Document:

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                                                                  EXHIBIT 10.98

                              EMPLOYMENT AGREEMENT

                                    BETWEEN

                         GOODY'S FAMILY CLOTHING, INC.

                                      AND

                                  JOHN G. WISE

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                               TABLE OF CONTENTS

<TABLE>
<S>      <C>                                                                                                     <C>
1.       Definitions..............................................................................................1

2.       Employment...............................................................................................3

3.       Term.....................................................................................................3

4.       Position and Duties; Business Time.......................................................................3

5.       Compensation.............................................................................................3

6.       Termination of Employment................................................................................5

7.       Obligations of the Company Upon Termination..............................................................6

8.       Change of Control........................................................................................8

9.       Non-exclusivity of Rights................................................................................8

10.      Full Settlement..........................................................................................8

11.      Arbitration of Disputes..................................................................................8

12.      Confidential Information and Nonsolicitation.............................................................9

13.      Successors...............................................................................................9

14.      Miscellaneous...........................................................................................10
</TABLE>

<PAGE>

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement"), by and between GOODY'S
FAMILY CLOTHING, INC., a Tennessee corporation (the "Company"), and JOHN G.
WISE (the "Executive"), shall be effective as of the 28th day of April, 2003.

                                   RECITALS:

         A.       The Executive has for some time served as Vice President of
                  Visual Merchandising of the Company. The Company and the
                  Executive have entered into a Severance Agreement dated
                  February 14, 2000 (the "Existing Severance Contract"). The
                  Company has promoted the Executive to Senior Vice President
                  of the Company.

         B.       The Company wishes to assure the continued service of the
Executive. The Company desires to recognize the Executive's commitment to the
Company and to confirm the right of the Executive to certain employment,
compensation and severance benefits. To attain that end, the Company and the
Executive wish to enter into this Employment Agreement (the "Agreement").

         NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, and other good and valuable consideration, the Company and
the Executive do hereby agree as follows:

         1.       Definitions.

         (a)      "Accrued Obligations" shall mean (i) the Executive's Base
Salary through the Date of Termination, (ii) any amounts deferred by the
Executive and not yet paid by the Company pursuant to a valid election to defer
the receipt of all or a portion of such payments made in accordance with any
plan of deferred compensation sponsored by the Company and any earned but
unpaid vacation pay for the current year, (iii) any amounts or benefits owing
to the Executive or to the Executive's beneficiaries under the then applicable
employee benefit plans or policies of the Company and (iv) any amounts owing to
the Executive for reimbursement of expenses properly incurred by the Executive
through the Date of Termination and which are reimbursable in accordance with
the reimbursement policy of the Company described in Section 5(e).

         (b)      "Base Salary" shall have the meaning set forth in Section
5(a).

         (c)      "Board" shall mean the Board of Directors of the Company.

         (d)      "Cause" shall mean that the Executive has, in the judgment of
a majority of the Board (i) committed a felony, or committed an act of fraud,
embezzlement or theft in connection with his duties with the Company or in the
course of his employment with the Company; (ii) willfully caused damage to
property of the Company; (iii) been convicted of a criminal offense (either a
misdemeanor involving acts of dishonesty, theft or moral turpitude, or a
felony); or (iv) engaged in a willful and material breach of his obligations
under Section 4 of this Agreement which breach (under this clause iv) has been
communicated to the Executive with specificity by written

<PAGE>

notice, and which has not been cured to the reasonable satisfaction of the
Board within a reasonable period of time, which shall not be less than ten (10)
days, nor more than thirty (30) days, following receipt of such written notice
by the Executive. The Board shall provide the Executive with an opportunity to
meet with the Board in order to provide the Executive an opportunity to refute
or explain acts or omissions referred to in such written notice. For the
purpose of this Section, no act or omission shall be considered willful unless
done or omitted to be done in bad faith and without reasonable belief that such
act or omission was done in the best interest of the Company.

         (e)      A "Change of Control" of the Company shall mean and shall be
deemed to have occurred if (i) any person or group (within the meaning of Rule
13d-3 of the rules and regulations promulgated under the Securities Exchange
Act of 1934, as amended (the "1934 Act Rules")), other than Robert M.
Goodfriend, members of his immediate family, his affiliates, trusts or private
foundations established by or on his behalf, and the heirs, executors or
administrators of Robert M. Goodfriend, shall acquire in one or a series of
transactions, whether through sale of stock or merger, more than 50% of the
outstanding voting securities of the Company or any successor entity of the
Company, (ii) all or substantially all of the Company's assets are sold or
(iii) the shareholders of the Company approve a complete liquidation or
dissolution of the Company.

         (f)      "Change of Control Date" shall mean (i) the closing date on
which a Change of Control shall have occurred, (ii) in the case of a sale of
all or substantially all of the Company's assets, the closing date on which a
Change of Control shall have occurred after shareholder approval is obtained,
or (iii) in the case of complete liquidation or dissolution of the Company, the
date on which shareholder approval is obtained.

         (g)      "Date of Termination" shall have the meaning set forth in
Section 6(e).

         (h)      "Disability" shall mean disability whereby the Executive is
unable to render the services provided for by this Agreement by reason of
illness, injury or incapacity (whether physical, mental, emotional or
psychological) for a period of either (i) ninety (90) consecutive days or (ii)
one hundred eighty (180) days in any consecutive three hundred sixty-five (365)
day period.

         (i)      "Incentive Bonus" shall have the meaning as set forth in
Section 5(b).

         (j)      "Incentive Plan" shall have the meaning as set forth in
Section 5(b).

         (k)      "Notice of Termination" shall have the meaning as set forth
in Section 6(d).

         (l)      "Qualified Plan" shall mean any retirement plan maintained by
the Company which is intended to meet the requirements of the Internal Revenue
Code of 1986, as amended.

         (m)      "Subsidiary" shall mean any majority-owned subsidiary of the
Company.

         (n)      "Supplemental Payment Date" shall have the same meaning as
set forth in Section 7(c).

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         2.       Employment. The Company has employed the Executive, and the
Executive has agreed to continue to be employed by the Company as Senior Vice
President, Advertising and Marketing of the Company. The Executive has held the
title of Vice President of the Company since February 14, 2000.

         3.       Term. The Executive shall be considered an at-will employee
and his employment may be terminated by either party subject to the obligations
of the parties upon such termination as set forth in this Agreement.

         4.       Position and Duties; Business Time.

         (a)      Position and Duties. The Executive shall serve as Senior Vice
President, Advertising and Marketing of the Company or another position which
shall be either of comparable rank or a promotion and shall continue to have
such responsibilities and duties as assigned to him by the Chief Executive
Officer of the Company, the Chief Operating Officer of the Company or the Board
from time to time.

         (b)      Business Time. The Executive agrees to devote his full
business time to the business and affairs of the Company and to use his best
efforts to perform faithfully and efficiently the responsibilities assigned to
him hereunder, to the extent necessary to discharge such responsibilities,
except for:

                  (i)      time spent in managing his personal, financial and
legal affairs and serving on corporate, civic or charitable boards or
committees, in each case only if and to the extent not substantially
interfering with the performance of such responsibilities, and

                  (ii)     periods of vacation to which he is entitled, periods
of illness and other absences beyond his control.

It is expressly understood and agreed that the continued service by the
Executive on any boards and committees on which he is serving or with which he
is otherwise associated immediately preceding the date hereof, or his service
on any other boards and committees shall not be deemed to interfere with the
performance of the Executive's services to the Company; provided, that in the
case of boards or committees on which the Executive is not currently serving
the Executive provides written notice of his intention to serve and the Board
thereafter approves such service (other than non-compensatory positions with
local boards or committees e.g. charitable, chamber of commerce or homeowner
associations which shall not require approval).

         5.       Compensation. The Executive shall be entitled to the
following compensation and benefits for as long as the Executive remains an
employee of the Company:

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         (a)      Base Salary. The Executive shall receive a base salary (the
"Base Salary") payable in equal bi-weekly installments (or such other
installments as are provided by the Company for employees generally) at an
annual rate of $175,000. The Company shall review the Base Salary periodically
and in light of such review may, in its sole discretion, increase (but not
decrease) the Base Salary taking into account any change in the Executive's
responsibilities, increases in compensation of other executives with comparable
responsibilities, performance of the Executive and other pertinent factors, and
such adjusted Base Salary shall then constitute the "Base Salary" for purposes
of this Agreement.

         (b)      Short Term Incentive Plan Bonus. The Company has established
a "Short Term Incentive Plan" (the "Incentive Plan") under which the Executive
shall be eligible to participate for each fiscal year he holds the position
stated in Section 2 and shall be eligible to receive an annual incentive target
bonus equal to a percentage of the Base Salary earned by Executive (as such
percentage level of the target bonus may be approved and available from time to
time to executives of the Company holding comparable positions) during each
fiscal year based on performance and other specific objectives adopted by the
Compensation Committee of the Board (the "Incentive Bonus"). For the Company's
fiscal year 2003, the Executive shall be eligible to participate in the
Incentive Plan at a target bonus level of 60% of his Base Salary.

         (c)      Incentive and Savings Plans; Retirement and Death Benefit
Programs. The Executive shall be entitled to participate in all incentive and
savings plans and programs, including stock option plans and other equity-based
compensation plans, and in all employee retirement, executive retirement and
executive death benefit plans on a basis no less favorable than that basis
generally available to executives of the Company holding comparable positions
or having comparable responsibilities.

         (d)      Other Benefit Plans. The Executive, his spouse and their
eligible dependents (as defined in, and to the extent permitted by, the
applicable plan), as the case may be, shall be entitled to participate in or be
covered under all medical, dental, group disability, group life, severance
plans and programs of the Company to the extent such plans and programs are
generally available to executives of the Company holding comparable positions
or having comparable responsibilities.

         (e)      Other Perquisites. The Executive shall also be entitled to:

                  (i)      prompt reimbursement for all reasonable expenses
incurred by the Executive in accordance with the policies and procedures of the
Company;

                  (ii)     three (3) weeks paid vacation, such paid vacation
time to be increased (but not decreased) in accordance with Company policy;

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                  (iii)    an automobile allowance of $500 per month shall be
                           paid by the Company together with gasoline expenses
for such automobile in accordance with the Company's policies and procedures
with respect thereto; and

                  (iv)     an office or offices suitable for an executive
officer with secretarial and other assistance as shall reasonably be required
by the Executive.

         (f)      Equity Opportunity. The Executive shall be granted a
non-qualified stock option under the Company's 1997 Stock Option Plan to
purchase an aggregate of ten thousand (10,000) shares of common stock of the
Company at an exercise price equal to the closing sales price of the common
stock on the business day immediately preceding the date of grant, which option
shall vest in annual 20% increments beginning one year from the date of grant
and expire ten (10) years from the date of grant, and shall be upon such other
terms and conditions as contained in the Company's standard form of option
agreement.

         (g)      Existing Employment Contract. The Executive and Company
acknowledge that all the terms of the Existing Severance Contract are in full
force and effect and there has not been any breach of such Existing Severance
Contract.

         6.       Termination of Employment.

         (a)      Disability; Death. The Company may terminate the Executive's
employment after having established the Executive's Disability, by giving to
the Executive written notice of its intention to terminate his employment, and
his employment with the Company shall terminate effective on the thirtieth
(30th) day after receipt of such notice if the Executive shall fail to return
to full-time performance of her duties within thirty (30) days after such
receipt. If the Executive dies during the term of this Agreement, his
employment hereunder shall be deemed to cease as of the date of his death.

         (b)      Voluntary Termination by the Executive. Notwithstanding
anything in this Agreement to the contrary, the Executive may, upon not less
than thirty (30) days' written notice to the Company, voluntarily terminate
employment for any reason.

         (c)      Termination by the Company. The Company at any time may
terminate the Executive's employment for Cause or without Cause.

         (d)      Notice of Termination. Any termination by the Company for
Cause or by the Executive shall be communicated by a written Notice of
Termination to the other party hereto given in accordance with Section 14(c).
For purposes of this Agreement, a "Notice of Termination" means a written
notice given in the case of a termination for Cause which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) sets forth
in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the

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Executive's employment under the provision so indicated, and (iii) if the
termination date is other than the date of receipt of such notice, specifies
the termination date (which date shall be not more than thirty (30) days after
the receipt of such notice).

         (e)      Date of Termination. For the purpose of this Agreement, the
term "Date of Termination" means (i) in the case of a termination for which a
Notice of Termination is required, the date of receipt of such Notice of
Termination or, if later, the date specified therein, as the case may be, and
(ii) in all other cases, the actual date on which the Executive's employment
terminates.

         7.       Obligations of the Company Upon Termination. Upon termination
of the Executive's employment with the Company, the Company shall have the
following obligations:

         (a)      Death, Disability and Retirement. If the Executive's
employment is terminated by reason of the Executive's death, Disability, or
retirement on or after the attainment of age sixty-five (65), the Company shall
have no further obligations to the Executive's legal representatives under this
Agreement other than payment of the Accrued Obligations. If the Executive's
employment is terminated by reason of the Executive's death or Disability, the
Company shall have the additional obligation, subject to the terms of the
Incentive Plan and further provided that the Executive has been employed by the
Company for the first six (6) months of the then applicable fiscal year, to pay
a cash amount equal to a portion of the Incentive Bonus, the product of a
fraction, the numerator of which is the number of days elapsed since the date
the Incentive Plan began for the applicable fiscal year through the date of the
Disability or the date of death of the Executive, and the denominator of which
is the total number of days of the applicable fiscal year for such Incentive
Plan. Unless otherwise directed by the Executive (or, in the case of the
Incentive Plan or a Qualified Plan, as may be required by such Incentive Plan
or Qualified Plan) all Accrued Obligations shall be paid to the Executive, his
beneficiaries or his estate, as applicable, in a lump sum in cash within thirty
(30) days of the Date of Termination. In the event of the termination of the
Executive by reason of retirement on or after the attainment of age sixty-five
(65), death or Disability, he and/or his named beneficiaries, as the case may
be, shall be entitled to the benefits available through the Company sponsored
plans and programs. With regard to the termination of the Executive's
employment by reason of the Executive's death, retirement on or after the
attainment of age sixty-five (65) or Disability, the Company shall, for a
period of six (6) months after the Executive's Date of Termination, pay the
entire COBRA premium under any Company medical and dental program that the
Executive (and his spouse and eligible dependents) was participating in prior
to the termination of employment. The Company's premium obligations in the
preceding two sentences shall exclude normal employee contributions paid by the
Executive prior to the Date of Termination. In addition to the foregoing, in
the event of termination of the Executive's employment by reason of the death
or Disability of the Executive, all unvested stock options held by the
Executive shall become fully vested, effective on the Date of Termination, and
shall thereafter be exercisable in accordance with the

                                       6
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provisions of the applicable Option Plan (including, without limitation,
Sections 5 and 6 thereof) and Option Agreement.

         (b)      Termination by the Company for Cause and Voluntary
Termination by the Executive. If the Executive's employment shall be terminated
for Cause or voluntarily terminated by the Executive the Company shall pay the
Executive the Accrued Obligations. The Executive shall be paid all such Accrued
Obligations in a lump sum in cash within thirty (30) days of the Date of
Termination and the Company shall have no further obligations to the Executive
under this Agreement, unless otherwise required by a Qualified Plan or
specified pursuant to a valid election to defer the receipt of all or a portion
of such payments made in accordance with any plan of deferred compensation
sponsored by the Company.

         (c)      Other Termination of Employment. If the Company terminates
the Executive's employment other than for Cause, death or Disability, the
Company shall pay and provide to the Executive the following:

                  (i)      Severance Payment. The Company shall pay to the
Executive in a lump sum in cash or certified check within fifteen (15) days
after the Date of Termination a severance payment equal to the sum of the
following amounts (other than amounts payable from the Incentive Plan or
Qualified Plans, non-qualified retirement plans and deferred compensation
plans, which amounts shall be paid in accordance with the terms of such plans):

                           (A)      all Accrued Obligations;

                           (B)      a cash amount equal to six (6) months of
the Executive's Base Salary at the rate in effect as of the date when the
Notice of Termination was given;

                           (C)      subject to the terms of the Incentive Plan
and further provided that the Executive has been employed by the Company for
the first six (6) months of the then applicable fiscal year, a cash amount
equal to a portion of the Incentive Bonus, the product of a fraction, the
numerator of which is the number of days elapsed since the date the Incentive
Plan began for the applicable fiscal year through the date of such Termination
or termination without Cause, and the denominator of which is the total number
of days of the applicable fiscal year for such Incentive Plan.

In addition, if the Executive has not accepted employment from a subsequent
employer prior to the date which is seven (7) months from the Date of
Termination (the "Supplemental Payment Date"), commencing on the Supplemental
Payment Date the Company shall pay the Executive an amount equal to fifty
percent (50%) of his monthly Base Salary at the rate in effect as of the date
when the Notice of Termination was given in equal monthly installments until
the earlier of (i) the payment of the sixth (6th) monthly installment; or (ii)
the date of the Executive's acceptance of employment from a subsequent
employer. The Executive shall notify the Company immediately upon his
acceptance of any such new employment if secured prior to the payment by the
Company of such six (6) additional monthly installments.

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         (d)      Release. As a condition precedent to the receipt of any
termination benefits payable to the Executive under this Section 7, the
Executive agrees to execute a general release among other things releasing the
Company from any obligation or liability (other than those contained in
Sections 7, 8, 9, 10, 11, 13 and 14 hereof, to the extent an obligation under
any such section arose at or prior to the Date of Termination and remains
unfulfilled). Such release shall exclude the Executive's rights under any
Qualified Plan.

         (e)      Discharge of Company's Obligations. Subject to the
performance of its obligations under Sections 7, 8, 9, 10, 11, 13 and 14 (and
then, only to the extent an obligation under any such section arose at or prior
to the Date of Termination and remains unfulfilled), the Company shall have no
further obligations to the Executive under this Agreement in respect of any
termination of employment.

         8.       Change of Control. Upon the occurrence of a Change of
Control, the Company shall pay the Executive, as consideration for assisting
the Company in bringing about a successful transaction, an amount equal to
twelve (12) months of the Executive's Base Salary at the rate in effect as of
the Change of Control Date. Such amount shall be payable in a lump sum in cash
or certified check within five (5) days after the Change of Control Date.

         9.       Non-exclusivity of Rights. Nothing in this Agreement shall
prevent or limit the Executive's continuing or future participation in any
benefit, bonus, incentive or other plan or program provided by the Company and
for which the Executive may qualify, nor shall anything herein limit or
otherwise prejudice such rights as the Executive may have under any other
agreements with the Company, including, but not limited to stock option
agreements. Amounts which are vested benefits or which the Executive is
otherwise entitled to receive under any plan or program of the Company at or
subsequent to the Date of Termination shall be payable in accordance with such
plan or program.

         10.      Full Settlement. The Executive shall not be obligated to seek
other employment by way of mitigation of the amounts payable to the Executive
under any of the provisions of this Agreement.

         11.      Arbitration of Disputes. In the event that a claim for
payment or benefits under this Agreement is disputed, the Company and the
Executive agree to submit such dispute to final and binding arbitration with
United States Arbitration and Mediation, Inc. ("USAM") in Knoxville, Tennessee
or such other arbitration firm as the Company and the Executive shall mutually
agree. Either party wishing to arbitrate any claim hereunder shall notify the
other party and USAM in writing whereupon USAM shall select a neutral
arbitrator and shall schedule an arbitration hearing within thirty (30) days of
receipt of such notice of arbitration. The arbitration shall be conducted in
accordance with the rules and procedures of USAM. The parties agree that any
arbitrator's award may be presented to a court of competent jurisdiction and
judgment entered thereon.

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<PAGE>

         12.      Confidential Information and Nonsolicitation.

         (a)      The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or
data, including without limitation all trade secrets, relating to the Company,
and its business, (i) obtained by the Executive during his employment by the
Company, and (ii) which is not otherwise publicly known (other than by reason
of an unauthorized act by the Executive) and is subject to efforts that are
reasonable under the circumstances to maintain its secrecy. After termination
of the Executive's employment with the Company, the Executive shall not,
without the prior written consent of the Company, unless compelled pursuant to
an order of a court or other body having jurisdiction over such matter,
communicate or divulge any such information, knowledge or data to anyone other
than the Company and those designated by it.

         (b)      Upon termination of the Executive's employment for any
reason, the Executive, for the twelve (12) month period following the Notice of
Termination, shall not, on his own behalf or on behalf of any person or entity,
directly or indirectly solicit or aid in the solicitation of any employees of
the Company to leave their employment. In the event the Executive violates the
terms of Section 12(a) or this Section 12(b), the Employee shall forfeit the
right to all salary and benefits that the Executive and/or his family members
were otherwise entitled pursuant to the terms of Section 7. Also, in the event
that this Section 12 is determined to be unenforceable in part, it shall be
construed to be enforceable to the maximum extent permitted by law.

         (c)      The Executive agrees that the covenants of confidentiality
and non-solicitation contained in this Section 12 are reasonable covenants
under the circumstances and necessary to protect the business interests and
properties of the Company. The Executive agrees that irreparable loss and
damage will be suffered by the Company should the Executive breach any of the
covenants contained in this Section 12. Accordingly, the Executive agrees that
the Company, in addition to all remedies provided at law or in equity, shall be
entitled to a temporary restraining order and temporary and permanent
injunctions to prevent a breach or contemplated breach of any of the covenants
contained in this Section 12.

         13.      Successors.

         (a)      This Agreement is personal to the Executive and, without the
prior written consent of the Company, shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Executive's legal
representatives.

         (b)      This Agreement shall inure to the benefit of and be binding
upon the Company and its successors. The Company shall require any successor to
all or substantially all of the business and/or assets of the Company, whether
direct or indirect, by purchase, merger, consolidation, acquisition of stock,
or otherwise, expressly to assume and agree to

                                       9
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perform this Agreement in the same manner and to the same extent as the Company
would be required to perform if no such succession had taken place.

         14       Miscellaneous.

         (a)      Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Tennessee, applied
without reference to principles of conflict of laws.

