Document:

Exhibit 4.2

                                                               EXECUTION VERSION
          ============================================================

                             UNITED STATES STEEL LLC

                                       and

                      UNITED STATES STEEL FINANCING CORP.,

                                     Issuers

                                       and

                                USX CORPORATION,

                                    Guarantor

                     10-3/4% Senior Notes due August 1, 2008

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

                                    INDENTURE
                            Dated as of July 27, 2001

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

                              The Bank of New York,
                                     Trustee

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

                                TABLE OF CONTENTS

                                                                  Page

ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE                1
 SECTION 1.1. DEFINITIONS                                           1
 SECTION 1.2. OTHER DEFINITIONS                                    28
 SECTION 1.3. INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT    29
 SECTION 1.4. RULES OF CONSTRUCTION                                29
 SECTION 1.5. ONE CLASS OF NOTES                                   30

ARTICLE II THE NOTES                                               30
 SECTION 2.1. FORM AND DATING                                      30
 SECTION 2.2. EXECUTION AND AUTHENTICATION                         31
 SECTION 2.3. REGISTRAR AND PAYING AGENT                           32
 SECTION 2.4. PAYING AGENT TO HOLD MONEY IN TRUST                  32
 SECTION 2.5. NOTEHOLDER LISTS                                     33
 SECTION 2.6. TRANSFER AND EXCHANGE                                33
 SECTION 2.7. REPLACEMENT NOTES                                    45
 SECTION 2.8. OUTSTANDING NOTES                                    45
 SECTION 2.9. TREASURY NOTES                                       46
 SECTION 2.10. TEMPORARY NOTES                                     46
 SECTION 2.11. CANCELLATION                                        46
 SECTION 2.12. DEFAULTED INTEREST                                  46
 SECTION 2.13. CUSIP NUMBERS                                       47

ARTICLE III REDEMPTION                                             47
 SECTION 3.1. NOTICES TO TRUSTEE                                   47
 SECTION 3.2. SELECTION OF NOTES TO BE REDEEMED                    48
 SECTION 3.3. NOTICE OF REDEMPTION                                 48
 SECTION 3.4. EFFECT OF NOTICE OF REDEMPTION                       48
 SECTION 3.5. DEPOSIT OF REDEMPTION PRICE                          49
 SECTION 3.6. NOTES REDEEMED IN PART                               49
 SECTION 3.7. OPTIONAL REDEMPTION                                  49
 SECTION 3.8. MANDATORY REDEMPTION                                 50

ARTICLE IV COVENANTS                                               50
 SECTION 4.1. PAYMENT OF NOTES                                     50
 SECTION 4.2. MAINTENANCE OF OFFICE OR AGENCY                      51
 SECTION 4.3. CORPORATE EXISTENCE                                  51
 SECTION 4.4. SEC REPORTS                                          51
 SECTION 4.5. COMPLIANCE CERTIFICATE                               52
 SECTION 4.6. STAY, EXTENSION AND USURY LAWS                       52
 SECTION 4.7. PAYMENT OF TAXES AND OTHER CLAIMS                    52
 SECTION 4.8. MAINTENANCE OF PROPERTIES AND INSURANCE              53
 SECTION 4.9. INVESTMENT GRADE RATING                              53
 SECTION 4.10. CONDITIONS TO SEPARATION                            54

						i

 SECTION 4.11. CHANGE OF CONTROL                                   54
 SECTION 4.12. LIMITATION ON INDEBTEDNESS                          55
 SECTION 4.13. LIMITATION ON RESTRICTED PAYMENTS                   58
 SECTION 4.14. LIMITATION ON RESTRICTIONS ON DISTRIBUTIONS
                             FROM RESTRICTED SUBSIDIARIES          62
 SECTION 4.15. LIMITATION ON SALES OF ASSETS AND SUBSIDIARY STOCK  62
 SECTION 4.16. LIMITATION ON AFFILIATE TRANSACTIONS                65
 SECTION 4.17. LIMITATION ON THE SALE OR ISSUANCE OF
                   CAPITAL STOCK OF RESTRICTED SUBSIDIARIES        67
 SECTION 4.18. LIMITATION ON LIENS                                 67
 SECTION 4.19. LIMITATION ON SALE/LEASEBACK TRANSACTIONS           67
 SECTION 4.20. CERTAIN COVENANTS OF USS FINANCING                  68
 SECTION 4.21. FURTHER INSTRUMENTS AND ACTS                        68

ARTICLE V SUCCESSOR COMPANY AND SUCCESSOR GUARANTOR                68
 SECTION 5.1. WHEN COMPANY MAY MERGE OR TRANSFER ASSETS            68
 SECTION 5.2. WHEN GUARANTOR MAY MERGE OR TRANSFER ASSETS          69

ARTICLE VI DEFAULTS AND REMEDIES                                   70
 SECTION 6.1. EVENTS OF DEFAULT                                    70
 SECTION 6.2. ACCELERATION                                         72
 SECTION 6.3. OTHER REMEDIES                                       72
 SECTION 6.4. WAIVER OF PAST DEFAULTS                              73
 SECTION 6.5. CONTROL BY MAJORITY                                  73
 SECTION 6.6. LIMITATION ON SUITS                                  73
 SECTION 6.7. RIGHTS OF HOLDERS TO RECEIVE PAYMENT                 74
 SECTION 6.8. COLLECTION SUIT BY TRUSTEE                           74
 SECTION 6.9. TRUSTEE MAY FILE PROOFS OF CLAIM                     74
 SECTION 6.10. PRIORITIES                                          74
 SECTION 6.11. UNDERTAKING FOR COSTS                               74
 SECTION 6.12. WAIVER OF STAY OR EXTENSION LAWS                    75

