a breach of this warranty,
ST's sole and exclusive remedy and Siebel's sole liability shall be to use its
commercially reasonable efforts to correct or provide a workaround for
reproducible errors in the Licensed Software that cause breach of this warranty,
or if Siebel is unable to make the Licensed Software operate as warranted within
a reasonable time considering the severity of the error and its impact on the
ST, ST shall be entitled to return the affected Licensed Software to Siebel and
recover one and one-half times the sublicense fees paid to Siebel for such
Licensed Software. In the event that an Ancillary Program or other third party
product is not Year 2000 compliant, Siebel shall use commercially reasonable
efforts to provide ST with relevant information regarding such product or the
vendor of such product; provided, however, that ST's sole remedy for any failure
of any Ancillary Programs or other third party products to be Year 2000
compliant shall be against the third party vendor of such products and not
against Siebel.

10.7 DISCLAIMERS. ST must report in writing (with a written notice to Siebel as
set forth in Section 13.3) any breach of the warranties contained in this
Section 10 during the relevant warranty period. Siebel does not warrant that the
Licensed Software will meet ST's or any Customer's requirements, that the
Licensed Software will operate in the combinations which ST or any Customer may
select for use, that the operation of the Licensed Software will be
uninterrupted or defect-free, or that all defects will be corrected; provided,
however, that if ST is current on Maintenance Fees, Siebel shall be obligated to
provide Maintenance and Support Services. Siebel shall have no Year 2000-related
liabilities for any products or services except as expressly stated in this
Agreement. Pre-Production Programs, limited releases of Licensed Software,
Training Materials, and computer-based training products are distributed "AS
IS." THE WARRANTIES ABOVE ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES,
WHETHER EXPRESS OR IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION THE
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

11.  LIMITATION OF LIABILITY

IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL,
SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES FOR
LOSS OF PROFITS, DATA OR USE, INCURRED BY THE OTHER PARTY OR ANY THIRD PARTY,
WHETHER IN AN ACTION IN CONTRACT OR TORT, EVEN IF SUCH PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES except that in the event ST makes
unauthorized copies of the Licensed Software, Siebel shall be entitled to
recover the full amount of any license fees that would relate to such copies.
It is understood that the foregoing sentence shall not be construed to limit
ST's right to recover finally awarded damages under Section 9.

Except for any breach or misappropriation of ST's intellectual property rights
by Siebel, for Siebel's liability under Section 9 or for any breach of Siebel's
obligations under Section 13.1, Siebel's aggregate and cumulative liability for
actual and direct damages hereunder shall in no event exceed one and one-half
times the sum of all fees paid or payable by ST under this Agreement, and if
such actual and direct damages relate to ST's use of the Licensed Software or
services, such liability shall be limited to the one and one-half times the sum
of all fees paid or payable for the relevant Licensed Software or services
giving rise to the liability. Except for any breach or misappropriation of
Siebel's intellectual property rights by ST or a ST Affiliate, for ST's
liability under Section 9.2 or for any breach of ST's obligations under Section
13.1, ST's aggregate and cumulative liability for actual and direct damages
hereunder shall in no

                                                                          Page 7
<PAGE>

event exceed the sum of one and one-half times all fees paid or payable by ST
under this Agreement.

Notwithstanding the preceding paragraph, in the event of Siebel's intentional
breach of its obligation set forth in Section 9 of EXHIBIT A, ST shall be
entitled to reimbursement of its direct damages, subject to the limitation of
liability contained in the first paragraph of this Section 11.

12.  TERM AND TERMINATION

12.1 TERM. This Agreement shall commence on the Effective Date and shall
continue in force through the Initial Term, as defined in EXHIBIT A, unless
sooner terminated as provided in this Agreement. This Agreement may be extended
after the Initial Term as set forth in EXHIBIT A. Except as otherwise set forth
in EXHIBIT A, neither party shall have any obligation to renew or extend the
term of the Agreement, and no payments, liabilities or damages shall be due
either party, or shall be imposed upon either party, for its decision to
terminate or not to renew the Agreement.

12.2 TERMINATION FOR CAUSE. Either party may terminate this Agreement, by
written notice to the other party: (a) upon the material failure of the other
party to observe, keep or perform any of the material covenants, terms or
conditions herein (including the failure to pay sums owed to the other party
when due), if such default continues for thirty (30) days after written notice
by the other party or if the parties agree that such cure is not reasonably
capable of being made within thirty (30) days, then as soon thereafter as
practicable, provided that the party in default is using commercially reasonable
efforts to cure during such time period, (b) if all or substantially all of the
assets of a party are acquired by a direct competitor of the other party, or (c)
upon either party's dissolution or ceasing to do business. It is understood and
agreed that termination pursuant to this Section 12.2 shall be subject to the
Wind-Down Period, except for termination following (i) any breach by ST of
Siebel's intellectual property rights which has a material adverse effect on
Siebel, including without limitation a material breach of Section 13.1.

12.3 EFFECT OF TERMINATION. Except as set forth in EXHIBIT A, upon expiration or
termination of this Agreement: (a) all licenses and rights granted to the
parties shall terminate, except as set forth below or in Section 12.5; (b) each
party shall refrain from representing themselves as a party to this Agreement;
(c) any Customer sublicenses previously granted hereunder will not be affected;
and (d) any other rights of either party which may have accrued up to the date
of termination shall not be affected. ST shall be free to continue providing
support to its Customers who are under contract with ST for such support
following a termination provided that (i) Siebel shall not be obligated to
provide ST any Updates or Software Maintenance and Support Services to ST under
this Agreement and (ii) Siebel and its third party partners are not restricted
from providing Updates or other maintenance and support directly to such
customers.

12.4 LIMITATION OF LIABILITY ON TERMINATION. Notwithstanding the foregoing, upon
expiration or lawful termination, neither party will be liable to the other
party, because of such termination, for compensation (except for accrued
compensation), reimbursement or damages on account of the loss of prospective
profits or anticipated sales or on account of expenditures, inventory,
investments, leases or commitments in connection with the business or goodwill
of Siebel or ST.

12.5 DISCONTINUATION OF LICENSED SOFTWARE, DOCUMENTATION, TRAINING MATERIALS,
MARKETING MATERIALS AVAILABILITY. Except as otherwise agreed to by the parties,
when Siebel reasonably determines that the market demand or other business
factors for any Licensed Software, Documentation, Training Materials or
Marketing Materials no longer warrants continued availability to end users,
Siebel may at its reasonable discretion and without liability to ST, remove such
Licensed Software, Documentation, Training Materials or Marketing Materials from
general availability in which case ST shall discontinue all marketing and
distribution of such Licensed Software, Documentation, Training Materials,
Marketing Materials within ninety (90) days of Siebel's notification to
discontinue general availability for such Licensed Software, Documentation,
Training Materials or Marketing Materials.

12.6 SURVIVAL. Sections 3.11 ("ST Indemnity"), 5.2 ("Prohibition on
Decompiling"), 6 ("Payments"), 7.7 ("Infringement Proceedings"), 8 ("Ownership
and Proprietary Rights"), 9 ("Infringement Indemnity"), 11 ("Limitation of
Liability"), the third sentence of Section 12.1 ("Term"), 12.3 ("Effects of
Termination"), 12.6 ("Survival") and 13 ("General") shall survive the
termination of this Agreement.

13.  GENERAL

13.1 NONDISCLOSURE. Each party may have access to information that is
confidential to the other party ("Confidential Information"). Siebel's
Confidential Information shall include, but not be limited to, the Licensed
Software, Documentation, Training Materials, Ancillary Programs, formulas,
methods, know how, processes, designs, new products, developmental work,
marketing requirements, marketing plans, customer names, prospective customer
names and the terms and pricing under this Agreement. ST's Confidential
Information shall include, but not be limited to, its software programs,
documentation, formulas, methods, know-how, processes, designs, new products,
developmental work, marketing requirements, marketing plans, customer names and
prospective customer names. Confidential Information includes all information
received from third parties that either party is obligated to treat as
confidential.

Each party will identify all information considered by it to be "Confidential
Information" as follows: (a) information that is provided in writing will be
legibly marked as "Confidential," or with some equivalent legend, and (b) any
such information that is not easily markable, and any such information that is
verbally disclosed, will be identified as "Confidential" at the time of
disclosure and will thereafter be described in a writing, delivered to the
recipient within ten (10) days after original disclosure, which specifies in
detail the "Confidential Information" disclosed. In addition, a disclosing party
shall mark all information considered by it to be a trade secret with an
appropriate legend consistent with the foregoing sentence.

A party's Confidential Information shall not include information that (i) is or
becomes a part of the public domain through no act or omission of the other
party; (ii) was in the other party's lawful possession prior to the disclosure
and had not been obtained by the other party either directly or indirectly from
the disclosing party; (iii) is lawfully disclosed to the other party by a third
party without restriction on disclosure; or (iv) is independently developed by
the other party without use of or reference to the other party's Confidential
Information. In addition, this Section 13.1 will not be construed to prohibit
disclosure of Confidential Information to the extent that such disclosure is
required to be disclosed by law or valid order of a court or other governmental
authority; PROVIDED, HOWEVER, that in any judicial or administrative proceeding
the responding party shall first have given notice to the other party and shall
have made a reasonable effort to obtain a protective order requiring that the
Confidential Information so disclosed be used only for the purposes for which
the order was issued.

The parties agree, unless required by law, not to make each other's
Confidential Information available in any form to any third party (except
that ST may disclose Siebel's Confidential Information to Customers and
prospective customers provided that such disclosure is pursuant to a written
nondisclosure agreement at least as protective of Siebel's Confidential
Information as this Section 13.1) or to use each other's Confidential
Information for any purpose other than in the performance of this Agreement.
ST shall not disclose the results of any performance tests of the Licensed
Software to any third party, other than to Customers or prospective customers
who have executed a non-disclosure agreement reasonably acceptable to Siebel,
without Siebel's prior written approval. Each party agrees to take all
reasonable steps to ensure that Confidential Information is not disclosed or
distributed by its employees or agents in breach of this Agreement. The
parties agree to hold each other's Confidential Information in confidence
during the term of this Agreement and for a period of five (5) years
thereafter; provided, however, that (i) with respect to source code, the
Siebel Data Model Reference Manual, the Siebel Data Mart Data Model
Reference, and other highly sensitive confidential information clearly
identified as such at the time of disclosure by either party, the
nondisclosure obligations set forth herein shall continue indefinitely and
(ii) with respect to information designated by the disclosing party as a
"trade secret", the nondisclosure obligations set forth herein shall continue
for so long as such information remains a trade secret under applicable law.
Each party's additional obligations regarding the Siebel Data Model Reference
Manual and Siebel Data Mart Data Model Reference are set forth in EXHIBIT C.
Each party acknowledges and agrees that, due to the unique nature of
Confidential Information, there may be no adequate remedy at law for breach
of this Section 13.1 and that such breach may cause irreparable harm to the
non-breaching party; therefore, the non-breaching party shall be entitled to
seek immediate injunctive relief, in addition to whatever remedies it might
have at law or under this Agreement. This Section 13.1 constitutes the entire
understanding of the parties and supersedes all prior or contemporaneous
agreements, representations or negotiations, whether oral or written, with
respect to Confidential Information.

                                                                         Page 8

<PAGE>

13.2 GOVERNING LAW. This Agreement shall be governed in all respects by the laws
of the United States of America and the State of California. The parties agree
that the United Nations Convention on Contracts for the International Sale of
Goods is specifically excluded from application to this Agreement.

13.3 NOTICES. All notices required to be sent hereunder shall be in writing and
shall be deemed to have been given upon (i) the date sent by confirmed
facsimile, (ii) on the date it was delivered by courier, or (iii) if by
certified mail return receipt requested, on the date received, to the addresses
set forth above and to the attention of the signatory of this Agreement or to
such other address or individual as the parties may specify from time to time by
written notice to the other party. A notice to ST shall not be effective unless
a copy is also sent to the attention of ST's "Legal Department" at the same
address set forth above.

13.4 DELIVERY. All materials provided by Siebel hereunder shall be delivered to
ST on a F.O.B. Siebel's San Francisco Bay Area basis for destinations within the
United States, or on a FCA (Incoterms 1990) Siebel's San Francisco Bay Area
Headquarters (or the address of Siebel's designee) basis for destinations
outside the United States; at which point title to the carrier media and risk of
loss or damage to the materials shall be transferred from Siebel to ST. Nothing
in this Section shall be deemed to transfer title to, or provide ST with any
rights in, the Licensed Software, Documentation, or Training Materials, except
as specifically provided in this Agreement.

13.5 INJUNCTIVE RELIEF. It is expressly agreed that a breach of Sections 2.1 or
13.1 of this Agreement by ST may cause irreparable harm to Siebel and that a
remedy at law would be inadequate. Therefore, in addition to any and all
remedies available at law, Siebel will be entitled to seek an injunction or
other equitable remedies in all legal proceedings in the event of any threatened
or actual violation of any or all of the above provisions.

13.5A MEDIATION. Except for any action based on a claim of infringement or other
violation of intellectual property rights, including without limitation a breach
by either party of Section 13.1, no civil action with respect to any dispute,
claim or controversy arising out of or relating to this Agreement may be
commenced until the matter has been submitted to JAMS, or its successor, for
mediation. Either party may commence mediation by providing to JAMS and the
other party a written request for mediation, setting forth the subject of the
dispute and the relief requested. The parties will cooperate with JAMS and with
one another in selecting a mediator from JAMS' panel of neutrals, and in
scheduling the mediation proceedings. The parties agree that they will
participate in the mediation in good faith, and that they will share equally in
its reasonable costs. All offers, promises, conduct and statements, whether oral
or written, made in the course of the mediation by any of the parties, their
agents, employees, experts and attorneys, and by the mediator and any JAMS
employees, are confidential, privileged and inadmissible for any purpose,
including impeachment, in any litigation or other proceeding involving the
parties, provided that evidence that is otherwise admissible or discoverable
shall not be rendered inadmissible or non-discoverable as a result of its use in
the mediation. Either party may seek equitable relief prior to the mediation to
preserve its rights pending the completion of that process. Except for such an
action to obtain equitable relief, neither party may commence a civil action
with respect to the matters submitted to mediation until after the completion of
the initial mediation session, or sixty (60) days after the date of filing the
written request for mediation, whichever occurs first. Mediation may continue
after the commencement of a civil action, if the parties mutually agree. The
provisions of this Section 13.5A may be enforced by any court of competent
jurisdiction, and the party seeking enforcement shall be entitled to an award of
all reasonable costs, fees and expenses, including attorneys fees, to be paid by
the party against whom enforcement is ordered.

13.6 RELATIONSHIP BETWEEN THE PARTIES. Siebel is an independent contractor;
nothing in this Agreement shall be construed to create a partnership, joint
venture or agency relationship between the parties.

13.7 FORCE MAJEURE. Neither party shall be liable hereunder by reason of any
failure or delay in the performance of its obligations hereunder (except for the
payment of money for over ninety (90) days) on account of strikes, shortages,
riots, insurrection, fires, flood, storm, explosions, acts of God, war,
governmental action, labor conditions, earthquakes, material shortages, or any
other cause which is beyond the reasonable control of such party.

13.8 WAIVER. The failure of either party to require performance by the other
party of any provision hereof shall not affect the full right to require such
performance at any time thereafter; nor shall the waiver by either party of a
breach of any provision hereof be taken or held to be a waiver of the provision
itself.

13.9 SEVERABILITY. In the event any provision of this Agreement is held to be
invalid or unenforceable, the remaining provisions of this Agreement will remain
in full force.

13.10 HEADINGS. The paragraph headings appearing in this Agreement are inserted
only as a matter of convenience and in no way define, limit, construe, or
describe the scope or extent of such paragraph, or in any way affect this
Agreement.

13.11 ASSIGNMENT. Neither this Agreement nor any right, interest or obligation
herein is assignable or transferable by either party without the prior written
consent of the other party, which shall not be unreasonably withheld or delayed,
except that no consent shall be required in the event of an assignment to a
successor of ST or Siebel by merger, reorganization or sale of all or
substantially all of its assets or capital stock, provided that the successor
(i) is not a direct competitor of the other party, and (ii) agrees in writing to
be bound by the terms of this Agreement.

13.12 COMPLIANCE WITH LAW AND REGULATIONS. ST shall act in strict compliance
with all applicable laws, ordinances, regulations and other requirements of any
government authority pertaining to ST's activities under the Agreement and shall
provide, pay for, and keep in good standing all permits, licenses or other
consents necessary for such activities.

13.13 EXPORT CONTROL. The parties agree that the export of Licensed Software is
subject to the export control laws of the United States of America and each
party agrees to abide by all such export control laws and regulations. Without
limiting the generality of the foregoing, ST expressly agrees that it shall not,
and shall cause its representatives to agree not to, export, directly or
indirectly, re-export, divert, or transfer the Licensed Software, Documentation
or any direct product thereof to any destination, company or person restricted
or prohibited by U.S. Export Controls. At ST's request, Siebel will appraise ST
as to the export permits it has obtained.

13.14 CONFIDENTIAL AGREEMENT. Neither party will disclose any terms or the
existence of this Agreement, except that the parties may issue a jointly
approved press release announcing ST's rights to distribute and market the
Licensed Software. Siebel shall have the right to use ST's name in customer
lists or promotional documents that incorporate such lists.

13.15 COUNTERPARTS AND EXCHANGES BY FAX. This Agreement may be executed
simultaneously in two (2) or more counterparts, each of which will be considered
an original, but all of which together will constitute one and the same
instrument. The exchange of a fully executed Agreement (in counterparts or
otherwise) by fax shall be sufficient to bind the parties to the terms and
conditions of this Agreement.

13.15A NON-SOLICITATION. Each party agrees not to intentionally solicit for
employment the employees or contractors of the other party who are directly
involved in the performance of this Agreement. Both parties acknowledge that (i)
any newspaper or other public solicitation not directed specifically to such
person shall not be deemed to be a solicitation for purposes of this provision,
and (ii) this provision is not intended to limit the mobility of either party's
employees or contractors.

13.16 NOTICE OF RESTRICTED RIGHTS FOR U.S. GOVERNMENT SUBLICENSES. If ST grants
a sublicense to the United States Government, the Licensed Software, Ancillary
Programs and Documentation shall be considered "commercial computer software,"
and ST shall place a notice provision, in addition to the applicable copyright
notices, on the Documentation and media label, substantially similar to the
following: "U.S. GOVERNMENT RESTRICTED RIGHTS. Programs, Ancillary Programs and
Documentation, delivered subject to the Department of Defense Federal
Acquisition Regulation Supplement, are 'commercial computer software' as set
forth in DFARS 227.7202, Commercial Computer Software and Commercial Computer
Software Documentation, and as such, any use, duplication and disclosure of the
Programs, Ancillary Programs and Documentation shall be subject to the
restrictions contained in the applicable Siebel license agreement. All other
use, duplication and disclosure of the Programs, Ancillary Programs and
Documentation by the U.S. Government shall be subject to the applicable Siebel
license agreement and the restrictions contained in subsection (c) of

                                                                          Page 9
<PAGE>

FAR 52.227-19, Commercial Computer Software - Restricted Rights (June 1987), or
FAR 52.227-14, Rights in Data - General, including Alternate III (June 1987), as
applicable. Contractor/licensor is Siebel Systems, Inc., 1855 South Grant
Street, San Mateo, CA 94402."

13.17 ENTIRE AGREEMENT. This Agreement, together with the attached exhibits,
which are incorporated by reference, and the following agreements between the
parties executed contemporaneously herewith: the Siebel Alliance Program Master
Agreement and the Software License and Services Agreement, constitutes the
complete agreement between the parties and supersedes all prior or
contemporaneous agreements or representations, written or oral, concerning the
subject matter of this Agreement and such exhibits. This Agreement may not be
modified or amended except in writing signed by a duly authorized representative
of each party. No other act, document, usage or custom shall be deemed to amend
or modify this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives.

The Effective Date of this Agreement shall be July 14th, 2000.

EXECUTED BY:  IMS HEALTH STRATEGIC TECHNOLOGIES, INC.

Signature: /s/ Wayne P. Yetter
          ---------------------------------------------
Name:     Wayne P. Yetter
Title:    Chief Operating Officer, IMS Health
Date:     June 30, 2000

EXECUTED BY: SIEBEL SYSTEMS, INC.

Signature: /s/ Kevin A. Johnson
          ---------------------------------------------
Name:     Kevin A. Johnson
Title:    Vice President, Legal Affairs
Date:     July 14, 2000

                                                                         Page 10

<PAGE>

                                    EXHIBIT A

                                LICENSED SOFTWARE

1.   FEES.

     1.1       SUBLICENSE FEES.

          (a)  The Sublicense Fees will be as follows:

               (i)  ***** of ST's Net License Fees for any Licensed Software
                    licensed as part of a Joint Offering;

               (ii) ***** of ST's Net License Fees for any ST Cornerstone or
                    Premiere software licensed to new customers during the
                    Initial Transition Period as permitted under Section 5.6 of
                    this Agreement except as described in Sections 1.1(a)(iii),
                    (v), and (vi) below;

               (iii)***** of ST's Net License Fees for any ST Cornerstone or
                    Premiere software licensed to entities on ST's list of
                    current prospects set forth in EXHIBIT K hereto (the "ST
                    Prospect List") for a period of six (6) months following the
                    Effective Date. The parties further understand and agree
                    that, notwithstanding any provision or agreement to the
                    contrary, ST shall not be entitled to any percentage of
                    revenue received by Siebel from customers on Siebel's list
                    of current prospects set forth in EXHIBIT L hereto (the
                    "Siebel Prospect List") for orders executed by Siebel and
                    the prospect pursuant to a written agreement between such
                    parties within three (3) months following the Effective Date
                    unless the parties mutually agree in writing to collaborate
                    on providing products to such customers;

               (iv) ***** of ST's Net License Fees for localized (non English
                    language) versions of the Licensed Software developed by
                    Siebel;

               (v)  ***** of ST's Net License Fees for localized (non English
                    language) versions of any ST Cornerstone and Premiere
                    software for the first six (6) months following the
                    Effective Date, after which time such Sublicense Fees shall
                    be ***** of ST's Net License Fees for Cornerstone and
                    Premiere software licensed to new customers; and

               (vi) ***** of ST's Net License Fees for ST's handheld software
                    applications from the Effective Date until the lesser of (a)
                    six (6) months after the Effective Date or (b) three (3)
                    months after Siebel makes generally available a handheld
                    software application that includes direct-to-server
                    capability, after which time such Sublicense Fees shall be
                    ***** of ST's Net License Fees for ST's handlheld software
                    applications licensed or sold to new customers.

          (b)  Notwithstanding anything in Section 1.1(a) above, the parties
               agree that such Sublicense Fees will not be due or owing with
               respect to any of the following:

               (i)  fees for any other services or other software provided by ST
                    or a member of the ST Group to its customers;

               (ii) fees for the licensing of Cornerstone or Premiere software
                    to any ST customer that (A) is an existing customer of ST as
                    of the Effective Date, or (B) becomes a customer of ST
                    during the Initial Transition Period for Cornerstone or
                    Premiere software and is identified on the ST Prospect List;
                    and

               (iii)fees for any services or software provided by a third party
                    or through ST on behalf of a third party, unless such third
                    party is a member of the ST Group (and then only to the
                    extent expressly described in Section 1.1(a) above).

          (c)  Notwithstanding the terms of Section 1.1(a)(i) and except as
               otherwise agreed in writing by the parties hereto:

               (i)  the Sublicense Fees payable for any Licensed Software will
                    NOT be MORE than ***** of the Siebel Published List Price
                    ("SPLP") therefor; and

               (ii) the Sublicense Fees payable for any Licensed Software will
                    NOT be LESS than the minimum percentage stated below as
                    applied against the Siebel Published List Price" then in
                    effect and based on the total "Transaction Value", as the
                    term is defined below:

                       TRANSACTION VALUE             Minimum Sublicense
                          (US $000s)             FEES TO SIEBEL (% OF SPLP)
                            *****                           *****

               "Transaction Value" will be calculated using the Siebel Published
               List Prices then in effect for the Licensed Software provided
               with the Joint Offering as of the time of the applicable
               Customer's transaction with ST. "Transaction Value" will not be
               based upon any fees relating to other software or any services.
               Upon the request of ST, Siebel agrees to discuss in good faith a
               reduction in such Sublicense Fees for transactions having a
               Transaction Value in excess of *****.

**** PORTIONS HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION.

                                                                         Page 11
<PAGE>

               (iii) in the event that Siebel offers generally to its customer
               base a temporary promotional discount, the minimums set forth
               above shall be adjusted accordingly during such time period.

          (d)  In no event shall the amounts due under (a)(ii) above for the ST
               software be (i) more than ***** of ST's standard list price for
               the ST software and (ii) less than the minimum percentage stated
               below as applied against the ST standard list price then in
               effect and based on the total "Transaction Value" as that term is
               defined below:

                       TRANSACTION VALUE                  Minimum Sublicense
                          (US $000s)                  FEES TO SIEBEL (% OF STLP)
                            *****                                 *****

               "Transaction Value" will be calculated using the ST standard list
               prices then in effect for the ST product as of the time of the
               applicable Customer's agreement with ST. "Transaction Value" will
               not be based upon any fees relating to other software or
               services. Upon the request of ST, Siebel agrees to discuss in
               good faith a reduction in such Sublicense Fees for transactions
               having a Transaction Value in excess of *****.

          (e)  Sublicense Fees will accrue upon the earlier of (i) the delivery
               of the Licensed Software or ST software, as applicable, to the
               Customer or (ii) the reproduction, deployment or use of the
               Licensed Software or ST software, as applicable, by the Customer.
               Net License Fees collected by ST in a currency other than U.S.
               dollars shall be converted into U.S. dollars by ST at the then
               prevailing exchange rate at the time of payment to Siebel.

          (f)  The parties agree that should ST propose for a specific
               individual transaction with a Customer Sublicense Fees other than
               as set forth above, the Sublicense Fees applicable for such
               individual transaction will be adjusted as mutually agreed to by
               the parties. Notwithstanding the foregoing, it is understood and
               agreed that any such adjustment of the Sublicense Fees applicable
               for an individual transaction shall be within the sole discretion
               of Siebel.

          (g)  In the event a Customer seeks a credit or rebate for Net License
               Fees paid or payable for any of the Licensed Software, or in the
               event any Net License Fees payable are uncollectible, and ST
               requests that its obligation to pay Sublicense Fees to Siebel in
               connection with such Net License Fees be reduced or eliminated,
               Siebel agrees to discuss any such request in good faith on a case
               by case basis. Notwithstanding the foregoing, any such reduction
               or elimination of Sublicense Fees shall be in Siebel's sole
               discretion.