         (b)      Amendments. This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

         (c)      Notices. All notices and other communications hereunder shall
be in writing and shall be given by hand delivery to the other party, by
overnight delivery or by registered or certified mail, return receipt
requested, postage prepaid, addressed as follows:

         If to the Executive: at the address listed on the last page hereof

         If to the Company:   Goody's Family Clothing, Inc.
                              400 Goody's Lane
                              P.O. Box 22000
                              Knoxville, Tennessee 37933-2000
                              Attention: General Counsel

(with a copy to the attention of the Secretary or to such other address as
either party shall have furnished to the other in writing in accordance
herewith). Communications delivered by hand or by overnight delivery shall be
deemed received on the date of delivery and communications sent by registered
or certified mail shall be deemed received three (3) business days after the
sending thereof.

         (d)      Tax Withholding. The Company may withhold from any amounts
payable under this Agreement such federal, state or local taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

         (e)      Severability. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.

         (f)      Captions. The captions of this Agreement are not part of the
provisions hereof and shall have no force or effect.

         (g)      Entire Agreement. This Agreement expresses the entire
understanding and agreement of the parties regarding the terms and conditions
governing the Executive's

                                      10
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employment with the Company, and all prior agreements governing the Executive's
employment with the Company (including, without limitation, the Existing
Severance Contract) shall have no further effect; provided, however, that
except as specifically provided herein, the terms of this Agreement do not
supercede the terms of any grant or award to the Executive under any stock
option program of the Company except as specifically set forth in Section 7(a)
with respect to the vesting and exercisability of stock options.

         IN WITNESS WHEREOF, the Executive has hereunto set his hand and the
Company has caused this Agreement to be executed in its name on its behalf, and
its corporate seal to be hereunto affixed and attested by its Secretary, all
effective as of the day and year first above written.

                                    GOODY'S FAMILY CLOTHING, INC.

                                    By:
                                       ----------------------------------------
                                           Robert M. Goodfriend
                                    Title: Chairman and Chief Executive Officer

ATTEST:

-------------------------------
Title:
      -------------------------

(CORPORATE SEAL)

                                    EXECUTIVE: John G. Wise

                                    -------------------------------------------
                                    Name: John G. Wise

                                    Address:

                                      11<PAGE>
                                                                    Exhibit 4.1

                         UNITED STATES STEEL CORPORATION

                              OFFICER'S CERTIFICATE

                                  May 20, 2003

      I, the undersigned officer of United States Steel Corporation (the
"Company"), do hereby certify that I am an Authorized Officer of the Company as
such term is defined in the Indenture (as defined herein). I am delivering this
certificate pursuant to the authority granted in the Board Resolutions of the
Company dated May 14, 2003, and Sections 201 and 301 of the Indenture dated as
of May 20, 2003, as heretofore amended and supplemented to the date hereof (as
heretofore amended and supplemented, the "Indenture"), between the Company and
The Bank of New York, as Trustee (the "Trustee"). Section 1(u)(ii) of this
Officer's Certificate sets forth definitions of capitalized terms used herein.
Terms used herein and not otherwise defined herein shall have the meanings
assigned to them in the Indenture. Based upon the foregoing, I hereby certify on
behalf of the Company as follows:

      1. The terms and conditions of the Securities described in this Officer's
Certificate are as follows (the lettered subdivisions set forth in this
Paragraph 1 corresponding to the numbered subdivisions of Section 301 of the
Indenture):

      (a) Title. The Securities of the series to be issued under the Indenture
      shall be designated "9 3/4% Senior Notes due 2010" (the "2010 Notes").

      (b) Amount. (i) The 2010 Notes shall be initially authenticated and
      delivered in the aggregate principal amount of $450,000,000. Subject to
      the provisions of Section 1(r)(ix), the Company may create and issue
      Additional Notes. The Additional Notes will rank equally with the initial
      2010 Notes and otherwise be similar in all respects so that the Additional
      Notes shall be consolidated and form a single series with the initial 2010
      Notes (together with the Additional Notes, the "Notes"). The Trustee shall
      authenticate Additional Notes upon receipt of a Corporation Order and
      Opinion of Counsel, both meeting the requirements of Section 303 of the
      Indenture, specifying the amount of Additional Notes to be authenticated.

            (ii) The initial 2010 Notes and any Additional Notes shall vote and
      consent together on all matters as one class and none of the initial 2010
      Notes or the Additional Notes shall have the right to vote or consent as a
      separate class on any matter.

      (c) Payment of Interest. Interest on the 2010 Notes shall be payable to
      the Persons in whose names such Securities are registered at the close of
      business on the Regular Record Date for such interest, except as otherwise
      expressly provided in the form of such Securities attached hereto as
      Exhibit A.

      (d) Maturity. The 2010 Notes shall mature and the principal thereof shall
      be due and payable together with all accrued and unpaid interest thereon
      on May 15, 2010.

      (e) Interest. Interest on the 2010 Notes shall be payable as follows,
      except as otherwise expressly provided in the form of such Securities
      attached hereto as Exhibit A:
<PAGE>
            (i) The Company shall pay accrued interest semi-annually on each May
      15 and November 15 commencing November 15, 2003 or if any such day is not
      a Business Day, on the next Business Day. The Company shall pay interest
      on overdue principal at 1% per annum in excess of the rate borne by the
      Notes to the extent lawful. Interest will be computed on the basis of a
      360-day year of twelve 30-day months.

            (ii) By at least 11:00 a.m. prevailing Eastern (U.S.) time on the
      date on which any principal of or interest on any Note is due and payable,
      the Company shall irrevocably deposit with the Trustee or the Paying Agent
      money sufficient to pay such principal and/or interest. The Company will
      pay interest (except defaulted interest) to the Persons who are registered
      Holders of Notes at the close of business on May 1 or November 1 next
      preceding the interest payment date (the "Regular Record Date") even if
      Notes are cancelled, repurchased or redeemed after the record date and on
      or before the interest payment date. Holders must surrender Notes to a
      Paying Agent to collect principal payments. The Company will pay principal
      and interest in money of the United States that at the time of payment is
      legal tender for payment of public and private debts by wire transfer of
      immediately available funds to the U.S. dollar accounts with a bank in the
      United States specified by the Holder hereof or, if no such account is
      specified, by mailing a check to the Holder's registered address.

      (f) Payments; Security Registrar. If a Holder of 2010 Notes has given wire
      transfer instructions to the Company and the Paying Agent prior to the
      fifth day preceding the related Regular Record Date (or, in the case of
      principal or premium, the fifth day preceding the date such principal or
      premium is due), the Company shall pay all principal, interest and
      premium, if any, on that Holder's 2010 Notes in accordance with such
      instructions. The Company's office in Pittsburgh shall initially be the
      place at which (i) the principal, interest and premium, if any, on the
      2010 Notes shall be payable (other than payments made in accordance with
      the first sentence of this paragraph (f)), (ii) registration of transfer
      of the 2010 Notes may be effected, (iii) exchanges of the 2010 Notes may
      be effected and (iv) notices and demands to or upon the Company in respect
      of the 2010 Notes and the Indenture may be served; and the Company shall
      be the Security Registrar for the 2010 Notes; provided, however, that the
      Company reserves the right to change, by one or more Officer's
      Certificates, any such place or the Security Registrar; provided, however,
      that there shall be only a single Security Registrar for the 2010 Notes.

      (g) Optional Redemption.

            (i) Optional Redemption. Except as set forth in clause (ii) of this
      Section 1(g), the 2010 Notes shall not be redeemable at the Company's
      option prior to May 15, 2006. On and after May 15, 2007, the Company may
      redeem all or a part of the 2010 Notes upon not less than 30 nor more than
      60 days' notice, at the Redemption Prices (expressed as percentages of
      principal amount) set forth below plus accrued and unpaid interest, if
      any, on the 2010 Notes redeemed, to the applicable Redemption Date, if
      redeemed during the twelve-month period beginning on May 15 of the years
      indicated below:

                                       2
<PAGE>
<TABLE>
<CAPTION>
YEAR                                                     PERCENTAGE
----                                                     ----------
<S>                                                      <C>
2007                                                     104.875%
2008                                                     102.4375%
2009 and thereafter                                      100.000%
</TABLE>

            (ii) Equity Claw-back. Notwithstanding the foregoing, at any time
      prior to May 15, 2006, the Company may on any one or more occasions redeem
      up to 35% of the aggregate principal amount of the 2010 Notes at a
      Redemption Price of 109.75% of the principal amount, plus accrued and
      unpaid interest, if any, to the Redemption Date, with the net cash
      proceeds of one or more Public Equity Offerings, provided that at least
      65% of the aggregate principal amount of 2010 Notes remains outstanding
      immediately after the occurrence of such redemption (excluding 2010 Notes
      held by the Company and its Subsidiaries); and provided further, that any
      such redemption shall occur within 60 days of the date of the closing of
      such offering.

            (iii) Notice of Redemption. Notices of redemption shall be mailed by
      first class mail at least 30 but not more than 60 days before the
      Redemption Date to each Holder of 2010 Notes to be redeemed at its
      registered address, except that redemption notices may be mailed more than
      60 days prior to a Redemption Date if the notice is issued in connection
      with a defeasance of the 2010 Notes or a satisfaction and discharge of the
      2010 Notes under the Indenture. Notices of redemption may not be
      conditional.

            (iv) Selection of 2010 Notes to be Redeemed. In accordance with
      Section 1103 of the Indenture, the following method is provided for the
      selection of 2010 Notes to be redeemed and these procedures shall be
      followed by the Security Registrar in the event of a redemption of the
      2010 Notes pursuant to the provisions of this Officer's Certificate. If
      less than all of the 2010 Notes are to be redeemed at any time, the
      Security Registrar shall select 2010 Notes for redemption as follows:

            (A) if the 2010 Notes are listed on any national securities
      exchange, in compliance with the requirements of the principal national
      securities exchange on which the 2010 Notes are listed; or

            (B) if the 2010 Notes are not listed on any national securities
      exchange, on a pro rata basis, by lot or by such method as the Trustee
      deems fair and appropriate.

            No 2010 Notes of $1,000 principal amount or less can be redeemed in
      part.

      (h) Mandatory Redemption. The Company is not required to make any
      mandatory redemption or sinking fund payments with respect to the 2010
      Notes.

      (i) Denominations. The 2010 Notes are issuable only in denominations of
      $1,000 and integral multiples of $1,000 in excess thereof.

      (j) Not applicable.

                                       3
<PAGE>
            (k) Not applicable.

            (l) Not applicable.

            (m) Not applicable.

            (n) Not applicable.

            (o) Defeasance.

            (i) General.

            (A) For purposes of the 2010 Notes, this Section 1(o) (and not
      Section 1302 or 1303 of the Indenture) sets forth the method by which the
      2010 Notes shall be defeasible.

            (B) Subject to Section 1(o)(i)(C) and Section 1(o)(ii), the Company
      at any time may terminate (i) all of its obligations under the Notes and
      the Indenture ("legal defeasance option") or (ii) its obligations under
      Sections 1(r)(ii) and 1(r)(iii) and Sections 1(r)(v) through (xvi) and the
      operation of Sections 1(u)(i)(A)(3) and 1(u)(i)(A)(4), 1(q)(vi), 1(q)(vii)
      (but only with respect to a Significant Subsidiary), 1(q)(viii) (but only
      with respect to a Significant Subsidiary) and 1(q)(ix) ("covenant
      defeasance option"). The Company may exercise its legal defeasance option
      notwithstanding its prior exercise of its covenant defeasance option.

            If the Company exercises its legal defeasance option, payment of the
      Notes may not be accelerated because of an Event of Default. If the
      Company exercises its covenant defeasance option, payment of the Notes may
      not be accelerated because of an Event of Default specified in Section
      1(q)(iv), 1(q)(vi), 1(q)(vii) (but only with respect to a Significant
      Subsidiary), 1(q)(viii) (but only with respect to a Significant
      Subsidiary), 1(q)(ix), or because of the failure of the Company to comply
      with Sections 1(u)(i)(A)(3) or 1(u)(i)(A)(4).

            Upon satisfaction of the conditions set forth herein and upon
      request of the Company, the Trustee shall acknowledge in writing the
      discharge of those obligations that the Company terminates.

            (C) Notwithstanding clauses (A) and (B) above, the Company's
      obligations in Sections 1(o)(v), 1(o)(vi), 1(p)(iii), 1(r)(i), 1(r)(iv)
      and 1(r)(xvii) of this Officer's Certificate and Sections 306, 606, 607,
      702, 703, 1001 and 1002 of the Indenture shall survive until the Notes
      have been paid in full. Thereafter, the Company's obligations in Sections
      1(o)(v) and 1(o)(vi) of this Officer's Certificate and Section 607 of the
      Indenture shall survive.

            (ii) Conditions to Defeasance.

            The Company may exercise the legal defeasance option or the covenant
      defeasance option only if:

                                       4
<PAGE>
            (A) the Company irrevocably deposits or causes to be deposited in
      trust with the Trustee money or U.S. Government Obligations which through
      the scheduled payment of principal and interest in respect thereof in
      accordance with their terms will provide cash at such times and in such
      amounts as will be sufficient to pay principal and interest when due on
      all outstanding Notes (except Notes replaced pursuant to Section 306) to
      maturity or redemption, as the case may be;

            (B) the Company delivers to the Trustee a certificate from a
      nationally recognized firm of independent accountants expressing their
      opinion that the payments of principal and interest when due and without
      reinvestment on the deposited U.S. Government Obligations plus any
      deposited money without investment will provide cash at such times and in
      such amounts as will be sufficient to pay principal and interest when due
      on all outstanding Notes (except Notes replaced pursuant to Section 306)
      to maturity or redemption, as the case may be;

            (C) 123 days pass after the deposit is made and during the 123-day
      period no Default specified in Section 1(q)(vii) or 1(q)(viii) with
      respect to the Company occurs which is continuing at the end of the
      period;

            (D) the deposit does not constitute a default under any other
      material agreement binding on the Company;

            (E) the Company delivers to the Trustee an Opinion of Counsel to the
      effect that the trust resulting from the deposit does not constitute, or
      is qualified as, a regulated investment company under the Investment
      Company Act of 1940;

            (F) in the case of the legal defeasance option, the Company shall
      have delivered to the Trustee an Opinion of Counsel stating that (i) the
      Company has received from, or there has been published by, the Internal
      Revenue Service a ruling, or (ii) since the date of this Indenture there
      has been a change in the applicable federal income tax law, in either case
      to the effect that, and based thereon such Opinion of Counsel shall
      confirm that, the Noteholders will not recognize income, gain or loss for
      federal income tax purposes as a result of such deposit and defeasance and
      will be subject to federal income tax on the same amounts, in the same
      manner and at the same times as would have been the case if such deposit
      and defeasance had not occurred;

            (G) in the case of the covenant defeasance option, the Company shall
      have delivered to the Trustee an Opinion of Counsel to the effect that the
      Noteholders 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 and in the same manner and at the
      same times as would have been the case if such deposit and covenant
      defeasance had not occurred; and

            (H) the Company delivers to the Trustee an Officers' Certificate and
      an Opinion of Counsel, each stating that all conditions precedent to the
      defeasance and discharge of the Notes as contemplated by this Section 1(o)
      have been complied with.

                                       5
<PAGE>
            Before or after a deposit, the Company may make arrangements
      satisfactory to the Trustee for the redemption of Notes at a future date
      in accordance with Article Eleven of the Indenture.

            (iii) Application of Trust Money.

            The Trustee shall hold in trust money or U.S. Government Obligations
      deposited with it pursuant to this Section 1(o). It shall apply the
      deposited money and the money from U.S. Government Obligations either
      directly or through the Paying Agent as the Trustee may determine and in
      accordance with this Indenture to the payment of principal of and interest
      on the Notes.

            (iv) Repayment to Company.

            The Trustee and the Paying Agent shall promptly turn over to the
      Company upon request any excess money or securities held by them at any
      time.

            Subject to any applicable abandoned property law, the Trustee and
      the Paying Agent shall pay to the Company upon written request any money
      held by them for the payment of principal or interest that remains
      unclaimed for one year after such principal and interest have become due
      and payable, and, thereafter, Noteholders entitled to the money must look
      to the Company for payment as general creditors.

            (v) Indemnity for Government Obligations.

            The Company shall pay and shall indemnify the Trustee against any
      tax, fee or other charge imposed on or assessed against deposited U.S.
      Government Obligations or the principal and interest received on such U.S.
      Government Obligations other than any such tax, fee or other charge which
      by law is for the account of the Holders of the defeased Notes; provided
      that the Trustee shall be entitled to charge any such tax, fee or other
      charge to such Holder's account.

            (vi) Reinstatement.

            If the Trustee or Paying Agent is unable to apply any money or U.S.
      Government Obligations in accordance with this Section 1(o) by reason of
      any legal proceeding or by reason of any order or judgment of any court or
      governmental authority enjoining, restraining or otherwise prohibiting
      such application, the Company's obligations under this Indenture and the
      Notes shall be revived and reinstated as though no deposit had occurred
      pursuant to this Section 1(o) until such time as the Trustee or Paying
      Agent is permitted to apply all such money or U.S. Government Obligations
      in accordance with this Section 1(o); provided, however, that, (a) if the
      Company has made any payment of interest on or principal of any Notes
      following the reinstatement of its obligations, the Company shall be
      subrogated to the rights of the Holders of such Notes to receive such
      payment from the money or U.S. Government Obligations held by the Trustee
      or Paying Agent and (b) unless otherwise required by any legal proceeding
      or any order or judgment of any court or governmental authority, the
      Trustee or Paying Agent shall return all such money and U.S. Government
      Obligations to the Company promptly after

                                       6
<PAGE>
      receiving a written request therefor at any time, if such reinstatement of
      the Company's obligations has occurred and continues to be in effect.

      (p) Book-entry; Delivery and Form.

            (i) Form and Dating.

            The 2010 Notes and the Trustee's certificate of authentication shall
      be substantially in the form of Exhibit A hereto. The 2010 Notes may have
      notations, legends or endorsements required by law, stock exchange rule or
      usage. Each 2010 Note shall be dated the date of its authentication. The
      2010 Notes shall be in denominations of $1,000 and integral multiples
      thereof.

            The terms and provisions contained in the 2010 Notes shall
      constitute, and are hereby expressly made, a part of this Officer's
      Certificate, and the Company, by its execution and delivery of this
      Officer's Certificate, expressly agrees to such terms and provisions and
      to be bound thereby. However, to the extent any provision of any 2010 Note
      conflicts with the express provisions of this Officer's Certificate or the
      Indenture, the provisions of this Officer's Certificate or the Indenture,
      as applicable, shall govern and be controlling.

            2010 Notes issued in global form shall be substantially in the form
      of Exhibit A attached hereto (including the Global Note Legend and the
      "Schedule of Exchanges in the Global Note" attached thereto). 2010 Notes
      issued in definitive form shall be substantially in the form of Exhibit A
      attached hereto (but without the Global Note Legend and without the
      "Schedule of Exchanges of Interests in the Global Note" attached thereto).
      Each Global Note shall represent such aggregate principal amount of the
      outstanding 2010 Notes as shall be specified therein and each shall
      provide that it shall represent the aggregate principal amount of
      outstanding 2010 Notes from time to time endorsed thereon and that the
      aggregate principal amount of outstanding 2010 Notes represented thereby
      may from time to time be reduced or increased, as appropriate, to reflect
      exchanges and redemptions. Any endorsement of a Global Note to reflect the
      amount of any increase or decrease in the aggregate principal amount of
      outstanding 2010 Notes represented thereby shall be made by the Trustee,
      the Depositary or the Note Custodian, at the direction of the Trustee, in
      accordance with instructions given by the Holder thereof as required by
      Section 1(p)(iv) of this Officer's Certificate.

            (ii) Authentication.

            The Trustee or an Authenticating Agent shall authenticate by
      delivery and execution of a Trustee's Certificate of Authentication in the
      form set forth in Section 205 of the Indenture (A) the 2010 Notes for
      original issue on the Issue Date in the aggregate principal amount of
      $450,000,000 (the "Original Notes") and (B) additional 2010 Notes for
      original issue from time to time after the Issue Date in such principal
      amounts as may be set forth in a Corporation Order (such additional 2010
      Notes, together with the Original Notes, the "Initial Notes").

                                       7
<PAGE>
            (iii) Security Registrar, Paying Agent and Depositary.

            The Company will initially act as the Security Registrar and Paying
      Agent for the 2010 Notes. Upon the occurrence of an Event of Default set
      forth herein, the Trustee shall serve as Paying Agent for the 2010 Notes.
      The Company shall maintain a Place of Payment for the 2010 Notes pursuant
      to Section 1002 of the Indenture.

            The Company initially appoints The Depository Trust Company ("DTC")
      to act as Depositary with respect to the Global Notes. The Trustee has
      been appointed by DTC to act as Note Custodian with respect to the Global
      Notes.

            (iv) Transfer and Exchange.

            (A) Transfer and Exchange of Global Notes. A Global Note may not be
      transferred as a whole except by the Depositary to a nominee of the
      Depositary, by a nominee of the Depositary to the Depositary or to another
      nominee of the Depositary, or by the Depositary or any such nominee to a
      successor Depositary or a nominee of such successor Depositary. All Global
      Notes shall be exchanged by the Company for Definitive Notes if:

            (1)   the Company delivers to the Trustee notice from the Depositary
                  that it is unwilling or unable to continue to act as
                  Depositary for the Global Notes or that it is no longer a
                  clearing agency registered under the Exchange Act and, in
                  either case, a successor Depositary is not appointed by the
                  Company within 90 days after the date of such notice from the
                  Depositary;

            (2)   the Company in its sole discretion notifies the Trustee in
                  writing that it elects to cause issuance of the 2010 Notes in
                  certificated form; or

            (3)   a default entitling the holders of the Notes to accelerate the
                  maturity thereof has occurred and is continuing.