ARTICLE VII TRUSTEE                                                75
 SECTION 7.1. DUTIES OF TRUSTEE                                    75
 SECTION 7.2. RIGHTS OF TRUSTEE                                    76
 SECTION 7.3. INDIVIDUAL RIGHTS OF TRUSTEE                         77
 SECTION 7.4. MONEY HELD IN TRUST                                  77
 SECTION 7.5. TRUSTEE'S DISCLAIMER                                 77
 SECTION 7.6. NOTICE OF DEFAULTS                                   77
 SECTION 7.7. REPORTS BY TRUSTEE TO HOLDERS                        78
 SECTION 7.8. COMPENSATION AND INDEMNITY                           78
 SECTION 7.9. REPLACEMENT OF TRUSTEE                               79
 SECTION 7.10. SUCCESSOR TRUSTEE BY MERGER                         79
 SECTION 7.11. ELIGIBILITY; DISQUALIFICATION                       80
 SECTION 7.12. PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUERS   80

ARTICLE VIII DISCHARGE OF INDENTURE; DEFEASANCE                    80
 SECTION 8.1. DISCHARGE OF LIABILITY ON NOTES; DEFEASANCE          80

					ii

 SECTION 8.2. CONDITIONS TO DEFEASANCE                             81
 SECTION 8.3. APPLICATION OF TRUST MONEY                           82
 SECTION 8.4. REPAYMENT TO ISSUERS                                 83
 SECTION 8.5. INDEMNITY FOR GOVERNMENT OBLIGATIONS                 83
 SECTION 8.6. REINSTATEMENT                                        83

ARTICLE IX AMENDMENTS                                              83
 SECTION 9.1. WITHOUT CONSENT OF HOLDERS                           83
 SECTION 9.2. WITH CONSENT OF HOLDERS                              84
 SECTION 9.3. COMPLIANCE WITH TRUST INDENTURE ACT                  85
 SECTION 9.4. REVOCATION AND EFFECT OF CONSENTS AND WAIVERS        85
 SECTION 9.5. NOTATION ON OR EXCHANGE OF NOTES                     85
 SECTION 9.6. TRUSTEE TO SIGN AMENDMENTS                           86
 SECTION 9.7. PAYMENT FOR CONSENT                                  86

ARTICLE X GUARANTEE                                                86
 SECTION 10.1. GUARANTEE                                           86
 SECTION 10.2. RELEASE OF GUARANTOR                                87

ARTICLE XI MISCELLANEOUS                                           88
 SECTION 11.1. TRUST INDENTURE ACT CONTROLS                        88
 SECTION 11.2. NOTICES                                             88
 SECTION 11.3. COMMUNICATION BY HOLDERS WITH OTHER HOLDERS         88
 SECTION 11.4. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT  89
 SECTION 11.5. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION       89
 SECTION 11.6. WHEN NOTES DISREGARDED                              89
 SECTION 11.7. RULES BY TRUSTEE, PAYING AGENT AND REGISTRAR        89
 SECTION 11.8. LEGAL HOLIDAYS                                      90
 SECTION 11.9. GOVERNING LAW                                       90
 SECTION 11.10. NO RECOURSE AGAINST OTHERS                         90
 SECTION 11.11. SUCCESSORS                                         90
 SECTION 11.12. MULTIPLE ORIGINALS                                 90
 SECTION 11.13. QUALIFICATION OF INDENTURE                         90
 SECTION 11.14. TABLE OF CONTENTS; CROSS-REFERENCE SHEET; HEADINGS 91
 SECTION 11.15. SEVERABILITY                                       91

Exhibit A -  Form of Note
Exhibit B -  Form of Certificate of Transfer
Exhibit C -  Form of Certificate of Exchange

                                    iii

                             CROSS-REFERENCE TABLE*

Trust Indenture Act Section                     Indenture Section

 310(a)(1)                                             7.9, 7.10
  (a)(2)                                                    N.A.
  (a)(3)                                                    N.A.
  (a)(4)                                                    N.A.
  (a)(5)                                                    N.A.
  (b)                                                       7.10
  (b)(1)                                                    7.10
  (c)                                                       N.A.
 311(a)                                                     7.11
  (b)                                                       7.11
  (c)                                                       N.A.
 312(a)                                                     N.A.
  (b)                                                       11.3
  (c)                                                       11.3
 313(a)                                                      7.6
  (b)                                                        7.6
  (b)(1)                                                    N.A.
  (b)(2)                                                    N.A.
  (c)                                                       N.A.
  (d)                                                       N.A.
 314(a)(1)                                                  N.A.
  (a)(2)                                                    N.A.
  (a)(3)                                                    N.A.
  (a)(4)                                                    4.5.
  (b)                                                       N.A.
  (c)(1)                                                    N.A.
  (c)(2)                                                    N.A.
  (c)(3)                                                    N.A.
  (e)                                                       N.A.
  (f)                                                       N.A.
 315(a)                                                     N.A.
  (b)                                                       N.A.
  (c)                                                       N.A.
  (d)                                                       N.A.
  (e)                                                       N.A.
 316(a)                                                     N.A.
  (a)(1)                                                    N.A.
  (a)(2)                                                    N.A.
  (b)                                                       N.A.
  (c)                                                       N.A.
 317(a)(1)                                                  N.A.
  (a)(2)                                                    N.A.
  (b)                                                       N.A.
 318(a)                                                     N.A.
  (b)                                                       N.A.
  (c)                                                       N.A.