     1.2  REVENUE TARGETS

          (a)  The following are the non-binding revenue targets of the parties
               with respect to Sublicense Fees payable to Siebel (including
               Sublicense Fees collected by Siebel, if any, for customers
               identified in EXHIBIT M) during the Initial Term of the Agreement
               ("Revenue Targets"):

                          CONTRACT PERIOD               REVENUE TARGETS

                          First 12 months                    *****
                         Second 12 months
                          Third 12 months
                         Fourth 12 months
                          Fifth 12 months

               It is understood that the parties are examining (a) whether to
               adjust the Revenue Targets for various country markets outside
               the United States, and (b) whether to offer versions of the Joint
               Offering involving less robust versions of the Siebel Sales,
               Siebel Service and Siebel Call Center Licensed Software to
               Customers (such less robust versions referred to herein as
               "Siebel Pharma, Midmarket Edition" products). The Siebel Pharma,
               Midmarket Edition products, if any, would be developed by Siebel
               pursuant to Section 15 below and Siebel would set the Siebel List
               Price for such products. Should Siebel, in its sole discretion,
               agree to do so, the Revenue Targets will be adjusted to reflect
               changes made (i) to accommodate the marketplace outside of the
               United States and/or (ii) as a result of the inclusion of such
               Siebel Pharma, Midmarket Edition products in the Licensed
               Software. In addition, if at any time during the Initial Term of
               the Agreement, the Siebel Published List Prices are reduced below
               such prices in the first twelve months of this Agreement by more
               than ten percent (10%), the Revenue Targets above will be
               adjusted downward accordingly. It is further understood and
               agreed that on at least an annual basis, the parties will discuss
               the revision of the Revenue Targets for all Contract Periods
               (except the first Contract Period) based on overall market
               conditions, and will agree to adjust such Revenue Targets as
               mutually acceptable.

          (b)  In the event ST exceeds the Revenue Targets in any Contract
               Period, the excess shall be carried over into subsequent years
               for purposes of determining whether ST has achieved the
               succeeding Contract Period Revenue Targets.

          (c)  In the event ST (i) fails to achieve a minimum of ***** of the
               Revenue Target in any Contract Period other than the first
               Contract Period (the "Revenue Test") and (ii) fails to win the
               highest number of new purchase decisions among each of the SFA
               vendors in excess of ***** for sales force automation software
               for pharmaceutical sales forces in that Contract Year (the "New
               Purchases Test"), then Siebel may elect to pursue the provisions
               of this Section 1.2(c) below by written notice to ST within
               thirty (30) days following the end of such Contract Period (the
               "Plan Notice"). The

**** PORTIONS HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION.

                                                                         Page 12
<PAGE>

               Plan Notice will state that ST has failed the Revenue Test and
               the New Purchases Test, the underlying information substantiating
               these conclusions, and that Siebel is electing to proceed under
               this Section 1.2(c). Upon receipt of a Plan Notice, the parties
               will proceed as follows:

               (i)  The parties shall promptly meet to discuss the revenue
                    results for the prior Contract Period. Within thirty (30)
                    days following ST's receipt of the Plan Notice, the parties
                    will meet to discuss the reasons for the shortfall and
                    proposed methods to address such shortfall. For that
                    meeting, ST will prepare and deliver to Siebel a written
                    document that describes the likely reason(s) for the
                    shortfall and proposed elements of a plan to address that
                    shortfall. At that meeting, the parties will develop a plan
                    that addresses the shortfall in a manner reasonably
                    satisfactory to both ST and Siebel ("Revenue Plan").

               (ii) ST and Siebel will use commercially reasonable efforts to
                    implement the Revenue Plan.

               (iii)If ST fails to achieve the Revenue Targets in accordance
                    with (and subject to) the Revenue Plan, then the parties
                    will implement an escalation process to be agreed upon by
                    the parties within thirty (30) days after the Effective
                    Date. If, following such escalation process, (i) ST has not
                    used commercially reasonable efforts to achieve ***** of the
                    Revenue Target for the Contract Period and has not used
                    commercially reasonable efforts to achieve the New Purchases
                    Test for the Contract Period in question or (ii) ST has not
                    made sufficient progress toward achieving such revenue
                    amounts, Siebel may terminate this Agreement upon sixty (60)
                    days advance written notice to ST (subject to the Wind Down
                    Period); provided, however, Siebel shall have no such right
                    of termination if the failure to achieve revenue targets is
                    attributable in substantial part to the failure of Siebel of
                    any of its obligations under the Agreement.

                    It is understood and agreed that the Revenue Targets are not
                    revenue commitments to Siebel and ST will not have any
                    penalty or liability for failure to achieve the Revenue
                    Targets other than as expressly stated in this Section 1.2.

     1.3  MAINTENANCE FEES.

          During the term of the Agreement, ST agrees to pay Siebel Maintenance
          Fees that shall be equal ***** of Sublicense Fees per year, but in no
          event will ST pay Siebel less than ***** of the cumulative aggregate
          of the then current Siebel List Price of all Licensed Software which
          ST has distributed to Customers from the Effective Date during each
          twelve (12) month period of this Agreement. Maintenance Fees will
          accrue upon the earlier of (i) the delivery of the Licensed Software
          to the Customer or (ii) the reproduction, deployment or use of the
          Licensed Software by the Customer. ST shall pay any Maintenance Fees
          within thirty (30) days following the end of the month in which the
          related Sublicense Fee accrued. Notwithstanding anything written in
          this Section 1.3 to the contrary, ST shall have no obligation to pay
          maintenance fees to Siebel for (a) Customers that have terminated
          Third-Line Support, or (b) Customers who are using versions of the
          Licensed Software no longer supported by Siebel under the terms of the
          Maintenance Policy set forth in EXHIBIT B.

2.   INITIAL TERM. The Initial Term of the Agreement shall begin on the
Effective Date and end on the fifth anniversary of the Effective Date; provided,
however, that upon the third anniversary of the Effective Date, the parties will
discuss whether to extend the Agreement under the current terms for the
following two years or to terminate the Agreement on the fifth anniversary of
the Effective Date (the fourth and fifth years of the Agreement then being the
"Wind-Down Period"). In addition, in the event that the Wind-Down Period is not
yet in effect, upon the fourth anniversary of the Effective Date and each
anniversary of the Effective Date thereafter, the parties will discuss and agree
on whether or not to terminate the Agreement two years from such date (those
last two years of the Agreement then being the "Wind-Down Period").

3.   VALUE ADDED OFFERING. ST will satisfy the following value added criteria in
connection with the Licensed Software and will continue to satisfy such criteria
during the term of the Agreement:

         ST will integrate the Licensed Software as a component of the Value
         Added Offering;
         ST will provide installation support for the Licensed
         Software as part of the Solution; and
         ST will provide consulting services for the Licensed Software as part
         of the Solution.

4.   TERRITORY. ST's Territory shall be worldwide.

**** PORTIONS HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION.

                                                                         Page 13
<PAGE>

5.   LICENSED SOFTWARE. Subject to Section 7 below, the Licensed Software shall
consist of the generally available versions of the following base applications
and the generally available associated modules subject to the restrictions set
forth in Siebel's then current price list and any other product restrictions
that Siebel communicates in writing to ST:

<TABLE>

<CAPTION>

SIEBEL WORKGROUPS APPLICATIONS LICENSED SOFTWARE
----------------------------------------------------------------------------------------------------------------------------------
                                PROGRAMS LICENSED
----------------------------------------------------------------------------------------------------------------------------------\
<S>                                                                                                            <C>
Siebel Sales for Workgroups (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel Service for Workgroups (Base Application) and all generally available associated modules
Siebel Call Center for Workgroups (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------

SIEBEL EBUSINESS APPLICATIONS LICENSED SOFTWARE

----------------------------------------------------------------------------------------------------------------------------------
                                PROGRAMS LICENSED
----------------------------------------------------------------------------------------------------------------------------------
Siebel Call Center (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel Sales (Base Application) and all generally available associated modules
Siebel Service (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel Field Service (Base Application) and all generally available associated modules
Siebel EMail Response (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel Professional Services (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel ESales (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel EMarketing (Base Application) and all generally available associated modules
Siebel EService (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel ECustomer (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel EChannel (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel Web Objects (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel Pharma for Sales (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel Pharma for Service (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------
Siebel Pharma for Field Service (Base Application) and all generally available associated modules
Siebel Pharma for Call Centers (Base Application) and all generally available associated modules
----------------------------------------------------------------------------------------------------------------------------------

</TABLE>

6.   ANCILLARY PROGRAMS(1). The Ancillary Programs currently consist of the
following software programs and such other programs as may be listed in Siebel's
Documentation from time to time.

<TABLE>

<CAPTION>

-------------------------------------------------------------------------------------------------------------- -------------------
                                                   PRODUCT                                                            VERSION
-------------------------------------------------------------------------------------------------------------- -------------------
<S>                                                                                                            <C>
Sybase SQL Anywhere                                                                                            v5.x
-------------------------------------------------------------------------------------------------------------- -------------------
Adobe Acrobat Reader                                                                                           v3.0
-------------------------------------------------------------------------------------------------------------- -------------------
Intersolv DataDirect Closed ODBC Driver (for Oracle RDBMS only)(2)                                             v2.x
-------------------------------------------------------------------------------------------------------------- -------------------
MS ODBC Drivers                                                                                                v2.5
-------------------------------------------------------------------------------------------------------------- -------------------

</TABLE>

 (1) The Ancillary Programs and any related requirements are subject to change
     as specified by Siebel in its discretion on thirty (30) days prior written
     notice to ST; provided, however, ST reserves the right to acquire from a
     source other than Siebel the license(s) and maintenance for any Ancillary
     Programs.
 (2) Unless ST has obtained a license to distribute this Ancillary Program from
     a source other than Siebel, this Ancillary Program may only be distributed
     by ST under the terms of this Agreement subject to ST's payment of the
     following fees: (i) sublicense fees equal to $500/copy, and (ii)
     maintenance fees equal to $75/copy every twelve months. Siebel reserves the
     right to change such related fees at any time upon written notice to ST.

7.   PRODUCT RESTRICTIONS.

SIEBEL WORKGROUPS EDITION LICENSED SOFTWARE: Distributor may sublicense Siebel
Workgroups Edition Licensed Software only to Customers (i) with an installed
base of no greater than two hundred (200) Users, and (ii) for which the annual
revenue of such Customer combined with the annual revenue of all entities
Controlled by or Controlling such Customer does not exceed $250,000,000. Siebel
agrees that it will consider limited exceptions to such User and annual revenue
limitations on a case-by-case basis in its sole discretion. As used in this
Section 7, the term "Control" means having control of more than twenty percent
(20%) of the voting stock in an entity.

SIEBEL eBUSINESS EDITION LICENSED SOFTWARE: Distributor shall require Customers
of Siebel for Workgroups Licensed Software who require additional Users that
will increase their installed base of Users to more than two hundred (200) Users
to transfer their Users from the Siebel Workgroups Edition products to the
Siebel eBusiness Edition products and cease use of the Siebel Workgroups Edition
products. In addition, ST must obtain Siebel's prior written permission to
distribute Siebel Enterprise Edition Licensed Software to any Customer that is a
Venture Capital-Backed Internet Company. As used in this Section 7, the term
"Venture Capital-Backed Internet Company" means a Customer (i) whose primary
line of business involves offering products or services via the Internet, with
either completion of the transaction or delivery of the product or service via
the Internet; and (ii) that has greater than $10,000,000 in venture capital
funding.

                                                                         Page 14
<PAGE>

8.   ADDITIONAL ST OBLIGATIONS.

     (A) RESOURCE COMMITMENTS. As soon as reasonably practicable after the
     Effective Date and during the term of this Agreement, ST will dedicate one
     full-time channel partner manager to support the Licensed Software and ST's
     obligations under this Agreement. Siebel will dedicate a channel partner
     manager to support Siebel's obligations under this Agreement. In addition,
     as soon as reasonably practicable after the Effective Date and during the
     term of this Agreement, ST will dedicate at a minimum the following
     personnel resources to support the Licensed Software and ST's obligations
     under this Agreement. It is understood and agreed that ST may satisfy the
     following obligations by fulfilling any corresponding obligations pursuant
     to the Siebel Alliance Program Master Agreement between the parties to be
     executed contemporaneously herewith.

<TABLE>

<CAPTION>

--------------------------------------- ------------------------------ ------------------------------ ------------------------------
             TIME PERIOD                  CERTIFIED QUOTA-CARRYING           CERTIFIED SIEBEL              CERTIFIED TECHNICAL
                                        SIEBEL SALES REPRESENTATIVES         SALES SPECIALISTS           SUPPORT REPRESENTATIVES
--------------------------------------- ------------------------------ ------------------------------ ------------------------------
<S>                                     <C>                            <C>                            <C>
CONTRACT  PERIOD  ONE (FIRST 12 MONTHS               50                             10                             20
OF THIS AGREEMENT)
--------------------------------------- ------------------------------ ------------------------------ ------------------------------
CONTRACT  PERIOD  TWO  (SECOND  TWELVE  TO  BE  DETERMINED,  BUT  NOT    TO BE DETERMINED, BUT NOT      TO BE DETERMINED, BUT NOT
MONTHS OF THIS AGREEMENT)               LESS THAN 50                           LESS THAN 10                   LESS THAN 20
--------------------------------------- ------------------------------ ------------------------------ ------------------------------
CONTRACT  PERIOD THREE  (THIRD  TWELVE  TO  BE  DETERMINED,  BUT  NOT    TO BE DETERMINED, BUT NOT      TO BE DETERMINED, BUT NOT
MONTHS OF THIS AGREEMENT)               LESS THAN 50                           LESS THAN 10                   LESS THAN 20
--------------------------------------- ------------------------------ ------------------------------ ------------------------------
CONTRACT  PERIOD FOUR  (FOURTH  TWELVE  TO  BE  DETERMINED,  BUT  NOT    TO BE DETERMINED, BUT NOT      TO BE DETERMINED, BUT NOT
MONTHS OF THIS AGREEMENT)               LESS THAN 50                           LESS THAN 10                   LESS THAN 20
--------------------------------------- ------------------------------ ------------------------------ ------------------------------
CONTRACT  PERIOD  FIVE  (FIFTH  TWELVE  TO  BE  DETERMINED,  BUT  NOT    TO BE DETERMINED, BUT NOT      TO BE DETERMINED, BUT NOT
MONTHS OF THIS AGREEMENT)               LESS THAN 50                           LESS THAN 10                   LESS THAN 20
------------------------------------------------------------------------------------------------------------------------------------

</TABLE>

     (B) LEGAL AND BUSINESS TERMS TO BE TREATED AS STRICTLY CONFIDENTIAL: As a
     material and fundamental condition of this Agreement, each of the parties
     hereto agrees that the legal and business terms set forth in this Agreement
     shall be held in strict confidence and may only be disclosed to: (i) their
     respective employees with a need to know, or (ii) their respective third
     party financial or legal advisors provided such third parties have executed
     a non-disclosure agreement with the disclosing party consistent with the
     terms of this Section, (iii) pursuant to federal or state laws or
     regulations including securities laws and their related disclosure
     requirements, or (iv) pursuant to judicial, administrative or arbitration
     orders and proceedings. Notwithstanding any other provisions of this
     Agreement to the contrary, in the event of a breach by ST of this Section,
     Siebel shall be entitled to immediately terminate this Agreement. Nothing
     contained in this Agreement shall be construed as limiting Siebel's
     remedies in any manner for a breach of this Section.

9.   ADDITIONAL SIEBEL OBLIGATIONS

     Siebel agrees that it will not enter into an agreement with any of the
     following entities allowing such entity to resell, host or otherwise
     distribute the Licensed Software in the Life Sciences Industries market:
     *****. It is understood and agreed that the foregoing restriction in this
     Section 9 shall apply only during the term of this Agreement until the
     start of the Wind-Down Period, provided that if it is Siebel's unilateral
     decision to terminate this Agreement and enter the Wind-Down Period, the
     foregoing restriction shall remain in effect for the first six (6) months
     of the Wind-Down Period. ST may make additions or deletions from this list
     from time to time with the written consent of Siebel. Reference to each of
     the companies above also includes each of their respective parents and
     majority-owned subsidiaries of such parents and named companies. It is
     understood and agreed that the restrictions set forth in this Section 9
     shall not apply to an acquisition or similar arrangement by Siebel of any
     of the entities listed in this Section 9.

10.  RESERVED OPPORTUNITIES

     The parties agree that they will jointly market the Licensed Software with
     respect to the list of reserved opportunities set forth in EXHIBIT M
     hereto. It is understood and agreed that (i) licensing of the Licensed
     Software to such opportunities will be via a license agreement between ST
     or the ST Group and such Customer; (ii) ST and Siebel shall share equally
     all license and maintenance fees received from such opportunities for the
     Licensed Software, and (iii) all license fees paid to Siebel for Licensed
     Software provided to such companies during the Initial Term shall be
     credited toward ST's achievement of the Revenue Targets set forth in
     Section 1.2 of this EXHIBIT A. It is understood and agreed that the license
     fees described in this Section 10 shall be subject to the terms set forth
     in Section 1.1(c) of this EXHIBIT A.

11.  TRAINING

 (a) Siebel agrees to provide certain marketing/technical training classes
     to ST related to the demonstration, marketing, installation and use of
     Siebel products at Siebel's expense.

 (b) ST intends to train its sales organization to identify and qualify
     leads and to represent the capabilities of the Joint Offering. Such
     training shall be provided to ten (10) ST sales professionals at Siebel's
     expense in a mutually satisfactory Train-the-Trainer format.

 (c) ST intends to train at least three hundred (300) CRM-focused
     professional services consultants in more in-depth technical training to
     enable these resources to develop integration and customization skills with
     the capability to support implementations of the Joint Offering.

 (d) Any training provided by Siebel which will result in fees or charges to
     ST will be provided to ST at a discount of ten percent (10%) off Siebel's
     list prices then in effect.

**** PORTIONS HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION.

                                                                         Page 15
<PAGE>

 (e) Siebel intends to train a majority of its pharmaceutical industry sales
     representatives on the Joint Offering, including the associated ST products
     and services, with such training to be provided as approved by ST in
     advance and at ST expense for trainers and materials. Travel expense will
     be at Siebel expense. The number of representatives to be trained shall not
     exceed thirty (30).

 (f) The process for the training described above will be reasonable and
     mutually agreed to by the parties. Both parties agree to use the most
     effective training methods available, which may include but are not limited
     to (1) certified trainers to perform train-the trainer training, (2)
     distance learning, and (3) internet presentations, and does not necessarily
     mean that all training will be delivered by the responsible party through
     personally delivered on-site training courses. Both parties agree to
     explore opportunities for the other party to present at its sales meetings
     and similar sales events. An initial joint training plan will be developed
     within fifteen (15) days after the Effective Date.

12.  TRANSITION ASSISTANCE

     Upon the written request of ST made promptly after either party has
notified the other of its intent not to renew this Agreement's term, Siebel
shall provide to ST reasonable assistance to allow ST to transition the Joint
Offering to operate with software other than the Licensed Software (the
"Transition"). Such assistance shall include, without limitation, providing ST
reasonable access to and the reasonable assistance of Siebel technical staff to
assist ST to effect the Transition in an orderly manner without disruption of
service to Customers.

13.  SIEBEL SOFTWARE AND SUPPORT; TECHNOLOGICAL COLLABORATION

 (a) During the term of this Agreement, Siebel shall make expenditures and
     devote resources reasonably necessary to maintain each element of the
     Licensed Software and support offered by ST as part of the Joint Offering,
     including all material functionality, as a competitive offering among ST's
     target customers, both generally and within each of the local country
     markets.

 (b) In connection with Siebel's obligations under Paragraph 13(a) above,
     Siebel will prepare a plan, updated quarterly, specifying in detail how
     Siebel intends to comply with Paragraph 13(a) ("Enhancement Plan"). Siebel
     will provide ST with a copy of the Enhancement Plan each quarter. ST will
     promptly provide to Siebel comments and suggested changes, if any, to the
     Enhancement Plan. Siebel will accommodate ST's comments and suggested
     changes in a timely manner as Siebel deems appropriate in its reasonable
     discretion. Siebel agrees to use the Enhancement Plan in connection with
     all product design, development, and improvements to Siebel software
     available (or intended to become available) for inclusion in the Joint
     Offering. In addition, in Siebel's sole discretion, Siebel will keep ST
     informed with regard to activities from the QA cycles for the Licensed
     Software (including versions in development and pre-production versions)
     and provide ST with reasonable opportunities to participate in the
     development/fixes resulting from these QA cycles.

 (c) ST will share with Siebel ideas for new or enhanced functionality of
     the Siebel portion of the Joint Offering, any ideas to be provided on a
     non-exclusive, non-confidential basis. Siebel will share with ST ideas for
     new or enhanced functionality of the ST portion of the Joint Offering, any
     ideas to be provided on a non-exclusive, non-confidential basis. It is
     understood and agreed that Siebel shall retain all intellectual property
     rights in and to such new or enhanced functionality to the extent
     incorporated in the Licensed Software or any other Siebel product.

 (d) Siebel will provide ST with early access to Siebel product marketing
     associated with (a) any future releases of the software or services for the
     Joint Offering, including any successor software or services, and (b) any
     software or related services which may later become available for marketing
     or licensing to any ST Target Customers. In addition, Siebel will offer ST
     and up to three (3) of its customers the opportunity to participate in the
     pre-production testing of newly developed, licensed or acquired products on
     Siebel's standard terms and conditions associated with such testing, or on
     such other terms as the parties may agree upon.

14.  MARKET DEVELOPMENT FUND

     In each of the first five (5) years of this Agreement following the
     Effective Date, ST and Siebel will each spend a dedicated amount of market
     development funds in direct support of the marketing of the Joint Offering
     ("MDF" or "Market Development Fund"). Siebel agrees to contribute to the
     MDF the same amount spent by ST, up to a maximum of $1,000,000 per Contract
     Period; provided that neither party shall be obligated to fund the MDF or
     spend any amount pursuant to this Section 14 during the Wind-Down Period.
     All amounts spent by either party in connection with the MDF under the
     terms of the Siebel Alliance Program Master Agreement executed by the
     parties contemporaneously with this Agreement shall be credited towards the
     obligations of the parties under this Section 14. This Market Development
     Fund will be jointly administered based on an agreed annual market
     development plan to be developed (a) within thirty (30) days following the
     execution of this Agreement by the parties for the 2000 calendar year, and
     (b) at least sixty (60) days prior to the start of each calendar year
     thereafter.

15.  DEVELOPMENT OF SIEBEL PHARMA, MIDMARKET EDITION PRODUCTS

     Siebel agrees to use commercially reasonable efforts to develop Siebel
     Pharma, Midmarket Edition products by the end of calendar year 2000. Siebel
     will continue to maintain, support and produce Updates for such products as
     Siebel deems appropriate in its reasonable discretion. It is understood and
     agreed that in the event that Siebel does not continue to maintain, support
     and produce Updates for such products, the parties will discuss in good
     faith an appropriate reduction in the Revenue Targets set forth in Section
     1.2 of this EXHIBIT A.

                                                                         Page 16
<PAGE>

                                    EXHIBIT B

                               MAINTENANCE POLICY

At any given time, provided that ST has paid the applicable Maintenance Services
fees, Siebel shall provide support for (a) the then current version of the
Licensed Software enumerated in Order Forms executed pursuant to an applicable
Software License and Services Agreement, and (b) the immediately preceding
version of such Licensed Software, but only for a period of twelve (12) months
following the release of the then current version that is made generally
available, provided that all such Licensed Software is are then generally
available from Siebel and operated on a Supported Platform. Such Licensed
Software is referred to in this Policy as the "Supported Programs."

It is understood and agreed that, within a reasonable period of time following a
decision by Siebel to cease supporting for all customers a preceding version of
the Licensed Software, ST may request in writing that Siebel provide support for
such preceding version on a time-and-materials basis, provided that (i) such
support would cover product defects only, not enhancements; and (ii) the
supported platform would be the Customer's supported platform prior to the
discontinuance of support. Such written request by ST will be approved or denied
in Siebel's discretion, provided that such approval will not be unreasonably
withheld. In the event that Siebel approves such written request, Siebel will
use commercially reasonable efforts to make such support available. In the event
that Siebel makes available such support, ST will remain obligated to pay
Maintenance Fees for such Customer.

1.   MAINTENANCE

Maintenance covers Supported Programs during both implementation and production
use of such Programs. Siebel will use reasonable commercial efforts to cure, as
described below, reported and verifiable errors in Supported Programs so that
such Programs perform in all material respects the functions described in the
associated Documentation. Siebel recognizes four severity levels of Supported
Program errors or issues:
     SEVERITY 1 - CRITICAL BUSINESS IMPACT. Customer's production use of the
Supported Programs is stopped or so severely impacted that the Customer cannot
reasonably continue work or a Customer's continued use of the Supported Programs
is likely to result in significant data loss or have a significant adverse
impact on the Customer's data. Siebel will begin work on the Program error
within one hour of notification during Technical Support's normal business hours
and will engage development staff until an acceptable workaround is achieved. In
the event that Siebel does not satisfy its obligations as set forth in the
preceding sentence, the parties will agree to escalate the issue through a
mutually agreeable management chain.
     SEVERITY 2 - SIGNIFICANT BUSINESS IMPACT. Important Program features are
unavailable with no acceptable workaround. Customer's implementation or
production use of the Supported Programs is continuing but not stopped; however,
there is a serious impact on the Customer's productivity and/or service levels.
Siebel will begin work on the Program error within two hours of notification
during Technical Support's normal business hours and will engage development
staff until an acceptable workaround is achieved.
     SEVERITY 3 - SOME BUSINESS IMPACT. Important Program features are
unavailable but a workaround is available, or less significant Program features
are unavailable with no reasonable workaround. Customer's work, regardless of
the environment or product usage, has minor loss of operational functionality or
implementation resources. Siebel will provide initial response regarding the
requested information or documentation clarification within 24 hours of
notification during Technical Support's normal business hours and will consider
a workaround, if appropriate, and Supported Program enhancements for inclusion
in a subsequent Program Update.
     SEVERITY 4 - MINIMAL BUSINESS IMPACT. Customer requests information, an
enhancement, or documentation clarification regarding the Supported Programs but
there is no impact on the operation of the Supported Programs. Customer's
implementation or production use of the Supported Programs is continuing and
there is no work being impeded at the time. Siebel will provide initial response
regarding the requested information or documentation clarification within 48
hours of notification during Technical Support's normal business hours and will
consider Supported Program enhancements for inclusion in a subsequent Program
Update. Siebel will provide ST with a single copy of the fix or workaround on
suitable media. ST will distribute the fix or workaround to Supported Programs
as necessary.