            Upon the occurrence of any of the preceding events in (1), (2) or
            (3) above, Definitive Notes shall be issued in such names as the
            Depositary shall instruct the Trustee. Global Notes also may be
            exchanged or replaced, in whole or in part, as provided in Sections
            306 and 309 of the Indenture. Every 2010 Note authenticated and
            delivered in exchange for, or in lieu of, a Global Note or any
            portion thereof, pursuant to this section, Sections 304, 305 and 306
            of the Indenture, shall be authenticated and delivered in the form
            of, and shall be, a Global Note. A Global Note may not be exchanged
            for another 2010 Note other than as provided in this Section
            1(p)(iv)(A), however, beneficial interests in a Global Note may be
            transferred and exchanged as provided in Section 1(p)(iv)(B) of this
            Officer's Certificate.

            (B) Transfer and Exchange of Beneficial Interests in the Global
      Notes. The transfer and exchange of beneficial interests in the Global
      Notes shall be effected through the Depositary, in accordance with the
      provisions of this Officer's Certificate and the Applicable Procedures. In
      connection with all transfers and exchanges of beneficial

                                       8
<PAGE>
      interests, the transferor of such beneficial interest must deliver to the
      Security Registrar either (A) (1) a written order from a Participant or an
      Indirect Participant given to the Depositary in accordance with the
      Applicable Procedures directing the Depositary to credit or cause to be
      credited a beneficial interest in another Global Note in an amount equal
      to the beneficial interest to be transferred or exchanged and (2)
      instructions given in accordance with the Applicable Procedures containing
      information regarding the Participant account to be credited with such
      increase or (B) (1) a written order from a Participant or an Indirect
      Participant given to the Depositary in accordance with the Applicable
      Procedures directing the Depositary to cause to be issued a Definitive
      Note in an amount equal to the beneficial interest to be transferred or
      exchanged and (2) instructions given by the Depositary to the Security
      Registrar containing information regarding the Person in whose name such
      Definitive Note shall be registered to effect the transfer or exchange
      referred to in (B)(1) above. Upon satisfaction of all of the requirements
      for transfer or exchange of beneficial interests in Global Notes contained
      in this Indenture and the Notes or otherwise applicable under the
      Securities Act, the Security Registrar shall adjust the principal amount
      of the relevant Global Note(s) pursuant to Section 1(p)(iv)(F) hereof.

            (C) Transfer and Exchange of Beneficial Interests for Definitive
      Notes. If any holder of a beneficial interest in a Global Note proposes to
      exchange such beneficial interest for a Definitive Note or to transfer
      such beneficial interest to a Person who takes delivery thereof in the
      form of a Definitive Note, then, upon satisfaction of the conditions set
      forth in Section 1(p)(iv)(B) hereof, the Trustee shall cause the aggregate
      principal amount of the applicable Global Note to be reduced accordingly
      pursuant to Section 1(p)(iv)(F) hereof, and the Company shall execute and
      the Trustee shall upon receipt of an Authentication Order authenticate and
      (at the expense of the Company) deliver to the Person designated in the
      instructions a Definitive Note in the appropriate principal amount. Any
      Definitive Note issued in exchange for a beneficial interest pursuant to
      this Section 1(p)(iv)(C) shall be registered in such name or names and in
      such authorized denomination or denominations as the holder of such
      beneficial interest shall instruct the Security Registrar through
      instructions from the Depositary and the Participant or Indirect
      Participant. The Trustee shall (at the expense of the Company) deliver
      such Definitive Notes to the Persons in whose names such Notes are so
      registered.

            (D) Transfer and Exchange of Definitive Notes for Definitive Notes.
      Upon request by a Holder of Definitive Notes and such Holder's compliance
      with the provisions of this Section 1(p)(iv)(D), the Security Registrar
      shall register the transfer or exchange of Definitive Notes. Prior to such
      registration of transfer or exchange, the requesting Holder shall present
      or surrender to the Security Registrar the Definitive Notes duly endorsed
      or accompanied by a written instruction of transfer in form satisfactory
      to the Security Registrar duly executed by such Holder or by his attorney,
      duly authorized in writing. In addition, the requesting Holder shall
      provide any additional certifications, documents and information, as
      applicable, pursuant to the provisions of this Section 1(p)(iv)(D).

                                       9
<PAGE>
            (E) Legends. The following legends shall appear on the face of all
      Global Notes and Definitive Notes issued under this Indenture unless
      specifically stated otherwise in the applicable provisions of this
      Officer's Certificate.

                  (1) Global Note Legend. Each Global Note shall bear a legend
            in substantially the following form:

      "THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE OFFICER'S
      CERTIFICATE UNDER THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN
      CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
      TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE
      TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO
      ARTICLE III OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN
      WHOLE BUT NOT IN PART PURSUANT TO SECTION 1(p)(iv)(A) OF THE OFFICER'S
      CERTIFICATE UNDER THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED
      TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 309 OF THE INDENTURE
      AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY
      WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY OR ANY SUCCESSOR THERETO."

            Additionally, for so long as DTC is the Depositary with respect to
      any Global Note, each such Global Note shall also bear a legend in
      substantially the following form:

      "UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
      DEPOSITARY (AS DEFINED IN THE OFFICER'S CERTIFICATE UNDER THE INDENTURE
      GOVERNING THIS NOTE), TO THE COMPANY OR ANY SUCCESSOR THERETO OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
      ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
      REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY
      PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
      AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR
      OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
      INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN."

            (F) Cancellation and/or Adjustment of Global Notes. At such time as
      all beneficial interests in a particular Global Note have been exchanged
      for Definitive Notes or a particular Global Note has been redeemed,
      repurchased or canceled in whole and not in part, each such Global Note
      shall be returned to or retained and canceled by the Trustee in accordance
      with Section 309 of the Indenture. At any time prior to such cancellation,
      if any beneficial interest in a Global Note is exchanged for or
      transferred to a Person who shall take delivery thereof in the form of a
      beneficial interest in another Global Note or for Definitive Notes, the
      principal amount of 2010 Notes represented by such Global Note shall be
      reduced accordingly and an endorsement shall be made on such Global Note,
      by the Trustee, the Note Custodian or the Depositary at the direction of

                                       10
<PAGE>
      the Trustee, to reflect such reduction; and if the beneficial interest is
      being exchanged for or transferred to a Person who shall take delivery
      thereof in the form of a beneficial interest in another Global Note, such
      other Global Note shall be increased accordingly and an endorsement shall
      be made on such Global Note, by the Trustee, the Note Custodian or by the
      Depositary at the direction of the Trustee, to reflect such increase.

            (G) General Provisions Relating to Transfers and Exchanges.

            (1) To permit registrations of transfers and exchanges, subject to
      Section 1(p)(iv) of this Officer's Certificate, the Company shall execute
      and, upon the Company's order, the Trustee or an Authenticating Agent
      shall authenticate Global Notes and Definitive Notes at the Security
      Registrar's request.

            (2) All certifications, certificates and Opinions of Counsel
      required to be submitted to the Security Registrar pursuant to this
      Section 1(p)(iv) to effect a transfer or exchange may be submitted by
      facsimile.

            (3) The Trustee and the Security Registrar shall have no obligation
      or duty to monitor, determine or inquire as to whether any Person is or is
      not a Person described in Section 1(p)(iv) of this Officer's Certificate
      or under applicable law (other than the Trust Indenture Act) with respect
      to any transfer of any interest in any 2010 Note (including any transfers
      between or among Participants or beneficial owners of interests in any
      Global Note) other than to require delivery of such certificates and other
      documentation or evidence as are expressly required by, and to do so if
      and when expressly required by the terms of, this Indenture, and to
      examine the same to determine substantial compliance as to form with the
      express requirements hereof.

      (q) Events of Default. Each of the following events constitutes an "Event
      of Default" and replaces the Events of Default set forth in the indenture:

            (i) a default in any payment of interest on any 2010 Note when the
      same becomes due and payable, and such default continues for a period of
      30 days;

            (ii) a default in the payment of principal of any 2010 Note when the
      same becomes due and payable at its Stated Maturity, upon optional
      redemption, upon required repurchase, upon declaration of acceleration or
      otherwise;

            (iii) the failure by the Company to comply with its obligations
      under Section 1(u)(i) herein;

            (iv) the failure by the Company to comply with Section 1(r)(ii)
      hereof, any of Sections 1(r)(vii) through 1(r)(xvi) (other than a failure
      to repurchase Notes when required pursuant to Section 1(r)(viii) or
      1(r)(xii), which failure shall constitute an Event of Default under
      Section 1(q)(ii)) and such failure continues for 30 days after the notice
      specified below;

                                       11
<PAGE>
            (v) the failure by the Company to comply with any of its agreements
      in the 2010 Notes or the Indenture (other than those referred to in (i),
      (i), (iii) or (iv) above) and such failure continues for 60 days after the
      notice specified below;

            (vi) the failure by the Company or any Significant Subsidiary of the
      Company to pay any Indebtedness within any applicable grace period
      provided in such Indebtedness after final maturity or the acceleration of
      any such Indebtedness by the holders thereof because of a default if the
      total amount of such Indebtedness unpaid or accelerated exceeds $50
      million;

            (vii) the Company or a Significant Subsidiary of the Company
      pursuant to or within the meaning of any Bankruptcy Law:

            (A) commences a voluntary case;

            (B) consents to the entry of an order for relief against it in an
      involuntary case in which it is the debtor;

            (C) consents to the appointment of a Custodian of it or for any
      substantial part of its property; or

            (D) makes a general assignment for the benefit of its creditors;

      or takes any comparable action under any foreign laws relating to
      insolvency;

            (viii) a court of competent jurisdiction enters an order or decree
      under any Bankruptcy Law that:

            (A) is for relief against the Company or any Significant Subsidiary
      of the Company in an involuntary case

            (B) appoints a Custodian of the Company or any Significant
      Subsidiary of the Company or for any substantial part of its property of
      the Company or any Significant Subsidiary; or

            (C) orders the winding up or liquidation of the Company or any
      Significant Subsidiary of the Company;

      or any similar relief is granted under any foreign laws) and the order,
      decree or relief remains unstayed and in effect for 90 days; or

            (ix) any judgment or decree for the payment of money in excess of
      $50 million is rendered against the Company or any Significant Subsidiary
      of the Company, remains outstanding for a period of 60 days following such
      judgment and is not discharged, waived or stayed within 10 days after
      notice.

However, a default under clauses (iv) and (v) will not constitute an Event of
Default until the Trustee or the holders of 25% in principal amount of the
outstanding 2010 Notes notify the

                                       12
<PAGE>
Company of the default and the Company does not cure such default within the
time specified after receipt of such notice.

      (r) Certain Covenants In addition to the covenants set forth in Sections
      1001, 1002 and 1003 of the Indenture, but in lieu of Sections 1004 through
      1010 of the Indenture, the Company is subject to the following covenants:

            (i) Corporate Existence. Except as otherwise permitted by Sections
      1(r)(viii) and 1(u)(i) hereof, the Company shall do or cause to be done,
      at its own cost and expense, all things necessary to preserve and keep in
      full force and effect its corporate existence and the corporate,
      partnership or limited liability company existence of each of its
      Significant Subsidiaries in accordance with the respective organizational
      documents of each such Subsidiary and the material rights (charter and
      statutory) and franchises of the Company and each such Subsidiary;
      provided, however, that the Company shall not be required to preserve,
      with respect to itself, any material right or franchise and, with respect
      to any of its Significant Subsidiaries, any such existence, material right
      or franchise, if the Board of Directors of the Company shall determine in
      good faith (such determination to be evidenced by a board resolution),
      that the preservation thereof is no longer desirable in the conduct of the
      business of the Company and the Subsidiaries, taken as a whole.

            (ii) SEC Reports. The Company will file with the SEC such annual
      reports and such information, documents and other reports as are specified
      in Sections 13 and 15(d) of the Exchange Act and applicable to a U.S.
      corporation subject to such Sections, such information, documents and
      other reports to be so filed and provided at the times specified for the
      filings of such information, documents and reports under such Sections.

            (iii) Compliance Certificate.

            (A) The Company shall deliver to the Trustee, within 120 days after
      the end of each fiscal year, an Officers' Certificate, one of the signers
      of which is the chief executive, chief financial or chief accounting
      officer, stating that a review of the activities of the Company and its
      Subsidiaries during the preceding fiscal year has been made under the
      supervision of the signing Officers with a view to determining whether the
      Company and its Subsidiaries have kept, observed, performed and fulfilled
      its obligations under this Indenture, and further stating, as to such
      Officers signing such certificate, that to the best of his or her
      knowledge the Company and its Subsidiaries have kept, observed, performed
      and fulfilled each and every covenant contained in this Indenture and are
      not in default in the performance or observance of any of the terms,
      provisions and conditions hereof (or, if a Default or Event of Default
      shall have occurred, describing all such Defaults or Events of Default of
      which he or she may have knowledge and what action the Company and its
      Subsidiaries are taking or propose to take with respect thereto) and that
      to the best of his or her knowledge no event has occurred and remains in
      existence by reason of which payments on account of the principal of or
      interest on the Notes are prohibited (or if such event has occurred, a
      description of the event and what action each is taking or proposes to
      take with respect thereto).

                                       13
<PAGE>
            (B) The Company shall, so long as any of the Notes are outstanding,
      deliver to the Trustee, forthwith upon any Officer becoming aware of any
      Default or Event of Default an Officers' Certificate specifying such
      Default or Event of Default and what action the Company is taking or
      proposes to take with respect thereto.

            (C) The Company shall comply with Section 314(a)(4) of the Trust
      Indenture Act.

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

            (v) Payment of Taxes and Other Claims. The Company shall pay or
      discharge or cause to be paid or discharged, before the same shall become
      delinquent, (i) all material taxes, assessments and governmental charges
      (including withholding taxes and any penalties, interest and additions to
      taxes) levied or imposed upon it or any of its Restricted Subsidiaries or
      properties of it or any of its Restricted Subsidiaries and (ii) all lawful
      claims for labor, materials and supplies that, if unpaid, might by law
      become a Lien upon the property of it or any of its Restricted
      Subsidiaries; provided, however, that the Company shall not be required to
      pay or discharge or cause to be paid or discharged any such tax,
      assessment, charge or claim the amount, applicability or validity of which
      is being contested in good faith by appropriate proceedings properly
      instituted and diligently conducted for which adequate reserves, to the
      extent required under GAAP, have been taken.

            (vi) Maintenance of Properties and Insurance.

            (A) The Company shall, and shall cause each of its Significant
      Subsidiaries to, maintain its material properties in good working order
      and condition (subject to ordinary wear and tear) and make or cause to be
      made all necessary repairs, renewals, replacements, additions, betterments
      and improvements thereto and actively conduct and carry on its business,
      all as in the reasonable judgment of the Company is necessary so that the
      business carried on by the Company and its Significant Subsidiaries may be
      actively conducted; provided, however, that nothing in this Section
      1(r)(vi) shall prevent the Company or any of its Subsidiaries from
      discontinuing the operation and maintenance of any of its properties, if
      such discontinuance is, in the good faith judgment of the Company or the
      Subsidiary, as the case may be, desirable in the conduct of their
      respective businesses and is not disadvantageous in any material respect
      to the Holders.

            (B) The Company shall provide or cause to be provided, for itself
      and each of its Significant Subsidiaries, insurance (including appropriate
      self-insurance) against loss or damage of the kinds that, in the good
      faith judgment of the Company, are adequate and

                                       14
<PAGE>
      appropriate for the conduct of the business of the Company and such
      Subsidiaries in a prudent manner, with reputable insurers or with the
      government of the United States of America, any state thereof or any
      agency or instrumentality of such governments, in such amounts, with such
      deductibles, and by such methods as shall be customary, in the good faith
      judgment of the Company, for companies similarly situated in the industry.

            (vii) Investment Grade Rating.

            Following the first day:

                  (a)   the Notes have an Investment Grade Rating from both of
                        the Rating Agencies, and

                  (b)   no Default has occurred and is continuing under the
                        Indenture,

      the Company and its Restricted Subsidiaries will not be subject to
      Sections 1(r)(ix), (x), (xi), (xii), (xiii), (xiv) and clause (3) of
      Section 1(u)(i)(A) (collectively, the "Suspended Covenants").

            The Company will notify the Trustee by delivery of an Officer's
      Certificate of the suspension of the Suspended Covenants. In the event
      that the Company and its Restricted Subsidiaries are not subject to the
      Suspended Covenants for any period of time as a result of the preceding
      sentence, and subsequently one or both of the Rating Agencies withdraws
      its rating or downgrades the rating assigned to the Notes below an
      Investment Grade Rating, then the Company and the Restricted Subsidiaries
      will thereafter again be subject to the Suspended Covenants, and
      compliance with the Suspended Covenants with respect to Restricted
      Payments made after the time of such withdrawal or downgrade will be
      calculated in accordance with Section 1(r)(x) as though such section had
      been in effect since the date the Notes were originally issued.

            (viii) Change of Control.

            Upon the occurrence of a Change of Control, each Holder shall have
      the right to require that the Company repurchase such Holder's Notes at a
      purchase price in cash equal to 101% of the principal amount thereof on
      the date of purchase plus accrued and unpaid interest, if any, to the date
      of purchase (subject to the right of holders of record on the relevant
      record date to receive interest due on the relevant interest payment
      date).

            Within 30 days following any Change of Control, the Company shall
      mail a notice to each Holder at its registered address with a copy to the
      Trustee (the "Change of Control Offer") stating:

            (a)   that a Change of Control has occurred and that such Holder has
                  the right to require us to purchase such Holder's Notes at a
                  purchase price in cash equal to 101% of the principal amount
                  thereof on the date of purchase, plus accrued and unpaid
                  interest, if any, to the date of purchase (subject to the
                  right of Holders of record on the relevant record date to
                  receive interest on the relevant interest payment date);

                                       15
<PAGE>
            (b)   the circumstances and relevant facts regarding such Change of
                  Control (including information with respect to pro forma
                  historical income, cash flow and capitalization, in each case
                  after giving effect to such Change of Control);

            (c)   the purchase date (which shall be no earlier than 30 days nor
                  later than 60 days from the date such notice is mailed); and

            (d)   the instructions, as determined by the Company, consistent
                  with this Section 1(r)(viii), that a Holder must follow in
                  order to have its Notes purchased.

            The Company shall not be required to make a Change of Control Offer
      following a Change of Control if a third party makes the Change of Control
      Offer in the manner, at the times and otherwise in compliance with the
      requirements set forth in the Indenture applicable to a Change of Control
      Offer made by us and purchases all Notes validly tendered and not
      withdrawn under such Change of Control Offer.

            The Company shall comply, to the extent applicable, with the
      requirements of Section 14(e) of the Exchange Act and any other securities
      laws or regulations in connection with the repurchase of Notes as a result
      of a Change of Control. To the extent that the provisions of any
      securities laws or regulations conflict with the provisions of this
      Section 1(r)(viii), the Company shall comply with the applicable
      securities laws and regulations and shall not be deemed to have breached
      its obligations under this Section 1(r)(viii) by virtue of its compliance
      with such securities laws or regulations.

            (ix) Limitation on Indebtedness.

            (A) The Company shall not, and shall not permit any Restricted
      Subsidiary to, Incur, directly or indirectly, any Indebtedness; provided,
      however, that the Company shall be entitled to Incur Indebtedness if, on
      the date of such Incurrence and after giving effect thereto on a pro forma
      basis no Default has occurred and is continuing and, the Consolidated
      Coverage Ratio exceeds 2.0 to 1.