 N.A. means not applicable.
 *This Cross-Reference Table is not part of the Indenture.

                                   i

          INDENTURE, dated as of July 27, 2001, among United States Steel LLC, a
Delaware limited liability company (the "Company"), United States Steel
Financing Corp., a Delaware corporation ("USS Financing", and together with the
Company, the "Issuers"), USX Corporation, a Delaware corporation (the
"Guarantor"), and The Bank of New York, a New York banking corporation, as
trustee (the "Trustee").

          Each party agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the Holders of the Issuers' $385,000,000
aggregate principal amount at maturity 10% Senior Notes due August 1, 2008 (the
"Initial Notes") and, if and when issued in exchange for Initial Notes as
provided in the Registration Rights Agreement (as defined herein), the Issuers'
10% Senior Notes due August 1, 2008 (the "Exchange Notes") and, if and when
issued pursuant to a private exchange for Initial Notes, the Issuers' 10% Senior
Notes due August 1, 2008 (the "Private Exchange Notes", and together with the
Initial Notes, any Additional Notes (as defined herein) actually issued, and the
Exchange Notes, the "Notes"):

                                    ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

  SECTION 1.1. Definitions

          "Additional Assets" means:

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

     (ii)  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

     (iii) 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 (ii)
or (iii) above is primarily engaged in a Related Business.

          "Additional Notes" means Notes (other than the Initial Notes and the
Exchange Notes) issued under this Indenture in accordance with Section 2.1
hereof.

          "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 4.13, 4.15 and 4.16 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.

									2

          "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, Euroclear and Clearstream that apply 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 Real Property Sale or a merger, consolidation
or similar transaction (each referred to for the purposes of this definition as
a "disposition"), of:

          (i)  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);

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

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

          For purposes of this definition, any transfer of assets of the U. S.
Steel Group to the Marathon Group in accordance with the Management and
Allocation Policies prior to the Separation shall be deemed to be a transfer of
assets of the Company.

          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 4.15 only, (x) a disposition that
             constitutes a Restricted Payment under Section 4.13 or a Permitted
             Investment and (y) a disposition of all or substantially all the
             assets of the Company in accordance with Article V;

       (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".

									3

          "Attributed to the U. S. Steel Group" means attributed to the U. S.
Steel Group in accordance with the Management and Accounting Policies.

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

          (i)  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

          (ii) the sum of all such payments.

          "Board of Directors" means, until the Separation Date, the Board of
Directors of the Guarantor or any committee thereof duly authorized to act on
behalf of such Board, and after the Separation Date, the Board of Directors of
the Company or any committee thereof duly authorized to act on behalf of such
Board.

          "Business Day" means a day other than a Saturday, Sunday or other day
on which banking institutions in New York State are authorized or required by
law to close.

          "Broker-Dealer" has the meaning set forth in the Registration Rights
Agreement.

          "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 4.18, 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", so long as the Guarantee in Article X is in
effect, means the occurrence of any of the following:

   (i)    any "person" or "group" of persons shall have acquired "beneficial
          ownership" (within the meaning of Section 13(d) or 14(d) of the
          Securities and Exchange Act) of 1934 as amended, and the applicable
          rules and regulations thereunder), of shares of Voting Stock
          representing 35% or more of the Voting Power of the Guarantor;

   (ii)   during any period of 25 consecutive months, commencing before or
          after the Issue Date, individuals who at the beginning of such 25-
          month period were directors of the Guarantor (together with any
          replacement or

									4

          additional directors whose election was recommended by incumbent
          management of the Guarantor or who were elected by a majority of
          directors then in office) cease to constitute a majority of the
          Board of Directors of the Guarantor;

    (iii) the merger or consolidation of the Guarantor with or into another
          Person or the merger of another Person with or into the Guarantor,
          or the sale of all or substantially all the assets of the Guarantor
          (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 Guarantor
          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; or

     (iv) the disposition, transfer or sale of the interests held in United
          States Steel LLC by the Guarantor, except in accordance with the
          Separation consummated in compliance with Section 4.10;

provided, however, that in no event shall the Separation, as described in the
Offering Circular, or any transfer or reorganization in connection therewith, be
deemed to be a Change of Control for the purposes of this covenant.

The following definition of Change of Control shall be effective following the
Separation Date:

(i)  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;

(ii) individuals who on the Separation 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% of the
     directors of the Company then still in office who were either
     directors on the Separation 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;

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

									5

(iv) 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
     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.

          "Clearstream" means Clearstream Banking, S.A.

          "Code" means the Internal Revenue Code of 1986, as amended.