2.   UPDATES

Siebel shall, from time to time, in its sole discretion, make Updates to
Supported Programs available to ST at no additional charge except for media
and handling charges. If a Customer transfers the Supported Program to a
hardware and/or software platform which is not supported by Siebel at the
time of such transfer, Siebel shall continue to provide to ST Updates which
operate on a Supported Platform and Siebel shall have no further obligation
to fix errors which occur when the Program is run on any platform other than
the Supported Platform. Notwithstanding the foregoing, ST shall remain
obligated to pay for Maintenance Services ordered by ST prior to such
transfer.

3.   SUPPORT

3.1 Customer shall establish and maintain the organization and processes to
provide First Line Support for the Supported Programs directly to Users.

3.2 If after reasonable commercial efforts Customer is unable to diagnose or
resolve problems or performance deficiencies of the Supported Programs,
Customer shall contact ST for Second Line Support and ST shall provide
support for the Supported Programs in accordance with Siebel's then current
policies and procedures for Second Line Support.

3.3 ST shall establish and maintain the organization and processes to provide
Second Line Support for the Supported Programs to Customer. Second Line
Support shall be provided to Customer only if, after reasonable commercial
efforts, Customer is unable to diagnose and/or resolve problems or
performance deficiencies of the Supported Programs. Second Line Support shall
be provided to up to two designated Siebel trained representatives of
Customer.

3.4 Second Line Support shall be provided by ST through (i) telephone support
during local normal business hours, (ii) electronic mail, and (iii) through
the World Wide Web to the extent such support is technically and reasonably
feasible.

3.5 Siebel shall provide ST Third-Line Support for the Supported Programs in
accordance with Siebel's then current Maintenance and Support Services
Policy. ST shall provide Siebel with the necessary remote access (e.g. modem)
to Customer's Supported Platform so that Siebel may, at its option, provide
remote diagnostic capability. Siebel does not assure performance of the
maintenance services described herein if such remote access is not provided
by ST when requested by Siebel. Siebel shall not provide Third Line Support
directly to Users.

4.   MAINTENANCE AND SUPPORT FEES

4.1 Annual fees for Maintenance Services as described herein shall be as set
forth in the Order Form.

4.2 Siebel may, at its sole option, reinstate lapsed Maintenance Services in
accordance with its then current policies upon payment by ST of the
applicable reinstatement fee.

5.   EXCLUDED SERVICES

The following services are outside the scope of Siebel's Maintenance
Services:

5.1  Service for Supported Programs which have been subject to unauthorized
modification by Customer or ST.

5.2  Service for Supported Programs for which all required maintenance releases
have not been implemented by Customer or ST.

5.3  Service which becomes necessary due to: (i) failure of computer hardware or
equipment or programs not covered by this schedule; or (ii) any cause or causes
beyond the reasonable control of Siebel (e.g., floods, fires, loss of
electricity or other utilities), negligence of Customer, ST or any third party,
operator error, improper use of hardware or software or attempted maintenance by
unauthorized persons.

5.4  Services performed at the Customer's or ST's site unless the parties
mutually agree otherwise.

                                                                         Page 17
<PAGE>

                                    EXHIBIT C

                                  DOCUMENTATION

DESCRIPTION OF DOCUMENTATION:

Siebel's Documentation includes on-line help for all licensed Users, one (1)
printed copy of the Data Model Reference Manual, one (1) printed copy of the
Data Mart Data Model Reference (if applicable), and one (1) electronic copy
(from which Customer may print up to three (3) printed copies) of the
Installation and Upgrade Guide, Administration Guide and Release Notes as well
as the Documentation that applies to the Licensed Software at no additional
charge. Additional Documentation that is currently available from Siebel as of
the Effective Date is priced as described in Siebel's price list, less a
discount of ten percent (10%) during the first year after the Effective Date of
this Agreement.

DATA MODEL REFERENCE MANUAL SUPPLEMENTAL CONFIDENTIALITY TERMS AND CONDITIONS:
The following additional terms and conditions apply to Siebel's provision of the
Data Model Reference Manual and the Data Mart Data Model Reference
(collectively, "Data Model") to ST. The Data Model shall be governed by the
terms that apply to Programs under the Agreement, except that with respect to
the Data Model, the nondisclosure obligations set forth in Section 13.1
("Nondisclosure") of the Agreement shall not be limited to the period equal to
the term of the Agreement plus three (3) years, but shall continue perpetually.

1.   AUTHORIZED EMPLOYEES AND AUTHORIZED CONTRACTORS. ST may disclose the Data
Model only to employees and contractors who (i) require access thereto for a
purpose authorized by the Agreement, and (ii) have personally signed the Access
Log which is set forth as the initial page of the Data Model. Such employees and
contractors are hereby designated "Authorized Employees" and "Authorized
Contractors." Notwithstanding the foregoing, if (i) Siebel reasonably believes
that any employee or contractor is engaged in the integration, customization or
other development-related activities of products similar to or competitive with
Siebel's products either for its own benefit or for the benefit of a third party
("Similar Product Development"), and ST cannot assure Siebel to its reasonable
satisfaction that such employee or contractor, while engaged in supporting such
development activities, will be able to refrain from commingling or sharing any
portion of the Data Model with any such Similar Product Development, or (ii)
Siebel reasonably believes that the Data Model may not be properly safeguarded
by any employee or contractor, Siebel shall notify ST in writing and, upon
receipt of such notification, ST shall immediately terminate such employee's or
contractor's access to the Data Model. ST shall promptly provide Siebel with a
copy of the Access Log upon request. In the event Siebel disapproves of an
employee or contractor in accordance with the foregoing, Siebel shall provide ST
prompt notice of such disapproval no later than fifteen (15) days following ST's
having provided Siebel with a copy of the Access Log. Siebel shall be deemed to
have accepted all employees and contractors who have signed the Access Log until
Siebel notifies ST to the contrary. Any breach of the Agreement by an employee
or contractor of ST shall be deemed to be a breach by ST.

2.   PROCEDURES FOR HANDLING THE DATA MODEL. Siebel shall ensure that the Data
Model will be appropriately identified as Siebel's Confidential Information
before being made available to ST hereunder. ST shall ensure that the same
degree of care is used to prevent the unauthorized use, dissemination, or
publication of the Data Model as ST uses to protect its own confidential trade
secret information of a like nature (i.e., other highly-sensitive proprietary
technical data and information of ST such as source code). ST shall not disclose
any portion of the Data Model to third parties, with the exception of Authorized
Employees and Authorized Contractors as set forth in Section 1 above. ST shall
maintain one master copy of the Data Model and ST will designate one employee
("Data Model Access Coordinator") who shall be responsible for controlling all
access to such master copy. All hard copies of the Data Model must be kept in a
locked drawer, cabinet or room at all times when not in use, or otherwise
maintained in an at least equally secure place. ST may not reproduce any portion
of the Data Model for any purpose. If ST wishes to obtain additional hard copies
of the Data Model, Siebel shall provide ST additional copies, as reasonably
necessary, at Siebel's then-current price.

3.   TRADE SECRETS. The Data Model and any part thereof constitute trade secrets
of Siebel and/or its suppliers, and will be used by ST only in accordance with
the terms of this Agreement. ST shall take prompt and appropriate action to
prevent unauthorized use or disclosure of the Data Model by the Authorized
Employees and Authorized Contractors.

                                                                        Page 18

<PAGE>

                                   EXHIBIT D

                                   TRADEMARKS

SIEBEL-Registered Trademark- and the Siebel product names
Universal Agent-TM-
ActiveBriefings-Registered Trademark-
TSQ -Registered Trademark-
Sales.com-TM-
TrickleSync-TM-

                                                                         Page 19
<PAGE>

                                    EXHIBIT E

                               RESERVED COMPANIES(1)

<TABLE>

<CAPTION>

---------------------------------- -------------------------------- --------------------------------- -----------------------------
2Order                             Data Code, Inc.                  Market Power, Inc.                RightPoint
---------------------------------- -------------------------------- --------------------------------- -----------------------------
<S>                                <C>                              <C>                               <C>
Access Productique                 Data Systems Support             MarketFirst Software              Rubric
---------------------------------- -------------------------------- --------------------------------- -----------------------------
AC Nielsen                         Dataflux Corp.                   MarketForce                       Sage Solutions, Inc.
---------------------------------- -------------------------------- --------------------------------- -----------------------------
AccountMate Software               Datawatch, Inc                   MarketSoft                        Salemaker Corporation
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Acxion Corp.                       Davox Corporation                Matrix Holding B.V.               Sales Technologies
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Adante                             Deltek                           McAfee                            SalesBook Systems
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Advent Software Ltd.               Dendrite Software                Mehta Corporation                 Salesforce.com
---------------------------------- -------------------------------- --------------------------------- -----------------------------
AEC Software, Inc                  Desktop Data                     MEI                               SalesGod
---------------------------------- -------------------------------- --------------------------------- -----------------------------
AI International                   Diffusion, Inc.                  Melita International              Saleskit Software
---------------------------------- -------------------------------- --------------------------------- -----------------------------
AIM                                Dr. Glinz und Partner            Metrix, Inc.                      SalesLogix
                                   Unternehmensberatung (pkls)
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Allegis                            Dr. Materna GMBH                 MFJ International                 Salesoft
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Altro Solutions                    Drivetime Software               Microsoft                         SAP AG
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Annuncio                           Early Cloud & Co. (subsidiary    Mosaix                            Saratoga Systems
                                   of IBM)
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Antalys                            EGain                            Moss Micro                        Selectica
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Applix, Inc.                       EIS International, Inc.          Multiactive Software, Inc         Selligent
---------------------------------- -------------------------------- --------------------------------- -----------------------------
ARAMIS                             Epicor                           Mustang                           ServiceSoft
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Astea International                Epiphany                         Netscape                          ServiceWare
---------------------------------- -------------------------------- --------------------------------- -----------------------------
ATIO                               Exchange Applications            NexGen SI                         Silknet Software, Inc.
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Aurum Software                     Exodus                           Nycomed Amershan.                 Silvon Software, Inc.
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Baan                               Emerging Market Technologies,    ONcontact!                        Sirius Systems
                                   Inc.
---------------------------------- -------------------------------- --------------------------------- -----------------------------
BackWeb Technologies               Endpoint Marketing Information   OneSource                         Smart Technologies
                                   Systems
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Balder Dialog AS                   Extelligent                      Niku                              Smarter Software
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Baystone                           Firepond                         NMS Services                      SoftAd Group
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Bedford Associates                 Firstwave                        Norbert Dentressan                Software Innovation AS
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Bendata                            Frontline Tech.                  Onyx                              Sterling Software
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Bermac Communications              Geac SmartStream                 Open Market, Inc.                 Symantec/Contact Software
                                                                                                      International
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Blue Martini                       Gelco Information Network, Inc.  Optima Technologies               Symix
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Blue Pumpkin Software              GoldMine Software                Oracle Corporation                Synygy, Inc.
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Brightware                         Great Elk                        Orbis GmbH                        Team4 Systemhaus GmbH
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Borealis                           Group 1 Software                 Pegasystems, Inc.                 TeleMagic, Inc.
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Brightware                         Hallogram                        PeopleSoft                        TeleMar Software
---------------------------------- -------------------------------- --------------------------------- -----------------------------
BroadVision                        I2 Technologies                  Peregrine Systems                 TeleVell Sales Solutions
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Broadbase Info.                    IBM                              Pipestream Technologies           Thinque Systems
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Broadway & Seymour                 IMA                              Pivotal                           Trilogy Development Group
---------------------------------- -------------------------------- --------------------------------- -----------------------------
BT Squared                         Info Works Software              Platinum Technology, Inc          UNITRAC Software Corporation
---------------------------------- -------------------------------- --------------------------------- -----------------------------
CAS GmbH                           Intactix International           Pointcast                         UpDate Marketing & Vertrieb G
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Caesar Affarssystem AB             IntellAgent Control Corporation  Point Information Systems         UpSHot Sales
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Calico                             Intelligent Electronics          PowerCerv                         Utopia Technologies
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Callidus Software Inc.             InterChange Group, Ltd.          Prime Response                    Vantive Corporation
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Camos Software un Beratung GmbH    InterMind                        Prism Systems                     Vignette
---------------------------------- -------------------------------- --------------------------------- -----------------------------
ChannelPoint                       IRI Software                     Proscape Technologies, Inc        Warever Corporation
---------------------------------- -------------------------------- --------------------------------- -----------------------------
ChannelWave                        International Sales              Proven Edge, Inc.                 Wayfarer
                                   Information Systems Ltd (ISIS)
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Chordiant Software                 Intershop                        Quintus                           WebBridge
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Cincom Systems                     Interworld                       RTS                               WebEnable
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Clarify                            Janna Systems Inc.               Raxco                             WebEx
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Client Technologies                Kana Communications              Real-Time USA, Inc.               Windsoft
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Commerce One                       Learning International           Remedy Corporation                WinSales, Inc.
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Concentra                          Lotus                            Relavis Corp.                     Workflow Designs
---------------------------------- -------------------------------- --------------------------------- -----------------------------
CorNet                             Magic Solutions, Inc.            Repository                        WorldWerx, Inc.
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Corepoint (Subsidiary of IBM)      MapLinx Corporation              Royalblue Technologies Plc        Yahoo!
---------------------------------- -------------------------------- --------------------------------- -----------------------------
Cursor GMBH
---------------------------------- -------------------------------- --------------------------------- -----------------------------
</TABLE>

(1) Company shall include the parent companies, subsidiaries, overseas
branches and overseas offices of the Companies listed above and any company
which is involved in the sale or distribution of the products offered by the
Companies listed above. Siebel reserves the right to add additional companies
(who commercially distribute or otherwise offer a product that is directly
competitive with the Licensed Software) to this list from time to time during
this Agreement with the consent of ST which consent shall not be unreasonably
withheld or delayed. For purposes of adding additional companies to this
Exhibit after the Effective Date, the above listed companies are illustrative
of the type of companies who commercially distribute or otherwise offer a
product that is competitive with the Licensed Software.

                                                                         Page 20
<PAGE>

                                    EXHIBIT F

                   MINIMUM TERMS OF END USER LICENSE AGREEMENT

ST agrees that its agreements with End Users will contain the following minimum
terms and conditions, and that such agreements will not include any additional
terms and conditions which are inconsistent with such minimum terms and
conditions.

1.   DEFINITIONS.

     1.1  "ANCILLARY PROGRAM" shall mean the third party software specified in
     the Documentation and in one or more Order Forms issued pursuant to this
     Agreement and which are delivered with or embedded in the Program.

     1.2  "COMMENCEMENT DATE" of each Program License shall mean the date on
     which End User and ST enter into an Order Form pursuant to which End User
     purchases Program Licenses for such Program(s).

     1.3  "DESIGNATED SYSTEM(S)" shall mean End User's computer hardware and
     operating system(s) designated on the Order Form(s).

     1.4  "MAINTENANCE AND SUPPORT SERVICES" shall mean Program support provided
     under ST's policies in effect on the date Maintenance and Support Services
     are ordered, subject to the payment by End User of the applicable fees for
     such support. ST reserves the right to alter such policies from time to
     time using reasonable discretion.

     1.5  "ORDER FORM(S)" shall mean the document (substantially in the form of
     EXHIBIT G) by which End User orders Program Licenses and related services.
     Each Order Form shall reference the Effective Date of this Agreement and
     shall be deemed to have been incorporated into this Agreement.

     1.6  [INTENTIONALLY OMITTED]

     1.7  "PROGRAM(S)" shall mean the Programs all as described in one or more
     Order Forms issued pursuant to this Agreement; the media upon which such
     software is delivered to End User; and Updates. Programs shall not include
     Ancillary Programs.

     1.8  "PROGRAM LICENSE" shall constitute each license granted to End User
     pursuant hereto for a User to use a Program as specified in one or more
     Order Forms.

     1.9  "TRAINING MATERIALS" shall mean any Siebel Systems' training materials
     provided in connection with any training courses ordered by Customer and
     delivered as set forth in this Agreement.

     1.10 "UPDATE(S)" shall mean a subsequent release of the Program which is
     generally made available for Program Licenses receiving Maintenance and
     Support Services, at no additional charge. Updates shall not include any
     release, option or future product which ST licenses separately or only
     offers for an additional fee, or any upgrade in features, functionality or
     performance of the Programs which ST licenses separately or only offers for
     an additional fee; provided, however, that so long as the End User is
     current on maintenance fee obligations, Updates shall include all (i) bug
     fixes, patches, and maintenance releases, (ii) new point releases of the
     Ordered Programs denoted by a change to the right of the first decimal
     point (e.g., v4.1 to 4.2, v3.0 to 3.1), and (iii) new major version
     releases of the Ordered Programs denoted by a change to the left of the
     first decimal point (e.g., v4.2 to 5.0, v4.0 to 3.0) as set forth herein.

     1.11 "USER(S)" shall mean the named or specified (by password or other user
     identification) individuals authorized by End User to use specified
     Programs, regardless of whether the individual is actively using the
     Programs at any given time. The maximum number of Users that may use or
     access the Programs shall be specified in an Order Form(s) signed by End
     User and ST. "Users" may include the employees of End User and third
     parties, PROVIDED that such third party is limited to use of the Programs
     (i) only as configured and deployed by End User and solely in connection
     with End User's business operations as conducted by or through such third
     party, including but not limited to the installation, administration or
     implementation of the Programs for End User, and (iii) made subject to a
     written agreement with such third party which contains provisions which are
     consistent with the provisions of Sections 2.1, 2.2 and 4.1.

     1.12 "USER SYSTEM" shall mean the computer hardware and operating systems
     operated by Users in the course of their employment with End User,
     including notebook and portable computers.

                                                                         Page 21

<PAGE>

2.   PROGRAM LICENSE.

     2.1  LICENSE GRANT. Subject to the terms and conditions of this Agreement,
     ST hereby grants to End User the following nontransferable, nonexclusive,
     rights and licenses for End User's own internal business operations as
     follows:

          A.   TO USE. (i) to use the Programs and Ancillary Programs solely on
     the Designated System, or on a backup system if the Designated System is
     inoperative; (ii) to use the Documentation solely for purposes of
     supporting End User's use of the Programs; (iii) to use the Training
     Materials solely for purposes of supporting Users who attend Siebel
     Systems' or ST's training courses; (iv) to use the Siebel Tools Programs
     solely in accordance with the Documentation to create End User-specific
     objects for use with the Programs; and (v) to have third parties (e.g.,
     system integrators) install, integrate, and implement the Programs and
     Ancillary Programs for the End User;
          B.   TO COPY. (i) to copy the Programs that operate on server systems
     as reasonably necessary to support the maximum number of authorized Users;
     (ii) to copy the Programs and Ancillary Programs that operate on the
     personal computers of Users up to the maximum number of authorized Users,
     provided that End User may make one additional copy of each such Program
     for use on one personal computer, per named User, so long as such User
     operates only one copy of such Program at any given time; (iii) to make a
     reasonable number of additional copies of the Programs and Ancillary
     Programs solely for archival, emergency back-up, or disaster recovery
     purposes; and (iv) to copy the on-line help Documentation as reasonably
     necessary to support its Users.

     2.2  LICENSE RESTRICTIONS AND EXCLUSIONS. The rights granted in Section 2.1
     are subject to the following restrictions: (i) End User may use the
     Ancillary Programs only in combination with the Programs and solely for
     purposes of installing and/or operating the Programs; End User may not use
     the Ancillary Programs as stand-alone applications; (ii) End User may not
     reverse engineer, disassemble, decompile, or otherwise attempt to derive
     the source code of the Programs or Ancillary Programs; provided that, if
     required under applicable law, upon End User's request, ST shall provide
     information necessary for End User to achieve interoperability between the
     Programs and other software for a nominal administrative charge; (iii) End
     User may not sublicense or use the Programs or Ancillary Programs for
     commercial time-sharing, lease, rental, or service bureau use, or to train
     persons other than authorized Users, unless previously agreed to in writing
     by ST; (iv) End User shall not use the Siebel Tools Programs for general
     application development purposes; and (v) with regard to any and all copies
     of the Programs, Ancillary Programs, and Documentation, End User shall only
     make exact copies of the versions as originally delivered by ST, End User
     shall ensure that each copy contains all titles, trademarks, and copyright
     and restricted rights notices as in the original, and all such copies shall
     be subject to the terms and conditions of this Agreement.

     2.3  RETENTION OF RIGHTS. ST and its suppliers (including Siebel Systems)
     reserves all rights not expressly granted to End User in this Agreement.
     Without limiting the generality of the foregoing, End User acknowledges and
     agrees that: (i) except as specifically set forth in this Agreement, ST and
     its suppliers retain all rights, title and interest in and to the Programs,
     Ancillary Programs, Documentation, Deliverables, and Training Materials and
     End User acknowledges and agrees that it does not acquire any rights,
     express or implied, therein; (ii) any configuration or deployment of the
     Programs shall not affect or diminish ST's or Siebel Systems' rights,
     title, and interest in and to the Programs; and (iii) if End User suggests
     any new features, functionality, or performance for the Programs that
     Siebel Systems subsequently incorporates into the Programs, such new
     features, functionality, or performance shall be the sole and exclusive
     property of Siebel Systems and shall be free from any confidentiality
     restrictions that might otherwise be imposed upon Siebel Systems.

     2.4  TRANSFER AND ASSIGNMENT.

          (a)  End User may, upon written notice to ST and payment of any
     then-applicable transfer fee, transfer a Program from a Designated System;
     PROVIDED, HOWEVER, that if End User transfers the Program to a hardware
     and/or software platform which is not supported by ST at the time of such
     transfer, ST shall continue to provide Updates to End User which operate on
     the supported platform and ST shall have no further obligation to fix
     errors which occur when the Program is run on the unsupported platform.
     Notwithstanding the foregoing, End User shall remain obligated to pay for
     Maintenance and Support Services ordered by End User prior to such
     transfer.

          (b)  Neither this Agreement nor any rights granted hereunder, nor the
     use of any of the Programs, may be sold, leased, assigned, or otherwise
     transferred, in whole or in part, by End User, and any such attempted
     assignment shall be void and of no effect; PROVIDED, HOWEVER, that End User
     may assign this Agreement in connection with a merger, acquisition or sale
     of all or substantially all of its assets unless the surviving entity is a
     direct competitor of ST or Siebel.

     2.5  VERIFICATION. End User is hereby notified that Siebel Systems
     Incorporated, a California corporation located at 1855 South Grant Street,
     San Mateo, CA 94402 is a third-party beneficiary to this Agreement and that
     the provisions of this Agreement related to End User's use of the Programs
     are made expressly for the benefit of Siebel and are enforceable by Siebel
     in addition to ST. At ST's written request, not more frequently than
     annually, End User shall furnish ST with a certificate executed by an
     officer of End User providing the number of authorized Users by country;
     and (b) listing the locations and types of the Designated Systems on which
     the System Programs are run.

     ST and Siebel reserve the right to audit End User's use of the Programs no
     more than once annually at ST or Siebel's expense. ST or Siebel shall
     schedule any audit at least thirty (30) days in advance. Any such audit
     shall be conducted during regular business hours at End User's facilities
     and shall not unreasonably interfere with End User's business activities.
     If such audit reveals that End User has underpaid fees to ST as a result of
     unauthorized use or copying of the Programs, End User shall pay to ST such
     underpaid fees at the prices previously agreed to for such Programs plus
     interest thereon at the prevailing United States prime rate from the
     initial date of the unauthorized use.

                                                                         Page 22
<PAGE>

3.   TERM AND TERMINATION.

     3.1  TERM. Each Program License granted under this Agreement shall commence
     on the applicable Commencement Date and shall remain in effect perpetually
     unless such Program License or this Agreement is terminated as provided in
     Section 3.2 (Termination by ST).

     3.2  TERMINATION BY ST. ST may terminate this Agreement or any Program
     License upon written notice if End User breaches this Agreement and fails
     to correct the breach within thirty (30) days following written notice from
     ST specifying the breach.

     3.3  HANDLING OF PROGRAMS UPON TERMINATION. If a Program License granted
     under this Agreement terminates, End User shall (a) cease using the
     applicable Programs, documentation, and related Confidential Information
     and (b) certify to ST within thirty (30) days after termination that End
     User has destroyed, or has returned to ST, the Programs, documentation and
     related Confidential Information and all copies thereof. This requirement
     applies to copies in all forms, partial and complete, in all types of media
     and computer memory, and whether or not modified or merged into other
     materials. Before returning Programs to ST, End User shall acquire a Return
     Material Authorization ("RMA") number from ST.

     3.4  SURVIVAL. The parties rights and obligations under Sections 2.2(iii),
     2.3, 2.4, 3 and 4 shall survive termination of this Agreement.

4.   GENERAL TERMS.

     4.1  NONDISCLOSURE. By virtue of this Agreement, the parties may have
     access to information that is confidential to one another ("Confidential
     Information"). ST's Confidential Information shall include the Programs,
     formulas, methods, know-how, processes, designs, new products,
     developmental work, marketing requirements, marketing plans, customer
     names, prospective customer names, the terms and pricing under this
     Agreement, and all information clearly identified in writing at the time of
     disclosure as confidential.

     A party's Confidential Information shall not include information that (a)
     is or becomes a part of the public domain through no act or omission of the
     other party; (b) was in the other party's lawful possession prior to the
     disclosure and had not been obtained by the other party either directly or
     indirectly from the disclosing party; (c) is lawfully disclosed to the
     other party by a third party without restriction on disclosure; or (d) is
     independently developed by the other party. End User shall not disclose the
     results of any performance tests of the Programs to any third party without
     Siebel's prior written approval.

     The parties agree to hold each other's Confidential Information in
     confidence during the term of this Agreement and for a period of three (3)
     years after termination of this Agreement, provided, however, that (i) with
     respect to the Siebel Data Model Reference Manual, the Siebel Data Mart
     Data Model Reference, and other highly sensitive confidential information
     clearly identified as such at the time of disclosure by either party
     ("Highly Sensitive Confidential Information"), the nondisclosure
     obligations set forth herein shall continue indefinitely and (ii) with
     respect to information designated by the disclosing party as a "trade
     secret", the nondisclosure obligations set forth herein shall continue for
     so long as such information remains a trade secret under applicable law.
     The parties agree, unless required by law, not to make each other's
     Confidential Information available in any form to any third party or to use
     each other's Confidential Information for any purpose other than in the
     performance of this Agreement. Each party agrees to take all reasonable
     steps to ensure that Confidential Information is not disclosed or
     distributed by its employees or agents in violation of the terms of this
     Agreement. Each party acknowledges and agrees that, due to the unique
     nature of Confidential Information, there may be no adequate remedy at law
     for breach of this Section 4.1 and that such breach would cause irreparable
     harm to the non-breaching party; therefore, the non-breaching party may be
     entitled to seek immediate injunctive relief, in addition to whatever
     remedies it might have at law or under this Agreement.