            (B) Notwithstanding the foregoing paragraph (A), the Company and the
      Restricted Subsidiaries shall be entitled to Incur any or all of the
      following Indebtedness:

            (1)   Indebtedness Incurred by the Company, any Financing Entity and
                  any Foreign Restricted Subsidiary pursuant to any Credit
                  Facilities, provided, however, that, immediately after giving
                  effect to any such Incurrence, the aggregate principal amount
                  of all Indebtedness Incurred under this clause (i) and then
                  outstanding does not exceed the greater of (A) $750 million
                  less the sum of all principal payments with respect to such
                  Indebtedness pursuant to Section 1(r)(xii)(B)(3)(a) and (B)
                  the sum of (x) 60% of the book value of the inventory of the
                  Company and its Restricted Subsidiaries and (y) 85% of the
                  book value of the accounts receivable of the Company and its
                  Restricted Subsidiaries;

                                       16
<PAGE>
            (2)   Indebtedness owed to and held by the Company or a Wholly Owned
                  Subsidiary; provided, however, that (A) any subsequent
                  issuance or transfer of any Capital Stock which results in any
                  such Wholly Owned Subsidiary ceasing to be a Wholly Owned
                  Subsidiary or any subsequent transfer of such Indebtedness
                  (other than to the Company or a Wholly Owned Subsidiary) shall
                  be deemed, in each case, to constitute the Incurrence of such
                  Indebtedness by the obligor thereon and (B) if the Company is
                  the obligor on such Indebtedness, such Indebtedness is
                  expressly subordinated to the prior payment in full in cash of
                  all obligations with respect to the Notes;

            (3)   the Notes (other than any Additional Notes) and any other
                  Indebtedness of the Company or any Restricted Subsidiary
                  outstanding on the Issue Date;

            (4)   Indebtedness of a Restricted Subsidiary Incurred and
                  outstanding on or prior to the date on which such Subsidiary
                  was acquired by the Company (other than Indebtedness Incurred
                  in connection with, or to provide all or any portion of the
                  funds or credit support utilized to consummate, the
                  transaction or series of related transactions pursuant to
                  which such Subsidiary became a Subsidiary or was acquired by
                  the Company); provided, however, that on the date of such
                  acquisition and after giving pro forma effect thereto, the
                  Company would have been able to Incur at least $1.00 of
                  additional Indebtedness pursuant to Section 1(r)(ix)(A);

            (5)   Industrial Revenue Bond Obligations, so long as the aggregate
                  principal amount of all Industrial Revenue Bond Obligations
                  (inclusive of any in respect of which the Company becomes
                  directly or indirectly liable pursuant to the Financial
                  Matters Agreement) does not exceed $600 million;

            (6)   Indebtedness to Marathon Incurred pursuant to the Financial
                  Matters Agreement in respect of Capital Lease Obligations, in
                  an aggregate principal amount not to exceed $92 million;

            (7)   Indebtedness to Marathon Incurred pursuant to the Financial
                  Matters Agreement in respect of Guarantees of Marathon in an
                  aggregate principal amount not to exceed $145 million;

            (8)   Refinancing Indebtedness in respect of Indebtedness Incurred
                  pursuant to Section 1(r)(ix)(A) or pursuant to clause (3), (4)
                  or (6) of this Section 1(r)(ix)(B) or this clause (8);
                  provided, however, that to the extent such Refinancing
                  Indebtedness directly or indirectly Refinances Indebtedness of
                  a Subsidiary Incurred pursuant to clause (4) of this Section
                  1(r)(ix)(B), such Refinancing Indebtedness shall be Incurred
                  only by such Subsidiary or by the Company;

                                       17
<PAGE>
            (9)   Hedging Obligations directly related to Indebtedness permitted
                  to be Incurred by the Company pursuant to the Indenture or to
                  mitigate currency or business risk;

            (10)  Obligations in respect of performance, bid and surety bonds
                  and completion guarantees provided by the Company or any
                  Restricted Subsidiary in the ordinary course of business;

            (11)  Indebtedness arising from overdraft conditions honored by a
                  bank or other financial institution in the ordinary course of
                  business; provided, however, that such Indebtedness is
                  extinguished within two Business Days of its Incurrence;

            (12)  Guarantees by the Company of obligations of any of its joint
                  ventures in an aggregate amount not to exceed $100 million;

            (13)  Subordinated Obligations not to exceed $200 million which (x)
                  are convertible into equity securities of the Company, (y)
                  have a Stated Maturity after the first anniversary of the
                  Stated Maturity of any series of Notes then outstanding and
                  (z) have an Average Life that is greater than the Average Life
                  of any series of Notes then outstanding;

            (14)  Attributable Debt related to Sale/Leaseback Transactions in an
                  amount not to exceed $150 million;

            (15)  Purchase Money Indebtedness and Capital Lease Obligations
                  Incurred to acquire property in the ordinary course of
                  business in an aggregate amount not to exceed $75 million for
                  the year ending July 27, 2003, $75 million for the year ending
                  July 27, 2004 and $50 million in each of the years thereafter;
                  and

            (16)  Indebtedness of the Company and its Restricted Subsidiaries in
                  an aggregate principal amount which, when taken together with
                  all other Indebtedness of the Company and its Restricted
                  Subsidiaries outstanding on the date of such Incurrence (other
                  than Indebtedness permitted by clauses (1) through (15) of
                  this Section 1(r)(ix)(B) above or Section 1(r)(ix)(A)) does
                  not exceed $150 million.

            (C) Notwithstanding the foregoing, the Company shall not incur any
      Indebtedness under Section 1(r)(ix)(B) if the proceeds thereof are used,
      directly or indirectly, to Refinance any Subordinated Obligations of the
      Company unless such Indebtedness shall be subordinated to the Notes to at
      least the same extent as such Subordinated Obligations.

            (D) For purposes of determining compliance with this Section
      1(r)(ix), in the event that an item of Indebtedness meets the criteria of
      more than one of the types of Indebtedness described above, the Company,
      in its sole discretion, (1) shall classify such item of Indebtedness at
      the time of Incurrence and will be entitled to either include the

                                       18
<PAGE>
      amount and type of such Indebtedness in only one of the above clauses or
      divide and classify such item of Indebtedness in more than one of the
      types of Indebtedness described above and (2) will be entitled from time
      to time to reclassify all or a portion of such item of Indebtedness
      classified in one of the clauses in Section 1(r)(ix)(B) into another
      clause in Section 1(r)(ix)(B) that it meets the criteria of.

            (E) For purposes of determining compliance with any U.S. dollar
      restriction on the Incurrence of Indebtedness where the Indebtedness
      Incurred is denominated in a different currency, the amount of such
      Indebtedness shall be the U.S. Dollar Equivalent determined on the date of
      the Incurrence of such Indebtedness, provided, however, that if any such
      Indebtedness denominated in a different currency is subject to a Currency
      Agreement with respect to U.S. dollars covering all principal, premium, if
      any, and interest payable on such Indebtedness, the amount of such
      Indebtedness expressed in U.S. dollars shall be as provided in such
      Currency Agreement. The principal amount of any Refinancing Indebtedness
      Incurred in the same currency as the Indebtedness being Refinanced shall
      be the U.S. Dollar Equivalent, as appropriate, of the Indebtedness
      Refinanced, except to the extent that (i) such U.S. Dollar Equivalent was
      determined based on a Currency Agreement, in which case the Refinancing
      Indebtedness shall be determined in accordance with the preceding
      sentence, and (ii) the principal amount of the Refinancing Indebtedness
      exceeds the principal amount of the Indebtedness being Refinanced, in
      which case the U.S. Dollar Equivalent of such excess shall be determined
      on the date such Refinancing Indebtedness is Incurred.

            (x) Limitation on Restricted Payments.

            (A) The Company shall not, and shall not permit any Restricted
      Subsidiary, directly or indirectly, to make a Restricted Payment if at the
      time the Company or such Restricted Subsidiary makes such Restricted
      Payment:

            (1)   a Default shall have occurred and be continuing (or would
                  result therefrom);

            (2)   the Company is not entitled to Incur an additional $1.00 of
                  Indebtedness pursuant to Section 1(r)(ix)(A); or

            (3)   the aggregate amount of such Restricted Payment and all other
                  Restricted Payments since July 27, 2001 (other than dividends
                  on common stock paid prior to the Issue Date) would exceed the
                  sum of (without duplication):

                  (a)   50% of the Consolidated Net Income accrued during the
                        period (treated as one accounting period) from the
                        beginning of the fiscal quarter immediately following
                        the fiscal quarter during which the July 27, 2001 occurs
                        to the end of the most recent fiscal quarter for which
                        financial results are publicly available prior to the
                        date of such Restricted Payment (or, in case such
                        Consolidated Net Income shall be a deficit, minus 100%
                        of such deficit); plus

                                       19
<PAGE>
                  (b)   100% of the aggregate Net Cash Proceeds received by the
                        Company from the issuance or sale of its Capital Stock
                        (other than Disqualified Stock) subsequent to July 27,
                        2001 (other than an issuance or sale to a Subsidiary of
                        the Company and other than an issuance or sale to an
                        employee stock ownership plan or to a trust established
                        by the Company or any of its Subsidiaries for the
                        benefit of their employees) and 100% of any cash capital
                        contribution received by the Company from its
                        shareholders subsequent to July 27, 2001; plus

                  (c)   the amount by which Indebtedness of the Company (other
                        than Subordinated Obligations) is reduced on the
                        Company's balance sheet upon the conversion or exchange
                        (other than by a Subsidiary of the Company) subsequent
                        to July 27, 2001 of any Indebtedness of the Company
                        convertible or exchangeable for Capital Stock (other
                        than Disqualified Stock) of the Company (less the amount
                        of any cash, or the fair value of any other property,
                        distributed by the Company upon such conversion or
                        exchange); plus

                  (d)   an amount equal to the sum of (i) the net reduction in
                        the Investments (other than Permitted Investments) made
                        by the Company or any Restricted Subsidiary in any
                        Person resulting from repurchases, repayments or
                        redemptions of such Investments by such Person, proceeds
                        realized on the sale of such Investment and proceeds
                        representing the return of capital (excluding dividends
                        and distributions), in each case received by the Company
                        or any Restricted Subsidiary, and (ii) to the extent
                        such Person is an Unrestricted Subsidiary, the portion
                        (proportionate to the Company's equity interest in such
                        Subsidiary) of the fair market value of the net assets
                        of such Unrestricted Subsidiary at the time such
                        Unrestricted Subsidiary is designated a Restricted
                        Subsidiary; provided, however, that the foregoing sum
                        shall not exceed, in the case of any such Person or
                        Unrestricted Subsidiary, the amount of Investments
                        (excluding Permitted Investments) previously made (and
                        treated as a Restricted Payment) by the Company or any
                        Restricted Subsidiary in such Person or Unrestricted
                        Subsidiary.

            (B)   The preceding provisions shall not prohibit:

            (1)   any Restricted Payment made out of the Net Cash Proceeds of
                  the substantially concurrent sale of, or made by exchange for,
                  Capital Stock of the Company (other than Disqualified Stock
                  and other than Capital Stock issued or sold to a Subsidiary of
                  the Company or an employee stock ownership plan or to a trust
                  established by the Company or any of its Subsidiaries for the
                  benefit of their employees) or a substantially concurrent cash
                  capital contribution received by the Company from its
                  shareholders; provided, however, that (A) such Restricted
                  Payment shall

                                       20
<PAGE>
                  be excluded in the calculation of the amount of Restricted
                  Payments and (B) the Net Cash Proceeds from such sale or such
                  cash capital contribution (to the extent so used for such
                  Restricted Payment) shall be excluded from the calculation of
                  amounts under clause (3)(b) of paragraph (A) above;

            (2)   any purchase, repurchase, redemption, defeasance or other
                  acquisition or retirement for value of Subordinated
                  Obligations made by exchange for, or out of the proceeds of
                  the substantially concurrent sale of, Indebtedness which is
                  permitted to be Incurred under Section 1(r)(ix); provided,
                  however, that such purchase, repurchase, redemption,
                  defeasance or other acquisition or retirement for value shall
                  be excluded in the calculation of the amount of Restricted
                  Payments;

            (3)   dividends paid within 60 days after the date of declaration
                  thereof if at such date of declaration such dividend would
                  have complied with this Section 1(r)(x); provided, however,
                  that at the time of payment of such dividend, no other Default
                  shall have occurred and be continuing (or result therefrom);
                  provided further, however, that such dividend shall be
                  included in the calculation of the amount of Restricted
                  Payments;

            (4)   so long as no Default has occurred and is continuing, the
                  repurchase or other acquisition of shares of Capital Stock of
                  the Company or any of its Subsidiaries from employees, former
                  employees, directors or former directors of the Company or any
                  of its Subsidiaries (or permitted transferees of such
                  employees, former employees, directors or former directors),
                  pursuant to the terms of the agreements (including employment
                  agreements) or plans (or amendments thereto) approved by the
                  Board of Directors under which such individuals purchase or
                  sell or are granted the option to purchase or sell, shares of
                  such Capital Stock; provided, however, that the aggregate
                  amount of such repurchases and other acquisitions (other than
                  any acquisition of shares of common stock of the Company that
                  are used as payment for the exercise price of outstanding
                  options) shall not exceed $5.0 million in any calendar year;
                  provided further, however, that such repurchases and other
                  acquisitions shall be excluded in the calculation of the
                  amount of Restricted Payments;

            (5)   so long as no Default has occurred and is continuing, the
                  declaration and payment of one or more dividends on the common
                  stock of the Company with respect to the period ending on
                  December 31, 2003 in an aggregate amount not to exceed $14.0
                  million; provided that such dividends shall be excluded in the
                  calculation of the amount of Restricted Payments;

            (6)   so long as no Default has occurred and is continuing, any
                  Restricted Payment which, together with all other Restricted
                  Payments made pursuant to this clause (6) on or after July 27,
                  2001, does not exceed $30 million; provided, however, that
                  such Restricted Payments shall be included in the calculation
                  of the amount of Restricted Payments; and

                                       21
<PAGE>
            (7)   so long as no Default has occurred and is continuing, the
                  declaration and payment of dividends on the Company's 7.00%
                  Series B Mandatory Convertible Preferred Shares pursuant to
                  their terms; provided that such dividends shall be excluded in
                  the calculation of the amount of Restricted Payments.

            (xi)  Limitation on Restrictions on Distributions from Restricted
                  Subsidiaries.

            The Company shall not, and shall not permit any Restricted
      Subsidiary to, create or otherwise cause or permit to exist or become
      effective any consensual encumbrance or restriction on the ability of any
      Restricted Subsidiary to (i) pay dividends or make any other distributions
      on its Capital Stock to the Company or a Restricted Subsidiary or pay any
      Indebtedness owed to the Company, (ii) make any loans or advances to the
      Company or (iii) transfer any of its property or assets to the Company,
      except:

            (A) with respect to clause (i), (ii) and (iii): (1) any encumbrance
      or restriction pursuant to an agreement in effect at or entered into on
      the Issue Date; (2) any encumbrance or restriction with respect to a
      Restricted Subsidiary pursuant to an agreement relating to any
      Indebtedness Incurred by such Restricted Subsidiary on or prior to the
      date on which such Restricted Subsidiary was acquired by the Company
      (other than Indebtedness Incurred as consideration in, or to provide all
      or any portion of the funds or credit support utilized to consummate, the
      transaction or series of related transactions pursuant to which such
      Restricted Subsidiary became a Restricted Subsidiary or was acquired by
      the Company) and outstanding on such date; (3) any encumbrance or
      restriction pursuant to an agreement effecting a Refinancing of
      Indebtedness Incurred pursuant to an agreement referred to in clause (1)
      or (2) of clause (A) of this Section 1(r)(xi) or this clause (3) or
      contained in any amendment to an agreement referred to in clause (1) or
      (2) of clause (A) of this Section 1(r)(xi) or this clause (3); provided,
      however, that the encumbrances and restrictions with respect to such
      Restricted Subsidiary contained in any such refinancing agreement or
      amendment are no less favorable to the Noteholders than encumbrances and
      restrictions with respect to such Restricted Subsidiary contained in such
      predecessor agreements; and

            (B) with respect to clause (iii) only: (1) any such encumbrance or
      restriction consisting of customary nonassignment provisions in leases
      governing leasehold interests to the extent such provisions restrict the
      transfer of the lease or the property leased thereunder; (2) restrictions
      contained in security agreements or mortgages securing Indebtedness of a
      Restricted Subsidiary to the extent such restrictions restrict the
      transfer of the property subject to such security agreements or mortgages;
      and (3) any restriction with respect to a Restricted Subsidiary imposed
      pursuant to an agreement entered into for the sale or disposition of all
      or substantially all the Capital Stock or assets of such Restricted
      Subsidiary pending the closing of such sale or disposition.

            (xii) Limitation on Sales of Assets and Subsidiary Stock.

            (A) The Company shall not, and shall not permit any Restricted
      Subsidiary to, directly or indirectly, sell, transfer or otherwise dispose
      of (collectively, a "disposition")

                                       22
<PAGE>
      any Capital Stock of any Person that owns, directly or indirectly, all or
      a significant portion of the Tubular Business, unless:

            (1)   the Company or such Restricted Subsidiary receives
                  consideration at the time of such disposition at least equal
                  to the fair market value (including as to the value of all
                  non-cash consideration), as determined in good faith by the
                  Board of Directors, of the Capital Stock subject to such
                  disposition;

            (2)   at least 75% of the consideration thereof received by the
                  Company or such Restricted Subsidiary is in the form of cash
                  or cash equivalents; and

            (3)   an amount equal to 75% of the Net Available Cash from such
                  disposition (after giving effect to the consummation of offers
                  to repurchase required under the 10 -3/4% Notes Indenture) is
                  applied by the Company (or such Restricted Subsidiary, as the
                  case may be) to make an offer to the holders of the Notes to
                  purchase Notes pursuant to and subject to the conditions
                  contained in the Indenture within 30 days from the later of
                  the date of such disposition (after giving effect to the
                  consummation of offers to repurchase required under the 10
                  -3/4% Notes Indenture) or the receipt of such Net Available
                  Cash; provided, however, that the Company or such Restricted
                  Subsidiary shall permanently retire such Notes.

            Pending application of Net Available Cash pursuant to this paragraph
      (A), such Net Available Cash shall be invested in Temporary Cash
      Investments or applied to temporarily reduce indebtedness under Credit
      Facilities.

            (B) The Company shall not, and shall not permit any Restricted
      Subsidiary to, directly or indirectly, consummate any other Asset
      Disposition unless:

            (1)   the Company or such Restricted Subsidiary receives
                  consideration at the time of such Asset Disposition at least
                  equal to the fair market value (including as to the value of
                  all non cash consideration), as determined in good faith by
                  the Board of Directors of the Company of the shares and assets
                  subject to such Asset Disposition;

            (2)   with respect to Asset Dispositions other than Like-Kind
                  Exchanges or Excluded Real Property Sales, at least 75% of the
                  consideration thereof received by the Company or such
                  Restricted Subsidiary is in the form of cash or cash
                  equivalents; and

            (3)   an amount equal to 100% of the Net Available Cash from such
                  Asset Disposition is applied by the Company (or such
                  Restricted Subsidiary, as the case may be): (a) first, to the
                  extent the Company elects (or is required by the terms of any
                  Indebtedness), to prepay, repay, redeem or purchase Senior
                  Indebtedness of the Company or Indebtedness (other than any
                  Disqualified Stock) of a Wholly Owned Subsidiary (in each case
                  other than Indebtedness owed to the Company or an Affiliate of
                  the Company) within one year from the later of the date of
                  such Asset Disposition or the

                                       23
<PAGE>
                  receipt of such Net Available Cash; (b) second, to the extent
                  of the balance of such Net Available Cash after application in
                  accordance with clause (a), to the extent the Company elects,
                  to acquire Additional Assets within one year from the later of
                  the date of such Asset Disposition or the receipt of such Net
                  Available Cash; and (c) third, to the extent of the balance of
                  such Net Available Cash after application in accordance with
                  clauses (a) and (b), to make an offer to the holders of the
                  Notes (and to holders of other Senior Indebtedness of the
                  Company designated by the Company) to purchase Notes (and such
                  other Senior Indebtedness of the Company) pursuant to and
                  subject to the conditions contained in the Indenture;

      provided, however, that in connection with any prepayment, repayment or
      purchase of Indebtedness pursuant to clause (a) or (c) above, the Company
      or such Restricted Subsidiary shall permanently retire such Indebtedness
      and shall cause the related loan commitment (if any) to be permanently
      reduced in an amount equal to the principal amount so prepaid, repaid or
      purchased.

            Notwithstanding the foregoing provisions of Section 1(r)(xii)(B),
      the Company and the Restricted Subsidiaries shall not be required to apply
      any Net Available Cash in accordance with Section 1(r)(xii)(B) except to
      the extent that the aggregate Net Available Cash from all Asset
      Dispositions which are not applied in accordance with Section 1(r)(xii)(B)
      exceeds $25 million. Pending application of Net Available Cash pursuant to
      Section 1(r)(xii)(B), such Net Available Cash shall be invested in
      Temporary Cash Investments or applied to temporarily reduce indebtedness
      under Credit Facilities.

            (C) For the purposes of Sections 1(r)(xii)(A) and (B), the following
      are deemed to be cash or cash equivalents: (1) the assumption of Senior
      Indebtedness of the Company, or Indebtedness of any Restricted Subsidiary,
      and the release of the Company or such Restricted Subsidiary from all
      liability on such Indebtedness in connection with such Asset Disposition
      and (2) securities received by the Company or any Restricted Subsidiary
      from the transferee that are promptly converted by the Company or such
      Restricted Subsidiary into cash.

            (D) In the event of an Asset Disposition that requires the purchase
      of 2010 Notes (and other Senior Indebtedness) pursuant to Section
      1(r)(xii)(A)(3) or 1(r)(xii)(B)(3)(c), the Company shall purchase 2010
      Notes tendered pursuant to an offer by the Company for the 2010 Notes (and
      such other Senior Indebtedness) at a purchase price of 100% of their
      principal amount (or, in the event such other Senior Indebtedness was
      issued with significant original issue discount, 100% of the accreted
      value thereof), without premium, plus accrued but unpaid interest (or, in
      respect of such other Senior Indebtedness, such lesser price, if any, as
      may be provided for by the terms of such Senior Indebtedness) in
      accordance with the procedures (including prorating in the event of
      oversubscription) set forth in the Indenture. If the aggregate purchase
      price of the securities tendered exceeds the Net Available Cash allotted
      to their purchase, the Company shall select the securities to be purchased
      on a pro rata basis but in round denominations, which in the case of the
      2010 Notes will be denominations of $1,000 principal amount or integral
      multiples thereof. The Company shall not be required to

                                       24
<PAGE>
      make such an offer to purchase 2010 Notes (and other Senior Indebtedness)
      pursuant to Section 1(r)(xii)(B) if the Net Available Cash available
      therefor is less than $25 million (which lesser amount shall be carried
      forward for purposes of determining whether such an offer is required with
      respect to the Net Available Cash from any subsequent Asset Disposition).

            (E) The Company shall comply, to the extent applicable, with the
      requirements of Section 14(e) of the Exchange Act and any other securities
      laws or regulations in connection with the repurchase of 2010 Notes
      pursuant to this Section 1(r)(xii). To the extent that the provisions of
      any securities laws or regulations conflict with provisions of this
      Section 1(r)(xii), the Company shall comply with the applicable securities
      laws and regulations and shall not be deemed to have breached its
      obligations under this clause by virtue of its compliance with such
      securities laws or regulations.

            (xiii) Limitation on Affiliate Transactions.

            (A) The Company shall not, and shall not permit any Restricted
      Subsidiary to, enter into, permit to exist, renew or extend any
      transaction (including the purchase, sale, lease or exchange of any
      property, employee compensation arrangements or the rendering of any
      service) with, or for the benefit of, any Affiliate of the Company (an
      "Affiliate Transaction") unless:

            (1)   the terms of the Affiliate Transaction are no less favorable
                  to the Company or such Restricted Subsidiary than those that
                  could be obtained at the time of the Affiliate Transaction in
                  arm's-length dealings with a Person who is not an Affiliate;

            (2)   if such Affiliate Transaction involves an amount in excess of
                  $10 million, the terms of the Affiliate Transaction are set
                  forth in writing and a majority of the non-employee Directors
                  of the Company disinterested with respect to such Affiliate
                  Transactions have determined in good faith that the criteria
                  set forth in clause (1) are satisfied and have approved the
                  relevant Affiliate Transaction as evidenced by a Board
                  resolution; and

            (3)   if such Affiliate Transaction involves an amount in excess of
                  $25 million, the Board of Directors shall also have received a
                  written opinion from an Independent Qualified Party to the
                  effect that such Affiliate Transaction is fair, from a
                  financial standpoint, to the Company and its Restricted
                  Subsidiaries or not less favorable to the Company and its
                  Restricted Subsidiaries than could reasonably be expected to
                  be obtained at the time in an arm's-length transaction with a
                  Person who was not an Affiliate.