          "Company" means United States Steel LLC, a Delaware limited liability
company, until a successor replaces it in accordance with the applicable
provisions of this Indenture, 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:

(i)  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;

(ii) 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;

									6

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

(iv) 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

(v)  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 (iii) or (iv) 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.
For purposes of this definition, any assets, properties, Indebtedness or other
liabilities or obligations that are Attributed to the U. S. Steel Group prior to
the Separation are deemed to be assets, properties, Indebtedness, liabilities or
obligations 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

									7

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).

          "Consolidated Interest Expense" means, for any period, the total
interest expense of the Company and its consolidated Restricted Subsidiaries
(prior to the Separation, as Attributed to the U. S. Steel Group) 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:

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

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

(iii)capitalized interest;

(iv) non-cash interest expenses;

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

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

(vii)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);

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

(ix) 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

(x)  the cash contributions to any employee stock ownership plan or similar
     trust to the extent the proceeds of 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

in each case for such period and, prior to Separation, as such amounts are
Attributed to the U. S. Steel Group.

          "Consolidated Net Income" means, for any period, the net income of the
Company and its consolidated Restricted Subsidiaries determined in accordance of
GAAP (prior to the Separation, as Attributed to U. S. Steel Group); provided,
however, that there shall not be included in such Consolidated Net Income:

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

									8

   (A)subject to the exclusion contained in clause (iv) 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 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 (iii)
	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;

  (ii)  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;

  (iii) 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 (iv) 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;

  (iv) 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;

   (v) extraordinary gains or losses; and

   (vi)the cumulative effect of a change in accounting principles

in each case for such period and, prior to Separation, as such amounts are
Attributed to the U.S. Steel Group. Notwithstanding the foregoing, for the
purposes of Section 4.13 only, there shall be

									9

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 (or, prior to the
Separation, of the U. S. Steel Group), 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:

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

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

 (iii)any retained earnings or earned surplus (or, prior to the Separation, the
      amount shown as "USX's net investment" instead of the sum of clauses (i),
      (ii) and (iii))

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

          "Corporate Trust Office of the Trustee" means the address of the
Trustee specified in Section 11.2 hereof or such other address as to which the
Trustee may give notice to the Issuers.

          "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.

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

          "Definitive Note" means a certificated Note registered in the name of
the Holder thereof and issued in accordance with Section 2.6 hereof in the form
of Exhibit A hereto, except that such Note shall not bear the Global Note Legend
and shall not have the "Schedule of Exchanges of Interests in the Global Note"
attached thereto.

									10

          "Depositary" means, with respect to the Notes issuable or issued in
whole or in part in global form, the Person specified in Section 2.3 hereof as
the Depositary with respect to the Notes, and any and all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

          "Directors" means, until the Separation Date, the persons who are
members of the Board of Directors of USX Corporation, and after the Separation
Date, 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:

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

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

 (iii)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:

 (i)  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 4.11
      and 4.15; and

 (ii) 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.

          "Distribution Compliance Period" means the 40-day period commencing on
the date Notes are first issued under this Indenture.

									11

          "EBITDA" for any period means the sum of Consolidated Net Income (but
without giving effect to any gains or losses from Asset Dispositions), minus
noncash net pension credits to the extent included in calculating such
Consolidated Net Income and plus the following to the extent deducted in
calculating such Consolidated Net Income:

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

 (ii)  Consolidated Interest Expense;

 (iii) 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);

 (iv)  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

 (v)   net periodic benefit cost recorded for postretirement benefits other
       than pensions, to the extent such cost exceeds (x) payments made by the
       Company for such benefits that are not reimbursed by plan assets and (y)
       any funding by the Company to the VEBA trust

in each case for such period and, prior to the Separation, as such amounts are
Attributed to the U. S. Steel Group. 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.

          "Euroclear" means Euroclear Bank S.A./N.V., as operator of the
Euroclear system.

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

          "Exchange Notes" means the debt securities of the Company issued
pursuant to the Indenture in exchange for, and in an aggregate principal amount
at maturity equal to, the Initial Notes, in compliance with the terms of the
Registration Rights Agreement.

          "Exchange Offer" has the meaning set forth in the Registration Rights
Agreement.

          "Exchange Offer Registration Statement" has the meaning set forth in
the Registration Rights Agreement.

									12

          "Excluded Real Property Sales" means sales of real property by
installment 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.

          "Financial Matters Agreement" means the financial matters agreement to
be entered into by USX Corporation and the Company in connection with the
Separation, as described in the Offering Circular.

          "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 the Issue Date, 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 Notes" means, individually and collectively, each of the
Restricted Global Notes and the Unrestricted Global Notes.

          "Global Note Legend" means the legend set forth in Section 2.6(g)(ii),
which is required to be placed on all Global Notes issued under this Indenture.

          "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 entered
into for the purpose of purchasing or paying such Indebtedness to 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.

          "Guarantor" means USX Corporation or any successor thereto, so long as
the Guarantee of the Notes is in effect.

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

									13

          "Holder" or "Noteholder" means the Person in whose name a Note is
registered on the 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 4.12, 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 (vi) 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 Oil Corporation
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 Oil Corporation 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):

 (i)   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;

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

 (iii) all Purchase Money Indebtedness of such Person;

 (iv)  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 (i) through
       (iii) 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 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);

 (v)   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

									14

       determined in accordance with the Indenture (but excluding, in each
       case, any accrued dividends);

 (vi)  all obligations of the type referred to in clauses (i) through (v) 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;

 (vii) all obligations of the type referred to in clauses (i) through (vi) 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 or the amount of the obligation so secured;

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

 (ix)  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 Oil Corporation 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 Oil Corporation 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 Indebtedness sold at a discount, the amount of such
Indebtedness at any time will be the accreted value thereof at such time.