     4.2  DISCLAIMER OF IMPLIED WARRANTIES. ST does not warrant that (i) the
     Programs will meet End User's requirements, (ii) the Programs will operate
     in the combinations which End User may select for use, (iii) the operation
     of the Programs will be uninterrupted or error-free, or (iv) all Program
     errors will be corrected. Limited Production Programs, pre-production
     releases of Programs, and Training Materials are distributed "AS IS". THE
     WARRANTIES ABOVE ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, WHETHER
     EXPRESS OR IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION THE IMPLIED
     WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

                                                                         Page 23
<PAGE>

                                    EXHIBIT G
                                   ORDER FORM

                         TO SEE ORDER FORM CLICK ON BAR.

                                "IMS 000323 xls"
                                [OBJECT OMITTED]

                                                                         Page 24
<PAGE>

                                    EXHIBIT H

                              LOGO LICENSE ADDENDUM

     Siebel and ST agree to the terms contained in this Logo License Addendum
("Addendum"). In the event of conflict between this Addendum and this Agreement,
the terms and conditions of this Addendum shall prevail with respect to the
subject matter herein.

1.   LOGO LICENSE

1.1  LICENSE GRANT. Subject to and conditioned upon ST's compliance with the
terms and conditions of this Addendum, this Agreement and the Logo Usage
Guidelines, Siebel hereby grants to ST a non-exclusive, non-transferable right
to use within the Territory the Siebel Reseller Logo designated by Siebel,
solely in conjunction with ST's permitted activities pursuant to this Agreement
and in the manner described in the Logo Usage Guidelines.

1.2  RESTRICTIONS. If Siebel specifies that ST is required to have the Solution
validated by Siebel, then ST's rights under this Agreement shall be conditioned
upon obtaining such validation from Siebel in accordance with this Agreement. ST
may not use or reproduce the Siebel Reseller Logo in any manner whatsoever other
than as expressly described in the Logo Usage Guidelines that contains the
specific guidelines concerning the size, placement and use of the Siebel
Reseller Logo.

1.3  RETENTION OF RIGHTS. Siebel expressly reserves all rights not specifically
granted to ST hereunder. Without limiting the generality of the above, ST
expressly agrees that Siebel retains all right, title, and interest in and to
all of the Siebel Reseller Logos. All use of the Siebel Reseller Logo by ST will
inure to the benefit of Siebel. Under no circumstances will anything in this
Agreement be construed as granting, by implication, estoppel or otherwise, a
license to any Siebel technology or proprietary right other than the permitted
use of the Siebel Reseller Logo pursuant to Section 1.1 above.

2.   NO ENDORSEMENT

Except as otherwise expressly agreed in writing by the parties, Siebel does not,
and will not, endorse, warrant or guarantee the performance of any Solution,
products or services. ST will not represent to any third party that Siebel has
endorsed, warranted or guaranteed the performance of any Solution, products or
services, that Siebel has implied the merchantability or fitness for a
particular purpose of any Solution, products or services, or that Siebel intends
to do so.

3.   QUALITY, INSPECTION, AND APPROVAL

3.1  QUALITY OF SOLUTIONS, PRODUCTS AND SERVICES. ST agrees to maintain the
quality of the Solution, products and services used in conjunction with the
Siebel Reseller Logo at a level that meets or exceeds industry standards and at
least commensurate with the quality of Solution, products and services
distributed by ST as of the Effective Date.

3.2  QUALITY OF LOGO. The Siebel Reseller Logo may not be altered by any party
other than Siebel. The Siebel Reseller Logo must be reproduced from the logo
supplied by Siebel. The Siebel Reseller Logo must stand alone in terms of
commercial impression generated by the particular usage and shall not be used in
close proximity with any other trademark or design. Siebel reserves the right to
amend any Siebel Trademarks and to notify ST of any such amendments that are
relevant to ST's business or the Siebel Reseller Logo applicable to ST.

3.3  INSPECTION. ST shall supply Siebel with suitable specimens of the Solution
and products and ST's use of the Siebel Reseller Logo in connection with the
Solutions, products and services at the times and in the manner described in the
Logo Usage Guidelines, or at any time upon reasonable notice from Siebel. ST
shall cooperate with Siebel to facilitate periodic review of ST's use of the
Siebel Reseller Logo and of ST's compliance with the quality standards described
in this Agreement.

3.4  APPROVAL. Siebel reserves the right to approve or reject use of the Siebel
Reseller Logo by ST. ST shall fully correct and remedy any deficiencies in its
use of the Siebel Reseller Logo, conformance to any validation guidelines,
and/or the quality of Solutions, products and services used in conjunction with
the Siebel Reseller Logo, upon reasonable notice from Siebel. If Siebel
determines that the Solutions, products or services do not meet Siebel's
standards, Siebel shall have the right to rescind Siebel's approval of ST's use
of the Siebel Reseller Logo and any other Siebel Trademarks and to terminate
this Agreement for cause pursuant to Section12.2.

                                                                         Page 25
<PAGE>

                                    EXHIBIT I

                                    ST GROUP

     NAME OF ENTITY                                       SPECIFIC TERRITORY
     --------------                                       ------------------

     It is understood and agreed that within five (5) business days after the
     Effective Date, ST shall submit to Siebel the list of members of the ST
     Group to be included in this EXHIBIT I.

                                                                         Page 26
<PAGE>

                                    EXHIBIT J

                           END USER LICENSE AGREEMENT

          ST or the ST Group may use the following form end user license
     agreement (the "Form ELA") as the agreement between ST or member of the ST
     Group and a Customer for sublicensing of the Licensed Software. Siebel
     agrees that if ST or the ST Group uses the Form ELA between itself and a
     Customer for sublicensing of the Licensed Software, Siebel will,
     notwithstanding any provision to the contrary in this Agreement but only
     with respect to such Customer, provide warranties and indemnification to ST
     equivalent to those provided by ST to the Customer in the Form ELA.

                        TO SEE THE FORM ELA CLICK ON BAR.

                                [OBJECT OMITTED]

                                                                         Page 27
<PAGE>

                                    EXHIBIT K

                          ST LIST OF CURRENT PROSPECTS

     *****

**** PORTIONS HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION.
                                                                         Page 28
<PAGE>

                                    EXHIBIT L

                        SIEBEL LIST OF CURRENT PROSPECTS

       *****

**** PORTIONS HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION.

                                                                         Page 29
<PAGE>

                                    EXHIBIT M

                             RESERVED OPPORTUNITIES

It is understood and agreed that the following list of entities is preliminary
and non-binding and is subject to review, revision and the subsequent agreement
of the parties in the business plan to be developed by the parties. In addition
to the companies listed below, ST may, subject to Siebel's prior written
approval, add other entities to this Exhibit M in the pharmaceutical,
biotechnology, medical/surgical supply, and medical diagnostics industries (such
industries principally represented by SIC codes beginning with the numbers 281,
283, 284, 286, 306, 382, 384, 385, 386, 504, 807 & SIC codes 2211, 5122, 5912)
upon written notice to Siebel.

 *****

**** PORTIONS HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION.

                                                                         Page 30<PAGE>

                                                                     Exhibit 4.1

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

                          THE ST. PAUL COMPANIES, INC.

                                       TO

                            THE CHASE MANHATTAN BANK

                                     Trustee

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

                                    INDENTURE

                            Dated as of August 29, 2000

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

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<PAGE>

                          The St. Paul Companies, Inc.
           Reconciliation and tie between Trust Indenture Act of 1939
                    and Indenture, dated as of August 29, 2000

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 Trust Indenture                                                       Indenture
   Act Section                                                          Section
<S>                                                                       <C>
Section 310(a)(1)     ....................................................609
           (a)(2)     ....................................................609
           (a)(3)     ....................................................Not Applicable
           (a)(4)     ....................................................Not Applicable
           (b)        ....................................................608
                                                                          610

Section 311(a)        ....................................................613(a)
           (b)        ....................................................613(b)
           (b)(2)     ....................................................703(a)(2)
                                                                          703(b)

Section 312(a)        ....................................................701
                                                                          702(a)
           (b)        ....................................................702(b)
           (c)        ....................................................702(a)
Section 313(a)        ....................................................703(a)
           (b)        ....................................................703(b)
           (c)        ....................................................703(a), 703(b)
           (d)        ....................................................703(c)
Section 314(a)        ....................................................704
           (b)        ....................................................Not applicable
           (c)(1)     ....................................................102
           (c)(2)     ....................................................102
           (c)(3)     ....................................................Not applicable
           (d)        ....................................................Not applicable
           (e)        ....................................................102
Section 315(a)        ....................................................601(a)
           (b)        ....................................................602
                                                                          703(a)(6)
           (c)        ....................................................601(b)
           (d)        ....................................................601(c)
           (d)(1)     ....................................................601(a)(1)
           (d)(2)     ....................................................601(c)(2)
           (d)(3)     ....................................................601(c)(3)
           (e)        ....................................................514
Section 316(a)        ....................................................101
           (a)(1)(A)  ....................................................502
                                                                          512
           (a)(1)(B)  ....................................................513
           (a)(2)     ....................................................Not Applicable
           (b)        ....................................................508
Section 317(a)(1)     ....................................................503
           (a)(2)     ....................................................504
           (b)        ....................................................1003

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 Trust Indenture                                                       Indenture
   Act Section                                                          Section
<S>                                                                       <C>
Section 318(a)        ....................................................107

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

<PAGE>

                                TABLE OF CONTENTS

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PARTIES........................................................................1
RECITALS OF THE COMPANY........................................................1

                                   ARTICLE ONE
                        Definitions and Other Provisions
                             of General Application

Section 101.   Definitions.....................................................1
               Act.............................................................2
               Affiliate.......................................................2
               Authenticating Agent............................................2
               Board of Directors..............................................2
               Board Resolution................................................3
               Business Day....................................................3
               Commission......................................................3
               Company.........................................................3
               Company Request.................................................3
               Company Order...................................................3
               Corporate Trust Office..........................................3
               corporation.....................................................3
               Defaulted Interest..............................................3
               Depository......................................................4
               Event of Default................................................4
               Exchange Act....................................................4
               Global Security.................................................4
               Holder..........................................................4
               Indenture.......................................................4
               interest........................................................4
               Interest Payment Date...........................................4
               Maturity........................................................4
               Officers' Certificate...........................................5
               Opinion of Counsel..............................................5
               Original Issue Discount Security................................5
               Outstanding.....................................................5
               Paying Agent....................................................6
               Person..........................................................6
               Place of Payment................................................6

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NOTE:    This table of contents shall not, for any purpose, be deemed to be a
         part of the Indenture.

                                      -i-

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                                TABLE OF CONTENTS

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               Predecessor Security............................................7
               Redemption Date.................................................7
               Redemption Price................................................7
               Regular Record Date.............................................7
               Responsible Officer.............................................7
               Securities......................................................7
               Security Register...............................................7
               Security Registrar..............................................7
               Special Record Date.............................................7
               Stated Maturity.................................................8
               Subsidiary......................................................8
               Trustee.........................................................8
               Trust Indenture Act.............................................8
               U.S. Government Obligations.....................................8
               Vice President..................................................8
Section 102.   Compliance Certificates and Opinions............................8
Section 103.   Form of Documents Delivered to Trustee..........................9
Section 104.   Acts of Holders................................................10
Section 105.   Notices, Etc., to Trustee and Company..........................11
Section 106.   Notice to Holders; Waiver......................................12
Section 107.   Conflict with Trust Indenture Act..............................13
Section 108.   Effect of Headings and Table of Contents.......................13
Section 109.   Successors and Assigns.........................................13
Section 110.   Separability Clause............................................13
Section 111.   Benefits of Indenture..........................................13
Section 112.   Governing Law..................................................13
Section 113.   Legal Holidays.................................................14

                                ARTICLE TWO
                              Security Forms

Section 201.   Forms Generally................................................14
Section 202.   Form of Face of Security.......................................15
Section 203.   Form of Reverse of Security....................................17
Section 204.   Form of Legend for Global Securities...........................23
Section 205.   Form of Trustee's Certificate
                of Authentication.............................................23

                               ARTICLE THREE
                              The Securities

Section 301.   Amount Unlimited; Issuable in Series...........................23
Section 302.   Denominations..................................................26

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                                      -ii-

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Section 303.   Execution, Authentication, Delivery
                and Dating....................................................26
Section 304.   Temporary Securities...........................................29
Section 305.   Registration, Registration of
                Transfer and Exchange.........................................30
Section 306.   Mutilated, Destroyed, Lost and
                Stolen Securities.............................................32
Section 307.   Payment of Interest; Interest
                Rights Preserved..............................................33
Section 308.   Persons Deemed Owners..........................................35
Section 309.   Cancellation...................................................35
Section 310.   Computation of Interest........................................36

                               ARTICLE FOUR
                        Satisfaction and Discharge

Section 401.   Satisfaction and Discharge of
                Indenture.....................................................36
Section 402.   Application of Trust Money.....................................38

                               ARTICLE FIVE

                                 Remedies

Section 501.   Events of Default..............................................38
Section 502.   Acceleration of Maturity;
                Rescission and Annulment......................................41
Section 503.   Collection of Indebtedness and Suits for
                Enforcement by Trustee........................................43
Section 504.   Trustee May File Proofs of Claim...............................44
Section 505.   Trustee May Enforce Claims Without Possession of
                Securities....................................................45
Section 506.   Application of Money Collected.................................46
Section 507.   Limitation on Suits............................................46
Section 508.   Unconditional Right of Holders to Receive
                Principal, Premium and Interest...............................47
Section 509.   Restoration of Rights and Remedies.............................48
Section 510.   Rights and Remedies Cumulative.................................48
Section 511.   Delay or Omission Not Waiver...................................48
Section 512.   Control by Holders.............................................49
Section 513.   Waiver of Past Defaults........................................50
Section 514.   Undertaking for Costs..........................................50
Section 515.   Waiver of Usury, Stay or Extension Laws........................51

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                                     -iii-

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                                ARTICLE SIX
                                The Trustee

Section 601.   Certain Duties and Responsibilities............................51
Section 602.   Notice of Defaults.............................................53
Section 603.   Certain Rights of Trustee......................................54
Section 604.   Not Responsible for Recitals or
                Issuance of Securities........................................56
Section 605.   May Hold Securities............................................56
Section 606.   Money Held in Trust............................................56
Section 607.   Compensation and Reimbursement.................................56
Section 608.   Disqualification; Conflicting Interests........................58
Section 609.   Corporate Trustee Required; Eligibility........................66
Section 610.   Resignation and Removal;
                Appointment of Successor......................................66
Section 611.   Acceptance of Appointment by Successor.........................68

Section 612.   Merger, Conversion, Consolidation or Succession to
                Business......................................................70
Section 613.   Preferential Collection of Claims
                Against Company...............................................71
Section 614.   Appointment of Authenticating Agent............................76

                                  ARTICLE SEVEN
                Holders' Lists and Reports by Trustee and Company

Section 701.   Company to Furnish Trustee Names and Addresses of
                Holders.......................................................78
Section 702.   Preservation of Information;
                Communications to Holders.  ..................................79
Section 703.   Reports by Trustee.............................................81
Section 704.   Reports by Company.............................................83

                                  ARTICLE EIGHT
              Consolidation, Merger, Conveyance, Transfer or Lease

Section 801.   Company May Consolidate, Etc., Only on
                Certain Terms.................................................84

Section 802.   Successor Person Substituted...................................85

                               ARTICLE NINE
                          Supplemental Indentures

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                                      -iv-

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Section 901.   Supplemental Indentures Without Consent
                of Holders....................................................86

Section 902.   Supplemental Indentures with Consent
                of Holders....................................................87

Section 903.   Execution of Supplemental Indentures...........................89
Section 904.   Effect of Supplemental Indentures..............................90
Section 905.   Conformity with Trust Indenture Act............................90
Section 906.   Reference in Securities to Supplemental
                Indentures....................................................90

                                ARTICLE TEN
                                 Covenants

Section 1001.  Payment of Principal, Premium and Interest.....................90
Section 1002.  Maintenance of Office or Agency................................90
Section 1003.  Money for Securities Payments to Be Held
                in Trust......................................................91
Section 1004.  Corporate Existence............................................93
Section 1005.  Limitation on Liens............................................93
Section 1006.  Statement by Officers as to Default............................94
Section 1007.  Waiver of Certain Covenants....................................95

                              ARTICLE ELEVEN
                         Redemption of Securities

Section 1101.  Applicability of Article.......................................96
Section 1102.  Election to Redeem; Notice to Trustee..........................96
Section 1103.  Selection by Trustee of Securities to
                Be Redeemed...................................................96
Section 1104.  Notice of Redemption...........................................97
Section 1105.  Deposit of Redemption Price....................................98
Section 1106.  Securities Payable on Redemption Date..........................98
Section 1107.  Securities Redeemed in Part....................................98

                              ARTICLE TWELVE
                               Sinking Funds

Section 1201.  Applicability of Article.......................................99
Section 1202.  Satisfaction of Sinking Fund Payments with
                Securities....................................................99
Section 1203.  Redemption of Securities for Sinking Fund.....................100

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                             ARTICLE THIRTEEN
                    Defeasance and Covenant Defeasance

Section 1301.  Applicability of Article; Company's Option to
                Effect Defeasance or Covenant Defeasance.....................100
Section 1302.  Defeasance and Discharge......................................101
Section 1303.  Covenant Defeasance...........................................102
Section 1304.  Conditions to Defeasance or Covenant
                Defeasance...................................................102
Section 1305.  Deposited Money and U.S. Government
                Obligations to be Held in Trust; Other
                Miscellaneous Provisions.....................................106
Section 1306.  Reinstatement.................................................106

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                                      -vi-

<PAGE>

                  INDENTURE, dated as of August 29, 2000, between The St. Paul
Companies, Inc., a corporation duly organized and existing under the laws of
the State of Minnesota (herein called the "Company"), having its principal
office at 385 Washington Street, St. Paul, Minnesota 55102, and The Chase
Manhattan Bank, a New York banking corporation duly organized and existing
under the laws of the State of New York, as Trustee (herein called the
"Trustee").

                             RECITALS OF THE COMPANY

                  The Company has duly authorized the execution and delivery of
this Indenture to provide for the issuance from time to time of its unsecured
debentures, notes or other evidences of indebtedness (herein called the
"Securities"), to be issued in one or more series as in this Indenture provided.

                  All things necessary to make this Indenture a valid agreement
of the Company, in accordance with its terms, have been done.

                   NOW, THEREFORE, THIS INDENTURE WITNESSETH:

                  For and in consideration of the premises and the purchase of
the Securities by the Holders thereof, it is mutually covenanted and agreed, for
the equal and proportionate benefit of all Holders of the Securities or of
series thereof, as follows:

                                   ARTICLE ONE
                        Definitions and Other Provisions
                             of General Application

Section 101.      DEFINITIONS.

                  For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

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

<PAGE>

                           (2) 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;

                           (3) all accounting terms not otherwise defined herein
         have the meanings assigned to them in accordance with generally
         accepted accounting principles, and, except as otherwise herein
         expressly provided, the term "generally accepted accounting principles"
         with respect to any computation required or permitted hereunder shall
         mean such accounting principles as are generally accepted at the date
         of such computation; and

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

                  Certain terms, used principally in Article Six, are defined in
that Article.

                  "Act", when used with respect to any Holder, has the meaning
specified in Section 104.

                  "Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

                  "Authenticating Agent" means any Authenticating Agent
appointed pursuant to Section 614 to authenticate Securities.

                  "Board of Directors" means either the board of directors of
the Company or any duly authorized committee of that board.

                                      -2-

<PAGE>

                  "Board Resolution" means a copy of a resolution certified by
the Corporate Secretary or an Assistant Corporate Secretary of the Company to
have been duly adopted by the Board of Directors and to be in full force and
effect on the date of such certification, and delivered to the Trustee.

                  "Business Day", when used with respect to any Place of
Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not
a day on which banking institutions in that Place of Payment are authorized or
obligated by law to close.

                  "Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Exchange Act, or, if at any
time after the execution of this instrument such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties at such time.

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

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

                  "Corporate Trust Office" means the principal office of the
Trustee in the Borough of Manhattan, The City of New York, at which at any
particular time its corporate trust business shall be administered.

                  "corporation" includes corporations, associations,
companies and business trusts.

                  "Defaulted Interest" has the meaning specified in
Section 307.

                                      -3-

<PAGE>

                  "Depository" means, with respect to the Securities of any
series issuable or issued in whole or in part in the form of one or more Global
Securities, the clearing agency registered under the Exchange Act specified for
that purpose as contemplated by Section 301.

                  "Event of Default" has the meaning specified in
Section 501.

                  "Exchange Act" means the Securities Exchange Act of 1934 as it
may be amended and any successor act thereto.

                  "Global Security" means a security bearing the legend
specified in Section 204 evidencing all or part of a series of Securities,
authenticated and delivered to the Depository for such series or its nominee,
and registered in the name of such Depository or nominee.

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

                  "Indenture" means this instrument as originally executed or as
it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms of particular series of Securities established as
contemplated by Section 301.

                  "interest", when used with respect to an Original Issue
Discount Security which by its terms bears interest only after Maturity, means
interest payable after Maturity.

                  "Interest Payment Date", when used with respect to any
security, means the Stated Maturity of an instalment of interest on such
Security.

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

                                      -4-

<PAGE>

                  "Officers' Certificate" means a certificate signed by the
Chairman of the Board, the President or a Vice President, and by the Treasurer,
an Assistant Treasurer, the Secretary or an Assistant Secretary, of the Company,
and delivered to the Trustee.

                  "Opinion of Counsel" means a written opinion of counsel, who
may be counsel for the Company.

                  "Original Issue Discount Security" means any Security which
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 502.

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

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

                           (ii) Securities for whose payment or redemption money
         in the necessary amount has been theretofore deposited with the Trustee
         or any Paying Agent (other than the Company) in trust 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 or provision therefor
         satisfactory to the Trustee has been made; and

                           (iii) Securities which have been paid pursuant to
         Section 306 or in exchange for or in lieu of which other Securities
         have been authenticated and delivered pursuant to this Indenture, other
         than any such Securities in respect of which there shall have been
         presented to the Trustee proof satisfactory to it that such Securities
         are held by a protected purchaser in whose hands such Securities are
         valid obligations of the Company;

                                      -5-

<PAGE>

PROVIDED, HOWEVER, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (i) the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding shall be the amount of the principal thereof that would be due and
payable as of the date of such determination upon acceleration of the Maturity
thereof pursuant to Section 502, (ii) the principal amount of a Security
denominated in a foreign currency or currencies shall be the U.S. dollar
equivalent, determined on the date of original issuance of such Security, of the
principal amount (or, in the case of an Original Issue Discount Security, the
U.S. dollar equivalent on the date of original issuance of such Security of the
amount determined as provided in (i) above) of such Security, and (iii)
Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and
deemed not to be Outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which 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 of such other obligor.

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

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

                  "Place of Payment", when used with respect to the Securities
of any series, means the place or places where the principal of (and premium, if
any) and interest

                                      -6-

<PAGE>

on the Securities of that series are payable as specified as contemplated by
Section 301.

                  "Predecessor Security" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security and, for the purposes of this definition, any
Security authenticated and delivered under Section 306 in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.

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

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

                  "Regular Record Date" for the interest payable on any Interest
Payment Date on the Securities of any series means the date specified for that
purpose as contemplated by Section 301.

                  "Responsible Officer", when used with respect to the Trustee,
means any officer of the Trustee with direct responsibility for the
administration of this Indenture and also means, with respect to a particular
corporate trust matter, any other officer of the Trustee to whom such matter is
referred because of his knowledge of and familiarity with the particular
subject.

                  "Securities" has the meaning stated in the first recital of
this Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.

                  "Security Register" and "Security Registrar" have the
respective meanings specified in Section 305.

                  "Special Record Date" for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 307.

                                      -7-

<PAGE>

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

                  "Subsidiary" means a corporation more than 50% of the
outstanding voting stock of which is owned, directly or indirectly, by the
Company or by one or more other Subsidiaries, or by the Company and one or more
other Subsidiaries. For the purposes of this definition, "voting stock" means
stock which ordinarily has voting power for the election of directors, whether
at all times or only so long as no senior class of stock has such voting power
by reason of any contingency.

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

                  "Trust Indenture Act" means the Trust Indenture Act of 1939 as
in force at the date as of which this instrument was executed, except as
provided in Section 905.

                  "U.S. Government Obligations" has the meaning
specified in Section 1304.

                  "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".

Section 102.      COMPLIANCE CERTIFICATES AND OPINIONS.

                  Except as otherwise expressly provided by this Indenture, upon
any application or request by the Company to the Trustee to take any action
under any provision of this Indenture, the Company shall furnish to the Trustee

                                      -8-

<PAGE>

an Officers' Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with
and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

                  Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include

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

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

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

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

Section 103.      FORM OF DOCUMENTS DELIVERED TO TRUSTEE.

                  In any case where several matters are required to be certified
by, or covered by an opinion of, any specified Person, it is not necessary that
all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters

                                      -9-

<PAGE>

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

                  Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, they may, but need not, be consolidated
and form one instrument.

Section 104.      ACTS OF HOLDERS.

                  (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing; 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

                                      -10-

<PAGE>

(subject to Section 601) 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 his 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 which the Trustee deems sufficient.

                  (c) The ownership of Securities shall be proved by the
Security Register.

                  (d) 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 105.      NOTICES, ETC., TO TRUSTEE AND COMPANY.

                  Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with,

                           (1) the Trustee by any Holder or by the Company shall
         be sufficient for every purpose hereunder if made, given, furnished or
         filed in writing to or with the Trustee at its Corporate Trust Office,
         Attention: Capital Markets Fiduciary Services, 450 West 33rd Street,
         15th Floor, New York, New York 10001, or

                                      -11-

<PAGE>

                           (2) the Company by the Trustee or by any Holder shall
         be sufficient for every purpose hereunder (unless otherwise herein
         expressly provided) if in writing and mailed, first-class postage
         prepaid, to the Company addressed to it at the address of its principal
         office specified in the first paragraph of this instrument or at any
         other address previously furnished in writing to the Trustee by the
         Company.

Section 106.      NOTICE TO HOLDERS; WAIVER.

                  Where this Indenture provides for notice to Holders of any
event, 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 his address 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. 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. Where this Indenture
provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by Holders
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 regular mail service or
by reason of any other cause it shall be impracticable to give such notice by
mail, then such notification as shall be made with the approval of the Trustee
shall constitute a sufficient notification for every purpose hereunder.

                                      -12-

<PAGE>

Section 107.      CONFLICT WITH TRUST INDENTURE ACT.