            (B) The provisions of the preceding paragraph (A) shall not
      prohibit:

            (1)   any Investment (other than a Permitted Investment) or other
                  Restricted Payment, in each case permitted to be made under
                  Section 1(r)(x);

                                       25
<PAGE>
            (2)   any issuance of securities, or other payments, awards or
                  grants in cash, securities or otherwise pursuant to, or the
                  funding of, employment arrangements, stock options and stock
                  ownership plans approved by the Board of Directors;

            (3)   loans or advances to employees in the ordinary course of
                  business in accordance with the past practices of the Company
                  or its Restricted Subsidiaries, but in any event not to exceed
                  $5.0 million in the aggregate outstanding at any one time;

            (4)   the payment of reasonable fees to Directors of the Company and
                  its Restricted Subsidiaries who are not employees of the
                  Company or its Restricted Subsidiaries;

            (5)   any transaction with a Restricted Subsidiary or joint venture
                  or similar entity which would constitute an Affiliate
                  Transaction solely because the Company or a Restricted
                  Subsidiary owns an equity interest in or otherwise controls
                  such Restricted Subsidiary, joint venture or similar entity;

            (6)   the issuance or sale of any Capital Stock (other than
                  Disqualified Stock) of the Company; and

            (7)   any transaction pursuant to any contract or agreement in
                  effect on the Issue Date, in each case as amended, modified or
                  replaced from time to time so long as the amended, modified or
                  new agreement, taken as a whole, is no less favorable to the
                  Company and its Restricted Subsidiaries than that in effect on
                  the Issue Date.

            (xiv) Limitation on the Sale or Issuance of Capital Stock of
      Restricted Subsidiaries.

            The Company (i) shall not, and shall not permit any Restricted
      Subsidiary to, sell, transfer or otherwise dispose of any Capital Stock of
      any other Restricted Subsidiary to any Person (other than the Company or a
      Wholly Owned Subsidiary) and (ii) shall not permit any Restricted
      Subsidiary to issue any of its Capital Stock (other than, if necessary,
      shares of its Capital Stock constituting directors' or other legally
      required qualifying shares) to any Person (other than to the Company or a
      Wholly Owned Subsidiary); unless (a) Company complies with Section
      1(r)(xii) with respect to any such sale, transfer or other disposition and
      (b) immediately after giving effect to such issuance, sale, transfer or
      other disposition, (x) such Restricted Subsidiary remains a Restricted
      Subsidiary or (y) such Restricted Subsidiary would no longer constitute a
      Restricted Subsidiary and any Investment in such Person remaining after
      giving effect thereto is treated as a new Investment by the Company and
      such Investment would be permitted to be made under Section 1(r)(x) if
      made on the date of such issuance, sale, transfer or other disposition.

            (xv) Limitation on Liens.

                                       26
<PAGE>
            The Company shall not, and shall not permit any Restricted
      Subsidiary to, directly or indirectly, Incur or permit to exist any Lien
      (the "Initial Lien") of any nature whatsoever on any of its properties
      (including Capital Stock of a Restricted Subsidiary), whether owned at the
      Issue Date or thereafter acquired, securing any Indebtedness, other than
      Permitted Liens, without effectively providing that the Notes shall be
      secured equally and ratably with (or prior to) the obligations so secured
      for so long as such obligations are so secured.

            Any Lien created for the benefit of the Holders of the Notes
      pursuant to the preceding sentence shall provide by its terms that such
      Lien shall be automatically and unconditionally released and discharged
      upon the release and discharge of the Initial Lien.

            (xvi) Limitation on Sale/Leaseback Transactions.

            The Company shall not, and shall not permit any Restricted
      Subsidiary to, enter into, Guarantee or otherwise become liable with
      respect to any Sale/Leaseback Transaction with respect to any property
      unless: (i) the Company or such Restricted Subsidiary would be entitled to
      (A) Incur Indebtedness in an amount equal to the Attributable Debt with
      respect to such Sale/Leaseback Transaction under Section 1(r)(ix) and (B)
      create a Lien on such property securing such Attributable Debt without
      equally and ratably securing the Notes under Section 1(r)(xv); (ii) the
      net proceeds received by the Company or any Restricted Subsidiary in
      connection with such Sale/Leaseback Transaction are at least equal to the
      fair value (as determined by the Board of Directors) of such property; and
      (iii) the Company applies the proceeds of such transaction to the extent
      required by Section 1(r)(xii).

            (xvii) Further Instruments and Acts.

            Upon reasonable request of the Trustee, the Company shall execute
      and deliver such further instruments and do such further acts as may be
      reasonably necessary or proper to carry out more effectively the purpose
      of this Indenture.

      (s)   Not applicable.

      (t)   Not applicable.

      (u) (i) Merger, Consolidation or Sale of Assets. For purposes of the 2010
      Notes, the provisions of this Section 1(u)(i) shall supersede the
      provisions of Article VIII of the Indenture and shall be controlling.

            (A) The Company shall not consolidate with or merge with or into, or
      convey, transfer or lease, in one transaction or a series of transactions,
      directly or indirectly, all or substantially all its assets to, any
      Person, unless:

            (1)   the resulting, surviving or transferee Person (the "Successor
                  Company") shall be a Person organized and existing under the
                  laws of the United States of America, any State thereof or the
                  District of Columbia and the

                                       27
<PAGE>
                  Successor Company (if not the Company) shall expressly assume,
                  by an indenture supplemental thereto, executed and delivered
                  to the Trustee, in form satisfactory to the Trustee, all the
                  obligations of the Company under the 2010 Notes and the
                  Indenture;

            (2)   immediately after giving pro forma effect to such transaction
                  (and treating any Indebtedness which becomes an obligation of
                  the Successor Company or any Subsidiary as a result of such
                  transaction as having been Incurred by such Successor Company
                  or such Subsidiary at the time of such transaction), no
                  Default shall have occurred and be continuing;

            (3)   immediately after giving pro forma effect to such transaction,
                  the Successor Company would be able to Incur an additional
                  $1.00 of Indebtedness pursuant to Section 1(r)(ix)(A);

            (4)   immediately after giving pro forma effect to such transaction,
                  the Successor Company shall have Consolidated Net Worth in an
                  amount that is not less than the Consolidated Net Worth of the
                  Company immediately prior to such transaction;

            (5)   the Company shall have delivered to the Trustee an Officers'
                  Certificate and an Opinion of Counsel, each stating that such
                  consolidation, merger or transfer and such supplemental
                  indenture (if any) comply with the Indenture; and

            (6)   the Company shall have delivered to the Trustee an Opinion of
                  Counsel to the effect that the Holders will not recognize
                  income, gain or loss for Federal income tax purposes as a
                  result of such transaction 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 transaction had
                  not occurred;

      provided, however, that clauses (3) and (4) will not be applicable to (a)
      a Restricted Subsidiary consolidating with, merging into or transferring
      all or part of its properties and assets to the Company or (b) the Company
      merging with an Affiliate of the Company solely for the purpose and with
      the sole effect of reincorporating the Company in another jurisdiction.
      The Successor Company shall be the successor to the Company and shall
      succeed to, and be substituted for, and may exercise every right and power
      of, the Company under the Indenture, and the Company, except in the case
      of a lease, shall be released from the obligation to pay the principal of
      and interest on the 2010 Notes.

            (B) In addition, the Company shall not effect any consolidation,
      merger, sale, assignment, transfer, conveyance or other disposition as is
      contemplated in this Section 1(u), unless the Company also complies with
      Sections 801 and 802 of the Indenture and the Person formed by or
      surviving any such consolidation or merger (if other than the Company) or
      to which such sale, assignment, transfer, conveyance or other disposition
      has been made, shall be deemed a Successor Corporation under the
      Indenture.

                                       28

<PAGE>
                  (ii)     Certain Definitions.

                   Set forth below are certain defined terms used in this
         Officer's Certificate. Reference is made to the Indenture for the
         definitions of any other capitalized terms used herein for which no
         definition is provided herein. For purposes of the 2010 Notes, to the
         extent the definitions contained in this Section 1(u)(ii) conflict with
         definitions contained in the Indenture, the definitions contained in
         this Section 1(u)(ii) shall supersede the definitions contained in the
         Indenture and shall be controlling.

                  "Additional Assets" means:

                  (1)      any property, plant or equipment used in a Related
                           Business;

                  (2)      the Capital Stock of a Person that becomes a
                           Restricted Subsidiary as a result of the acquisition
                           of such Capital Stock by the Company or another
                           Restricted Subsidiary; or

                  (3)      Capital Stock constituting a minority interest in any
                           Person that at such time is a Restricted Subsidiary;

                  provided, however, that any such Restricted Subsidiary
                  described in clause (2) or (3) above is primarily engaged in a
                  Related Business.

                  "Additional Notes" means 2010 Notes (other than the initial
          2010 Notes) issued under the Indenture in accordance with Section 301
          thereof that are designated to be part of the same series as the 2010
          Notes.

                  "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
          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. For purposes of Sections 1(r)(x), (xii) and (xiii) only,
          "Affiliate" shall also mean any beneficial owner of Capital Stock
          representing 10% or more of the total voting power of the Voting Stock
          (on a fully diluted basis) of the Company or of rights or warrants to
          purchase such Capital Stock (whether or not currently exercisable) and
          any Person who would be an Affiliate of any such beneficial owner
          pursuant to the first sentence hereof.

                  "Applicable Procedures" means, with respect to any transfer or
          exchange of or for beneficial interests in any Global Note, the rules
          and procedures of the Depositary that applies to such transfer or
          exchange.

                  "Asset Disposition" means any sale, lease, transfer or other
          disposition (or series of related sales, leases, transfers or
          dispositions) by the Company or any Restricted Subsidiary, including
          any disposition by means of a Like-Kind Exchange, an Excluded

                                       29
<PAGE>
         Real Property Sale or a merger, consolidation or similar transaction
         (each referred to for the purposes of this definition as a
         "disposition"), of:

                  (1)      any shares of Capital Stock of a Restricted
                           Subsidiary (other than directors' qualifying shares
                           or shares required by applicable law to be held by a
                           Person other than the Company or a Restricted
                           Subsidiary);

                  (2)      all or substantially all the assets of any division
                           or line of business of the Company or any Restricted
                           Subsidiary; or

                  (3)      any other assets of the Company or any Restricted
                           Subsidiary outside of the ordinary course of business
                           of the Company or such Restricted Subsidiary.

         Notwithstanding the foregoing, an "Asset Disposition" shall not
         include:

                           (A)      a disposition by a Restricted Subsidiary to
                                    the Company or by the Company or a
                                    Restricted Subsidiary to a Wholly Owned
                                    Subsidiary;

                           (B)      for purposes of Section 1(r)(xii) only, (x)
                                    a disposition that constitutes a Restricted
                                    Payment under Section 1(r)(x) or a Permitted
                                    Investment and (y) a disposition of all or
                                    substantially all the assets of the Company
                                    in accordance with Section 1(u)(i);

                           (C)      a disposition of assets if Additional Assets
                                    were acquired within one year prior to such
                                    disposition for the purpose of replacing the
                                    assets disposed of; and

                           (D)      a disposition of assets with a fair market
                                    value of less than $10,000,000.

                  "Attributable Debt" in respect of a Sale/Leaseback Transaction
          means, as at the time of determination, the present value (discounted
          at the interest rate borne by the Notes, compounded annually) of the
          total obligations of the lessee for rental payments during the
          remaining term of the lease included in such Sale/Leaseback
          Transaction (including any period for which such lease has been
          extended); provided, however, that if such Sale/Leaseback Transaction
          results in a Capital Lease Obligation, the amount of Indebtedness
          represented thereby shall be determined in accordance with the
          definition of "Capital Lease Obligation".

                  "Average Life" means, as of the date of determination, with
         respect to any Indebtedness, the quotient obtained by dividing:

                  (1)      the sum of the products of the numbers of years from
                           the date of determination to the dates of each
                           successive scheduled principal payment of or
                           redemption or similar payment with respect to such
                           Indebtedness multiplied by the amount of such payment
                           by

                                       30
<PAGE>
                  (2)      the sum of all such payments.

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

                  "Board of Directors" means the Board of Directors of the
          Company or any committee thereof duly authorized to act on behalf of
          such Board.

                  "Capital Lease Obligation" means an obligation that is
          required to be classified and accounted for as a capital lease for
          financial reporting purposes in accordance with GAAP, and the amount
          of Indebtedness represented by such obligation shall be the
          capitalized amount of such obligation determined in accordance with
          GAAP; and the Stated Maturity thereof shall be the date of the last
          payment of rent or any other amount due under such lease prior to the
          first date upon which such lease may be terminated by the lessee
          without payment of a penalty. For purposes of Section 1(r)(xv), a
          Capital Lease Obligation will be deemed to be secured by a Lien on the
          property being leased.

                  "Capital Stock" of any Person means any and all shares,
          interests, rights to purchase, warrants, options, participations or
          other equivalents of or interests in (however designated) equity of
          such Person, including, without limitation, membership interests in
          limited liability companies and any Preferred Stock, but excluding any
          debt securities convertible into such equity.

                  "Change of Control" means the occurrence of any of the
          following:

                  (1)      any "person" (as such term is used in Sections 13(d)
                           and 14(d) of the Exchange Act) is or becomes the
                           "beneficial owner" (as defined in Rules 13d-3 and
                           13d-5 under the Exchange Act, except that for
                           purposes of this clause (1) such person shall be
                           deemed to have "beneficial ownership" of all shares
                           that any such person has the right to acquire,
                           whether such right is exercisable immediately or only
                           after the passage of time), directly or indirectly,
                           of more than 35% of the total voting power of the
                           Voting Stock of the Company;

                  (2)      individuals who on the Issue Date constituted the
                           Board of Directors (together with any new directors
                           whose election by such Board of Directors or whose
                           nomination for election by the shareholders of the
                           company as approved by a vote of 66-2/3% of the
                           directors of the Company then still in office who
                           were either directors on the Issue Date or whose
                           election or nomination for election was previously so
                           approved) cease for any reason to constitute a
                           majority of the Board of Directors then in office;

                  (3)      the adoption of a plan relating to the liquidation or
                           dissolution of the Company; or

                  (4)      the merger or consolidation of the Company with or
                           into another Person or the merger of another Person
                           with or into the Company, or the sale of all

                                       31
<PAGE>
                           or substantially all the assets of the Company
                           (determined on a consolidated basis) to another
                           Person, other than a merger or consolidation
                           transaction in which holders of securities that
                           represented 100% of the Voting Stock of the Company
                           immediately prior to such transaction (or other
                           securities into which such securities are converted
                           as part of such merger or consolidation transaction)
                           own directly or indirectly at least a majority of the
                           voting power of the Voting Stock of the surviving
                           Person in such merger or consolidation transaction
                           immediately after such transaction and in
                           substantially the same proportion as before the
                           transaction.

                  "Change of Control Offer" has the meaning assigned to it in
         Section 1(r)(viii) of this Officer's Certificate.

                  "Company" means United States Steel Corporation, a Delaware
         corporation, until a successor replaces it in accordance with the
         applicable provisions of this Officer's Certificate, and thereafter
         means such successor.

                  "Consolidated Coverage Ratio" as of any date of determination
         means the ratio of (x) the aggregate amount of EBITDA for the period of
         the most recent four consecutive fiscal quarters for which financial
         results are publicly available to (y) Consolidated Interest Expense for
         such four fiscal quarters; provided, however, that:

                  (1)      if the Company or any Restricted Subsidiary has
                           Incurred any Indebtedness since the beginning of such
                           period that remains outstanding or if the transaction
                           giving rise to the need to calculate the Consolidated
                           Coverage Ratio is an Incurrence of Indebtedness, or
                           both, EBITDA and Consolidated Interest Expense for
                           such period shall be calculated after giving effect
                           on a pro forma basis to such Indebtedness as if such
                           Indebtedness had been Incurred on the first day of
                           such period;

                  (2)      if the Company or any Restricted Subsidiary has
                           repaid, repurchased, defeased or otherwise discharged
                           any Indebtedness since the beginning of such period
                           or if any Indebtedness is to be repaid, repurchased,
                           defeased or otherwise discharged (in each case other
                           than Indebtedness Incurred under any revolving credit
                           facility unless such Indebtedness has been
                           permanently repaid and has not been replaced) on the
                           date of the transaction giving rise to the need to
                           calculate the Consolidated Coverage Ratio, EBITDA and
                           Consolidated Interest Expense for such period shall
                           be calculated on a pro forma basis as if such
                           discharge had occurred on the first day of such
                           period and as if the Company or such Restricted
                           Subsidiary has not earned the interest income
                           actually earned during such period in respect of cash
                           or Temporary Cash Investments used to repay,
                           repurchase, defease or otherwise discharge such
                           Indebtedness;

                  (3)      if since the beginning of such period the Company or
                           any Restricted Subsidiary shall have made any Asset
                           Disposition, EBITDA for such

                                       32
<PAGE>
                           period shall be reduced by an amount equal to EBITDA
                           (if positive) directly attributable to the assets
                           which are the subject of such Asset Disposition for
                           such period, or increased by an amount equal to
                           EBITDA (if negative), directly attributable thereto
                           for such period and Consolidated Interest Expense for
                           such period shall be reduced by an amount equal to
                           the Consolidated Interest Expense directly
                           attributable to any Indebtedness of the Company or
                           any Restricted Subsidiary repaid, repurchased,
                           defeased or otherwise discharged with respect to the
                           Company and its continuing Restricted Subsidiaries in
                           connection with such Asset Disposition for such
                           period (or, if the Capital Stock of any Restricted
                           Subsidiary is sold, the Consolidated Interest Expense
                           for such period directly attributable to the
                           Indebtedness of such Restricted Subsidiary to the
                           extent the Company and its continuing Restricted
                           Subsidiaries are no longer liable for such
                           Indebtedness after such sale);

                  (4)      if since the beginning of such period the Company or
                           any Restricted Subsidiary (by merger or otherwise)
                           shall have made an Investment in any Restricted
                           Subsidiary (or any person which becomes a Restricted
                           Subsidiary) or an acquisition of assets, including
                           any acquisition of assets occurring in connection
                           with a transaction requiring a calculation to be made
                           hereunder, which constitutes all or substantially all
                           of an operating unit of a business, EBITDA and
                           Consolidated Interest Expense for such period shall
                           be calculated after giving pro forma effect thereto
                           (including the Incurrence of any Indebtedness) as if
                           such Investment or acquisition occurred on the first
                           day of such period; and

                  (5)      if since the beginning of such period any Person
                           (that subsequently became a Restricted Subsidiary or
                           was merged with or into the Company or any Restricted
                           Subsidiary since the beginning of such period) shall
                           have made any Asset Disposition, any Investment or
                           acquisition of assets that would have required an
                           adjustment pursuant to clause (3) or (4) above if
                           made by the Company or a Restricted Subsidiary during
                           such period, EBITDA and Consolidated Interest Expense
                           for such period shall be calculated after giving pro
                           forma effect thereto as if such Asset Disposition,
                           Investment or acquisition occurred on the first day
                           of such period.

                  For purposes of this definition, whenever pro forma effect is
         to be given to an acquisition of assets, the amount of income or
         earnings relating thereto and the amount of Consolidated Interest
         Expense associated with any Indebtedness Incurred in connection
         therewith, the pro forma calculations shall be determined in good faith
         by a responsible financial or accounting Officer of the Company. If any
         Indebtedness bears a floating rate of interest and is being given pro
         forma effect, the interest on such Indebtedness shall be calculated as
         if the rate in effect on the date of determination had been the
         applicable rate for the entire period (taking into account any Interest
         Rate Agreement applicable to such Indebtedness if such Interest Rate
         Agreement has a remaining term in excess of 12 months).

                                       33
<PAGE>
                  "Consolidated Interest Expense" means, for any period, the
         total interest expense of the Company and its consolidated Restricted
         Subsidiaries plus, to the extent not included in such total interest
         expense, and to the extent incurred by the Company or its Restricted
         Subsidiaries, without duplication:

                  (1)      interest expense attributable to capital leases and
                           the interest expense attributable to leases
                           constituting part of a Sale/Leaseback Transaction;

                  (2)      amortization of debt discount and debt issuance cost;

                  (3)      capitalized interest;

                  (4)      non-cash interest expenses;

                  (5)      commissions, discounts and other fees and charges
                           owed with respect to letters of credit and bankers'
                           acceptance financing;

                  (6)      net payments pursuant to Hedging Obligations in
                           respect of Indebtedness;

                  (7)      Preferred Stock dividends in respect of all Preferred
                           Stock held by Persons other than the Company or a
                           Wholly Owned Subsidiary (other than dividends payable
                           solely in Capital Stock (other than Disqualified
                           Stock) of the issuer of such Preferred Stock);

                  (8)      interest incurred in connection with Investments in
                           discontinued operations;

                  (9)      interest accruing on any Indebtedness of any other
                           Person to the extent such Indebtedness is Guaranteed
                           by (or secured by the assets of) the Company or any
                           Restricted Subsidiary; and

                  (10)     the cash contributions to any employee stock
                           ownership plan or similar trust to the extent such
                           contributions are used by such plan or trust to pay
                           interest or fees to any Person (other than the
                           Company) in connection with Indebtedness Incurred by
                           such plan or trust.