          "Indenture" means this Indenture, as amended or supplemented from time
to time.

									15

          "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.
Prior to the Separation, any Investment made by another Person that is
Attributed to the U.S. Steel Group shall be deemed to be made by the Company.

          For purposes of the definition of "Unrestricted Subsidiary", the
definition of "Restricted Payment" and Section 4.13:

 (i)   "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

 (ii)  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 Investor Service, Inc. and BBB- (or the
equivalent) by Standard & Poor's Rating Group, Inc.

									16

          "Issue Date" means the date on which the Notes are originally issued.

          "Legal Holiday" has the meaning ascribed in Section 11.8.

          "Letter of Transmittal" means the letter of transmittal to be prepared
by the Company and sent to all Holders of the Notes for use by such Holders in
connection with the Exchange Offer.

          "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 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).

          "Management and Allocation Policies" means the policies and procedures
adopted by the board of directors of USX Corporation or otherwise used by USX
Corporation for the purpose of preparing financial statements of the U. S. Steel
Group.

          "Marathon Group" means the Marathon Group of USX Corporation, as
defined in the Certificate of Incorporation of USX Corporation.

          "Net Available Cash" from an Asset Disposition 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:

 (i)	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 Disposition;

 (ii)	all payments made on any Indebtedness which is secured by any assets
	subject to such Asset Disposition, 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 Disposition, or by applicable law, be repaid out
	of the proceeds from such Asset Disposition;

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

 (iv)	the deduction of appropriate amounts provided by the seller as a
 	reserve, in accordance with GAAP, against any liabilities associated
 	with the

									17

      property or other assets disposed in such Asset Disposition and retained
      by the Company or any Restricted Subsidiary after such Asset Disposition.

          "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.

          "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.

          "Offering Circular" means the final offering circular of the Issuers
relating to the offering of the Notes.

          "Officer" means the Chairman of the Board, the President, the Chief
Executive Officer, any Vice President, the Chief Financial Officer, the
Treasurer or the Secretary of the Company and USS Financing, as applicable.

          "Officers' Certificate" means a certificate that meets the
requirements of Section 11.5 signed by any Officer of each of the Company and
USS Financing, as applicable.

          "Opinion of Counsel" means a written opinion that meets the
requirements of Section 11.5 from legal counsel who is reasonably acceptable to
the Trustee.  The counsel may be an employee of or counsel to the Issuers.

          "Parent" means until the Separation Date, USX Corporation.

          "Participant" means, with respect to the Depositary, Euroclear or
Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively (and, with respect to The Depository Trust Company,
shall include Euroclear and Clearstream).

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

 (i)   the 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;

 (ii)  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;

 (iii) cash and Temporary Cash Investments;

									18

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

 (v)	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;

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

(vii)	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;

(viii)any Person to the extent such Investment represents the non-cash
      portion of the consideration received for an Asset Disposition as
	permitted in Section 4.15;

 (ix)	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;

 (x)	loans or advances to USS/POSCO Industries for repairs of damages and
	business interruption caused by the fire that occurred on May 31, 2001
	in an amount not to exceed $25 million; provided that to the extent
	such amounts are not repaid with the proceeds of insurance on or before
	June 30, 2003, such amounts will be included as a Restricted Payment in
	the calculation of Restricted Payments; and

 (xi)	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".

									19

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

 (i)  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
	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;

 (ii) 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;

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

 (iv)	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;

 (v)	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;

 (vi)	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

									20

	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, improvement, addition or commencement of full
	operation of the property subject to the Lien;

 (vii)Liens existing on the Issue Date;

(viii)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);

 (ix) Liens on the inventory or accounts receivable of the Company or any
	Restricted Subsidiary securing Indebtedness permitted under the
	provisions described in clause (b)(1) under Section 4.12;

 (x)  Liens securing industrial revenue or pollution control bonds issued
	by the Company, or prior to the Separation, by the USX 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;

 (xi) 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);

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

(xiii)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;

 (xiv)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 (vi), (viii), (ix) or (x); 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

									21

		(plus improvements and accessions to, such property or proceeds
		or distributions thereof); and

        (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 (vi), (viii), (ix) or (x) 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

 (xv) Liens on assets subject to a Sale/Leaseback Transaction securing
      Attributable Debt permitted to be Incurred under Section 4.12.

Notwithstanding the foregoing, "Permitted Liens" will not include any Lien
described in clauses (vi), (ix) or (x) above to the extent such Lien applies to
any Additional Assets acquired directly or indirectly from Net Available Cash
under Section 4.15.

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

          "Plan of Reorganization" means the Agreement and Plan of
Reorganization to be entered into among USX Corporation, the Company and certain
subsidiaries in connection with the Separation, as described in the Offering
Circular.

          "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.

          "Private Exchange" means the offer by the Issuers, pursuant to the
Registration Rights Agreement, to the Initial Purchasers to issue and deliver to
each Initial Purchaser, in exchange for the Initial Notes held by the Initial
Purchaser as part of its initial distribution, a like aggregate principal amount
at maturity of Private Exchange Notes.