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

Section 108.      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 109.      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 110.      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 111.      BENEFITS OF INDENTURE.

                  Nothing in this Indenture or in the Securities, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder and the Holders, any benefit or any legal or equitable
right, remedy or claim under this Indenture.

Section 112.      GOVERNING LAW.

                  This Indenture and the Securities shall be governed by and
construed in accordance with the laws of the State of New York.

                                      -13-

<PAGE>

Section 113.      LEGAL HOLIDAYS.

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

                                   ARTICLE TWO

                                 Security Forms

Section 201.      FORMS GENERALLY.

                  The Securities of each series shall be in substantially the
form set forth in this Article, or in such other form as shall be established by
or pursuant to a Board Resolution or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture, and may
have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or depository therefor or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution thereof. If the form of Securities of any series is established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 303 for the authentication and delivery of such
Securities.

                                      -14-

<PAGE>

                  The Trustee's certificates of authentication shall be in
substantially the form set forth in this Article.

                  The definitive Securities shall be printed, lithographed or
engraved on steel engraved borders or may be produced in any other manner, all
as determined by the officers executing such Securities, as evidenced by their
execution of such Securities.

Section 202.      FORM OF FACE OF SECURITY.

                  [Insert any legend required by the Internal
Revenue Code and the regulations thereunder.]

                          The St. Paul Companies, Inc.

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

No.                                                               $
   -----------                                                     ------------

                  The St. Paul Companies, Inc., a corporation duly organized and
existing under the laws of the State of Minnesota (herein called the "Company",
which term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to_____________________
_____________________________or registered assigns, the principal sum of
__________________________ Dollars on ________________________________[IF
THE SECURITY IS TO BEAR INTEREST PRIOR TO MATURITY, INSERT____, and to pay
interest thereon from ______________ or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually
on _____________________ and __________________ in each year, commencing
______________________, at the rate of _____% per annum, until the principal
hereof is paid or made available for payment [IF APPLICABLE INSERT _____,
provided that any principal and premium, and any such instalment of interest,
which is overdue shall bear interest at the rate of ____% per annum (to the
extent that the payment of such interest shall be legally enforceable), from
the dates such amounts are due until they are paid or made available for
payment, and such interest shall be payable on demand]. The interest so payable,
and punctually paid

                                      -15-

<PAGE>

or duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the ________ or _______ (whether
or not a Business Day), as the case may be, next preceding such Interest Payment
Date. Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities of this series
not less than 10 days prior to such Special Record Date, or be paid at any time
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided
in said Indenture]. [IF THE SECURITY IS NOT TO BEAR INTEREST PRIOR TO MATURITY,
INSERT ____. The principal of this Security shall not bear interest except in
the case of a default in payment of principal upon acceleration, upon redemption
or at Stated Maturity and in such case the overdue principal and any overdue
premium shall bear interest at the rate of ...% per annum (to the extent that
the payment of such interest shall be legally enforceable), from the dates such
amounts are due until they are paid or made available for payment. Interest on
any overdue principal or premium shall be payable on demand. [Any such interest
on overdue principal or premium which is not paid on demand shall bear interest
at the rate of ______% per annum (to the extent that the payment of such
interest on interest shall be legally enforceable), from the date of such demand
until the amount so demanded is paid or made available for payment. Interest on
any overdue interest shall be payable on demand.]

                  Payment of the principal of (and premium, if any) and [IF
APPLICABLE, INSERT ____ any such] interest on this Security will be made at the
office or agency of the Company maintained for that purpose in ____________, in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of

                                      -16-

<PAGE>

public and private debts [IF APPLICABLE, INSERT _____; PROVIDED, HOWEVER, that
at the option of the Company payment of interest may be made by check mailed
to the address of the Person entitled thereto as such address shall appear in
the Security Register].

                  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.

                  Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Security shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.

                  IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed under its corporate seal.

Dated:

                                  THE ST. PAUL COMPANIES, INC.

                                  By
                                    --------------------------

Attest:

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

Section 203.      FORM OF REVERSE OF SECURITY.

                  This Security is one of a duly authorized issue of securities
of the Company (herein called the "Securities"), issued and to be issued in one
or more series under an Indenture, dated as of August 29, 2000 (herein called
the "Indenture", which term shall have the meaning assigned to it in such
instrument), between the Company and The Chase Manhattan Bank, as Trustee
(herein called the "Trustee", which term includes any successor trustee under
the Indenture), and reference is hereby made to the Indenture for a statement
of the

                                      -17-

<PAGE>

respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof
[IF APPLICABLE, INSERT ___, limited in aggregate principal amount to
$___________].

                  [IF APPLICABLE, INSERT -- The Securities of this series are
subject to redemption upon not more than 60 or less than 30 days' notice by
mail, [IF APPLICABLE, INSERT -- (1) on _________ in any year commencing with the
year ______ and ending with the year ______ through operation of the sinking
fund for this series at a Redemption Price equal to 100% of the principal
amount, and (2)] at any time [on or after ___________, 20__], as a whole or in
part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount): If redeemed [on or before
_______________, __%, and if redeemed] during the 12-month period beginning
___________ of the years indicated.

<TABLE>
<CAPTION>

                    Redemption                         Redemption
     Year             Price             Year              Price
  ----------       -----------       ---------       -------------
<S>                <C>               <C>             <C>
</TABLE>

and thereafter at a Redemption Price equal to ______,% of the principal amount,
together in the case of any such redemption [IF APPLICABLE, INSERT -- (whether
through operation of the sinking fund or otherwise)] with accrued interest to
the Redemption Date, but interest instalments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]

                                      -18-

<PAGE>

                  [IF APPLICABLE, INSERT -- The Securities of this series are
subject to redemption upon not more than 60 or less than 30 days' notice by
mail, (1) on ______________ in any year commencing with the year _______ and
ending with the year ______ through operation of the sinking fund for this
series at the Redemption Prices for redemption through operation of the sinking
fund (expressed as percentages of the principal amount) set forth in the table
below, and (2) at any time [on or after ____________, as a whole or in part, at
the election of the Company, at the Redemption Prices for redemption otherwise
than through operation of the sinking fund (expressed as percentages of the
principal amount) set forth in the table below: If redeemed during the 12-month
period beginning ________________ of the years indicated,

<TABLE>
<CAPTION>

                                                               Redemption Price For
                                Redemption Price For           Redemption Otherwise
                                 Redemption Through                Than Through
                                  Operation of the               Operation of the
     Year                           Sinking Fund                   Sinking Fund
                                --------------------           --------------------
<S>                             <C>                            <C>

</TABLE>

and thereafter at a Redemption Price equal to ______% of the princi pal amount,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise) with accrued interest to the Redemption Date, but
interest instalments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]

                                      -19-

<PAGE>

                  [Notwithstanding the foregoing, the Company may not, prior to
_________________, redeem any Securities of this series as contemplated by
[Clause (2) of] the preceding paragraph as a part of, or in anticipation of, any
refunding operation by the application, directly or indirectly, of moneys
borrowed having an interest cost to the Company (calculated in accordance with
generally accepted financial practice) of less than ___________% per annum.]

                  [The sinking fund for this series provides for the redemption
on ____________ in each year beginning with the year _______ and ending with the
year ________ of [not less than] $________ [("mandatory sinking fund") and not
more than $__________] aggregate principal amount of Securities of this series.
[Securities of this series acquired or redeemed by the Company otherwise than
through [mandatory] sinking fund payments may be credited against subsequent
[mandatory] sinking fund payments otherwise required to be made -- in the
inverse order in which they become due.]

                  In the event of redemption of this Security in part only, a
new Security or Securities of this series and of a like tenor for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.

                  [IF THE SECURITY IS NOT AN ORIGINAL ISSUE DISCOUNT SECURITY,--
If an Event of Default with respect to Securities of this series shall occur and
be continuing, the principal of the Securities of this series may be declared
due and payable in the manner and with the effect provided in the Indenture.]

                  [IF THE SECURITY IS AN ORIGINAL ISSUE DISCOUNT SECURITY, -- If
an Event of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to -- INSERT FORMULA FOR DETERMINING THE
AMOUNT. Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue principal, premium and overdue interest (in
each case to the extent that the payment of such interest shall be

                                      -20-

<PAGE>

legally enforceable), all of the Company's obligations in respect of the payment
of the principal of and premium and interest, if any, on the Securities of this
series shall terminate.]

                  [The Indenture contains provisions for defeasance at any time
of [the entire indebtedness of this Security or] [certain restrictive covenants
and Events of Default with respect to this Security] [, in each case] upon
compliance with certain conditions set forth therein.]

                  The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of 662/3% in principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture
also contains provisions permitting the Holders of specified percentages in
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

                  No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any
premium, and interest on this Security at the times, place and rate, and in the
coin or currency, herein prescribed.

                  As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Security Register,

                                      -21-

<PAGE>

upon surrender of this Security for registration of transfer at the office or
agency of the Company in any place where the principal of and any premium and
interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of this series
and of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

                  The Securities of this series are issuable only in registered
form without coupons in denominations of $........ and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations therein
set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

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

                  Prior to due presentment of this 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 this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

                  All terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

                                      -22-

<PAGE>

Section 204.      FORM OF LEGEND FOR GLOBAL SECURITIES.

                  Any Global Security authenticated and delivered hereunder
shall bear a legend in substantially the following form:

                           "This Security is a Global Security within the
         meaning of the Indenture hereinafter referred to and is registered in
         the name of a Depository or a nominee thereof. This Security may not be
         exchanged in whole or in part for a Security registered, and no
         transfer of this Security in whole or in part may be registered in the
         name of any person other than such Depository or a nominee thereof,
         except in the limited circumstances described in the Indenture."

Section 205.      FORM OF TRUSTEE'S CERTIFICATE OF
                  AUTHENTICATION.

                  The Trustee's certificates of authentication shall be in
substantially the following form:

                  This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.

                                  THE CHASE MANHATTAN BANK,
                                  as Trustee

                                  By
                                    -----------------------------
                                    AUTHORIZED OFFICER

                                  ARTICLE THREE

                                 The Securities

Section 301.      AMOUNT UNLIMITED; ISSUABLE IN SERIES.

                  The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited.

                  The Securities may be issued in one or more series. There
shall be established in or pursuant to a

                                      -23-

<PAGE>

Board Resolution and, subject to Section 303, set forth, or determined in the
manner provided, in an Officers' Certificate, or established in one or more
indentures supplemental hereto, prior to the issuance of Securities of any
series,

                  (1) the title of the Securities of the series (which shall
         distinguish the Securities of the series from Securities of any other
         series);

                  (2) any limit upon the aggregate principal amount of the
         Securities of the series which may be authenticated and delivered under
         this Indenture (except for Securities authenticated and delivered upon
         registration of transfer of, or in exchange for, or in lieu of, other
         Securities of the series pursuant to Section 304, 305, 306, 906 or 1107
         and except for any Securities which, pursuant to Section 303, are
         deemed never to have been authenticated and delivered hereunder);

                  (3) the Person to whom any interest on a Security of the
         series shall be payable, if other than the Person in whose name that
         Security (or one or more Predecessor Securities) is registered at the
         close of business on the Regular Record Date for such interest;

                  (4)      the date or dates on which the principal
         of the Securities of the series is payable;

                  (5) the rate or rates at which the Securities of the series
         shall bear interest, if any, the date or dates from which such interest
         shall accrue, the Interest Payment Dates on which such interest shall
         be payable and the Regular Record Date for the interest payable on any
         Interest Payment Date;

                  (6) the place or places where the principal of (and premium,
         if any) and interest on Securities of the series shall be payable;

                                      -24-

<PAGE>

                  (7) the period or periods within which, the price or prices at
         which, and the terms and conditions upon which, Securities of the
         series may be redeemed, in whole or in part, at the option of the
         Company;

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

                  (9) if other than denominations of $1,000 and any integral
         multiple thereof, the denominations in which Securities of the series
         shall be issuable;

                  (10) the currency or currencies, including composite
         currencies, in which payment of the principal of and any premium and
         interest on the Securities of the series shall be payable if other than
         the currency of the United States of America;

                  (11) if the amount of payments of principal of and any premium
         or interest on the Securities of the series may be determined with
         reference to an index, the manner in which such amounts shall be
         determined;

                  (12) whether the Securities of the series shall be issued in
         whole or in part in the form of one or more Global Securities and, in
         such case, the Depository with respect to such Global Security or
         Securities and the circumstances under which any such Global Security
         may be exchanged for Securities registered in the name of, and any
         transfer of such Global Security may be registered in the name of, a
         Person other than such Depository or its nominee, if other than as set
         forth in Section 305;

                                      -25-

<PAGE>

                  (13) if other than the principal amount thereof, the portion
         of the principal amount of Securities of the series which shall be
         payable upon declaration of acceleration of the Maturity thereof
         pursuant to Section 502:

                  (14)     the application, if any, of Section 1302
         or 1303 to the Securities of any series; and

                  (15) any other terms of the series (which terms shall not be
         inconsistent with the provisions of this Indenture).

                  All Securities of any one series shall be substantially
identical except as to denomination and except as may otherwise be provided in
or pursuant to the Board Resolution referred to above and (subject to Section
303) set forth in the Officers' Certificate or in any such indenture
supplemental hereto.

                  If any of the terms of the series are established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the
Officers' Certificate setting forth the terms of the series.

Section 302.      DENOMINATIONS.

                  The Securities of each series shall be issuable in registered
form without coupons in such denominations as shall be specified as contemplated
by Section 301. In the absence of any such provisions with respect to the
Securities of any series, the Securities of such series shall be issuable in
denominations of $1,000 and any integral multiple thereof.

Section 303.      EXECUTION, AUTHENTICATION,
                  DELIVERY AND DATING.

                  The Securities shall be executed on behalf of the Company by
its Chairman of the Board, its President or one of its Vice Presidents. The
signature of any of

                                      -26-

<PAGE>

these officers on the Securities may be manual or facsimile.

                  Securities bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Securities or
did not hold such offices at the date of such Securities.

                  At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Securities of any series
executed by the Company to the Trustee for authentication, together with a
Company Order for the authentication and delivery of such Securities, and the
Trustee in accordance with the Company Order shall authenticate and deliver such
Securities. If the form or terms of the Securities of the series have been
established in or pursuant to one or more Board Resolutions as permitted by
Sections 201 and 301, in authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such Securities,
the Trustee shall be entitled to receive, and (subject to Section 601) shall be
fully protected in relying upon, an Opinion of Counsel stating,

                  (a) if the form of such Securities has been established by or
         pursuant to Board Resolution as permitted by Section 201, that such
         form has been established in conformity with the provisions of this
         Indenture;

                  (b) if the terms of such Securities have been established by
         or pursuant to Board Resolution as permitted by Section 301, that such
         terms have been established in conformity with the provisions of this
         Indenture; and

                  (c) that such Securities, when authenticated and delivered by
         the Trustee and issued by the Company in the manner and subject to any
         conditions specified in such Opinion of Counsel, will constitute valid
         and legally binding obligations of the Company, enforceable

                                      -27-

<PAGE>

         in accordance with their terms, subject to bankruptcy, insolvency,
         fraudulent transfer, reorganization, moratorium and similar laws of
         general applicability relating to or affecting the enforcement of
         creditors' rights and to general equity principles.

If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.

                  Notwithstanding the provisions of Section 301 and of the
preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Officers'
Certificate otherwise required pursuant to Section 301 or the Company Order and
Opinion of Counsel otherwise required pursuant to such preceding paragraph at or
prior to the time of authentication of each Security of such series if such
documents are delivered at or prior to the time of authentication upon original
issuance of the first Security of such series to be issued.

                  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 executed by the Trustee by manual signature, and such certificate upon
any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture. Notwithstanding the foregoing, if any Security
shall have been authenticated and delivered hereunder but never issued and sold
by the Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 309 together with a written statement (which
need not comply with Section 102 and need not be accompanied by an Opinion of
Counsel)

                                      -28-

<PAGE>

stating that such Security has never been issued and sold by the Company, for
all purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

Section 304.      TEMPORARY SECURITIES.

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

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

                                      -29-

<PAGE>

Section 305.      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 of the Company in a Place of Payment being herein
sometimes collectively referred to as the "Security Register") in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide
for the registration of Securities and of transfers of Securities. The Trustee
is hereby appointed "Security Registrar" for the purpose of registering
Securities and transfers of Securities as herein provided.

                  Upon surrender for registration of transfer of any Security of
any series at the office or agency in a Place of Payment for that series, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
the same series, of any authorized denominations and of a like aggregate
principal amount and tenor.

                  At the option of the Holder, Securities of any series may be
exchanged for other Securities of the same series of any authorized
denominations and of a like aggregate principal amount and tenor, 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, 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 debt, 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 Trustee) be
duly endorsed,

                                      -30-

<PAGE>

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 of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 304, 906 or 1107 not involving any transfer.

                  The Company shall not be required (i) to issue, register the
transfer of or exchange Securities of any series during a period beginning at
the opening of business 15 days before the day of the mailing of a notice of
redemption of Securities of that series selected for redemption under Section
1103 and ending at the close of business on the day of such mailing, 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.

                  Notwithstanding the foregoing, no Global Security shall be
registered for transfer or exchange, or authenticated or delivered, pursuant to
this Section 305 or Sections 304, 306, 906 or 1107 in the name of a Person other
than the Depository for such Security or its nominee until (i) the Depository
with respect to a Global Security notifies the Company that it is unwilling or
unable to continue as Depository for such Global Security or the Depository
ceases to be a clearing agency registered under the Exchange Act, (ii) the
Company executes and delivers to the Trustee a Company Order that such Global
Security shall be so transferable and exchangeable or (iii) there shall have
occurred and be continuing an Event of Default with respect to the Securities of
such series. Upon the occurrence in respect of any Global Security of any series
of any one or more of the conditions specified in clauses (i), (ii) or (iii) of
the preceding sentence or such other conditions as may be specified as
contemplated by Section 301 for such series, such Global Security may be
registered for transfer or exchange for Securities

                                      -31-

<PAGE>

registered in the names of, or authenticated and delivered to, such Persons as
the Depository with respect to such series shall direct.

                  Except as provided in the preceding paragraph, any Security
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, any Global Security, whether pursuant to this Section,
Section 304, 306, 906 or 1107 or otherwise, shall also be a Global Security and
bear the legend specified in Section 205.

Section 306.      MUTILATED, DESTROYED, LOST AND
                  STOLEN SECURITIES.

                  If any mutilated Security is surrendered to the Trustee, the
Company shall execute and the Trustee shall authenticate and deliver in exchange
thereof or a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

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

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

                  Upon the issuance of any new Security under this Section, 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

                                      -32-

<PAGE>

expenses (including the fees and expenses of the Trustee) connected therewith.

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

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

Section 307.      PAYMENT OF INTEREST; INTEREST
                  RIGHTS PRESERVED.

                  Unless otherwise provided as contemplated by Section 301 with
respect to any series of Securities, interest on any Security which is payable,
and is punctually paid or duly provided for, on any Interest Payment Date shall
be paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.

                  Any interest on any Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called "Defaulted Interest") shall forthwith cease to be payable to the
Holder on the relevant Regular Record Date by virtue of having been such Holder,
and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

                  (1) The Company may elect to make payment of any Defaulted
         Interest to the Persons in whose names the Securities of such series
         (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 of such series and the
         date of the proposed payment, and at the same time the Company shall
         deposit with the Trustee an amount of money equal to the aggregate
         amount proposed to be paid in respect of such Defaulted

                                      -33-

<PAGE>

         Interest or shall make arrangements satisfactory to the Trustee for
         such deposit prior to the date of the proposed payment, such money when
         deposited to be held in trust for the benefit of the Persons entitled
         to such Defaulted Interest as in this Clause provided. Thereupon the
         Trustee shall fix a Special Record Date for the payment of such
         Defaulted Interest 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 mailed, first-class postage
         prepaid, to each Holder of Securities of such series at his address as
         it appears in the Security Register, not less than 10 days prior to
         such Special Record Date. Notice of the proposed payment of such
         Defaulted Interest and the Special Record Date therefor having been so
         mailed, such Defaulted Interest shall be paid to the Persons in whose
         names the Securities of such series (or their respective Predecessor
         Securities) are registered at the close of business on such Special
         Record Date and shall no longer be payable pursuant to the following
         Clause (2).

                  (2) The Company may make payment of any Defaulted Interest on
         the Securities of any series in any other lawful manner not
         inconsistent with the requirements of any securities exchange on which
         such Securities may be listed, and upon such notice as may be

                                      -34-

<PAGE>

         required by such exchange, if, after 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 308.      PERSONS DEEMED OWNERS.

                  Prior to 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 Section 307) interest on such Security and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

Section 309.      CANCELLATION.

                  All Securities surrendered for payment, redemption,
registration of transfer or exchange or for credit against any sinking fund
payment shall, if surrendered to any Person other than the Trustee, be delivered
to the Trustee 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. 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.

                                      -35-
<PAGE>

All cancelled Securities held by the Trustee shall be disposed of in accordance
with its normal procedures unless otherwise directed by a Company Order.

Section 310.      COMPUTATION OF INTEREST.

                  Except as otherwise specified as contemplated by Section 301
for Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.

                                  ARTICLE FOUR

                           Satisfaction and Discharge

Section 401.      SATISFACTION AND DISCHARGE OF
                  INDENTURE.

                  This Indenture shall upon Company Request cease to be of
further effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for), and 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 306 and (ii) Securities for whose
                  payment money has theretofore been deposited in trust or
                  segregated and held in trust by the Company and thereafter
                  repaid to the Company or discharged from such trust, as
                  provided in Section 1003) have been delivered to the Trustee
                  for cancellation; or

                                      -36-

<PAGE>

                           (B) all such Securities not theretofore delivered to
                  the Trustee for cancellation

                               (i)  have become due and payable, or

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

                               (iii) are to be called for redemption within one
                           year under arrangements satisfactory to the Trustee
                           for the giving of notice of redemption by the Trustee
                           in the name, and at the expense, of the Company,

                  and the Company, in the case of (i), (ii) or (iii) above, has
                  deposited or caused to be deposited with the Trustee as trust
                  funds in trust for the purpose an amount sufficient to pay and
                  discharge the entire indebtedness on such Securities not
                  theretofore delivered to the Trustee for cancellation, for
                  principal (and premium, if any) and interest to the date of
                  such deposit (in the case of Securities which have become due
                  and payable) or to the Stated Maturity or Redemption Date, as
                  the case may be;

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

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

                                      -37-

<PAGE>

                  Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 607, the
obligations of the Trustee to any Authenticating Agent under Section 614 and, if
money shall have been deposited with the Trustee pursuant to subclause (B) of
clause (1) of this Section, the obligations of the Trustee under Section 402 and
the last paragraph of Section 1003 shall survive.

Section 402.      APPLICATION OF TRUST MONEY.

                  Subject to provisions of the last paragraph of Section 1003,
all money deposited with the Trustee pursuant to Section 401 shall be held in
trust and applied by it, in accordance with the provisions of the Securities 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.

                                  ARTICLE FIVE

                                    Remedies

Section 501.      EVENTS OF DEFAULT.

                  "Event of Default", wherever used herein with respect to
Securities of any series, 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 upon any Security
         of that series when it becomes due and payable, and continuance of such
         default for a period of 30 days; or

                  (2) default in the payment of the principal of (or premium, if
         any, on) any Security of that series at its Maturity; or

                                      -38-

<PAGE>

                  (3) default in the deposit of any sinking fund payment, when
         and as due by the terms of a Security of that series; or

                  (4) default in the performance, or breach, of any covenant or
         warranty of the Company in this Indenture (other than a covenant or
         warranty a default in whose performance or whose breach is elsewhere in
         this Section specifically dealt with or which has expressly been
         included in this Indenture solely for the benefit of a series of
         Securities other than that series), and continuance of such default or
         breach for a period of 90 days after there has been given, by
         registered or certified mail, to the Company by the Trustee or to the
         Company and the Trustee by the Holders of at least 25% in principal
         amount of the Outstanding Securities of that series a written notice
         specifying such default or breach and requiring it to be remedied and
         stating that such notice is a "Notice of Default" hereunder; or

                  (5) the entry by a court having jurisdiction in the premises
         of (A) a decree or order for relief in respect of the Company in an
         involuntary case or proceeding under any applicable Federal or State
         bankruptcy, insolvency, reorganization or other similar law or (B) a
         decree or order adjudging the Company a bankrupt or insolvent, or
         approving as properly filed a petition seeking reorganization,
         arrangement, adjustment or composition of or in respect of the Company
         under any applicable Federal or State law, or appointing a custodian,
         receiver, liquidator, assignee, trustee, sequestrator or other similar
         official of the Company 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 for relief or any such other
         decree or order unstayed and in effect for a period of 90 consecutive
         days; or

                  (6) the commencement by the Company of a voluntary case or
         proceeding under any

                                      -39-

<PAGE>

         applicable Federal or State bankruptcy, insolvency, reorganization or
         other similar law or of any other case or proceeding to be adjudicated
         a bankrupt or insolvent, or the consent by it to the entry of a decree
         or order for relief in respect of the Company in an involuntary case or
         proceeding under any applicable Federal or State bankruptcy,
         insolvency, reorganization or other similar law or to the commencement
         of any bankruptcy or insolvency case or proceeding against it, or the
         filing by it of a petition or answer or consent seeking reorganization
         or relief under any applicable Federal or State law, or the consent by
         it to the filing of such petition or to the appointment of or taking
         possession by a custodian, receiver, liquidator, assignee, trustee,
         sequestrator or similar official of the Company 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 debts generally as they become due, or the taking
         of corporate action by the Company in furtherance of any such
         action; or

                  (7) any other Event of Default provided with respect to
         Securities of that series.

                  Upon receipt by the Trustee of any Notice of Default pursuant
to this Section 501 with respect to Securities of a series all or part of which
is represented by a Global Security, a record date shall be established for
determining Holders of Outstanding Securities of such series entitled to join in
such Notice of Default, which record date shall be at the close of business on
the day the Trustee receives such Notice of Default. The Holders on such record
date, or their duly designated proxies, and only such Persons, shall be entitled
to join in such Notice of Default, whether or not such Holders remain Holders
after such record date; PROVIDED, HOWEVER, that unless Holders of at least 25%
in principal amount of the Outstanding Securities of such series, or their
proxies, shall have joined in such Notice of Default prior to the date which is
the ninetieth day after such record date, such Notice of

                                      -40-

<PAGE>

Default shall automatically and without further action by any Holder be
cancelled and of no further effect. Nothing in this paragraph shall prevent a
Holder, or a proxy of a Holder, from giving, (i) after expiration of such
90-day period, a new Notice of Default identical to a Notice of Default which
has been cancelled pursuant to the proviso to the preceding sentence or (ii)
during any such 90-day period, an additional Notice of Default with respect
to any new or different fact or circumstance permitting the giving of a
Notice of Default with respect to Securities of such series, in either of
which events a new record date shall be established pursuant to the
provisions of this Section 501.