         "Consolidated Net Income" means, for any period, the net income of the
Company and its consolidated Restricted Subsidiaries determined in accordance
with GAAP; provided, however, that there shall not be included in such
Consolidated Net Income:

                  (1)      any net income of any Person (other than the Company)
                           if such Person is not a Restricted Subsidiary, except
                           that:

                           (A)      subject to the exclusion contained in clause
                                    (4) below, the Company's equity in the net
                                    income of any such Person for such period
                                    shall be included in such Consolidated Net
                                    Income up to the aggregate amount of cash
                                    actually distributed by such Person during
                                    such period to the Company or a Restricted
                                    Subsidiary as a

                                       34
<PAGE>
                                    dividend or other distribution (subject, in
                                    the case of a dividend or other distribution
                                    paid to a Restricted Subsidiary, to the
                                    limitations contained in clause (3) below);
                                    and

                           (B)      the Company's equity in a net loss of any
                                    such Person for such period shall be
                                    included in determining such Consolidated
                                    Net Income;

                  (2)      any net income (or loss) of any Person acquired by
                           the Company or a Subsidiary in a pooling of interests
                           transaction for any period prior to the date of such
                           acquisition;

                  (3)      any net income of any Restricted Subsidiary if such
                           Restricted Subsidiary is subject to restrictions,
                           directly or indirectly, on the payment of dividends
                           or the making of distributions by such Restricted
                           Subsidiary, directly or indirectly, to the Company,
                           except that:

                           (A)      subject to the exclusion contained in clause
                                    (4) below, the Company's equity in the net
                                    income of any such Restricted Subsidiary for
                                    such period shall be included in such
                                    Consolidated Net Income up to the aggregate
                                    amount of cash actually distributed by such
                                    Restricted Subsidiary during such period to
                                    the Company or another Restricted Subsidiary
                                    as a dividend or other distribution
                                    (subject, in the case of a dividend or other
                                    distribution paid to another Restricted
                                    Subsidiary, to the limitation contained in
                                    this clause); and

                           (B)      the Company's equity in a net loss of any
                                    such Restricted Subsidiary for such period
                                    shall be included in determining such
                                    Consolidated Net Income;

                  (4)      any gain (but not loss) realized upon the sale or
                           other disposition of any assets of the Company, its
                           consolidated Subsidiaries or any other Person
                           (including pursuant to any sale-and-leaseback
                           arrangement) which is not sold or otherwise disposed
                           of in the ordinary course of business and any gain
                           (but not loss) realized upon the sale or other
                           disposition of any Capital Stock of any Person;

                  (5)      extraordinary gains or losses;

                  (6)      the cumulative effect of a change in accounting
                           principles; and

                  (7)      one-time benefit charges incurred in connection with
                           the Company's workforce reduction activities
                           announced in 2003 and charges incurred in connection
                           with any merger of the Company's pension plans in
                           2003, in each case, including, without limitation,
                           any curtailment or re-measurement charges triggered
                           by such activities.

                                       35
<PAGE>
          Notwithstanding the foregoing, for the purposes of Section 1(r)(x)
          only, there shall be excluded from Consolidated Net Income any
          repurchases, repayments or redemptions of Investments, proceeds
          realized on the sale of Investments or return of capital to the
          Company or a Restricted Subsidiary to the extent such repurchases,
          repayments, redemptions, proceeds or returns increase the amount of
          Restricted Payments permitted under such covenant pursuant to clause
          (A)(3)(d) thereof.

                  "Consolidated Net Worth" means the total of the amounts shown
         on the balance sheet of the Company and its consolidated Subsidiaries,
         determined on a consolidated basis in accordance with GAAP, as of the
         end of the most recent fiscal quarter of the Company ending at least 45
         days prior to the taking of any action for the purpose of which the
         determination is being made, as the sum of:

                  (1)      the par or stated value of all outstanding Capital
                           Stock of the Company plus

                  (2)      paid-in capital or capital surplus relating to such
                           Capital Stock plus

                  (3)      any retained earnings or earned surplus

         less (A) any accumulated deficit and (B) any amounts attributable to
         Disqualified Stock.

                   "Credit Facility" means any senior credit facility to be
          entered into by and among one or more of the Company and certain of
          its Foreign Restricted Subsidiaries and the lenders referred to
          therein, together with the related documents thereto (including the
          revolving loans thereunder, any guarantees and security documents), as
          amended, extended, renewed, restated, supplemented or otherwise
          modified (in whole or in part, and without limitation as to amount,
          terms, conditions, covenants and other provisions) from time to time,
          and any agreement (and related document) governing Indebtedness
          incurred to Refinance, in whole or in part, the borrowings and
          commitments then outstanding or permitted to be outstanding under such
          Credit Facility or a successor Credit Facility, whether by the same or
          any other lender or group of lenders.

                   "Currency Agreement" means in respect of a Person any foreign
          exchange contract, currency swap agreement or other similar agreement
          designed to protect such Person against fluctuations in currency
          values.

                  "Custodian" means any receiver, trustee, assignee, liquidator,
         custodian or similar official under any Bankruptcy Law.

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

                   "Definitive Note" means a certificated 2010 Note registered
          in the name of the Holder thereof and issued in accordance with
          Section 1(p)(iv) of this Officer's Certificate, in the form of Exhibit
          A hereto except that such 2010 Note shall not bear the Global Note
          Legend and shall not have the "Schedule of Exchanges of Interests in
          the Global Note" attached thereto.

                                       36
<PAGE>
                   "Depositary" means, with respect to the 2010 Notes issuable
          or issued in whole or in part in global form, the Person specified in
          Section 1(p)(iii) of this Officer's Certificate as the Depositary with
          respect to the 2010 Notes, and any and all successors thereto
          appointed as depositary hereunder and having become such pursuant to
          the applicable provision of this Officer's Certificate or the
          Indenture.

                  "Directors" means the persons who are members of the Board of
         Directors of the Company.

                   "Disqualified Stock" means, with respect to any Person, any
          Capital Stock which by its terms (or by the terms of any security into
          which it is convertible or for which it is exchangeable at the option
          of the holder) or upon the happening of any event:

                  (1)      matures or is mandatorily redeemable pursuant to a
                           sinking fund obligation or otherwise;

                  (2)      is convertible or exchangeable at the option of the
                           holder for Indebtedness or Disqualified Stock; or

                  (3)      is mandatorily redeemable or must be purchased upon
                           the occurrence of certain events or otherwise, in
                           whole or in part;

         in each case on or prior to the first anniversary of the Stated
         Maturity of any series of Notes then outstanding; provided, however,
         that any Capital Stock that would not constitute Disqualified Stock but
         for provisions thereof giving holders thereof the right to require such
         Person to purchase or redeem such Capital Stock upon the occurrence of
         an "asset sale" or "change of control" occurring prior to the first
         anniversary of the Stated Maturity of any series of Notes then
         outstanding shall not constitute Disqualified Stock if:

                  (1)      the "asset sale" or "change of control" provisions
                           applicable to such Capital Stock are not more
                           favorable to the holders of such Capital Stock than
                           the terms applicable to the Notes and described under
                           Sections 1(r)(viii) and 1(r)(xii); and

                  (2)      any such requirement only becomes operative after
                           compliance with such terms applicable to the Notes,
                           including the purchase of any Notes tendered pursuant
                           thereto.

                  The amount of any Disqualified Stock that does not have a
          fixed redemption, repayment or repurchase price will be calculated in
          accordance with the terms of such Disqualified Stock as if such
          Disqualified Stock were redeemed, repaid or repurchased on any date on
          which the amount of such Disqualified Stock is to be determined
          pursuant to the Indenture; provided, however, that if such
          Disqualified Stock could not be required to be redeemed, repaid or
          repurchased at the time of such determination, the redemption,
          repayment or repurchase price will be the book value of such
          Disqualified Stock as reflected in the most recent financial
          statements of such Person.

                                       37
<PAGE>
                  "DTC" has the meaning assigned to it in Section 1(p)(iii) of
         this Officer's Certificate.

                  "EBITDA" for any period means the sum of Consolidated Net
         Income (but without giving effect to any gains or losses from Asset
         Dispositions), minus (i) noncash net pension credits to the extent
         included in calculating such Consolidated Net Income and (ii) the sum
         of (x) payments made by the Company for pensions and other post
         retirement benefits that are not reimbursed by plan assets and (y) any
         funding by the Company to plan trusts and plus the following to the
         extent deducted in calculating such Consolidated Net Income:

                  (1)      all income tax expense of the Company and its
                           consolidated Restricted Subsidiaries;

                  (2)      Consolidated Interest Expense;

                  (3)      depreciation, depletion and amortization expense of
                           the Company and its consolidated Restricted
                           Subsidiaries (excluding amortization expense
                           attributable to a prepaid operating activity item
                           that was paid in cash in a prior period);

                  (4)      all other non-cash charges of the Company and its
                           consolidated Restricted Subsidiaries (excluding any
                           such non-cash charge to the extent that it represents
                           an accrual of or reserve for cash expenditures in any
                           future period); and

                  (5)      net periodic benefit cost recorded for pensions and
                           other postretirement benefits.

                  Notwithstanding the foregoing, the provision for taxes based
          on the income or profits of, and the depreciation and amortization and
          non-cash charges of, a Restricted Subsidiary shall be added to
          Consolidated Net Income to compute EBITDA only to the extent (and in
          the same proportion) that the net income of such Restricted Subsidiary
          was included in calculating Consolidated Net Income and only if a
          corresponding amount would be permitted at the date of determination
          to be dividended to the Company by such Restricted Subsidiary without
          prior approval (that has not been obtained), pursuant to the terms of
          its charter and all agreements, instruments, judgments, decrees,
          orders, statutes, rules and governmental regulations applicable to
          such Restricted Subsidiary or its stockholders.

                  "Event of Default" means an Event of Default as defined in
         Section 1(q) herein.

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

                  "Excluded Real Property Sales" means sales of real property
         either: (a) in the ordinary course of the business of the Company or a
         Restricted Subsidiary or (b) of real property that has not been used by
         the Company or a Restricted Subsidiary in the production of steel or
         steel products at any time within 90 days prior to the date of sale.

                                       38
<PAGE>
                  "Financial Matters Agreement" means the Financial Matters
         Agreement dated December 31, 2001 between Marathon and the Company.

                   "Financing Entity" means any Wholly Owned Subsidiary formed
          for the purpose of effecting a receivables or inventory financing
          program so long as such entity has no obligations that are either
          Guaranteed by, or recourse to, any other Restricted Subsidiary.

                  "Foreign Restricted Subsidiary" means any Restricted
         Subsidiary of the Company that is organized in a jurisdiction outside
         the United States of America.

                   "GAAP" means generally accepted accounting principles in the
          United States of America as in effect as of July 27, 2001, including
          those set forth in (i) the opinions and pronouncements of the
          Accounting Principles Board of the American Institute of Certified
          Public Accountants; (ii) statements and pronouncements of the
          Financial Accounting Standards Board; (iii) such other statements by
          such other entity as approved by a significant segment of the
          accounting profession; and (iv) the rules and regulations of the SEC
          governing the inclusion of financial statements (including pro forma
          financial statements) in periodic reports required to be filed
          pursuant to Section 13 of the Exchange Act, including opinions and
          pronouncements in staff accounting bulletins and similar written
          statements from the accounting staff of the SEC.

                   "Global Note Legend" means the legend set forth in Section
          1(p)(iv)(E)(1) of this Officer's Certificate, which is required to be
          placed on all Global Notes issued under this Officer's Certificate.

                   "Global Notes" means, individually and collectively, each of
          the 2010 Notes or issuable in the global form of Exhibit A hereto
          issued in accordance with Sections 1(p) of this Officer's Certificate.

                  "Guarantee" means any obligation, contingent or otherwise, of
         any Person directly or indirectly guaranteeing any Indebtedness of any
         Person and any obligation, direct or indirect, contingent or otherwise,
         of such Person (i) to purchase or pay (or advance or supply funds for
         the purchase or payment of) such Indebtedness or other obligation of
         such Person (whether arising by virtue of partnership arrangements, or
         by agreements to keep-well, to purchase assets, goods, securities or
         services, to take-or-pay or to maintain financial statement conditions
         or otherwise) but shall not include take-or-pay-arrangements or other
         agreements to purchase goods or services that are not entered into for
         the purpose of purchasing or paying such Indebtedness of such Person or
         (ii) entered into for the purpose of assuring in any other manner the
         obligee of such Indebtedness of the payment thereof or to protect such
         obligee against loss in respect thereof (in whole or in part);
         provided, however, that the term "Guarantee" shall not include
         endorsements for collection or deposit in the ordinary course of
         business. The term "Guarantee" used as a verb has a corresponding
         meaning. The term "Guarantor" shall mean any Person Guaranteeing any
         obligation.

                  "Hedging Obligations" of any Person means the obligations of
         such Person pursuant to any Interest Rate Agreement or Currency
         Agreement.

                                       39
<PAGE>
                  "Holder" or "Noteholder" means the Person in whose name a Note
         is registered on the Security Registrar's books.

                   "Incur" means issue, assume, Guarantee, incur or otherwise
          become liable for; provided, however, that any Indebtedness or Capital
          Stock of a Person existing at the time such Person becomes a
          Restricted Subsidiary (whether by merger, consolidation, acquisition
          or otherwise) shall be deemed to be Incurred by such Person at the
          time it becomes a Restricted Subsidiary. The term "Incurrence" when
          used as a noun shall have a correlative meaning. Solely for purposes
          of determining compliance with Section 1(r)(ix), amortization of debt
          discount or the accretion of principal with respect to a non-interest
          bearing or other discount security and (2) the payment of regularly
          scheduled interest in the form of additional Indebtedness of the same
          instrument or the payment of regularly scheduled dividends on Capital
          Stock in the form of additional Capital Stock of the same clause and
          with the same terms will not be deemed to be the Incurrence of
          Indebtedness. For purposes of this definition, the Company (i) shall
          be deemed to Incur any Indebtedness of other Persons of the type
          referred to in clause (6) of the definition of "Indebtedness" at such
          time it becomes responsible or liable, directly or indirectly, for its
          payment pursuant to the terms of the Financial Matters Agreement and
          (ii) shall not be deemed to Incur any Indebtedness for which it is
          indemnified by Marathon pursuant to the terms of the Financial Matters
          Agreement at the time that such Indebtedness is deemed to become
          Indebtedness of the Company as a result of Marathon no longer having
          an Investment Grade Rating from both Rating Agencies.

                  "Indebtedness" means, with respect to any Person on any date
         of determination (without duplication):

                  (1)      the principal in respect of (A) indebtedness of such
                           Person for money borrowed and (B) indebtedness
                           evidenced by notes, debentures, bonds or other
                           similar instruments for the payment of which such
                           Person is responsible or liable, including, in each
                           case, any premium on such indebtedness to the extent
                           such premium has become due and payable;

                  (2)      all Capital Lease Obligations of such Person and all
                           Attributable Debt in respect of Sale/Leaseback
                           Transactions entered into by such Person;

                  (3)      all Purchase Money Indebtedness of such Person;

                  (4)      all obligations of such Person for the reimbursement
                           of any obligor on any letter of credit, banker's
                           acceptance or similar credit transaction (other than
                           obligations with respect to letters of credit
                           securing obligations (other than obligations
                           described in clauses (1) through (3) above) entered
                           into in the ordinary course of business of such
                           Person to the extent such letters of credit are not
                           drawn upon or, if and to the extent drawn upon, such
                           drawing is reimbursed no later than the tenth
                           Business Day following payment on the letter of
                           credit);

                                       40
<PAGE>
                  (5)      the amount of all obligations of such Person with
                           respect to the redemption, repayment or other
                           repurchase of any Disqualified Stock of such Person
                           or, with respect to any Preferred Stock of any
                           Subsidiary of such Person, the principal amount of
                           such Preferred Stock to be determined in accordance
                           with the Indenture (but excluding, in each case, any
                           accrued dividends);

                  (6)      all obligations of the type referred to in clauses
                           (1) through (5) of other Persons and all dividends of
                           other Persons for the payment of which, in either
                           case, such Person is responsible or liable, directly
                           or indirectly, as obligor, guarantor or otherwise,
                           including by means of any Guarantee or pursuant to
                           the terms of the Financial Matters Agreement;

                  (7)      all obligations of the type referred to in clauses
                           (1) through (6) of other Persons secured by any Lien
                           on any property or asset of such Person (whether or
                           not such obligation is assumed by such Person), the
                           amount of such obligation being deemed to be the
                           lesser of the value of such property or assets and
                           the amount of the obligation so secured;

                  (8)      to the extent not otherwise included in this
                           definition, any financing of accounts receivable or
                           inventory of such Person; and

                  (9)      to the extent not otherwise included in this
                           definition, Hedging Obligations of such Person.

                  Notwithstanding the foregoing, in connection with the purchase
         by the Company or any Restricted Subsidiary of any business, the term
         "Indebtedness" will exclude post-closing payment adjustments to which
         the seller may become entitled to the extent such payment is determined
         by a final closing balance sheet or such payment depends on the
         performance of such business after the closing; provided, however,
         that, at the time of closing, the amount of any such payment is not
         determinable and, to the extent such payment thereafter becomes fixed
         and determined, the amount is paid within 30 days thereafter (or, in
         the case of the acquisition of USSK, when due).

                  Notwithstanding the foregoing, the term "Indebtedness" will
         exclude (x) any indebtedness for which Marathon indemnifies the Company
         pursuant to the terms of the Financial Matters Agreement, so long as
         such indebtedness (i) has not been Refinanced and (ii) Marathon has an
         Investment Grade Rating from both of the Rating Agencies and (y)
         Industrial Revenue Bond Obligations to the extent the Company (i) has
         delivered to the holders of such obligations an irrevocable notice of
         redemption or directed delivery of such a notice and (ii) has set aside
         cash or U.S. Government Obligations, pursuant to a defeasance mechanism
         or otherwise, sufficient to redeem such obligations.

                  The amount of Indebtedness of any Person at any date shall be
         the outstanding balance at such date of all unconditional obligations
         as described above and the maximum liability, upon the occurrence of
         the contingency giving rise to the obligation, of any contingent
         obligations at such date; provided, however, that in the case of

                                       41
<PAGE>
         Indebtedness sold at a discount, the amount of such Indebtedness at any
         time will be the accreted value thereof at such time.

                   "Indenture" means the Indenture dated as of May 20, 2003
          between the Company and The Bank of New York, as trustee, as modified,
          amended or supplemented at any time or from time to time by
          supplemental indentures.

                  "Independent Qualified Party" means an investment banking
         firm, accounting firm or appraisal firm of national standing; provided,
         however, that such firm is not an Affiliate of the Company.

                  "Indirect Participant" means a Person who holds a beneficial
         interest in a Global Note through a Participant.

                   "Industrial Revenue Bond Obligations" means an obligation to
          a state or local government unit that secures the payment of bonds
          issued by a state or local government unit or any obligation under the
          Financial Matters Agreement relating to Industrial Revenue Bond
          Obligations or any Indebtedness incurred to Refinance, in whole or in
          part, such obligations.

                   "Interest Rate Agreement" means in respect of a Person any
          interest rate swap agreement, interest rate cap agreement or other
          financial agreement or arrangement designed to protect such Person
          against fluctuations in interest rates.

                   "Investment" in any Person means any direct or indirect
          advance, loan (other than advances to customers in the ordinary course
          of business that are recorded as accounts receivable on the balance
          sheet of the lender) or other extension of credit (including by way of
          Guarantee or similar arrangement) or capital contribution to (by means
          of any transfer of cash or other property to others or any payment for
          property or services for the account or use of others), or any
          purchase or acquisition of Capital Stock, Indebtedness or other
          similar instruments issued by such Person. Except as otherwise
          provided for herein, the amount of an Investment shall be its fair
          value at the time the Investment is made and without giving effect to
          subsequent changes in value.

                  For purposes of the definition of "Unrestricted Subsidiary",
         the definition of "Restricted Payment" and Section 1(r)(x):

                  (1)      "Investment" shall include the portion (proportionate
                           to the Company's equity interest in such Subsidiary)
                           of the fair market value of the net assets of any
                           Subsidiary of the Company at the time that such
                           Subsidiary is designated an Unrestricted Subsidiary;
                           provided, however, that upon a redesignation of such
                           Subsidiary as a Restricted Subsidiary, the Company
                           shall be deemed to continue to have a permanent
                           "Investment" in an Unrestricted Subsidiary equal to
                           an amount (if positive) equal to (A) the Company's
                           "Investment" in such Subsidiary at the time of such
                           redesignation less (B) the portion (proportionate to
                           the Company's equity interest in such Subsidiary) of
                           the fair market value of the net assets of such
                           Subsidiary at the time of such redesignation; and

                                       42
<PAGE>
                  (2)      any property transferred to or from an Unrestricted
                           Subsidiary shall be valued at its fair market value
                           at the time of such transfer, in each case as
                           determined in good faith by the Board of Directors.

                  "Investment Grade Rating" means a rating equal to or higher
         than Baa3 (or the equivalent) by Moody's and BBB- (or the equivalent)
         by S&P.

                  "Issue Date" means the first date on which any 2010 Notes are
         issued, authenticated and delivered under the Indenture and this
         Officer's Certificate.

                  "Lien" means any mortgage, pledge, security interest,
          encumbrance, lien or charge of any kind (including any conditional
          sale or other title retention agreement or lease in the nature
          thereof).

                  "Like-Kind Exchange" means (i) the disposition of property in
          exchange for similar property or for cash proceeds where the proceeds
          are deposited in a trust and employed to acquire similar property in a
          transaction qualifying as a like-kind exchange pursuant to Section
          1031 of the Internal Revenue Code of 1986 (or any successor provision)
          or (ii) the acquisition of property from a Person with the proceeds of
          the disposition of similar property in such a qualifying transaction.

                  "Marathon" means Marathon Oil Corporation.