          "Private Exchange Notes" means the 10% Senior Notes due August 1,
2008, if any, to be issued pursuant to this Indenture to the Initial Purchasers
in a Private Exchange.

          "Private Placement Legend" means the legend set forth in Section
2.6(g)(i)(A) to be placed on all Notes issued under this Indenture except where
otherwise permitted by the provisions of this Indenture.

									22

          "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 Agency" means Standard & Poor's Ratings Group, Inc. and
Moody's Investors Service, Inc. or if Standard & Poor's Ratings Group, Inc. or
Moody's Investors Service, Inc. or both shall not make a rating on the 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 Standard &
Poor's Ratings Group, Inc. or Moody's Investors Service, Inc. or both, as the
case may be.

          "Refinance" means, in respect of any Indebtedness, to refinance,
extend, renew, refund, repay, prepay, redeem, purchase, 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:

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

 (ii)	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

 (iii)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.

          "Registration Rights Agreement" means the Registration Rights
Agreement among the Issuers, Credit Suisse First Boston Corporation, J.P. Morgan
Securities Inc., Lehman Brothers Inc., Salomon Smith Barney Inc., BNY Capital
Markets, Inc., Mellon Financial Markets, LLC, NatCity Investments, Inc., PNC
Capital Markets, Inc. and Scotia Capital Inc. related to the Notes.

									23

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

          "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 Definitive Note" means a Definitive Note bearing the
Private Placement Legend.

          "Restricted Global Note" means a global Note in the form of Exhibit A
attached hereto that bears the Global Note Legend and the Private Placement
Legend and that is deposited with or on behalf of and registered in the name of
the Depositary.

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

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

          "Rule 903" means Rule 903 promulgated under the Securities Act.

          "Rule 904" means Rule 904 promulgated under the Securities Act.

          "Restricted Payment" with respect to any Person means:

            (i)  	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 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));

		(ii)  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);

	     (iii)  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

									24

			within one year of the date of such purchase, repurchase
			or other acquisition); or

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

provided, however, that prior to the Separation (x) any reduction of
Indebtedness that is Attributed to the U. S. Steel Group shall be deemed not to
be a Restricted Payment, (y) Capital Stock or Subordinated Obligations of the
Company shall be deemed to include Capital Stock or Subordinated Obligations of
any Person that is Attributed to the U. S. Steel Group (including Steel Stock,
but excluding any Preferred Stock or Subordinated Obligations of other Persons
outstanding as of the Issue Date) and the Company shall be deemed to make any
Restricted Payment made in respect of such Capital Stock or Subordinated
Obligations; provided further, 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 4.13 pursuant to the Company's dividend
reinvestment plan shall not, in either case, be a "Restricted Payment".

          "Restricted Subsidiary" means (i) any Subsidiary of the Company that
is not an Unrestricted Subsidiary and (ii) USS Financing.

          "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.

          "Secured Indebtedness" means any Indebtedness of the Issuer secured by
		a Lien.

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

          "Senior Indebtedness" means with respect to any Person:

          (i)     Indebtedness of such Person (including, prior to the
                  Separation, any Indebtedness to the extent it is
                  Attributed to the U. S. Steel Group), whether
                  outstanding on the Issue Date or thereafter Incurred; and

	   (ii)     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 (in each case including, prior
                  to Separation, any such Indebtedness to the extent it is
                  Attributed to the U. S. Steel Group)

unless, in the case of clauses (i) and (ii), 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

									25

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:

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

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

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

  (iv)   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

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

          "Separation" means the separation of the Company from USX Corporation
pursuant to the Plan of Reorganization.

          "Separation Date" means the date the Separation occurs; provided such
date is on or prior to December 31, 2002.

          "Separation Documents" means the Plan of Reorganization, the Financial
Matters Agreement and the Tax Sharing Agreement.

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

          "Significant Subsidiary" means any Restricted Subsidiary that would be
a "Significant Subsidiary" of the Issuer within the meaning of Rule 1-02 under
Regulation S-X promulgated by the SEC.

          "Stated Maturity" means, with respect to any security, the date
specified in such security as the fixed date on which the 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 beyond the control of the issuer unless such contingency has
occurred).

          "Steel Stock" means USX-U. S. Steel Group Common Stock of USX
Corporation.

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

									26

          "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:

          (i)	such Person;

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

        (iii)	one or more Subsidiaries of such Person;

provided that, prior to the Separation, any Subsidiary of another Person that is
Attributed to the U. S. Steel Group shall be deemed a Subsidiary of the Company,
and any Voting Stock of that Subsidiary owned by such Person shall be deemed to
be owned by the Company.

          "Tax Sharing Agreement" means the tax sharing agreement to be entered
into by USX Corporation and the Company its connection with the Separation, as
described in the Offering Circular.

          "Temporary Cash Investments" means any of the following: (i) 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; (ii) 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 whose long-term debt 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; (iii) repurchase obligations with a term of not more
than 30 days for underlying securities of the types described in clause (i)
above entered into with a bank meeting the qualifications described in clause
(ii) above; (iv) 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 Investors Service, Inc. or "A-1" (or higher)
according to Standard & Poor's Ratings Group; (v) 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 or taxing authority thereof, and rated
at least "A" by Standard & Poor's Ratings Group or "A" by Moody's Investors
Service, Inc.; (vi) overnight investments with banks rated "B" or better by
Fitch, Inc.; (vii) in the case of a Foreign Restricted Subsidiary, investments
of the type and maturity described in clauses (i) through (vi) 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 (viii) deposits in Slovak financial institutions that do
not at any time exceed $5 million in the aggregate.