Section 502.      ACCELERATION OF MATURITY;
                  RESCISSION AND ANNULMENT.

                  If an Event of Default with respect to Securities of any
series at the time Outstanding occurs and is continuing, then and in every such
case the Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series may declare the principal amount (or, if
any of the Securities of that series are Original Issue Discount Securities,
such portion of the principal amount of such Securities as may be specified in
the terms thereof) of all of the Securities of that series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount) shall become immediately due and payable.

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

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

                                      -41-

<PAGE>

                           (A) all overdue interest on all
                  Securities of that series,

                           (B) the principal of (and premium, if any, on) any
                  Securities of that series which have become due otherwise than
                  by such declaration of acceleration and interest thereon at
                  the rate or rates prescribed therefor in such Securities,

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

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

         and

                  (2) all Events of Default with respect to Securities of that
         series, other than the non-payment of the principal of Securities of
         that series which have become due solely by such declaration of
         acceleration, have been cured or waived as provided in Section 513.

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

                  Upon receipt by the Trustee of written notice declaring such
an acceleration, or rescission and annulment thereof, with respect to Securities
of a series all or part of which is represented by a Global Security, a record
date shall be established for determining Holders of Outstanding Securities of
such series entitled to join in such notice, which record date shall be at the
close of business on the day the Trustee receives such notice. The Holders on
such record date, or their duly designated proxies, and only such Persons, shall
be entitled to join in such notice, whether or not such

                                      -42-

<PAGE>

Holders remain Holders after such record date; PROVIDED, HOWEVER, that
unless such declaration of acceleration, or rescission and annulment, as the
case may be, shall have become effective by virtue of the requisite percentage
having joined in such notice prior to the day which is the ninetieth day after
such record date, such notice of declaration of acceleration, or rescission and
annulment, as the case may be, shall automatically and without further action by
any Holder be cancelled and of no further effect. Nothing in this paragraph
shall prevent a Holder, or a proxy of a Holder, of Securities of any series from
giving, (i) after expiration of such 90-day period, a new written notice of
declaration of acceleration, or rescission and annulment thereof, as the case
may be, that is identical to a written notice which has been cancelled pursuant
to the proviso to the preceding sentence or (ii) during any such 90-day period
an additional written notice of declaration of acceleration with respect to any
other Event of Default with respect to Securities of such series, or an
additional written notice of rescission or annulment of any declaration of
acceleration with respect to any other Event of Default with respect to
Securities of such series, in either of which events a new record date shall be
established pursuant to the provisions of this Section 502.

Section 503.      COLLECTION OF INDEBTEDNESS AND SUITS
                  FOR ENFORCEMENT BY TRUSTEE.

                  The Company covenants that if

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

                  (2) 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 it, 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, to the extent
that payment of such interest shall be legally

                                      -43-

<PAGE>

enforceable, interest on any overdue principal (and premium, if any) and on
any overdue interest, at the rate or rates prescribed therefor in such
Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

                  If the Company fails to pay such amounts forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust, may
institute a judicial proceeding for the collection of the sums so due and
unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company or any other obligor upon such Securities
and collect the moneys adjudged or decreed to be payable in the manner provided
by law out of the property of the Company or any other obligor upon such
Securities, wherever situated.

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

Section 504.      TRUSTEE MAY FILE PROOFS OF CLAIM.

                  In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise,

                                      -44-

<PAGE>

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

                  (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, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 607.

                  Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
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 505.      TRUSTEE MAY ENFORCE CLAIMS WITHOUT
                  POSSESSION OF SECURITIES.

                  All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the

                                      -45-

<PAGE>

reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the Holders of the
Securities in respect of which such judgment has been recovered.

Section 506.      APPLICATION OF MONEY COLLECTED.

                  Any money collected by the Trustee pursuant to this Article
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal
(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 607, including the
         reasonable fees and expenses of its counsel; and

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

Section 507.      LIMITATION ON SUITS.

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

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

                  (2) the Holders of not less than 25% in principal amount of
         the Outstanding Securities of that series shall have made written
         request

                                      -46-

<PAGE>

         to the Trustee to institute proceedings in respect of such Event of
         Default in its own name as Trustee hereunder;

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

                  (4) the Trustee for 90 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 90-day period by the Holders of a
         majority in principal amount of the Outstanding Securities of that
         series;

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

Section 508.      UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE
                  PRINCIPAL, PREMIUM AND INTEREST.

                  Notwithstanding any other provision in this Indenture, the
Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of (and premium, if any) and
(subject to Section 307) interest on such Security on the Stated Maturity or
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.

                                      -47-

<PAGE>

Section 509.      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 510.      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 306, 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 511.      DELAY OR OMISSION NOT WAIVER.

                  No delay or omission of the Trustee or of any Holder of any
Securities to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this
Article 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.

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<PAGE>

Section 512.      CONTROL BY HOLDERS.

                  The Holders of a majority in principal amount of the
Outstanding Securities of any series shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee, with respect
to the Securities of such series, PROVIDED that

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

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

                  Upon receipt by the Trustee of any written notice directing
the time, method or place of conducting any such proceeding or exercising any
such trust or power, with respect to Securities of a series all or part of which
is represented by a Global Security, a record date shall be established for
determining Holders of Outstanding Securities of such series entitled to join in
such notice, which record date shall be at the close of business on the day the
Trustee receives such notice. The Holders on such record date, or their duly
designated proxies, and only such Persons, shall be entitled to join in such
notice, whether or not such Holders remain Holders after such record date;
PROVIDED, HOWEVER, that unless the Holders of a majority in principal amount of
the Outstanding Securities of such series shall have joined in such notice prior
to the day which is the ninetieth day after such record date, such notice shall
automatically and without further action by any Holder be cancelled and of no
further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of
a Holder, from giving, (i) after expiration of such 90-day period, a new notice
identical to a notice which has been cancelled pursuant to the proviso to the
preceding sentence or (ii) during any such 90-day period, a new direction
contrary to or different from such direction, in either of which events a new
record date shall be established pursuant to the provisions of this Section 512.

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<PAGE>

Section 513.      WAIVER OF PAST DEFAULTS.

                  Subject to Section 502, the Holders of a majority in
principal amount of the Outstanding Securities of any series may, by notice
to the Trustee, waive an existing or past default with respect to the
Securities of such series and its consequences, except a default

                  (1) in the payment of principal of (or premium, if any) or
         interest on any Security of such series, or in the deposit of any
         sinking fund payment when and as due,

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

                  (3) in respect of an existing or past default described in
         clause (4), (5) or (6) of Section 501, which may be waived by the
         Holders of a majority in principal amount of all Outstanding
         Securities voting together as a single class.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Persons entitled to waive any past
default hereunder. If a record date is fixed, the Holders on such record date,
or their duly designated proxies, and only such Persons, shall be entitled to
waive any default hereunder, whether or not such Holders remain Holders after
such record date; PROVIDED, HOWEVER, that unless such majority in principal
amount shall have waived such default prior to the date which is the ninetieth
day after such record date, any such waiver previously given shall automatically
and without further action by any Holder be cancelled and of no further effect.

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

Section 514.      UNDERTAKING FOR COSTS.

                  All parties to this Indenture agree, and each Holder of any
Security by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of

                                      -50-

<PAGE>

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

Section 515.      WAIVER OF USURY, STAY OR EXTENSION LAWS.

                  The Company covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any usury, stay or
extension law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company (to
the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law and covenants that it will not hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.

                                   ARTICLE SIX

                                   The Trustee

Section 601.      CERTAIN DUTIES AND RESPONSIBILITIES.

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

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<PAGE>

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

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

                  (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 negligent action, its
         own negligent failure to act, or its own wilful misconduct, EXCEPT that

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

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

                  (3) the Trustee shall not be liable with respect to any action
         taken or omitted to be taken by it in good faith in accordance with the
         direction of the Holders of a majority in

                                      -52-

<PAGE>

         principal amount of the outstanding Securities of any series,
         determined as provided in Section 512, relating to the time, method and
         place of conducting any proceeding for any remedy available to the
         Trustee, or exercising any trust or power conferred upon the Trustee,
         under this Indenture with respect to the Securities of such series; and

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

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

Section 602.      NOTICE OF DEFAULTS.

                  Within 90 days after the occurrence of any default hereunder
with respect to the Securities of any series, the Trustee shall transmit by mail
to all Holders of Securities of such series, as their names and addresses appear
in the Security Register, notice of such default hereunder known to the Trustee,
unless such default shall have been cured or waived; PROVIDED, HOWEVER, that,
except in the case of a default in the payment of the principal of (or premium,
if any) or interest on any Security of such series or in the payment of any
sinking fund instalment with respect to Securities of such series, the Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors or
Responsible Officers of the Trustee in good faith determine that the withholding
of such notice is in the interest of the Holders of Securities of such series;
and PROVIDED, FURTHER, that in the case of any default of the character
specified in Section 501(4) with

                                      -53-

<PAGE>

respect to Securities of such series, no such notice to Holders shall be given
until at least 30 days after the occurrence thereof. For the purpose of this
Section, the term "default" means any event which is, or after notice or lapse
of time or both would become, an Event of Default with respect to Securities of
such series.

Section 603.      CERTAIN RIGHTS OF TRUSTEE.

                  Subject to the provisions of Section 601:

                  (a) the Trustee may rely and shall be protected in acting or
         refraining from acting upon any resolution, certificate, statement,
         instrument, opinion, report, notice, request, direction, consent,
         order, bond, debenture, note, other evidence of indebtedness or other
         paper or document believed by it to be genuine and to have been signed
         or presented by the proper party or parties;

                  (b) any request or direction of the Company mentioned herein
         shall be sufficiently evidenced by a Company Request or Company Order
         or as otherwise expressly provided herein and any resolution of the
         Board of Directors may be sufficiently evidenced by a Board Resolution;

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

                  (d) the Trustee may consult with counsel and the written
         advice of such counsel or any Opinion of Counsel shall be full and
         complete authorization and protection in respect of any action taken,
         suffered or omitted by it hereunder in good faith and in reliance
         thereon;

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<PAGE>

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

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

                  (g) the Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents or attorneys and the Trustee shall not be responsible
         for any misconduct or negligence on the part of any agent or attorney
         appointed with due care by it hereunder; and

                  (h) the Trustee shall not be charged with knowledge of any
         default or Event of Default with respect to the Securities unless
         either (1) a Responsible Officer shall have actual knowledge of such
         default or Event of Default or (2) written notice of such default or
         Event of Default shall have been given to the Trustee by the Company or
         by any Holder of the Securities.

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<PAGE>

Section 604.      NOT RESPONSIBLE FOR RECITALS
                  OR ISSUANCE OF SECURITIES.

                  The recitals contained herein and in the Securities, except
the Trustee's certificates of authentication, shall be taken as the statements
of the Company, and the Trustee or any Authenticating Agent assumes no
responsibility for their correctness. The Trustee makes no representations as to
the validity or sufficiency of this Indenture or of the Securities. The Trustee
or any Authenticating Agent shall not be accountable for the use or application
by the Company of Securities or the proceeds thereof.

Section 605.      MAY HOLD SECURITIES.

                  The Trustee, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company, in its individual or any
other capacity, may become the owner or pledgee of Securities and, subject to
Sections 608 and 613, may otherwise deal with the Company with the same rights
it would have if it were not Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other agent.

Section 606.      MONEY HELD IN TRUST.

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

Section 607.      COMPENSATION AND REIMBURSEMENT.

                  The Company agrees

                  (1) to pay to the Trustee from time to time reasonable
         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);

                  (2) except as otherwise expressly provided herein, to
         reimburse the Trustee upon its

                                      -56-

<PAGE>

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

                  (3) to indemnify the Trustee for, and to hold it harmless
         against, any loss, liability or expense incurred without negligence or
         bad faith on its part, arising out of or in connection with the
         acceptance or administration of the trust or trusts hereunder
         (including the reasonable compensation and the expenses and
         disbursements of its counsel), including the costs and expenses of
         defending itself against any claim or liability in connection with the
         exercise or performance of any of its powers or duties hereunder.

                  When the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 501(5) and 501(6), the
expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or State bankruptcy, insolvency,
reorganization, or other similar law.

                  To secure the Company's payment obligations in this Section
607, the Trustee shall have a lien prior to the Securities on all money or
property held or collected by the Trustee, in its capacity as Trustee, except
money or property held in trust to pay principal of, premium, if any, and
interest on particular Securities.

                  The provisions of this Section 607 shall survive the
resignation or removal of the Trustee and the termination of this Indenture.

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<PAGE>

Section 608.      DISQUALIFICATION; CONFLICTING INTERESTS.

                  (a) If the Trustee has or shall acquire any conflicting
         interest, as defined in this Section, with respect to the Securities of
         any series, it shall, within 90 days after ascertaining that it has
         such conflicting interest, either eliminate such conflicting interest
         or resign with respect to the Securities of that series in the manner
         and with the effect hereinafter specified in this Article.

                  (b) In the event that the Trustee shall fail to comply with
         the provisions of Subsection (a) of this Section with respect to the
         Securities of any series, the Trustee shall, within 10 days after the
         expiration of such 90-day period, transmit by mail to all Holders of
         Securities of that series, as their names and addresses appear in the
         Security Register, notice of such failure.

                  (c) For the purposes of this Section, the Trustee shall be
         deemed to have a conflicting interest with respect to the Securities of
         any series if

                  (1) the Trustee is trustee under this Indenture with respect
         to the Outstanding Securities of any series other than that series or
         is trustee under another indenture under which any other securities, or
         certificates of interest or participation in any other securities, of
         the Company are outstanding, unless such other indenture is a
         collateral trust indenture under which the only collateral consists of
         Securities issued under this Indenture, PROVIDED that there shall be
         excluded from the operation of this paragraph this Indenture with
         respect to the Securities of any series other than that series or any
         indenture or indentures under which other securities, or certificates
         of interest or participation in other securities, of the Company are
         outstanding, if

                           (i) this Indenture and such other indenture or
                  indentures are wholly unsecured and such other indenture or
                  indentures are hereafter qualified under

                                      -58-

<PAGE>

                  the Trust Indenture Act, unless the Commission shall have
                  found and declared by order pursuant to Section 305(b) or
                  Section 307(c) of the Trust Indenture Act that differences
                  exist between the provisions of this Indenture with respect to
                  Securities of that series and one or more other series or the
                  provisions of such other indenture or indentures which are so
                  likely to involve a material conflict of interest as to make
                  it necessary in the public interest or for the protection of
                  investors to disqualify the Trustee from acting as such under
                  this Indenture with respect to the Securities of that series
                  and such other series or under such other indenture or
                  indentures, or

                           (ii) the Company shall have sustained the burden of
                  proving, on application to the Commission and after
                  opportunity for hearing thereon, that trusteeship under this
                  Indenture with respect to the Securities of that series and
                  such other series or such other indenture or indentures is not
                  so likely to involve a material conflict of interest as to
                  make it necessary in the public interest or for the protection
                  of investors to disqualify the Trustee from acting as such
                  under this Indenture with respect to the Securities of that
                  series and such other series or under such other indenture or
                  indentures;

                  (2) the Trustee or any of its directors or executive officers
         is an obligor upon the Securities or an underwriter for the Company;

                  (3) the Trustee directly or indirectly controls or is directly
         or indirectly controlled by or is under direct or indirect common
         control with the Company or an underwriter for the Company;

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<PAGE>

                  (4) the Trustee or any of its directors or executive officers
         is a director, officer, partner, employee, appointee or representative
         of the Company, or of an underwriter (other than the Trustee itself)
         for the Company who is currently engaged in the business of
         underwriting, except that (i) one individual may be a director or an
         executive officer, or both, of the Trustee and a director or an
         executive officer, or both, of the Company but may not be at the same
         time an executive officer of both the Trustee and the Company; (ii) if
         and so long as the number of directors of the Trustee in office is more
         than nine, one additional individual may be a director or an executive
         officer, or both, of the Trustee and a director of the Company; and
         (iii) the Trustee may be designated by the Company or by any
         underwriter for the Company to act in the capacity of transfer agent,
         registrar, custodian, paying agent, fiscal agent, escrow agent or
         depositary, or in any other similar capacity, or, subject to the
         provisions of paragraph (1) of this Subsection, to act as trustee,
         whether under an indenture or otherwise;

                  (5) 10% or more of the voting securities of the Trustee is
         beneficially owned either by the Company or by any director, partner or
         executive officer thereof, or 20% or more of such voting securities is
         beneficially owned, collectively, by any two or more of such persons;
         or 10% or more of the voting securities of the Trustee is beneficially
         owned either by an underwriter for the Company or by any director,
         partner or executive officer thereof, or is beneficially owned,
         collectively, by any two or more such persons;

                  (6) the Trustee is the beneficial owner of, or holds as
         collateral security for an obligation which is in default (as
         hereinafter in this Subsection defined), (i) 5% or more of the voting
         securities, or 10% or more of any other class of security, of the
         Company not including the Securities issued under this

                                      -60-

<PAGE>

         Indenture and securities issued under any other indenture under which
         the Trustee is also trustee, or (ii) 10% or more of any class of
         security of an underwriter for the Company;

                  (7) the Trustee is the beneficial owner of, or holds as
         collateral security for an obligation which is in default (as
         hereinafter in this Subsection defined), 5% or more of the voting
         securities of any person who, to the knowledge of the Trustee, owns 10%
         or more of the voting securities of, or controls directly or indirectly
         or is under direct or indirect common control with, the Company;

                  (8) the Trustee is the beneficial owner of, or holds as
         collateral security for an obligation which is in default (as
         hereinafter in this Subsection defined), 10% or more of any class of
         security of any person who, to the knowledge of the Trustee, owns 50%
         or more of the voting securities of the Company; or

                  (9) the Trustee owns, on May 15 in any calendar year, in the
         capacity of executor, administrator, testamentary or inter vivos
         trustee, guardian, committee or conservator, or in any other similar
         capacity, an aggregate of 25% or more of the voting securities, or of
         any class of security, of any person, the beneficial ownership of a
         specified percentage of which would have constituted a conflicting
         interest under paragraph (6), (7) or (8) of this Subsection. As to any
         such securities of which the Trustee acquired ownership through
         becoming executor, administrator or testamentary trustee of an estate
         which included them, the provisions of the preceding sentence shall not
         apply, for a period of two years from the date of such acquisition, to
         the extent that such securities included in such estate do not exceed
         25% of such voting securities or 25% of any such class of security.
         Promptly after May 15 in each calendar year, the Trustee shall make a
         check of its holdings of such securities in any of the above-mentioned
         capacities as of such May 15.

                                      -61-

<PAGE>

         If the Company fails to make payment in full of the principal of (or
         premium, if any) or interest on any of the Securities when and as the
         same becomes due and payable, and such failure continues for 30 days
         thereafter, the Trustee shall make a prompt check of its holdings of
         such securities in any of the above-mentioned capacities as of the date
         of the expiration of such 30-day period, and after such date,
         notwithstanding the foregoing provisions of this paragraph, all such
         securities so held by the Trustee, with sole or joint control over such
         securities vested in it, shall, but only so long as such failure shall
         continue, be considered as though beneficially owned by the Trustee for
         the purposes of paragraphs (6), (7) and (8) of this Subsection.

                  The specification of percentages in paragraphs (5) to (9),
inclusive, of this Subsection shall not be construed as indicating that the
ownership of such percentages of the securities of a person is or is not
necessary or sufficient to constitute direct or indirect control for the
purposes of paragraph (3) or (7) of this Subsection.

                  For the purposes of paragraphs (6), (7), (8) and (9) of this
Subsection only, (i) the terms "security" and "securities" shall include only
such securities as are generally known as corporate securities, but shall not
include any note or other evidence of indebtedness issued to evidence an
obligation to repay moneys lent to a person by one or more banks, trust
companies or banking firms, or banking firms, or certificate of interest or
participation in any such note or evidence of indebtedness; (ii) an obligation
shall be deemed to be "in default" when a default in payment of principal shall
have continued for 30 days or more and shall not have been cured; and (iii) the
Trustee shall not be deemed to be the owner or holder of (A) any security which
it holds as collateral security, as trustee or otherwise, for an obligation
which is not in default as defined in clause (ii) above, or (B) any security
which it holds as collateral security under this Indenture, irrespective of any
default hereunder, or (C) any security which it holds

                                      -62-

<PAGE>

as agent for collection, or as custodian, escrow agent or depositary, or in any
similar representative capacity.

                  (d)      For the purposes of this Section:

                  (1) The term "underwriter", when used with reference to the
         Company, means every person who, within three years prior to the time
         as of which the determination is made, has purchased from the Company
         with a view to, or has offered or sold for the Company in connection
         with, the distribution of any security of the Company outstanding at
         such time, or has participated or has had a direct or indirect
         participation in any such undertaking, or has participated or has had a
         participation in the direct or indirect underwriting of any such
         undertaking, but such term shall not include a person whose interest
         was limited to a commission from an underwriter or dealer not in excess
         of the usual and customary distributors' or sellers' commission.

                  (2) The term "director" means any director of a corporation or
         any individual performing similar functions with respect to any
         organization, whether incorporated or unincorporated.

                  (3) The term "person" means an individual, a corporation, a
         partnership, an association, a joint-stock company, a trust, an
         unincorporated organization or a government or political subdivision
         thereof. As used in this paragraph, the term "trust" shall include only
         a trust where the interest or interests of the beneficiary or
         beneficiaries are evidenced by a security.

                  (4) The term "voting security" means any security presently
         entitling the owner or holder thereof to vote in the direction or
         management of the affairs of a person, or any security issued
         under or pursuant to any trust, agreement or arrangement whereby a
         trustee or trustees or agent or agents for the owner or holder of such
         security are presently entitled to vote in the

                                      -63-

<PAGE>

         direction or management of the affairs of a person.

                  (5) The term "Company" means any obligor upon the Securities,

                  (6) The term "executive officer" means the president, every
         vice president, every trust officer, the cashier, the secretary and the
         treasurer of a corporation, and any individual customarily performing
         similar functions with respect to any organization whether incorporated
         or unincorporated, but shall not include the chairman of the board of
         directors.

                  (e) The percentages of voting securities and other securities
specified in this Section shall be calculated in accordance with the following
provisions:

                  (1) A specified percentage of the voting securities of the
         Trustee, the Company or any other person referred to in this Section
         (each of whom is referred to as a "person" in this paragraph) means
         such amount of the outstanding voting securities of such person as
         entitles the holder or holders thereof to cast such specified
         percentage of the aggregate votes which the holders of all the
         outstanding voting securities of such person are entitled to cast in
         the direction or management of the affairs of such person.

                  (2) A specified percentage of a class of securities of a
         person means such percentage of the aggregate amount of securities of
         the class outstanding.

                  (3) The term "amount", when used in regard to securities,
         means the principal amount if relating to evidences of indebtedness,
         the number of shares if relating to capital shares and the number of
         units if relating to any other kind of security.

                  (4) The term "outstanding" means issued and not held by or for
         the account of the

                                      -64-

<PAGE>

         issuer. The following securities shall not be deemed outstanding
         within the meaning of this definition:

                           (i) securities of an issuer held in a sinking fund
                  relating to securities of the issuer of the same class;

                           (ii)securities of an issuer held in a sinking fund
                  relating to another class of securities of the issuer, if the
                  obligation evidenced by such other class of securities is not
                  in default as to principal or interest or otherwise;

                           (iii) securities pledged by the issuer thereof as
                  security for an obligation of the issuer not in default as to
                  principal or interest or otherwise; and

                           (iv)securities held in escrow if placed
                  in escrow by the issuer thereof;

         PROVIDED, HOWEVER, that any voting securities of an issuer shall be
         deemed outstanding if any person other than the issuer is entitled to
         exercise the voting rights thereof.

                  (5) A security shall be deemed to be of the same class as
         another security if both securities confer upon the holder or holders
         thereof substantially the same rights and privileges; PROVIDED,
         HOWEVER, that, in the case of secured evidences of indebtedness, all of
         which are issued under a single indenture, differences in the interest
         rates or maturity dates of various series thereof shall not be deemed
         sufficient to constitute such series different classes and PROVIDED,
         FURTHER, that, in the case of unsecured evidences or indebtedness,
         differences in the interest rates or maturity dates thereof shall not
         be deemed sufficient to constitute them securities of different
         classes, whether or not they are issued under a single indenture.

                                      -65-

<PAGE>

Section 609.      CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

                  There shall at all times be a Trustee hereunder which shall be
a corporation organized and doing business under the laws of the United States
of America, any State thereof or the District of Columbia, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least $50,000,000 subject to supervision or examination by Federal or
State authority and having its Corporate Trust Office in the Borough of
Manhattan, The City of New York. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article.

Section 610.      Resignation and Removal;
                  APPOINTMENT OF SUCCESSOR.

                  (a) No resignation or removal of the Trustee and no
         appointment of a successor Trustee pursuant to this Article shall
         become effective until the acceptance of appointment by the successor
         Trustee in accordance with the applicable requirements of Section 611.

                  (b) The Trustee may resign at any time with respect to the
         Securities of one or more series by giving written notice thereof to
         the Company. If the instrument of acceptance by a successor Trustee
         required by Section 611 shall not have been delivered to the Trustee
         within 30 days after the giving of such notice of resignation, the
         resigning Trustee may petition any court of competent jurisdiction for
         the appointment of a successor Trustee with respect to the Securities
         of such series.

                  (c) The Trustee may be removed at any time with respect to the
         Securities of any series by Act of the Holders of a majority in
         principal amount of the

                                      -66-

<PAGE>

         Outstanding Securities of such series, delivered to the Trustee and to
         the Company.