                  "Net Available Cash" from an Asset Sale means cash payments
         received therefrom (including any cash payments received by way of
         deferred payment of principal pursuant to a note or installment
         receivable or otherwise and proceeds from the sale or other disposition
         of any securities received as consideration, but only as and when
         received, but excluding any other consideration received in the form of
         assumption by the acquiring Person of Indebtedness or other obligations
         relating to such properties or assets or received in any other noncash
         form), in each case net of:

                  (1)      all legal, title and recording tax expenses,
                           commissions and other fees and expenses incurred, and
                           all Federal, state, provincial, foreign and local
                           taxes required to be accrued as a liability under
                           GAAP, as a consequence of such Asset Sale;

                  (2)      all payments made on any Indebtedness which is
                           secured by any assets subject to such Asset Sale, in
                           accordance with the terms of any Lien upon or other
                           security agreement of any kind with respect to such
                           assets, or which must by its terms, or in order to
                           obtain a necessary consent to such Asset Sale, or by
                           applicable law, be repaid out of the proceeds from
                           such Asset Sale;

                  (3)      all distributions and other payments required to be
                           made to minority interest holders in Restricted
                           Subsidiaries as a result of such Asset Sale; and

                                       43
<PAGE>
                  (4)      the deduction of appropriate amounts provided by the
                           seller as a reserve, in accordance with GAAP, against
                           any liabilities associated with the property or other
                           assets disposed in such Asset Sale and retained by
                           the Company or any Restricted Subsidiary after such
                           Asset Sale.

                   "Net Cash Proceeds", with respect to any issuance or sale of
          Capital Stock, means the cash proceeds of such issuance or sale net of
          attorneys' fees, accountants' fees, underwriters' or placement agents'
          fees, discounts or commissions and brokerage, consultant and other
          fees actually incurred in connection with such issuance or sale and
          net of taxes paid or payable as a result thereof.

                  "Note Custodian" means the Company, as custodian for the
         Depositary with respect to the 2010 Notes in global form, or any
         successor entity thereto.

                   "Obligations" means with respect to any indebtedness all
          obligations for principal, premium, interest, penalties, fees,
          indemnifications, reimbursements, and other amounts payable pursuant
          to the documentation governing such Indebtedness.

                  "Officer" means, with respect to any Person, the Chairman of
          the Board, the Chief Executive Officer, the President, the Chief
          Operating Officer, the Chief Financial Officer, the Treasurer, any
          Assistant Treasurer, the Controller, the Secretary or any
          Vice-President of such Person.

                  "Participant" means, with respect to DTC, a Person who has an
         account with DTC.

                  "Paying Agent" means the Company or any Person authorized by
          the Company to pay the principal of and/or any premium or interest on
          any Notes on behalf of the Company.

                  "Permitted Investment" means an Investment by the Company or
         any Restricted Subsidiary in:

                  (1)      Company, a Restricted Subsidiary or a Person that
                           will, upon the making of such Investment, become a
                           Restricted Subsidiary; provided, however, that the
                           primary business of such Restricted Subsidiary is a
                           Related Business;

                  (2)      another Person if as a result of such Investment such
                           other Person is merged or consolidated with or into,
                           or transfers or conveys all or substantially all its
                           assets to, the Company or a Restricted Subsidiary;
                           provided, however, that such Person's primary
                           business is a Related Business;

                  (3)      cash and Temporary Cash Investments;

                  (4)      receivables owing to the Company or any Restricted
                           Subsidiary if created or acquired in the ordinary
                           course of business and payable or

                                       44
<PAGE>
                           dischargeable in accordance with customary trade
                           terms; provided, however, that such trade terms may
                           include such concessionary trade terms as the Company
                           or any such Restricted Subsidiary deems reasonable
                           under the circumstances;

                  (5)      payroll, travel and similar advances to cover matters
                           that are expected at the time of such advances
                           ultimately to be treated as expenses for accounting
                           purposes and that are made in the ordinary course of
                           business;

                  (6)      loans or advances to employees made in the ordinary
                           course of business consistent with past practices of
                           the Company or such Restricted Subsidiary;

                  (7)      stock, obligations or securities received in
                           settlement of debts created in the ordinary course of
                           business and owing to the Company or any Restricted
                           Subsidiary or in satisfaction of judgments;

                  (8)      any Person to the extent such Investment represents
                           the non-cash portion of the consideration received
                           for an Asset Disposition as permitted in clause (A)
                           or (B) of Section 1(r)(xii);

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

                  (10)     so long as no Default has occurred and is continuing,
                           an Unrestricted Subsidiary the assets of which shall
                           primarily be located outside the United States of
                           America, which Investment is made on or prior to
                           December 31, 2003 and does not exceed $50 million;
                           provided that such Unrestricted Subsidiary shall be
                           treated as a Restricted Subsidiary as of the first
                           date the Board of Directors would be permitted to
                           designate it as such under the definition of
                           "Unrestricted Subsidiary"; and

                  (11)     any loan made to a Person in connection with a
                           Like-Kind Exchange, provided such loan is repaid in
                           full within 180 days.

         "Permitted Liens" means, with respect to any Person:

                  (1)      pledges or deposits by such Person under worker's
                           compensation laws, unemployment insurance laws or
                           similar legislation, or good faith deposits in
                           connection with bids, tenders, contracts (other than
                           for the payment of Indebtedness) or leases to which
                           such Person is a party, or deposits to secure public
                           or statutory obligations of such Person or deposits
                           of cash or

                                       45
<PAGE>
                           United States government bonds to secure surety or
                           appeal bonds to which such Person is a party, or
                           deposits as security for contested taxes or import
                           duties or for the payment of rent, in each case
                           Incurred in the ordinary course of business;

                  (2)      Liens imposed by law, such as carriers',
                           warehousemen's and mechanics' Liens, in each case for
                           sums not yet due or being contested in good faith by
                           appropriate proceedings or other Liens arising out of
                           judgments or awards against such Person with respect
                           to which such Person shall then be proceeding with an
                           appeal or other proceedings for review and Liens
                           arising solely by virtue of any statutory or common
                           law provision relating to banker's Liens, rights of
                           set-off or similar rights and remedies as to deposit
                           accounts or other funds maintained with a creditor
                           depository institution; provided, however, that (A)
                           such deposit account is not a dedicated cash
                           collateral account and is not subject to restrictions
                           against access by the Company in excess of those set
                           forth by regulations promulgated by the Federal
                           Reserve Board and (B) such deposit account is not
                           intended by the Company or any Restricted Subsidiary
                           to provide collateral to DTC;

                  (3)      Liens for property taxes not yet subject to penalties
                           for non-payment or which are being contested in good
                           faith by appropriate proceedings;

                  (4)      Liens in favor of issuers of surety bonds or letters
                           of credit issued pursuant to the request of and for
                           the account of such Person in the ordinary course of
                           its business; provided, however, that such letters of
                           credit do not constitute Indebtedness;

                  (5)      minor survey exceptions, minor encumbrances,
                           easements or reservations of, or rights of others
                           for, licenses, rights-of-way, sewers, electric lines,
                           telegraph and telephone lines and other similar
                           purposes, or zoning or other restrictions as to the
                           use of real property or Liens incidental to the
                           conduct of the business of such Person or to the
                           ownership of its properties which were not Incurred
                           in connection with Indebtedness and which do not in
                           the aggregate materially adversely affect the value
                           of said properties or materially impair their use in
                           the operation of the business of such Person;

                  (6)      Liens securing Indebtedness Incurred to finance the
                           construction, purchase or lease of, or repairs,
                           improvements or additions to, property, plant or
                           equipment of such Person; provided, however, that the
                           Lien may not extend to any other property owned by
                           such Person or any of its Restricted Subsidiaries at
                           the time the Lien is Incurred (other than assets and
                           property affixed or appurtenant thereto), and the
                           Indebtedness (other than any interest thereon)
                           secured by the Lien may not be Incurred more than 180
                           days after the later of the acquisition, completion
                           of construction, repair,

                                       46
<PAGE>
                           improvement, addition or commencement of full
                           operation of the property subject to the Lien;

                  (7)      Liens existing on the Issue Date;

                  (8)      Liens on property or shares of Capital Stock of
                           another Person at the time such other Person becomes
                           a Subsidiary of such Person; provided, however, that
                           the Liens may not extend to any other property owned
                           by such Person or any of its Restricted Subsidiaries
                           (other than assets and property affixed or
                           appurtenant thereto);

                  (9)      Liens on the inventory or accounts receivable of the
                           Company or any Restricted Subsidiary securing
                           Indebtedness permitted under the provisions described
                           in Section 1(r)(ix)(B)(1);

                  (10)     Liens securing industrial revenue or pollution
                           control bonds issued pursuant to agreements with the
                           Company, or prior to Separation, by USX Corporation
                           (now named Marathon Oil Corporation); provided,
                           however, that such Liens relate solely to the project
                           being financed and are removed within 90 days
                           following completion of the project being financed;

                  (11)     Liens on property at the time such Person or any of
                           its Subsidiaries acquires the property, including any
                           acquisition by means of a merger or consolidation
                           with or into such Person or a Subsidiary of such
                           Person; provided, however, that the Liens may not
                           extend to any other property owned by such Person or
                           any of its Restricted Subsidiaries (other than assets
                           and property affixed or appurtenant thereto);

                  (12)     Liens securing Indebtedness or other obligations of a
                           Subsidiary of such Person owing to such Person or a
                           wholly owned Subsidiary of such Person;

                  (13)     Liens securing Hedging Obligations so long as such
                           Hedging Obligations relate to Indebtedness that is,
                           and is permitted to be under the Indenture, secured
                           by a Lien on the same property securing such Hedging
                           Obligations;

                  (14)     Liens to secure any Refinancing (or successive
                           Refinancings) as a whole, or in part, of any
                           Indebtedness secured by any Lien referred to in the
                           foregoing clause (6), (8), (9) or (10); provided,
                           however, that:

                           (A)      such new Lien shall be limited to all or
                                    part of the same property and assets that
                                    secured or, under the written agreements
                                    pursuant to which the original Lien arose,
                                    could secure the original Lien (plus
                                    improvements and accessions to, such
                                    property or proceeds or distributions
                                    thereof); and

                                       47
<PAGE>
                           (B)      the Indebtedness secured by such Lien at
                                    such time is not increased to any amount
                                    greater than the sum of (x) the outstanding
                                    principal amount or, if greater, committed
                                    amount of the Indebtedness described under
                                    clause (6), (8), (9) or (10) at the time the
                                    original Lien became a Permitted Lien and
                                    (y) an amount necessary to pay any fees and
                                    expenses, including premiums, related to
                                    such refinancing, refunding, extension,
                                    renewal or replacement; and

                  (15)     Liens on assets subject to a Sale/Leaseback
                           Transaction securing Attributable Debt permitted to
                           be Incurred under Section 1(r)(ix).

                  Notwithstanding the foregoing, "Permitted Liens" will not
         include any Lien described in clauses (6), (9) or (10) above to the
         extent such Lien applies to any Additional Assets acquired directly or
         indirectly from Net Available Cash pursuant to Section 1(r)(xii).

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

                  "Preferred Stock", as applied to the Capital Stock of any
         Person, means Capital Stock of any class or classes (however
         designated) which is preferred as to the payment of dividends or
         distributions, or as to the distribution of assets upon any voluntary
         or involuntary liquidation or dissolution of such Person, over shares
         of Capital Stock of any other class of such Person.

                  "Principal" of a Note means the principal of the Note plus the
         premium, if any, payable on the Note which is due or overdue or is to
         become due at the relevant time.

                  "Public Equity Offering" means an underwritten primary public
          offering of common stock of the Company pursuant to an effective
          registration statement under the Securities Act.

                  "Purchase Money Indebtedness" means Indebtedness Incurred or
          assumed as the deferred purchase price of property acquired by such
          Person (excluding accounts payable arising in the ordinary course of
          business but including all liabilities created or arising under any
          conditional sale or other title retention agreement with respect to
          any such property).

                   "Rating Agencies" means Standard & Poor's Ratings Group, Inc.
          ("S&P") and Moody's Investors Service, Inc. ("Moody's"), or if S&P or
          Moody's or both shall not make a rating on the 2010 Notes publicly
          available, a nationally recognized statistical rating agency or
          agencies, as the case may be, selected by the Company (as certified by
          a resolution of the Board of Directors) which shall be substituted for
          S&P or Moody's or both, as the case may be.

                                       48
<PAGE>
                  "Refinance" means, in respect of any Indebtedness, to
          refinance, extend, renew, refund, repay, prepay, redeem, defease or
          retire, or to issue other Indebtedness in exchange or replacement for,
          such indebtedness. "Refinanced" and "Refinancing" shall have
          correlative meanings.

                  "Refinancing Indebtedness" means Indebtedness that Refinances
         any Indebtedness of the Company or any Restricted Subsidiary existing
         on the Issue Date or Incurred in compliance with the Indenture,
         including Indebtedness that Refinances Refinancing Indebtedness;
         provided, however, that:

                  (1)      such Refinancing Indebtedness has a Stated Maturity
                           no earlier than the Stated Maturity of the
                           Indebtedness being Refinanced;

                  (2)      such Refinancing Indebtedness has an Average Life at
                           the time such Refinancing Indebtedness is Incurred
                           that is equal to or greater than the Average Life of
                           the Indebtedness being Refinanced; and

                  (3)      such Refinancing Indebtedness has an aggregate
                           principal amount (or if Incurred with original issue
                           discount, an aggregate issue price) that is equal to
                           or less than the aggregate principal amount (or if
                           Incurred with original issue discount, the aggregate
                           accreted value) then outstanding or committed (plus
                           fees and expenses, including any premium and
                           defeasance costs) under the Indebtedness being
                           Refinanced;

         provided further, however, that Refinancing Indebtedness shall not
         include (A) Indebtedness of a Subsidiary that Refinances Indebtedness
         of the Company or (B) Indebtedness of the Company or a Restricted
         Subsidiary that Refinances Indebtedness of an Unrestricted Subsidiary.

                  "Regular Record Date" has the meaning assigned to it in
         Section 1(e)(ii) of this Officer's Certificate.

                  "Related Business" means any business in which the Company was
         engaged on the Issue Date and any business related, ancillary or
         complementary to any business of the Company in which the Company was
         engaged on the Issue Date.

                  "Representative" means with respect to a Person any trustee,
         agent or representative (if any) for an issue of Senior Indebtedness of
         such Person.

                   "Restricted Payment" with respect to any Person means:

                  (1)      the declaration or payment of any dividends or any
                           other distributions of any sort in respect of its
                           Capital Stock (including any payment in connection
                           with any merger or consolidation involving such
                           Person) or similar payment to the direct or indirect
                           holders of its Capital Stock (other than dividends or
                           distributions payable solely in its Capital Stock
                           (other than Disqualified Stock) and dividends or
                           distributions payable solely to the Company or a
                           Restricted Subsidiary, and other than pro rata
                           dividends

                                       49
<PAGE>
                           or other distributions made by a Subsidiary that is
                           not a Wholly Owned Subsidiary to minority
                           stockholders (or owners of an equivalent interest in
                           the case of a Subsidiary that is an entity other than
                           a corporation));

                  (2)      the purchase, redemption or other acquisition or
                           retirement for value of any Capital Stock of the
                           Company held by any Person or of any Capital Stock of
                           a Restricted Subsidiary held by any Affiliate of the
                           Company (other than a Restricted Subsidiary),
                           including the exercise of any option to exchange any
                           Capital Stock (other than into Capital Stock of the
                           Company that is not Disqualified Stock);

                  (3)      the purchase, repurchase, redemption, defeasance or
                           other acquisition or retirement for value, prior to
                           scheduled maturity, scheduled repayment or scheduled
                           sinking fund payment of any Subordinated Obligations
                           of such Person (other than the purchase, repurchase
                           or other acquisition of Subordinated Obligations
                           purchased in anticipation of satisfying a sinking
                           fund obligation, principal installment or final
                           maturity, in each case due within one year of the
                           date of such purchase, repurchase or other
                           acquisition); or

                  (4)      the making of any Investment (other than a Permitted
                           Investment) in any Person;

         provided, however, that any purchase or other acquisition for value of
         common stock of the Company with (x) funds provided by the participants
         of the Company's dividend reinvestment plan or (y) cash dividends
         permitted to be paid under Section 1(r)(x) pursuant to the Company's
         dividend reinvestment plan shall not, in either case, be a "Restricted
         Payment".

                  "Restricted Subsidiary" of a Person means any Subsidiary of
         the Company that is not an Unrestricted Subsidiary.

                  "Sale/Leaseback Transaction" means an arrangement relating to
          property owned by the Company or a Restricted Subsidiary on the Issue
          Date or thereafter acquired by the Company or a Restricted Subsidiary
          whereby the Company or a Restricted Subsidiary transfers such property
          to a Person and the Company or a Restricted Subsidiary leases it from
          such Person.

                  "SEC" means the U.S. Securities and Exchange Commission.

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

                  "Security Registrar" has the meaning assigned to it in Section
         1(p)(iii) of this Officer's Certificate.

                  "Senior Indebtedness" means with respect to any Person:

                                       50
<PAGE>
                           (1)      Indebtedness of such Person, whether
                                    outstanding on the Issue Date or thereafter
                                    Incurred; and

                           (2)      accrued and unpaid interest (including
                                    interest accruing on or after the filing of
                                    any petition in bankruptcy or for
                                    reorganization relating to such Person
                                    whether or not post-filing interest is
                                    allowed in such proceeding) in respect of
                                    (A) indebtedness of such Person for money
                                    borrowed and (B) indebtedness evidenced by
                                    notes, debentures, bonds or other similar
                                    instruments for the payment of which such
                                    Person is responsible or liable

         unless, in the case of clauses (1) and (2), in the instrument creating
         or evidencing the same or pursuant to which the same is outstanding, it
         is provided that such obligations are subordinate in right of payment
         to the Notes or the Guarantee of such Person, as the case may be;
         provided, however, that Senior Indebtedness shall not include:

                  (1)      any obligation of such Person to any Subsidiary;

                  (2)      any liability for Federal, state, local or other
                           taxes owed or owing by such Person;

                  (3)      any accounts payable or other liability to trade
                           creditors arising in the ordinary course of business
                           (including guarantees thereof or instruments
                           evidencing such liabilities);

                  (4)      any Indebtedness of such Person (and any accrued and
                           unpaid interest in respect thereof) which is
                           subordinate or junior in any respect to any other
                           Indebtedness or other obligation of such Person; or

                  (5)      that portion of any Indebtedness that at the time of
                           Incurrence is Incurred in violation of the Indenture.

                  "Separation" means the separation of the Company from USX
          Corporation pursuant to an Agreement and Plan of Reorganization, which
          was approved by the shareholders of Marathon on December 31, 2001.

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

                  "Stated Maturity" means, with respect to any security, the
          date specified in such security as the fixed date on which the final
          payment of principal of such security is due and payable, including
          pursuant to any mandatory redemption provision (but excluding any
          provision providing for the repurchase of such security at the option
          of the holder thereof upon the happening of any contingency unless
          such contingency has occurred).

                  "Subordinated Obligation" means, with respect to a Person, any
          Indebtedness of such Person (whether outstanding on the Issue Date or
          thereafter Incurred) that is

                                       51
<PAGE>
         subordinate or junior in right of payment to the Notes or a Guaranty of
         such Person, as the case may be, pursuant to a written agreement to
         that effect.

                  "Subsidiary" means, with respect to any Person, any
         corporation, association, partnership or other business entity of which
         more than 50% of the total voting power of shares of Voting Stock is at
         the time owned or controlled, directly or indirectly, by:

                  (1)      such Person;

                  (2)      such Person and one or more Subsidiaries of such
                           Person; or

                  (3)      one or more Subsidiaries of such Person.

                  "Temporary Cash Investments" means any of the following:

                  (1)      any investment in direct obligations of the United
                           States of America or any agency thereof or
                           obligations guaranteed by the United States of
                           America or any agency thereof;

                  (2)      investments in time deposit accounts, certificates of
                           deposit and money market deposits maturing within 180
                           days of the date of acquisition thereof issued by a
                           bank or trust company which is organized under the
                           laws of the United States of America, any state
                           thereof or any foreign country recognized by the
                           United States of America, and which bank or trust
                           company has capital, surplus and undivided profits
                           aggregating in excess of $50.0 million (or the
                           foreign currency equivalent thereof) and has
                           outstanding debt which is rated "A"(or such similar
                           equivalent rating) or higher by at least one
                           nationally recognized statistical rating organization
                           (as defined in Rule 436 under the Securities Act) or
                           any money-market fund sponsored by a registered
                           broker dealer or mutual fund distributor;

                  (3)      repurchase obligations with a term of not more than
                           30 days for underlying securities of the types
                           described in clause (1) above entered into with a
                           bank meeting the qualifications described in clause
                           (2) above;

                  (4)      investments in commercial paper, maturing not more
                           than 90 days after the date of acquisition, issued by
                           a corporation (other than an Affiliate of the
                           Company) organized and in existence under the laws of
                           the United States of America or any foreign country
                           recognized by the United States of America with a
                           rating at the time as of which any investment therein
                           is made of "P-1" (or higher) according to Moody's or
                           "A-1" (or higher) according to S&P;

                  (5)      investments in securities with maturities of six
                           months or less from the date of acquisition issued or
                           fully guaranteed by any state, commonwealth or
                           territory of the United States of America, or by any
                           political subdivision

                                       52
<PAGE>
                           or taxing authority thereof, and rated at least "A"
                           by S&P or "A" by Moody's;

                  (6)      overnight investments with banks rated "B" or better
                           by Fitch, Inc.;

                  (7)      in the case of a Foreign Restricted Subsidiary,
                           investments of the type and maturity described in
                           clauses (1) through (6) above of foreign obligors,
                           which investments or obligors (or the parents of such
                           obligors) have ratings described in such clauses or
                           equivalent ratings from comparable foreign rating
                           agencies; and

                  (8)      deposits in Slovak financial institutions that do not
                           at any time exceed $5 million in the aggregate.

                  "10 -3/4% Notes Indenture" means the Indenture between the
         Company and the Trustee governing the Company's 10 -3/4% Senior Notes
         due 2008.

                  "Tubular Business" means the assets and liabilities of the
         Company or any of its Subsidiaries primarily related to its tubular
         products business.