          "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-
77bbbb) as in effect on the date of this Indenture.

									27

          "Trustee" means the party named as such in this Indenture until a
successor replaces it and, thereafter, means such successor.

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

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

          "Uniform Commercial Code" means the New York Uniform Commercial Code
as in effect from time to time.

          "Unrestricted Definitive Note" means one or more Definitive Notes that
do not bear and are not required to bear the Private Placement Legend.

          "Unrestricted Global Note" means a permanent global Note in the form
of Exhibit A attached hereto that bears the Global Note Legend but not the
Private Placement Legend and that is deposited with or on behalf of and
registered in the name of the Depositary.

          "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 4.13.  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 paragraph Section 4.12(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. 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.

									28

          Except as described under Section 4.12, whenever it is necessary 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 or redeemable at the issuer's option.

          "U.S. Person" means a U.S. person as defined in Rule 902(k) under the
Securities Act.

          "U. S. Steel Group" means the United States Steel Group of USX
Corporation, as defined in the Restated Certificate of Incorporation of USX
Corporation.

          "USS Financing" means United States Steel Financing Corp., a Delaware
corporation, until a successor replaces it in accordance with the applicable
provisions of this Indenture, and thereafter, means such successor.

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

          "USS-POSCO Industries" means USS-POSCO Industries, a California
general partnership whose general partners are POSCO-CALIFORNIA CORPORATION, a
Delaware corporation, and PITCAL, INC., a Delaware corporation.

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

          "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 trustee thereof.

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

     SECTION 1.2. Other Definitions

          Term                       Defined
          ----                         in
                                     Section
                                     -------
"Affiliate Transaction"                4.16
"Authenticating Agent"                 2.2
"Authentication Order"                 2.2

									29

"Bankruptcy Law"                       6.1
"Change of Control Offer"              4.11
"covenant defeasance option"           8.1(b)
"Custodian"                            6.1
"Event of Default"                     6.1
"Initial Lien"                         4.18
"legal defeasance option"              8.1(b)
"Notice of Default"                    6.1
"Paying Agent"                         2.3
"Registrar"                            2.3
"Successor Company"                    5.1
"Successor Guarantor"                  5.2
"Suspended Covenants"                  4.9

     SECTION 1.3. Incorporation by Reference of Trust Indenture Act

The mandatory provisions of the TIA are incorporated by reference in and made a
part of this Indenture.  The following TIA terms have the following meanings:

          "Commission" means the SEC.

          "indenture securities" means the Notes.

          "indenture security holder" means a Holder.

          "indenture to be qualified" means this Indenture.

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

          "obligor" on the indenture securities means the Issuers and any other
obligor on the indenture securities.

          All other TIA terms used in this Indenture that are defined by the
TIA, defined by TIA reference to another statute or defined by SEC rule have the
meanings assigned to them by such definitions.

     SECTION 1.4. Rules of Construction

Unless the context otherwise requires:

1.   a term has the meaning assigned to it;
2.   an accounting term not otherwise defined has the meaning assigned to it in
     accordance with GAAP;
3.   "or" is not exclusive;
4.   "including" means including without limitation;

									30

5.   words in the singular include the plural and words in the plural include
     the singular;
6.   unsecured Indebtedness shall not be deemed to be subordinate or junior to
     Secured Indebtedness merely by virtue of its nature as unsecured
     Indebtedness;
7.   except as otherwise expressly provided, the principal amount of any
     noninterest bearing or other discount security at any date shall be the
     principal amount thereof that would be shown on a balance sheet of the
     issuer dated such date prepared in accordance with GAAP;
8.   the principal amount of any Preferred Stock shall be (i) the maximum
     liquidation preference of such Preferred Stock or (ii) the maximum
     mandatory redemption or mandatory repurchase price with respect to such
     Preferred Stock, whichever is greater; and
9.   except as otherwise expressly provided, all references to the date the
     Notes were originally issued shall refer to the date the Initial Notes
     were originally issued.

     SECTION 1.5. One Class of Notes The Initial Notes, the Additional Notes,
the Private Exchange Notes and the Exchange Notes shall vote and consent
together on all matters as one class and none of the Initial Notes, the
Additional Notes, the Private Exchange Notes or the Exchange Notes shall have
the right to vote or consent as a separate class on any matter.

                                   ARTICLE II

                                    THE NOTES

  SECTION 2.1. Form and Dating

(a)  General.

          The Notes will initially be issued in an aggregate principal amount of
$385,000,000, except for Notes authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Notes pursuant to Section
2.6, 2.7, 2.10, 3.6 or 9.5.  The Issuers may create and issue Additional Notes
in such an aggregate principal amount as would be permitted on the date of
issuance to be incurred under Section 4.12(b)(iv).  The Additional Notes will
rank equally with the Initial Notes and otherwise similar in all respects so
that the Additional Notes shall be consolidated and form a single series with
the Initial Notes.  The Trustee shall authenticate Additional Notes upon receipt
of an Authentication Order and an Officers' Certificate and Opinion of Counsel,
both meeting the requirements of Section 11.5, subject to Section 2.2,
specifying the amount of Additional Notes to be authenticated.