                  (d) If at any time:

                  (1) the Trustee shall fail to comply with Section 608(a) 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, or

                  (2) the Trustee shall cease to be eligible under Section 609
         and shall fail to resign after written request thereof or by the
         Company or by any such Holder, or

                  (3) the Trustee shall become incapable of acting or shall be
         adjudged a bankrupt or insolvent or a receiver of the Trustee or of its
         property shall be appointed or any public officer shall take charge or
         control of the Trustee or of its property or affairs for the purpose of
         rehabilitation, conservation or liquidation,

then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to all securities, or (ii) subject to Section 514, any
Holder who has been a bona fide Holder of a Security for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

                  (e) If the Trustee shall resign, be removed or become
         incapable of acting, or if a vacancy shall occur in the office of
         Trustee for any cause, with respect to the Securities of one or more
         series, the Company, by a Board Resolution, shall promptly appoint a
         successor Trustee or Trustees with respect to the Securities of that or
         those series (it being understood that any such successor Trustee may
         be appointed with respect to the Securities of one or more or all of
         such series and that

                                      -67-

<PAGE>

         at any time there shall be only one Trustee with respect to the
         Securities of any particular series) and shall comply with the
         applicable requirements of Section 611. If, within one year after such
         resignation, removal or incapability, or the occurrence of such
         vacancy, a successor Trustee with respect to the Securities of any
         Series shall be appointed by Act of the Holders of a majority in
         principal amount of the Outstanding Securities of such series delivered
         to the Company and the retiring Trustee, the successor Trustee so
         appointed shall, forthwith upon its acceptance of such appointment in
         accordance with the applicable requirements of Section 611, become the
         successor Trustee with respect to the Securities of such series and to
         that extent supersede the successor Trustee appointed by the Company.
         If no successor Trustee with respect to the Securities of any Series
         shall have been so appointed by the Company or the Holders and accepted
         appointment in the manner required by Section 611, any Holder who has
         been a bona fide Holder of a Security of such series for at least six
         months may, on behalf of himself and all others similarly situated,
         petition any court of competent jurisdiction for the appointment of a
         successor Trustee with respect to the Securities of such series.

                  (f) The Company shall give notice of each resignation and each
         removal of the Trustee with respect to the Securities of any series and
         each appointment of a successor Trustee with respect to the Securities
         of any series by mailing written notice of such event by first-class
         mail, postage prepaid, to all Holders of Securities of such series as
         their names and addresses appear in the Security Register. Each notice
         shall include the name of the successor Trustee with respect to the
         Securities of such series and the address of its Corporate Trust
         Office.

Section 611.      ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

                  (a) In case of the appointment hereunder of a successor
         Trustee with respect to all Securities, every such successor Trustee so
         appointed shall execute, acknowledge and deliver to the Company and to
         the retiring Trustee an instrument accepting such appointment, and
         thereupon the resignation or removal of the retiring Trustee shall
         become effective and such

                                      -68-

<PAGE>

         successor Trustee, without any further act, deed or conveyance, shall
         become vested with all the rights, powers, trusts and duties of the
         retiring Trustee; but, on the request of the Company or the successor
         Trustee, such retiring Trustee shall, upon payment of its charges,
         execute and deliver an instrument transferring to such successor
         Trustee all the rights, powers and trusts of the retiring Trustee and
         shall duly assign, transfer and deliver to such successor Trustee all
         property and money held by such retiring Trustee hereunder.

                  (b) In case of the appointment hereunder of a successor
         Trustee with respect to the Securities of one or more (but not all)
         series, the Company, the retiring Trustee and each successor Trustee
         with respect to the Securities of one or more series shall execute and
         deliver an indenture supplemental hereto wherein each successor Trustee
         shall accept such appointment and which (1) shall contain such
         provisions as shall be necessary or desirable to transfer and confirm
         to, and to vest in, each successor Trustee all the rights, powers,
         trusts and duties of the retiring Trustee with respect to the
         Securities of that or those series to which the appointment of such
         successor Trustee relates, (2) if the retiring Trustee is not retiring
         with respect to all Securities, shall contain such provisions as shall
         be deemed necessary or desirable to confirm that all the rights,
         powers, trusts and duties of the retiring Trustee with respect to the
         Securities of that or those series as to which the retiring Trustee is
         not retiring shall continue to be vested in the retiring Trustee, and
         (3) shall add to or change any of the provisions of this Indenture as
         shall be necessary to provide for or facilitate the administration of
         the trusts hereunder by more than one Trustee, it being understood that
         nothing herein or in such supplemental indenture shall constitute such
         Trustees co-trustees of the same trust and that each such Trustee shall
         be trustee of a trust or trusts hereunder separate and apart from any
         trust or trusts hereunder administered by any other such Trustee; and
         upon the execution and delivery of such supplemental indenture the
         resignation or removal of the retiring Trustee shall become effective
         to the extent provided therein and each such successor Trustee, without
         any further act, deed or conveyance, shall become vested with all the
         rights, powers, trusts and duties of the retiring

                                      -69-

<PAGE>

         Trustee with respect to the Securities of that or those series to which
         the appointment of such successor Trustee relates; but, on request of
         the Company or any successor Trustee, such retiring Trustee shall duly
         assign, transfer and deliver to such successor Trustee all property and
         money held by such retiring Trustee hereunder with respect to the
         Securities of that or those series to which the appointment of such
         successor Trustee relates,

                  (c) Upon request of any such successor Trustee, the Company
         shall execute any and all instruments for more fully and certainly
         vesting in and confirming to such successor Trustee all such rights,
         powers and trusts referred to in paragraph (a) and (b) of this Section,
         as the case may be.

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

Section 612.      MERGER, CONVERSION, CONSOLIDATION OR
                  SUCCESSION TO BUSINESS.

                  Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all the corporate
trust business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.

                                      -70-
<PAGE>

Section 613.      PREFERENTIAL COLLECTION OF
                  CLAIMS AGAINST COMPANY.

                  (a) Subject to Subsection (b) of this Section, if the Trustee
shall be or shall become a creditor, directly or indirectly, secured or
unsecured, of the Company within four months prior to a default, as defined in
Subsection (c) of this Section, or subsequent to such a default, then, unless
and until such default shall be cured, the Trustee shall set apart and hold in a
special account for the benefit of the Trustee individually, the Holders of the
Securities and the holders of other indenture securities, as defined in
Subsection (c) of this Section:

                  (1) an amount equal to any and all reductions in the amount
         due and owing upon any claim as such creditor in respect of principal
         or interest, effected after the beginning of such four months' period
         and valid as against the Company and its other creditors, except any
         such reduction resulting from the receipt or disposition of any
         property described in paragraph (2) of this Subsection, or from the
         exercise of any right of set-off which the Trustee could have exercised
         if a petition in bankruptcy had been filed by or against the Company
         upon the date of such default; and

                  (2) all property received by the Trustee in respect of any
         claims as such creditor, either as security therefor, or in
         satisfaction or composition thereof, or otherwise, after the beginning
         of such four months' period, or an amount equal to the proceeds of any
         such property, if disposed of, SUBJECT, HOWEVER, to the rights, if any,
         of the Company and its other creditors in such property or such
         proceeds.

Nothing herein contained, however, shall affect the right of the Trustee:

                  (A) to retain for its own account (i) payments made on account
         of any such claim by any Person (other than the Company) who is liable
         thereon, and (ii) the proceeds of the

                                      -71-
<PAGE>

         bona fide sale of any such claim by the Trustee to a third Person, and
         (iii) distributions made in cash, securities or other property in
         respect of claims filed against the Company in bankruptcy or
         receivership or in proceedings for reorganization pursuant to the
         Federal Bankruptcy Act or applicable State law;

                  (B) to realize, for its own account, upon any property held by
         it as security for any such claim, if such property was so held prior
         to the beginning of such four months' period;

                  (C) to realize, for its own account, but only to the extent of
         the claim hereinafter mentioned, upon any property held by it as
         security for any such claim, if such claim was created after the
         beginning of such four months' period and such property was received as
         security thereof or simultaneously with the creation thereof, and if
         the Trustee shall sustain the burden of proving that at the time such
         property was so received the Trustee had no reasonable cause to believe
         that a default, as defined in Subsection (c) of this Section, would
         occur within four months; or

                  (D) to receive payment on any claim referred to in paragraph
         (B) or (C), against the release of any property held as security for
         such claim as provided in paragraph (B) or (C), as the case may be, to
         the extent of the fair value of such property.

                  For the purposes of paragraphs (B), (C) and (D), property
substituted after the beginning of such four months' period for property held as
security at the time of such substitution shall, to the extent of the fair value
of the property released, have the same status as the property released, and, to
the extent that any claim referred to in any of such paragraphs is created in
renewal of or in substitution for or for the purpose of repaying or refunding
any pre-existing claim of the Trustee as such creditor, such claim shall have
the same status as such pre-existing claim.

                                      -72-
<PAGE>

                  If the Trustee shall be required to account, the funds and
property held in such special account and the proceeds thereof shall be
apportioned among the Trustee, the Holders and the holders of other indenture
securities in such manner that the Trustee, the Holders and the holders of other
indenture securities realize, as a result of payments from such special account
and payments of dividends on claims filed against the Company in bankruptcy or
receivership or in proceedings for reorganization pursuant to the Federal
Bankruptcy Act or applicable State law, the same percentage of their respective
claims, figured before crediting to the claim of the Trustee anything on account
of the receipt by it from the Company of the funds and property in such special
account and before crediting to the respective claims of the Trustee and the
Holders and the holders of other indenture securities dividends on claims filed
against the Company in bankruptcy or receivership or in proceedings for
reorganization pursuant to the Federal Bankruptcy Act or applicable State law,
but after crediting thereon receipts on account of the indebtedness represented
by their respective claims from all sources other than from such dividends and
from the funds and property so held in such special account. As used in this
paragraph, with respect to any claim, the term "dividends" shall include any
distribution with respect to such claim, in bankruptcy or receivership or
proceedings for reorganization pursuant to the Federal Bankruptcy Act or
applicable State law, whether such distribution is made in cash, securities or
other property, but shall not include any such distribution with respect to the
secured portion, if any, of such claim. The court in which such bankruptcy,
receivership or proceedings for reorganization is pending shall have
jurisdiction (i) to apportion among the Trustee, the Holders and the holders of
other indenture securities, in accordance with the provisions of this paragraph,
the funds and property held in such special account and proceeds thereof, or
(ii) in lieu of such apportionment, in whole or in part, to give to the
provisions of this paragraph due consideration in determining the fairness of
the distributions to be made to the Trustee and the Holders and the holders of
other indenture securities with respect to their respective claims, in which
event it shall not be necessary to liquidate or to appraise the value of any
securities or other property held in such

                                      -73-
<PAGE>

special account or as security for any such claim, or to make a specific
allocation of such distributions as between the secured and unsecured portions
of such claims, or otherwise to apply the provisions of this paragraph as a
mathematical formula.

                  Any Trustee which has resigned or been removed after the
beginning of such four months' period shall be subject to the provisions of this
Subsection as though such resignation or removal had not occurred. If any
Trustee has resigned or been removed prior to the beginning of such four months'
period, it shall be subject to the provisions of this Subsection if and only if
the following conditions exist:

                  (i) the receipt of property or reduction of claim, which would
         have given rise to the obligation to account, if such Trustee had
         continued as Trustee, occurred after the beginning of such four months'
         period; and

                  (ii) such receipt of property or reduction of claim occurred
         within four months after such resignation or removal.

                  (b) There shall be excluded from the operation of Subsection
(a) of this Section a creditor relationship arising from:

                  (1) the ownership or acquisition of securities issued under
         any indenture, or any security or securities having a maturity of one
         year or more at the time of acquisition by the Trustee;

                  (2) advances authorized by a receivership or bankruptcy court
         of competent jurisdiction or by this Indenture, for the purpose of
         preserving any property which shall at any time be subject to the lien
         of this Indenture or of discharging tax liens or other prior liens or
         encumbrances thereon, if notice of such advances and of the
         circumstances surrounding the making thereof is given to the Holders at
         the time and in the manner provided in this Indenture;

                                      -74-
<PAGE>

                  (3) disbursements made in the ordinary course of business in
         the capacity of trustee under an indenture, transfer agent, registrar,
         custodian, paying agent, fiscal agent or depositary, or other similar
         capacity;

                  (4) an indebtedness created as a result of services rendered
         or premises rented; or an indebtedness created as a result of goods or
         securities sold in a cash transaction, as defined in Subsection (c) of
         this Section;

                  (5) the ownership of stock or of other securities of a
         corporation organized under the provisions of Section 25(a) of the
         Federal Reserve Act, as amended, which is directly or indirectly a
         creditor of the Company; and

                  (6) the acquisition, ownership, acceptance or negotiation of
         any drafts, bills of exchange, acceptances or obligations which fall
         within the classification of self-liquidating paper, as defined in
         Subsection (c) of this Section.

                  (c) For the purposes of this Section only:

                  (1) the term "default" means any failure to make payment in
         full of the principal of or interest on any of the Securities or upon
         the other indenture securities when and as such principal or interest
         becomes due and payable;

                  (2) the term "other indenture securities" means securities
         upon which the company is an obligor outstanding under any other
         indenture (i) under which the Trustee is also trustee, (ii) which
         contains provisions substantially similar to the provisions of this
         Section, and (iii) under which a default exists at the time of the
         apportionment of the funds and property held in such special account;

                  (3) the term "cash transaction" means any transaction in which
         full payment for goods or securities sold is made within seven days
         after delivery of the goods or securities in currency

                                      -75-
<PAGE>

         or in checks or other orders drawn upon banks or bankers and payable
         upon demand;

                  (4) the term "self-liquidating paper" means any draft, bill of
         exchange, acceptance or obligation which is made, drawn, negotiated or
         incurred by the Company for the purpose of financing the purchase,
         processing, manufacturing, shipment, storage or sale of goods, wares or
         merchandise and which is secured by documents evidencing title to,
         possession of, or a lien upon, the goods, wares or merchandise or the
         receivables or proceeds arising from the sale of the goods, wares or
         merchandise previously constituting the security, provided the security
         is received by the Trustee simultaneously with the creation of the
         creditor relationship with the Company arising from the making,
         drawing, negotiating or incurring of the draft, bill of exchange,
         acceptance or obligation;

                  (5) the term "Company" means any obligor upon the Securities;
         and

                  (6) the term "Federal Bankruptcy Act" means the Bankruptcy Act
         or Title 11 of the United States Code.

Section 614.      APPOINTMENT OF AUTHENTICATING AGENT.

                  At any time when any of the Securities remain Outstanding the
Company may appoint an Authenticating Agent or Agents with respect to one or
more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon exchange,
registration of transfer or partial redemption thereof or pursuant to Section
306, and Securities so authenticated shall be entitled to the benefits of this
Indenture and shall be valid and obligatory for all purposes as if authenticated
by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by

                                      -76-
<PAGE>

an Authenticating Agent and a certificate of authentication executed on
behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent
shall at all times be a corporation organized and doing business under the
laws of the United States of America, any State thereof or the District of
Columbia, authorized under such laws to act as Authenticating Agent, having a
combined capital and surplus of not less than $50,000,000 and subject to
supervision or examination by Federal or State authority. If such
Authenticating Agent publishes reports of condition at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such Authenticating Agent shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time an Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, such Authenticating Agent
shall resign immediately in the manner and with the effect specified in this
Section.

                  Any corporation into which an Authenticating Agent may be
merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which such
Authenticating Agent shall be a party, or any corporation succeeding to the
corporate agency or corporate trust business of an Authenticating Agent, shall
continue to be an Authenticating Agent, provided such corporation shall be
otherwise eligible under this Section, without the execution or filing of any
paper or any further act on the part of the Trustee or the Authenticating Agent.

                  An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The Company may at any
time terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Trustee. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Company may appoint a successor Authenticating
Agent and shall mail written notice of such appointment by first-class mail,
postage prepaid, to all Holders of

                                      -77-
<PAGE>

Securities of the series with respect to which such Authenticating Agent will
serve, as their names and addresses appear in the Security Register. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

                  The Company agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section.

                  If an appointment with respect to one or more series is made
pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Trustee's certificate of authentication, an
alternate certificate of authentication in the following form:

                  This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.

                                                    THE CHASE MANHATTAN BANK,
                                                    as Trustee

                                                    By
                                                      --------------------------
                                                       As Authenticating Agent

                                                    By
                                                      --------------------------
                                                        Authorized Officer

                                  ARTICLE SEVEN

         Holders' Lists and Reports by Trustee and Company

Section 701.      COMPANY TO FURNISH TRUSTEE NAMES AND
                  ADDRESSES OF HOLDERS.

                  The Company will furnish or cause to be furnished to the
Trustee

                                      -78-
<PAGE>

                  (a) semi-annually, not later than June 30 and December 31 in
         each year, a list, in such form as the Trustee may reasonably require,
         of the names and addresses of the Holders as of the preceding June 15
         or December 15, as the case may be, and

                  (b) at such other times as the Trustee may request in writing,
         within 30 days after the receipt by the Company of any such request, a
         list of similar form and content as of a date not more than 15 days
         prior to the time such list is furnished;

EXCLUDING from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.

Section 702.      PRESERVATION OF INFORMATION;
                  COMMUNICATIONS TO HOLDERS.

                  (a) The Trustee shall preserve, in as current a form as is
         reasonably practicable, the names and addresses of Holders contained in
         the most recent list furnished to the Trustee as provided in Section
         701 and the names and addresses of Holders received by the Trustee in
         its capacity as Security Registrar. The Trustee may destroy any list
         furnished to it as provided in Section 701 upon receipt of a new list
         so furnished.

                  (b) If three or more Holders (herein referred to as
         "applicants") apply in writing to the Trustee, and furnish the Trustee
         reasonable proof that each such applicant has owned a Security for a
         period of at least six months preceding the date of such application,
         and such application states that the applicants desire to communicate
         with the other Holders with respect to their rights under this
         Indenture or under the Securities and is accompanied by a copy of the
         form of proxy or other communication which such applicants propose to
         transmit, then the Trustee shall, within five business days after the
         receipt of such application, at its election, either

                                      -79-
<PAGE>

                           (i) afford such applicants access to the information
                  preserved at the time by the Trustee in accordance with
                  Section 702(a), or

                           (ii)inform such applicants as to the approximate
                  number of Holders whose names and addresses appear in the
                  information preserved at the time by the Trustee in accordance
                  with Section 702(a), and as to the approximate cost of mailing
                  to such Holders the form of proxy or other communication, if
                  any, specified in such application.

                  If the Trustee shall elect not to afford such applicants
access to such information, the Trustee shall, upon the written request of such
applicants, mail to each Holder whose name and address appear in the information
preserved at the time by the Trustee in accordance with Section 702(a) a copy of
the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be
mailed and of payment, or provision for the payment, of the reasonable expenses
of mailing, unless within five days after such tender the Trustee shall mail to
such applicants and file with the Commission, together with a copy of the
material to be mailed, a written statement to the effect that, in the opinion of
the Trustee, such mailing would be contrary to the best interest of the Holders
or would be in violation of applicable law. Such written statement shall specify
the basis of such opinion. If the Commission, after opportunity for a hearing
upon the objections specified in the written statement so filed, shall enter an
order refusing to sustain any of such objections or if, after the entry of an
order sustaining one or more of such objections, the Commission shall find,
after notice and opportunity for hearing, that all the objections so sustained
have been met and shall enter an order so declaring, the Trustee shall mail
copies of such material to all such Holders with reasonable promptness after the
entry of such order and the renewal of such tender; otherwise the Trustee shall
be relieved of any obligation or duty to such applicants respecting their
application.

                                      -80-
<PAGE>

                  (c) Every Holder of Securities, by receiving and holding the
same, agrees with the Company and the Trustee that neither the Company nor the
Trustee nor any agent of either of them shall be held accountable by reason of
the disclosure of any such information as to the names and addresses of the
Holders in accordance with Section 702(b), regardless of the source from which
such information was derived, and that the Trustee shall not be held accountable
by reason of mailing any material pursuant to a request made under Section
702(b).

Section 703.      REPORTS BY TRUSTEE.

                  (a) Within 60 days after May 15 of each year commencing
with the year 2001, the Trustee shall transmit by mail to all Holders, as their
names and addresses appear in the Security Register, a brief report dated as of
such May 15 with respect to:

                  (1) its eligibility under Section 609 and its qualifications
         under Section 608, or in lieu thereof, if to the best of its knowledge
         it has continued to be eligible and qualified under said Sections, a
         written statement to such effect;

                  (2) the character and amount of any advances (and if the
         Trustee elects so to state, the circumstances surrounding the making
         thereof) made by the Trustee (as such) which remain unpaid on the date
         of such report, and for the reimbursement of which it claims or may
         claim a lien or charge, prior to that of the Securities, on any
         property or funds held or collected by it as Trustee, except that the
         Trustee shall not be required (but may elect) to report such advances
         if such advances so remaining unpaid aggregate not more than 1/2 of 1%
         of the principal amount of the Securities Outstanding on the date of
         such report;

                  (3) the amount, interest rate and maturity date of all other
         indebtedness owing by the Company (or by any other obligor on the
         Securities) to the Trustee in its individual capacity, on the date of
         such report, with a

                                      -81-
<PAGE>

         brief description of any property held as collateral security therefor,
         except an indebtedness based upon a creditor relationship arising in
         any manner described in Section 613(b)(2), (3), (4) or (6);

                  (4) the property and funds, if any, physically in the
         possession of the Trustee as such on the date of such report;

                  (5) any additional issue of Securities which the Trustee has
         not previously reported; and

                  (6) any action taken by the Trustee in the performance of its
         duties hereunder which it has not previously reported and which in its
         opinion materially affects the Securities, except action in respect of
         a default, notice of which has been or is to be withheld by the Trustee
         in accordance with Section 602.

                  (b) The Trustee shall transmit by mail to all Holders, as
their names and addresses appear in the Security Register, a brief report with
respect to the character and amount of any advances (and if the Trustee elects
so to state, the circumstances surrounding the making thereof) made by the
Trustee (as such) since the date of the last report transmitted pursuant to
Subsection (a) of this Section (or if no such report has yet been so
transmitted, since the date of execution of this instrument) for the
reimbursement of which it claims or may claim a lien or charge, prior to that of
the Securities, on property or funds held or collected by it as Trustee and
which it has not previously reported pursuant to this Subsection, except that
the Trustee shall not be required (but may elect) to report such advances if
such advances remaining unpaid at any time aggregate 10% or less of the
principal amount of the Securities Outstanding at such time, such report to be
transmitted within 90 days after such time.

                  (c) A copy of each such report shall, at the time of such
transmission to Holders, be filed by the Trustee with each stock exchange upon
which any Securities are listed, with the Commission and with the

                                      -82-
<PAGE>

Company. The Company will notify the Trustee when any Securities are listed on
any stock exchange.

Section 704.      REPORTS BY COMPANY.

                  The Company shall:

                  (1) file with the Trustee, within 15 days after the Company is
         required to file the same with the Commission, copies of the annual
         reports and of the information, documents and other reports (or copies
         of such portions of any of the foregoing as the Commission may from
         time to time by rules and regulations prescribe) which the Company may
         be required to file with the Commission pursuant to Section 13 or
         Section 15(d) of the Exchange Act; or, if the Company is not required
         to file information, documents or reports pursuant to either of said
         Sections, then it shall file with the Trustee and the Commission, in
         accordance with rules and regulations prescribed from time to time by
         the Commission, such of the supplementary and periodic information,
         documents and reports which may be required pursuant to Section 13 of
         the Exchange Act in respect of a security listed and registered on a
         national securities exchange as may be prescribed from time to time in
         such rules and regulations;

                  (2) file with the Trustee and the Commission, in accordance
         with rules and regulations prescribed from time to time by the
         Commission, such additional information, documents and reports with
         respect to compliance by the Company with the conditions and covenants
         of this Indenture as may be required from time to time by such rules
         and regulations; and

                  (3) transmit by mail to all Holders, as their names and
         addresses appear in the Security Register, within 30 days after the
         filing thereof with the Trustee, such summaries of any information,
         documents and reports required to be filed by the Company pursuant to
         paragraphs (1) and (2) of this Section as may be required

                                      -83-
<PAGE>

         by rules and regulations prescribed from time to time by the
         Commission.

                                  ARTICLE EIGHT

         Consolidation, Merger, Conveyance, Transfer or Lease

Section 801.      COMPANY MAY CONSOLIDATE, ETC., ONLY ON
                  CERTAIN TERMS.

                  The Company shall not consolidate with or merge into any other
Person or convey, transfer or lease its properties and assets substantially as
an entirety to any Person, and the Company shall not permit any Person to
consolidate with or merge into the Company or convey, transfer or lease its
properties and assets substantially as an entirety to the Company, unless:

                  (1) in case the Company shall consolidate with or merge into
         another Person or convey, transfer or lease its properties and assets
         substantially as an entirety to any Person, the Person formed by such
         consolidation or into which the Company is merged or the Person which
         acquires by conveyance or transfer, or which leases, the properties and
         assets of the Company substantially as an entirety shall be a
         corporation, partnership or trust organized and existing under the laws
         of the United States of America, any State thereof or the District of
         Columbia and shall expressly assume, by an indenture supplemental
         hereto, executed and delivered to the Trustee, in form satisfactory to
         the Trustee, the due and punctual payment of the principal of (and
         premium, if any) and interest on all the Securities and the performance
         of every covenant of this Indenture on the part of the Company to be
         performed or observed;

                  (2) immediately after giving effect to such transaction and
         treating any indebtedness which becomes an obligation of the Company or
         a Subsidiary as a result of such transaction as having been incurred by
         the Company or such

                                      -84-
<PAGE>

         Subsidiary at the time of such transaction, no Event of Default, and no
         event which, after notice or lapse of time or both, would become an
         Event of Default, shall have happened and be continuing;

                  (3) if, as a result of any such consolidation or merger or
         such conveyance, transfer or lease, properties or assets of the Company
         would become subject to a mortgage, pledge, lien, security interest or
         other encumbrance which would not be permitted by this Indenture, the
         Company or such successor corporation or Person, as the case may be,
         shall take such steps as shall be necessary effectively to secure the
         Securities equally and ratably with (or prior to) all indebtedness
         secured thereby; and

                  (4) the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that such
         consolidation, merger, conveyance, transfer or lease and, if a
         supplemental indenture is required in connection with such transaction,
         such supplemental indenture comply with this Article and that all
         conditions precedent herein provided for relating to such transaction
         have been complied with.

Section 802.      SUCCESSOR PERSON SUBSTITUTED.

                  Upon any consolidation by the Company with or merger by the
Company into any other Person or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance
with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter, except in
the case of a lease, the predecessor Person shall be relieved of all obligations
and covenants under this Indenture and the Securities.

                                      -85-
<PAGE>

                                  ARTICLE NINE

                             Supplemental Indentures

Section 901.      SUPPLEMENTAL INDENTURES WITHOUT CONSENT
                  OF HOLDERS.