                  "Unrestricted Subsidiary" means (i) any Subsidiary of the
          Company that at the time of determination shall be designated an
          Unrestricted Subsidiary by the Board of Directors in the manner
          provided below and (ii) any Subsidiary of an Unrestricted Subsidiary.
          The Board of Directors may designate any Subsidiary of the Company
          (including any newly acquired or newly formed Subsidiary) to be an
          Unrestricted Subsidiary unless such Subsidiary or any of its
          Subsidiaries owns any Capital Stock or Indebtedness of, or holds any
          Lien on any property of, the Company or any other Subsidiary of the
          Company that is not a Subsidiary of the Subsidiary to be so
          designated; provided, however, that either (A) the Subsidiary to be so
          designated has total assets of $1,000 or less or (B) if such
          Subsidiary has consolidated assets greater than $1,000, such
          designation would be permitted under Section 1(r)(x). The Board of
          Directors may designate any Unrestricted Subsidiary to be a Restricted
          Subsidiary; provided, however, that immediately after giving effect to
          such designation (x) the Company could incur $1.00 of additional
          Indebtedness pursuant to Section 1(r)(ix)(A) and (y) no Default shall
          have occurred and be continuing. Any such designation by the Board of
          Directors shall be evidenced to the Trustee by promptly filing with
          the Trustee a copy of the board resolution giving effect to such
          designation and an Officers' Certificate certifying that such
          designation complied with the foregoing provisions.

                  "U.S." means the United States of America.

                  "U.S. Dollar Equivalent" means with respect to any monetary
          amount in a currency other than U.S. dollars, at any time for
          determination thereof, the amount of U.S. dollars obtained by
          converting such foreign currency involved in such computation into
          U.S. dollars at the spot rate for the purchase of U.S. dollars with
          the applicable foreign currency as published in The Wall Street
          Journal in the "Exchange Rates" column under the heading "Currency
          Trading" on the date two Business Days prior to such determination.
          Except as described under Section 1(r)(ix), whenever it is necessary

                                       53
<PAGE>
         to determine whether the Company has complied with any covenant in the
         Indenture or a Default has occurred and an amount is expressed in a
         currency other than U.S. dollars, such amount will be treated as the
         U.S. Dollar Equivalent determined as of the date such amount is
         initially determined in such currency.

                  "U.S. Government Obligations" means direct obligations (or
          certificates representing an ownership interest in such obligations)
          of the United States of America (including any agency or
          instrumentality thereof) for the payment of which the full faith and
          credit of the United States of America is pledged and which are not
          callable at the issuer's option.

                  "USSK" means U.S. Steel Kosice, s.r.o., a company organized
         under the laws of the Slovak Republic.

                  "Voting Power" as applied to the stock of any Person means the
         total voting power represented by all outstanding Voting Stock of such
         Person.

                  "Voting Stock" of a Person means all classes of Capital Stock
          or other interests (including partnership interests) of such Person
          then outstanding and normally entitled (without regard to the
          occurrence of any contingency) to vote in the election of directors,
          managers, or trustees thereof.

                  "Wholly Owned Subsidiary" means a Restricted Subsidiary all
          the Capital Stock of which (other than directors' qualifying shares)
          is owned by the Company or one or more Wholly Owned Subsidiaries.

                  (iii) Outstanding 2010 Notes. 2010 Notes outstanding at any
         time are all 2010 Notes authenticated by the Trustee except for those
         canceled, those delivered for cancellation and those described in this
         Section 1(u)(iii) as not outstanding. A 2010 Note does not cease to be
         outstanding because the Company or an Affiliate of the Company holds
         the 2010 Note; provided, 2010 Notes held by the Company or its
         Affiliates shall be disregarded for purposes of consents and waivers
         granted hereunder. If a 2010 Note is replaced pursuant to Section 309
         of the Indenture, it ceases to be outstanding unless the Trustee and
         the Company receive proof satisfactory to them that the replaced 2010
         Note is held by a bona fide purchaser. If the Paying Agent segregates
         and holds in trust, in accordance with the Indenture, on a redemption
         date or maturity date money sufficient to pay all principal and
         interest payable on that date with respect to the 2010 Notes (or
         portions thereof) to be redeemed or maturing, as the case may be, and
         the Paying Agent is not prohibited from paying such money to the
         Noteholders on that date pursuant to the terms of the Indenture, then
         on and after that date such 2010 Notes (or portions thereof) cease to
         be outstanding and interest on them ceases to accrue.

                  (iv) Amendments. In addition to the restrictions set forth in
         Section 902 of the Indenture, no supplemental indenture shall, without
         the consent of the Holder of each Outstanding Security affected
         thereby, make any change in the ranking of priority of any 2010 Note
         that would adversely affect the Holders.

                                       54
<PAGE>
                  (v) Revocation and effect of consents and waivers. A consent
         to an amendment or a waiver by a Holder of a 2010 Note shall bind the
         Holder and every subsequent Holder of that 2010 Note or portion of the
         2010 Note that evidences the same debt as the consenting Holder's Note,
         even if notation of the consent or waiver is not made on the 2010 Note.
         After an amendment or waiver becomes effective, it shall bind every
         Noteholder. The Company may, but shall not be obligated to, fix a
         record date for the purpose of determining the Noteholders entitled to
         give their consent or take any other action described above or required
         or permitted to be taken pursuant to this Officer's Certificate. If a
         record date is fixed, then notwithstanding the immediately preceding
         paragraph, those Persons who were Noteholders at such record date (or
         their duly designated proxies), and only those Persons, shall be
         entitled to give such consent or to revoke any consent previously given
         or to take any such action, whether or not such Persons continue to be
         Holders after such record date. No such consent shall be valid or
         effective for more than 120 days after such record date.

                  (vi) Trustee to sign amendments. The Trustee shall sign any
         amendment authorized pursuant to Article IX of the Indenture if the
         amendment does not materially and adversely affect the rights, duties,
         liabilities or immunities of the Trustee. If it does, the Trustee may
         but need not sign it. In signing such amendment the Trustee shall be
         entitled to receive indemnity reasonably satisfactory to it and to
         receive, and (subject to Section 601 of the Indenture) shall be fully
         protected in relying upon, in addition to the documents required by
         Section 102 of the Indenture, an Officers' Certificate and an Opinion
         of Counsel stating that such amendment complies with the provisions of
         Article IX of the Indenture; provided, however, that Holders who do not
         consent, waive or agree to amend this Indenture in the time frame set
         forth in such solicitation documents shall not be entitled to any
         consideration offered for timely consent, waiver or amendment, even if
         the consent, waiver or amendment is agreed to by sufficient Holders to
         approve such consent, waiver or amendment to this Indenture.

                  (vii) Other terms and provisions. The 2010 Notes shall have
         such other terms and provisions as are provided in the form thereof
         attached hereto as Exhibit A, and shall be issued in substantially such
         form.

         2. The undersigned has read all of the covenants and conditions
contained in the Indenture, and the definitions in the Indenture relating
thereto, relating to the issuance of the 2010 Notes and in respect of compliance
with which this certificate is made.

         The statements contained in this certificate are based upon the
familiarity of the undersigned with the Indenture, the documents accompanying
this certificate, and upon discussions by the undersigned with officers and
employees of the Company familiar with the matters set forth herein.

         In the opinion of the undersigned, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to
whether or not such covenants and conditions have been complied with.

                                       55
<PAGE>
         In the opinion of the undersigned, such conditions and covenants have
been complied with.

                                       56
<PAGE>
         IN WITNESS WHEREOF, the undersigned has executed this Officer's
Certificate as of the date first written above.

                                                     By: _______________________
                                                         Name:
                                                         Title:

                                       57
<PAGE>
                                    EXHIBIT A

                               FORM OF 2010 NOTES

  [Insert the Global Note Legend, if applicable, pursuant to the provisions of
                  the Indenture and the Officer's Certificate]

                         UNITED STATES STEEL CORPORATION

No.  ___                                              Principal Amount $________

                                                         CUSIP NO. _____________

                           ___% Senior Notes due 2010

         United States Steel Corporation, a Delaware corporation, promises to
pay to Cede & Co., or registered assigns, the principal sum of
________________________ Dollars on _____, 20__.

         Interest Payment Dates: _____ and _____.

         Record Dates: _____ and _____.

         Additional provisions of this Note are set forth on the other side of
this Note.

Dated:                                           UNITED STATES STEEL CORPORATION

                                                 By: ___________________________
                                                     Name:
                                                     Title:

TRUSTEE'S CERTIFICATE OF
  AUTHENTICATION

This is one of the Notes
referred to in the Indenture.

THE BANK OF NEW YORK
  as Trustee

By: __________________________
    Authorized Signatory

                                      A-1
<PAGE>
                                (Reverse of Note)

                           ___% Senior Notes due 2010

1.       Interest

                  United States Steel Corporation, a Delaware corporation (the
"Company"), promises to pay interest on the principal amount of this Note at the
rate per annum shown above.

                  The Company shall pay accrued interest semi-annually on each
_____ and _____ commencing _____, 2003 or if any such day is not a Business Day
(as defined in the Indenture referred to below), on the next Business Day. The
Company shall pay interest on overdue principal at 1% per annum in excess of the
rate borne by the Notes to the extent lawful. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

2.       Method of Payment

                  By at least 11:00 a.m. prevailing Eastern (U.S.) time on the
date on which any principal of or interest on any Note is due and payable, the
Company shall irrevocably deposit with the Trustee or the Paying Agent money
sufficient to pay such principal and/or interest. The Company will pay interest
(except defaulted interest) to the Persons who are registered Holders of Notes
at the close of business on _____ or _____ next preceding the interest payment
date even if Notes are cancelled, repurchased or redeemed after the record date
and on or before the interest payment date. Holders must surrender Notes to a
Paying Agent to collect principal payments. The Company will pay principal and
interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts by wire transfer of immediately
available funds to the U.S. dollar accounts with a bank in the United States
specified by the Holder hereof or, if no such account is specified, by mailing a
check to the Holder's registered address.

3.       Paying Agent and Security Registrar

                  Initially, the Company will act as Paying Agent and Security
Registrar. The Company may appoint and change any Paying Agent, Security
Registrar or co-registrar without notice to any Noteholder. The Company or any
of its domestically incorporated Wholly Owned Subsidiaries may act as Paying
Agent.

4.       Indenture

                  The Company issued the Notes under an Indenture dated as of
September ___, 2002 (as it may be amended or supplemented from time to time in
accordance with the terms thereof, including by the Officer's Certificate, the
"Indenture"), between the Company and The Bank of New York, a New York banking
corporation ("the Trustee"). The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S.C. Sections 77aaa-77bbbb) as in effect
on the date of the Indenture (the "TIA"). Capitalized terms used herein and not
defined herein have the meanings ascribed thereto in the Indenture. The Notes
are subject to all such terms, and Noteholders are referred to the Indenture and
the TIA for a statement of those terms.

                                      D-1
<PAGE>
                  The Notes are senior unsecured obligations of the Company. The
Notes include the Initial Notes and any Additional Notes actually issued. The
Initial Notes and any Additional Notes actually issued are treated as a single
class of securities under the Indenture. The Indenture imposes certain
limitations on the Incurrence of Indebtedness by the Company and its Restricted
Subsidiaries, the payment of dividends and other distributions on the Capital
Stock of Company and its Restricted Subsidiaries, the purchase or redemption of
Capital Stock of the Company and Capital Stock of its Restricted Subsidiaries,
the sale or transfer of assets and Capital Stock of Restricted Subsidiaries, the
issuance or sale of Capital Stock of Restricted Subsidiaries, transactions with
Affiliates, the incurrence of Liens and certain Sale/Leaseback Transactions. In
addition, the Indenture limits the ability of the Company and its Restricted
Subsidiaries to restrict distributions and dividends from Restricted
Subsidiaries.

5.       Optional Redemption

                  Except as set forth in the following paragraphs, the Notes
will not be redeemable at the option of the Company prior to the Stated
Maturity.

                  Before _____, 2006, the Company may at its option on one or
more occasions, upon not less than 30 nor more than 60 days' notice, redeem the
Notes in an aggregate principal amount not to exceed 35% of the aggregate
principal amount of the Notes originally issued at a redemption price (expressed
as a percentage of principal amount) of ___%, plus accrued and unpaid interest
to the redemption date, with the net cash proceeds from one or more Public
Equity Offerings; provided that

                  (i)      at least 65% of such aggregate principal amount
                           originally issued of the Notes remains outstanding
                           immediately after the occurrence of each such
                           redemption (other than Notes held, directly or
                           indirectly, by the Company or its Affiliates); and

                  (ii)     each such redemption occurs within 60 days after the
                           date of the related Public Equity Offering.

                  On and after ____________, 2007, the Company will be entitled
at its option to redeem all or a portion of the Notes upon not less than 30 nor
more than 60 days' notice, at the following redemption prices (expressed in
percentages of principal amount), plus accrued interest to the redemption date
(subject to the right of holders of record on the relevant record date to
receive interest due on the relevant interest payment date), if redeemed during
the 12-month period commencing on __________of the years set forth below:

                                     REDEMPTION
PERIOD                                  PRICE
------                               ----------
2007
2008
2009 and thereafter                   100.00%

                                      D-2
<PAGE>
6.       Notice of Redemption

                  Notice of redemption will be mailed at least 30 days but not
more than 60 days before the redemption date by first-class mail to each Holder
of Notes to be redeemed at his registered address. Notes in denominations of
principal amount larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000. If money sufficient to pay the redemption price of and
accrued and unpaid interest on all Notes (or portions thereof) to be redeemed on
the redemption date is deposited with the Paying Agent on or before the
redemption date and certain other conditions are satisfied, on and after such
date interest ceases to accrue on such Notes (or such portions thereof) called
for redemption.

7.       Put Provisions

                  Upon a Change of Control, any Holder of Notes will have the
right to cause the Company to repurchase all or any part of the Notes of such
Holder at a repurchase price equal to 101% of the principal amount thereof as of
the date of repurchase, plus accrued and unpaid interest, if any, to the date of
repurchase as provided in, and subject to the terms of, the Indenture.

8.       Denominations; Transfer; Exchange

                  The Notes are in registered form without coupons in
denominations of principal amount of $1,000 and whole multiples of $1,000. A
Holder may register, transfer or exchange Notes in accordance with the
Indenture. The Security Registrar may require a Holder, among other things, to
furnish appropriate endorsements or transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture. The Security Registrar need
not register the transfer of or exchange (i) any Notes selected for redemption
(except, in the case of a Note to be redeemed in part, the portion of the Note
not to be redeemed) for a period beginning 15 business days before a selection
of Notes to be redeemed and ending on the date of such selection or (ii) any
Notes for a period beginning on a record date and ending on the next succeeding
interest payment date.

9.       Persons Deemed Owners

                  The registered holder of this Note may be treated as the owner
of it for all purposes.

10.      Unclaimed Money

                  If money for the payment of principal or interest remains
unclaimed for one year after the date of payment of principal and interest, the
Trustee or Paying Agent shall pay the money back to the Company at its request
unless an abandoned property law designates another Person. After any such
payment, Holders entitled to the money must look only to the Company and not to
the Trustee for payment.

                                      D-3
<PAGE>
11.      Defeasance

                  Subject to certain conditions set forth in the Indenture, the
Company at any time may terminate some or all of its obligations under the Notes
and the Indenture if the Company deposits with the Trustee money or U.S.
Government Obligations for the payment of principal of and interest on the Notes
to redemption or maturity, as the case may be.

12.      Amendment, Waiver

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture or the Notes may be amended with the written consent of the
Holders of at least a majority in principal amount at maturity of the
outstanding Notes and (ii) any default or noncompliance with any provision may
be waived with the written consent of the Holders of a majority in principal
amount at maturity of the outstanding Notes. Subject to certain exceptions set
forth in the Indenture, without the consent of any Noteholder, the Company and
the Trustee may amend the Indenture or the Notes to cure any ambiguity,
omission, defect or inconsistency, or to comply with Section 1(u)(i) of the
Officer's Certificate, or to provide for uncertificated Notes in addition to or
in place of certificated Notes, or to add guarantees with respect to the Notes
or to secure the Notes, or to add additional covenants of or surrender rights
and powers conferred on the Company, or to make any change that does not
materially and adversely affect the rights of any Noteholder, or to comply with
any request of the SEC in connection with qualifying the Indenture under the
TIA.

13.      Defaults and Remedies

                  Under the Indenture, Events of Default include (i) a default
in any payment of interest on any Note when due, continued for 30 days, (ii) a
default in the payment of principal of any Note when due at its Stated Maturity,
upon optional redemption, upon required repurchase, upon declaration of
acceleration or otherwise, (iii) the failure by the Company to comply with its
obligations under Section 1(u)(i) of the Officer's Certificate, (iv) the failure
by the Company to comply for 30 days after notice with any of its other
obligations under Sections 1(r)(ii) and 1(r)(vii) through 1(r)(xvi) of the
Officer's Certificate (in each case, other than a failure to repurchase Notes),
(v) the failure by the Company to comply for 60 days after notice with its other
agreements contained in the Indenture or the Officer's Certificate, (vi) the
failure by the Company or any Significant Subsidiary of the Company to pay any
Indebtedness within any applicable grace period after final maturity or the
acceleration of any such Indebtedness by the holders thereof because of a
default if the total amount of such Indebtedness unpaid or accelerated exceeds
$50 million or its foreign currency equivalent, (vii) certain events of
bankruptcy, insolvency or reorganization of the Company or any Significant
Subsidiary of the Company, or (viii) any judgment or decree for the payment of
money in excess of $50 million is rendered against the Company or any
Significant Subsidiary of the Company, remains outstanding for a period of 60
days following such judgment and is not discharged, waived or stayed within 10
days after notice. If an Event of Default occurs and is continuing, the Trustee
or the Holders of at least 25% in aggregate principal amount of the outstanding
Notes may declare all the Notes to be due and payable immediately. Certain
events of bankruptcy or insolvency are Events of Default that will result in the
Notes being due and payable immediately upon the occurrence of such Events of
Default.

                                      D-4
<PAGE>
                  Noteholders may not enforce the Indenture or the Notes except
as provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Notes unless it receives reasonable indemnity or security. Subject to
certain limitations, Holders of a majority in principal amount of the Notes may
direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Noteholders notice of any continuing Default or Event of Default
(except a Default or Event of Default in payment of principal or interest) if it
determines that withholding notice is not opposed to their interest.

14.      Trustee Dealings with the Company

                  Subject to certain limitations set forth in the Indenture, the
Trustee under the Indenture, in its individual or any other capacity, may become
the owner or pledgee of Notes and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were
not Trustee.

15.      No Recourse Against Others

                  No director, officer, employee, member, incorporator or
stockholder of the Company shall have any liability for any obligations of the
Company under the Notes or the Indenture or for any claim based on, in respect
of, or by reason of such obligations or their creation. Each Holder of Notes by
accepting a Note waives and releases all such liability. This waiver and release
are part of the consideration for issuance of the Notes.

16.      Authentication

                  This Note shall not be valid until an authorized signatory of
the Trustee (or an authenticating agent acting on its behalf) manually signs the
certificate of authentication on the other side of this Note.

17.      Abbreviations

                  Customary abbreviations may be used in the name of a
Noteholder or an assignee, such as TEN COM (=tenants in common), TEN ENT
(=tenants by the entirety), JT TEN (=joint tenants with rights of survivorship
and not as tenants in common), CUST (=custodian) and U/G/M/A (=Uniform Gift to
Minors Act).

18.      CUSIP Numbers

                  Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures the Company has caused CUSIP numbers
to be printed on the Notes and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Noteholders. No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

                                      D-5
<PAGE>
19.      GOVERNING LAW

                  THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

                                      D-6
<PAGE>
                                 ASSIGNMENT FORM

                  To assign this Note, fill in the form below:

                  I or we assign and transfer this Note to:

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

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

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

              (Print or type assignee's name, address and zip code)

                  (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably appoint ______________ as agent to transfer this Note on the
books of the Company. The agent may substitute another to act for him.

Date: ________________________              Your Signature: ____________________
                                                            Sign exactly as
                                                            your name appears
                                                            on the face of
                                                            this Note.

Signature Guarantee: ___________________

(Signature must be guaranteed by a participant in a recognized Signature
Guarantee Medallion Program or other signature guarantor program reasonably
acceptable to the Trustee)

                                      D-7
<PAGE>
                       OPTION OF HOLDER TO ELECT PURCHASE

If you want to elect to have this Note purchased by the Company pursuant to
Section 1(r)(viii) or 1(r)(xii) of the Officer's Certificate, check the
appropriate box:

                             Section 1(r)(viii) [ ]

                              Section 1(r)(xii) [ ]

If you want to elect to have only part of this Note purchased by the Company
pursuant to Section 1(r)(viii) or 1(r)(xii) of the Officer's Certificate, state
the amount you elect to have purchased (must be integral multiple of $1,000): $

Date: ________________________              Your Signature: ____________________
                                                            Sign exactly as
                                                            your name appears
                                                            on the face of
                                                            this Note.

Signature Guarantee: ___________________

(Signature must be guaranteed by a participant in a recognized Signature
Guarantee Medallion Program or other signature guarantor program reasonably
acceptable to the Trustee)

                                      D-8
<PAGE>
                        [TO BE ATTACHED TO GLOBAL NOTES]

              SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

       The following increases or decreases in this Global Note have been
made:

<TABLE>
<CAPTION>
                   AMOUNT OF               AMOUNT OF               PRINCIPAL AMOUNT
                   DECREASE IN             INCREASE IN             OF THIS GLOBAL NOTE       SIGNATURE OF
                   PRINCIPAL               PRINCIPAL               FOLLOWING SUCH            AUTHORIZED OFFICER
DATE OF            AMOUNT OF THIS          AMOUNT OF THIS          DECREASE OR               OF TRUSTEE OR
EXCHANGE           GLOBAL NOTE             GLOBAL NOTE             INCREASE                  NOTES CUSTODIAN
--------           --------------          --------------          -------------------       ------------------
<S>                <C>                     <C>                     <C>                       <C>
</TABLE>

                                      D-9

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