                  Without the consent of any Holders, the Company, when
authorized by a Board Resolution, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
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 herein and in the Securities; or

                  (2) to add to the covenants of the Company for the benefit of
         the Holders of all or any series of Securities (and if such covenants
         are to be for the benefit of less than all series of Securities,
         stating that such covenants are expressly being included solely for the
         benefit of such series) or to surrender any right or power herein
         conferred upon the Company; or

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

                  (4) to add to or change any of the provisions of this
         Indenture to such extent as shall be necessary to permit or facilitate
         the issuance of Securities in bearer form, registerable or not
         registerable as to principal, and with or without interest coupons, or
         to permit or facility the issuance of Securities in uncertificated
         form; or

                  (5) to change or eliminate any of the provisions of this
         Indenture, PROVIDED that any such change or elimination shall become
         effective only when there is no Security Outstanding of any series
         created prior to the

                                      -86-
<PAGE>

         execution of such supplemental indenture which is entitled to the
         benefit of such provision; or

                  (6) to secure the Securities pursuant to the requirements of
         Section 1005 or otherwise; or

                  (7) to establish the form or terms of Securities of any series
         as permitted by Sections 201 and 301; or

                  (8) to evidence and provide for the acceptance of appointment
         hereunder by a successor Trustee with respect to the Securities of one
         or more series and to add to or change any of the provisions of this
         Indenture as shall be necessary to provide for or facilitate the
         administration of the trusts hereunder by more than one Trustee,
         pursuant to the requirements of Section 611(b); or

                  (9) 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 such action shall not
         adversely affect the interests of the Holders of Securities of any
         series in any material respect.

Section 902.      SUPPLEMENTAL INDENTURES WITH CONSENT
                  OF HOLDERS.

                  With the consent of the Holders of a majority in principal
amount of the Outstanding Securities affected by such supplemental indenture
voting together as a single class, by Act of said Holders delivered to the
Company and the Trustee, the Company, when authorized by a Board Resolution,
and the Trustee may enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any
manner the rights of the Holders of Securities of such series under this
Indenture; PROVIDED, HOWEVER, that no such supplemental

                                      -87-
<PAGE>

indenture shall, without the consent of the Holder of each Outstanding Security
affected thereby,

                  (1) change the Stated Maturity of the principal of, or any
         instalment of principal of or interest on, any Security, or reduce the
         principal amount thereof or the rate of interest thereon or any premium
         payable upon the redemption thereof, or reduce the amount of the
         principal of an Original Issue Discount Security that would be due and
         payable upon a declaration of acceleration of the Maturity thereof
         pursuant to Section 502, or change any 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, on or after the Redemption Date), or

                  (2) reduce the percentage in principal amount of the
         Outstanding Securities of any series, the consent of whose Holders is
         required for any such supplemental indenture, or the consent of whose
         Holders is required for any waiver (of compliance with certain
         provisions of this Indenture or certain defaults hereunder and their
         consequences) provided for in this Indenture, or

                  (3) modify any of the provisions of this Section, Section 513
         or Section 1007, except to increase any such percentage or to provide
         that certain other provisions of this Indenture cannot be modified or
         waived without the consent of the Holder of each Outstanding Security
         affected thereby, PROVIDED, HOWEVER, that this clause shall not be
         deemed to require the consent of any Holder with respect to changes in
         the references to "the Trustee" and concomitant changes in this Section
         and Section 1007, or the deletion of this proviso, in accordance with
         the requirements of Sections 611(b) and 901(8).

                                      -88-
<PAGE>

A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the
rights of the Holders of Securities of such series with respect to such covenant
or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Persons entitled to consent to any
indenture supplemental hereto. If a record date is fixed, the Holders on such
record date, or their duly designated proxies, and only such Persons, shall be
entitled to consent to such supplemental indenture, whether or not such Holders
remain Holders after such record date; PROVIDED, HOWEVER, that unless such
consent shall have become effective by virtue of the requisite percentage having
been obtained prior to the date which is the ninetieth day after such record
date, any such consent previously given shall, automatically and without further
action by any Holder, be cancelled and of no further effect.

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

Section 903.      EXECUTION OF SUPPLEMENTAL INDENTURES.

                  In executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article or the modifications
thereby of the trusts created by this Indenture, the Trustee shall be entitled
to receive, and (subject to Section 601) shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. 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.

                                      -89-
<PAGE>

Section 904.      EFFECT OF SUPPLEMENTAL INDENTURES.

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

Section 905.      CONFORMITY WITH TRUST INDENTURE ACT.

                  Every supplemental indenture executed pursuant to this Article
shall conform to the requirements of the Trust Indenture Act as then in effect,

Section 906.      REFERENCE IN SECURITIES TO SUPPLEMENTAL
                  INDENTURES.

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

                                   ARTICLE TEN

                                    Covenants

Section 1001.     PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.

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

Section 1002.     MAINTENANCE OF OFFICE OR AGENCY.

                                      -90-
<PAGE>

                  The Company will maintain in each Place of Payment for any
series of Securities an office or agency where Securities of that series may be
presented or surrendered for payment, where Securities of that series may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities of that series and
this Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

                  The Company may also from time to time designate one or more
other offices or agencies where the Securities of one or more series may be
presented or surrendered for any or all such purposes and may from time to time
rescind such designations; PROVIDED, HOWEVER, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain
an office or agency in each Place of Payment for Securities of any series for
such purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other office or agency.

Section 1003.     MONEY FOR SECURITIES PAYMENTS TO
                  BE HELD IN TRUST.

                  If the Company shall at any time act as its own Paying Agent
with respect to any series of Securities, it will, on or before each due date of
the principal of (and premium, if any) or interest on any of the Securities of
that series, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal (and premium, if any) or interest
so becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and will promptly notify the Trustee of its
action or failure so to act.

                                      -91-
<PAGE>

                  Whenever the Company shall have one or more Paying Agents for
any series of Securities, it will, on or before each due date of the principal
of (and premium, if any) or interest on any Securities of that series, 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 its action
or failure so to act.

                  The Company will cause each Paying Agent for any series of
Securities other than the Trustee to execute and deliver to the Trustee an
instrument in which such Paying Agent shall agree with the Trustee, subject to
the provisions of this Section, that such Paying Agent will:

                  (1) hold all sums held by it for the payment of the principal
         of (and premium, if any) or interest on Securities of that series 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 of that series) in the making of
         any payment of principal (and premium, if any) or interest on the
         Securities of that series; and

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

                  The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying

                                      -92-
<PAGE>

Agent to the Trustee, such Paying Agent shall be released from all further
liability with respect to such money.

                  Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of (and
premium, if any) or interest on any Security of any series and remaining
unclaimed for one year after such principal (and premium, if any) 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,
notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication,
any unclaimed balance of such money then remaining will be repaid to the
Company.

Section 1004.     CORPORATE EXISTENCE.

                  Subject to Article Eight, the Company will do or cause to be
done all things necessary to preserve and keep in full force and effect, and
will cause St. Paul Fire and Marine Insurance Company to preserve and keep in
full force and effect, its corporate existence and all licenses and permits
material to the normal conduct of its business; PROVIDED, HOWEVER, that the
Company shall not be required to preserve any such right or franchise if the
Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and that the loss
thereof is not disadvantageous in any material respect to the Holders.

Section 1005.     LIMITATION ON LIENS.

                                      -93-
<PAGE>

                  The Company will not, and will not permit any Designated
Subsidiary to, directly or indirectly, create, issue, assume, incur or guarantee
any indebtedness for money borrowed which is secured by a mortgage, pledge,
lien, security interest or other encumbrance of any nature on any of the Voting
Stock of a Designated Subsidiary unless the Outstanding Securities (together
with such other indebtedness of the Company or such Designated Subsidiary then
existing or thereafter created which is not subordinate to the Outstanding
Securities as the Company may elect) shall be secured equally and ratably with
(or prior to) such secured indebtedness for money borrowed so long as such
secured indebtedness for money borrowed shall be so secured. This Section shall
not prevent the sale or other disposition of a Designated Subsidiary.

                  For purposes of this Section, "Voting Stock" means all classes
of stock (including any and all shares, interests, participations or other
equivalents (however designated) of corporate stock) then outstanding of a
Designated Subsidiary normally entitled to vote in elections of directors. For
purposes of this Section, "Designated Subsidiary" means St. Paul Fire and Marine
Insurance Company and any other Subsidiary the assets of which, determined as of
the last day of the most recent calendar quarter ended at least 30 days prior to
the date of such determination and in accordance with generally accepted
accounting principles as in effect on the last day of such calendar quarter,
exceed 20% of the Consolidated Assets of the Company. For purposes of this
Section, "Consolidated Assets of the Company" means the assets of the Company
and its consolidated subsidiaries, to be determined as of the last day of the
most recent calendar quarter ended at least 30 days prior to the date of such
determination and in accordance with generally accepted accounting principles as
in effect on the last day of such calendar quarter.

Section 1006.     STATEMENT BY OFFICERS AS TO DEFAULT.

                  The Company will deliver to the Trustee, within 120 days
after the end of each fiscal year of the Company ending after the date
hereof, an Officers' Certificate, stating whether or not to the best
knowledge of the signers thereof the Company is in default in the

                                      -94-
<PAGE>

performance and observance of any of the terms, provisions and conditions of
Sections 1001 to 1006, inclusive, and if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may
have knowledge.

Section 1007.     WAIVER OF CERTAIN COVENANTS.

                  The Company may omit in any particular instance to comply
with any term, provision or condition set forth in Sections 1002 to 1005,
inclusive, if before the time for such compliance the Holders of a majority
in principal amount of the Outstanding Securities shall, by Act of such
Holders, waive compliance in such instance with such term, provision or
condition.  In the event that there shall be included in this Indenture any
covenant, other than a covenant to pay principal, premium (if any) and
interest, solely for the benefit of one or more, but less than all, series of
Securities, then, unless otherwise expressly provided with respect to such
covenant, the Company may similarly omit in any particular instance to comply
with any term, provision or condition of such covenant if before the time of
such compliance the holders of a majority in principal amount of all
Outstanding Securities entitled to the benefit of such covenant, by Act of
such Holders, acting together as a single class, waive compliance in such
instance with such term, provision or condition. No such waiver contemplated by
this Section 1007 shall extend to or affect such term, provision or condition
except to the extent so expressly waived, and, until such waiver shall become
effective, the obligations of the Company and the duties of the Trustee in
respect of any such term, provision or condition shall remain in full force and
effect.

                  The Company may, but shall not be obligated to, fix a
record date for the purpose of determining the Persons entitled to waive any
such term, provision or condition. If a record date is fixed, the Holders on
such record date, or their duly designated proxies, and only such Persons,
shall be entitled to waive any such term, provision or condition hereunder,
whether or not such Holders remain Holders after such record date; PROVIDED,
HOWEVER, that unless the Holders of at least a majority in principal amount
of (i) the Outstanding Securities or (ii) the Outstanding Securities of such
series, as the case may be, shall have waived such term, provision or
condition prior to the date which is 90 days after such record date, any such
waiver previously given shall automatically and without further action by any
Holder be cancelled and of no further effect.

                                      -95-
<PAGE>

                                 ARTICLE ELEVEN

                            Redemption of Securities

Section 1101.     APPLICABILITY OF ARTICLE.

                  Securities of any series which are redeemable before their
Stated Maturity shall be redeemable in accordance with their terms and (except
as otherwise specified as contemplated by Section 301 for Securities of any
series) in accordance with this Article.

Section 1102.     ELECTION TO REDEEM; NOTICE TO TRUSTEE.

                  The election of the Company to redeem any Securities shall be
evidenced by a Board Resolution. In case of any redemption at the election of
the Company of less than all the Securities of any series, 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 of such series to be
redeemed. In the case of any redemption of Securities prior to the expiration of
any restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers' Certificate evidencing compliance with such restriction.

Section 1103.     SELECTION BY TRUSTEE OF SECURITIES
                  TO BE REDEEMED.

                  If less than all the Securities of any series are to be
redeemed, the particular Securities to be redeemed shall be selected not more
than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and which may provide for the
selection for redemption of portions (equal to the minimum authorized
denomination for Securities of that series or any integral multiple thereof) of
the principal amount of Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series.

                                      -96-
<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 the redemption of Securities
shall relate, in the case of any Securities redeemed or to be redeemed only in
part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

Section 1104.     NOTICE OF REDEMPTION.

                  Notice of redemption shall be given by first-class mail,
postage prepaid, mailed not less than 30 nor more than 60 days prior to the
Redemption Date, to each Holder of Securities to be redeemed, at his address
appearing in the Security Register.

                  All notices of redemption shall state:

                  (1) the Redemption Date,

                  (2) the Redemption Price,

                  (3) if less than all the outstanding Securities of any series
         are to be redeemed, the identification (and, in the case of partial
         redemption, the principal amounts) of the particular Securities to be
         redeemed,

                  (4) that on the Redemption Date the Redemption Price will
         become due and payable upon each such Security to be redeemed and, if
         applicable, that interest thereon will cease to accrue on and after
         said date,

                  (5) the place or places where such Securities are to be
         surrendered for payment of the Redemption Price, and

                  (6) that the redemption is for a sinking fund, if such is the
         case.

                                      -97-
<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 1105.     DEPOSIT OF REDEMPTION PRICE.

                  On or prior to any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an amount
of money sufficient to pay the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Securities which are to be redeemed on that date.

Section 1106.     SECURITIES PAYABLE ON REDEMPTION DATE.

                  Notice of redemption having been given as aforesaid, the
Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified, and from and after such date
(unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. 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 to the Redemption Date; PROVIDED, HOWEVER, that instalments 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 307.

                  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 rate prescribed
therefor in the Security.

Section 1107.     SECURITIES REDEEMED IN PART.

                  Any Security which is to be redeemed only in part shall be
surrendered at a Place of Payment therefor

                                      -98-
<PAGE>

(with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge, a new Security or
Securities of the same series and of like tenor, of any authorized denomination
as requested by such Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Security so
surrendered.

                                 ARTICLE TWELVE

                                  Sinking Funds

Section 1201.     APPLICABILITY OF ARTICLE.

                  The provisions of this Article shall be applicable sinking
fund for the retirement of Securities of a series except as otherwise specified
as contemplated by Section 301 for Securities of such series.

                  The minimum amount of any sinking fund payment provided for by
the terms of Securities of any series is herein referred to as a "mandatory
sinking fund payment", and any payment in excess of such minimum amount provided
for by the terms of Securities of any series is herein referred to as an
"optional sinking fund payment". If provided for by the terms of Securities of
any series, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 1202. Each sinking fund payment shall be
applied to the redemption of Securities of any series as provided for by the
terms of Securities of such series.

Section 1202.     SATISFACTION OF SINKING FUND PAYMENTS
                  WITH SECURITIES.

                  The Company (1) may deliver Outstanding Securities of a series
(other than any previously called for redemption) and (2) may apply as a credit
Securities of a series which have been redeemed either at the election of the
Company pursuant to the terms of such

                                      -99-
<PAGE>

Securities or through the application of permitted optional sinking fund
payments pursuant to the terms of such Securities, in each case in satisfaction
of all or any part of any sinking fund payment with respect to the Securities of
such series required to be made pursuant to the terms of such Securities as
provided for by the terms of such series; PROVIDED that such Securities have not
been previously so credited. Such Securities shall be received and credited for
such purpose by the Trustee at the Redemption Price specified in such Securities
for redemption through operation of the sinking fund and the amount of such
sinking fund payment shall be reduced accordingly.

Section 1203.     REDEMPTION OF SECURITIES FOR SINKING FUND.

                  Not less than 90 days prior to each sinking fund payment date
for any series of Securities, the Company will deliver to the Trustee an
Officers' Certificate specifying the amount of the next ensuing sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting Securities
of that series pursuant to Section 1202 and will also deliver to the Trustee any
Securities to be so delivered. Not less than 60 days before each such sinking
fund payment date the Trustee shall select the Securities to be redeemed upon
such sinking fund payment date in the manner specified in Section 1103 and cause
notice of the redemption thereof to be given in the name of and at the expense
of the Company in the manner provided in Section 1104. Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Sections 1106 and 1107.

                                ARTICLE THIRTEEN

                       Defeasance and Covenant Defeasance

Section 1301.     APPLICABILITY OF ARTICLE; COMPANY'S OPTION
                  TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE.

                                     -100-
<PAGE>

                  If pursuant to Section 301 provision is made for either or
both of (a) defeasance of the Securities of a series under Section 1302 or (b)
covenant defeasance of the Securities of a series under Section 1303, then the
provisions of such Section or Sections, as the case may be, together with the
other provisions of this Article Thirteen, shall be applicable to the Securities
of such series, and the Company may at its option by Board Resolution, at any
time, with respect to the Securities of such series, elect to have either
Section 1302 (if applicable) or Section 1303 (if applicable) be applied to the
Outstanding Securities of such series upon compliance with the conditions set
forth below in this Article Thirteen.

Section 1302.     DEFEASANCE AND DISCHARGE.

                  Upon the Company's exercise of the above option applicable to
this Section, the Company shall be deemed to have been discharged from its
obligations with respect to the Outstanding Securities of such series on and
after the date the conditions precedent set forth below are satisfied
(hereinafter, "defeasance"). For this purpose, such defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness
represented by the Outstanding Securities of such series and to have satisfied
all its other obligations under such Securities and this Indenture insofar as
such Securities are concerned (and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging the same), except for the
following which shall survive until otherwise terminated or discharged
hereunder: (A) the rights of Holders of Outstanding Securities of such series to
receive, solely from the trust fund described in Section 1304 as more fully set
forth in such Section, payments of the principal of (and premium, if any) and
interest on such Securities when such payments are due, (B) the Company's
obligations with respect to such Securities under Sections 304, 305, 306, 1002
and 1003 and such obligations as shall be ancillary thereto, (C) the rights,
powers, trusts, duties, immunities and other provisions in respect of the
Trustee hereunder and (D) this Article Thirteen. Subject to compliance with this
Article Thirteen, the Company may exercise its option under this Section 1302
notwithstanding the prior exercise of its option under

                                     -101-
<PAGE>

Section 1303 with respect to the Securities of such series. Following a
defeasance, payment of the Securities of such series may not be accelerated
because of an Event of Default.

Section 1303.     COVENANT DEFEASANCE.

                  Upon the Company's exercise of the above option applicable
to this Section, the Company shall be released from its obligations under (i)
Section 1005, (ii) the occurrence of an event specified in Section 501(4)
(with respect to Section 1005) shall not be deemed an Event of Default and
(iii) any other section, clause or provision applicable to such Securities
that are determined pursuant to Section 301 to be subject to this provision
with respect to the Outstanding Securities of such series on and after the
date the conditions precedent set forth below are satisfied (hereinafter,
"covenant defeasance"). For this purpose, such covenant defeasance means
that, with respect to the Outstanding Securities of such series, 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 Section or Clause whether
directly or indirectly by reason of any reference elsewhere herein to any
such Section or Clause or by reason of any reference in any such Section or
Clause to any other provision herein or in any other document, but the
remainder of this Indenture and such Securities shall be unaffected thereby.
Following a covenant defeasance, payment of the Securities of such series may
not be accelerated because of or by reference to the Sections specified above
in this Section 1303.

Section 1304.     CONDITIONS TO DEFEASANCE OR COVENANT
                  DEFEASANCE.

                  The following shall be the conditions precedent to application
of either Section 1302 or Section 1303 to the Outstanding Securities of such
series:

                  (1) the Company shall irrevocably have deposited or caused to
         be deposited with the Trustee (or another trustee satisfying the
         Trustee (or another trustee satisfying the

                                     -102-
<PAGE>

         requirements of Section 609 who shall agree to comply with the
         provisions of this Article Thirteen applicable to it) as trust funds in
         trust for the purpose of making the following payments, specifically
         pledged as security for, and dedicated solely to, the benefit of the
         Holders of such Securities, (A) money in an amount, or (B) U.S.
         Government Obligations which through the scheduled payment of principal
         and interest in respect thereof in accordance with their terms will
         provide, not later than one day before the due date of any payment,
         money in an amount, or (C) a combination thereof, sufficient, without
         reinvestment, in the opinion of a nationally recognized firm of
         independent public accountants expressed in a written certification
         thereof delivered to the Trustee, to pay and discharge, and which shall
         be applied by the Trustee (or other qualifying trustee) to pay and
         discharge, (i) the principal of (and premium, if any) and interest on
         the Outstanding Securities of such series to maturity or redemption, as
         the case may be, and (ii) any mandatory sinking fund payments or
         analogous payments applicable to the Outstanding Securities of such
         series on the due dates thereof. Before such a deposit the Company may
         make arrangements satisfactory to the Trustee for the redemption of
         Securities at a future date or dates in accordance with Article Eleven,
         which shall be given effect in applying the foregoing. For this
         purpose, "U.S. Government Obligations" means securities that are (x)
         direct obligations of the United States of America for the payment of
         which its full faith and credit is pledged or (y) obligations of a
         Person controlled or supervised by and acting as an agency or
         instrumentality of the United States of America the payment of which is
         unconditionally guaranteed as a full faith and credit obligation by the
         United States of America, which, in either case, are not callable or
         redeemable at the option of the issuer thereof, and shall also include
         a depository receipt issued by a bank (as defined in Section 3(a)(2) of
         the Securities Act of 1933, as

                                      -103-
<PAGE>

         amended) as custodian with respect to any such U.S. Government
         obligation or a specific payment of principal of or interest on any
         such U.S. Government Obligation held by such custodian for the account
         of the holder of such depository receipt, provided that
         (except as required by law) such custodian is not authorized to make
         any deduction from the amount payable to the holder of such depository
         receipt from any amount received by the custodian in respect of the
         U.S. Government Obligation or the specific payment of principal of or
         interest on the U.S. Government Obligation evidenced by such depository
         receipt.

                  (2) No Event of Default or event which with notice or lapse of
         time or both would become an Event of Default with respect to the
         Securities of such series shall have occurred and be continuing (A) on
         the date of such deposit or (B) insofar as subsections 501(5) and (6)
         are concerned, at any time during the period ending on the 121st day
         after the date of such deposit or, if longer, ending on the day
         following the expiration of the longest preference period applicable to
         the Company in respect of such deposit (it being understood that the
         condition in this clause (B) is a condition subsequent and shall not be
         deemed satisfied until the expiration of such period).

                  (3) Such defeasance or covenant defeasance shall not (A) cause
         the Trustee for the Securities of such series to have a conflicting
         interest as defined in Section 608 or for purposes of the Trust
         Indenture Act with respect to any securities of the Company or (B)
         result in the trust arising from such deposit to constitute, unless it
         is qualified as, a regulated investment company under the Investment
         Company Act of 1940, as amended.

                  (4) Such defeasance or covenant defeasance shall not result in
         a breach or violation of, or constitute a default under, this Indenture
         or

                                     -104-
<PAGE>

         any other agreement or instrument to which the Company is a party or by
         which it is bound.

                  (5) In the case of an election under Section 1302, the Company
         shall have delivered to the Trustee an Opinion of Counsel 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 Federal income tax
         law, in either case to the effect that, and based thereon such opinion
         shall confirm that, the Holders of the Outstanding Securities of such
         series will not recognize income, gain or loss for Federal income tax
         purposes as a result of such defeasance and will be subject to Federal
         income tax on the same amounts, in the same manner and at the same time
         as would have been the case if such defeasance had not occurred.

                  (6) In the case of an election under Section 1303, the Company
         shall have delivered to the Trustee an Opinion of Counsel to the effect
         that the Holders of the Outstanding Securities of such series will not
         recognize income, gain or loss for Federal income tax purposes as a
         result of such covenant defeasance and will be subject to Federal
         income tax on the same amounts, in the same manner and at the same
         times as would have been the case if such covenant defeasance had not
         occurred.

                  (7) Such defeasance or covenant defeasance shall be effected
         in compliance with any additional terms, conditions or limitations
         which may be imposed on the Company in connection therewith pursuant to
         Section 301.

                  (8) The Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that all
         conditions precedent provided for relating to either the defeasance
         under Section 1302 or the covenant defeasance under Section 1303 (as
         the case may be) have been complied with.

                                     -105-
<PAGE>

Section 1305.     DEPOSITED MONEY AND U.S. GOVERNMENT
                  OBLIGATIONS TO BE HELD IN TRUST; OTHER MISCELLANEOUS
                  PROVISIONS.

                  Subject to the provisions of the last paragraph of Section
1003, all money and U.S. Government Obligations (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee -- collectively, for
purposes of this Section 1305, the "Trustee") pursuant to Section 1304 in
respect of the Outstanding Securities of such series shall be held in trust and
applied by the Trustee, in accordance with the provisions of such Securities and
this Indenture, to the payment, either directly or through any Paying Agent (but
not including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due
thereon in respect of principal (and 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 against any
tax, fee or other charge imposed on or assessed against the money or U.S.
Government Obligations deposited pursuant to Section 1304 or the principal and
interest received in respect thereof.

                  Anything herein 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 1304
which, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee, are in excess of the amount thereof which would then be required to be
deposited to effect an equivalent defeasance or covenant defeasance.

Section 1306.     REINSTATEMENT.

                  If the Trustee or the Paying Agent is unable to apply any
money in accordance with Section 1302 or 1303 by reason of any order or judgment
or any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company's obligations under the
Securities of such series

                                     -106-
<PAGE>

shall be revived and reinstated as though no deposit had occurred pursuant to
this Article Thirteen until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 1302 or 1303;
PROVIDED, HOWEVER, that if the Company makes any payment of principal of (and
premium, if any) any such 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
the Paying Agent.

                  This instrument may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

                                     -107-
<PAGE>

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

                          THE ST. PAUL COMPANIES, INC.

                         By /s/ Bruce A. Backberg
                            ----------------------------
                            Name: Bruce A. Backberg
                            Title: Senior Vice President

Attest:

/s/ Sandra Ulsaker Wiese
---------------------------
Name:  Sandra Ulsaker Wiese
Title: Corporate Secretary

                            THE CHASE MANHATTAN BANK

                         By /s/ Joanne Adamis
                            ----------------------------
                            Name:  Joanne Adamis
                            Title: Vice President

Attest:

/s/ Giovanni Simeone
---------------------------
Name:  Giovanni Simeone
Title: Trust Officer

                                     -108-
<PAGE>

STATE OF MINNESOTA             )
                               )       ss.:
COUNTY OF RAMSEY               )

                  On the 29th day of August, 2000, before me personally came
Bruce A. Backberg, to me known, who, being by me duly sworn, did depose and
say that he is a Senior Vice President of The St. Paul Companies, Inc., one
of the corporations described in and which executed the foregoing instrument;
that he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by authority of the
Board of Directors of said corporation, and that he signed his name thereto
by like authority.

                                            /s/ Irma Kamperschroer
                                            -----------------------

                                     -109-
<PAGE>

STATE OF NEW YORK              )
                               )       ss.:
COUNTY OF NEW YORK             )

                  On the 29th day of August, 2000, before me personally came
Joanne Adamis, to me known, who, being by me duly sworn, did depose and say
that she is a Vice President of The Chase Manhattan Bank, one of the
corporations described in and which executed the foregoing instrument; that
she knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by authority of the
Board of Directors of said corporation, and that she signed her name thereto
by like authority.

                              /s/ Emily Fayan
                              --------------------

                                     -110-

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