          The Issuers may issue Exchange Notes or Private Exchange Notes
pursuant to an Exchange Offer or a Private Exchange and a Board Resolution,
subject to Section 2.2, included in an Officers' Certificate and an Opinion of
Counsel both meeting the requirements of Section 11.5 delivered to the Trustee,
in authorized denominations in exchange for a like principal

									31

amount of Initial Notes.  Upon any such exchange, any Initial Notes and
Additional Notes exchanged for Exchange Notes or Private Exchange Notes
shall be canceled in accordance with Section 2.11 and shall no longer be
deemed outstanding for any purpose.

          The Notes and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit A hereto.  The Notes may have notations,
legends or endorsements required by law, stock exchange rule or usage.  Each
Note shall be dated the date of its authentication.  The Notes shall be issuable
only in fully registered form, without coupons, in denominations of $1,000 and
integral multiples thereof.  Interest on the Notes shall be computed on the
basis of a 360-day year consisting of twelve 30-day months.

          The terms and provisions contained in the Notes shall constitute, and
are hereby expressly made, a part of this Indenture and the Issuers and the
Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby.  However, to the extent any
provision of any Note conflicts with the express provisions of this Indenture,
the provisions of this Indenture shall govern and be controlling.

          (b)  Global Notes and Definitive Notes.

Notes issued in global form shall be substantially in the form of Exhibit A
attached hereto (including the Global Note Legend thereon and the "Schedule of
Exchanges of Interests in the Global Note" attached thereto).  Notes issued in
definitive form shall be substantially in the form of Exhibit A attached hereto
(but without the Global Note Legend thereon and without the "Schedule of
Exchanges of Interests in the Global Note" attached thereto).  Each Global Note
shall represent such of the outstanding Notes as shall be specified therein and
each shall provide that it shall represent the aggregate principal amount of
outstanding Notes from time to time endorsed thereon and that the aggregate
principal amount of outstanding 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 Notes represented
thereby shall be made by the Trustee or the Custodian, at the direction of the
Trustee, in accordance with instructions given by the Holder thereof as required
by Section 2.6 hereof.

          (c)  Euroclear, Clearstream Procedures Applicable.

          The provisions of the "Operating Procedures of the Euroclear System"
and "Terms and Conditions Governing Use of Euroclear" and the "General Terms and
Conditions of Clearstream Banking" and "Customer Handbook" of Clearstream shall
be applicable to transfers of beneficial interests in the Regulation S Global
Notes that are held by Participants through Euroclear or Clearstream.

     SECTION 2.2. Execution and Authentication

	    An Officer of each Issuer shall sign the Notes for the Issuers by
manual or facsimile signature.

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

									32

          A Note shall not be valid until an authorized signatory of the
Trustee, upon a written order of the Issuers signed by an Officer of each of the
Issuers (an "Authentication Order"), manually authenticates the Note.  The
signature of the Trustee on a Note shall be conclusive evidence that such Note
has been duly and validly authenticated and issued under this Indenture.

          The Trustee may appoint an agent (the "Authenticating Agent")
reasonably acceptable to the Issuers to authenticate the Notes.  Unless limited
by the terms of such appointment, any such Authenticating Agent may authenticate
Notes whenever the Trustee may do so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent.

     SECTION 2.3. Registrar and Paying Agent

	    The Company shall (i) appoint an agent (the "Registrar") who shall
maintain an office or agency where Notes may be presented for registration of
transfer or for exchange and (ii) an agent (the "Paying Agent") who shall
maintain an office or agency where Notes may be presented for payment.  The
Registrar shall keep a register of the Notes and of their transfer and
exchange. The Registrar and the Paying Agent shall initially be the Company.
The Company may have one or more co-registrars and one or more additional
paying agents. The term "Paying Agent" includes any such additional paying
agent.

          In the event the Company shall retain any Person not a party to this
Indenture as an agent hereunder, the Company shall enter into an appropriate
agency agreement with any Registrar, Paying Agent or co-registrar not a party to
this Indenture, which shall incorporate the terms of the TIA. The agreement
shall implement the provisions of this Indenture that relate to such agent.  The
Company shall promptly notify the Trustee of the name and address of each such
agent.  If the Company fails to maintain a Registrar or Paying Agent, the
Trustee shall act as such and shall be entitled to appropriate compensation
therefor pursuant to Section 7.7.  The Company or any of its domestically
incorporated Wholly Owned Subsidiaries may act as Paying Agent.

          The Issuers initially appoint The Depository Trust Company to act as
depositary with respect to the Global Notes.

     SECTION 2.4. Paying Agent to Hold Money in Trust

	By at least 11:00 a.m. prevailing Eastern (U.S.) time on the date on which
any principal or interest on any Note is due and payable, the Issuers shall
deposit with the Paying Agent a sum sufficient to pay such principal or
interest when due.  The Issuers shall require each Paying Agent (other than the
Trustee) to agree in writing that such Paying Agent shall hold in trust for the
benefit of Noteholders or the Trustee all money held by such Paying Agent for
the payment of principal or interest on the Notes and shall notify the Trustee
of any default by the Issuers in making any such payment.  If the Company or
any of its Subsidiaries acts as Paying Agent, it shall segregate the money held
by it as Paying Agent and hold it as a separate trust fund.  The Issuers at any
time may require a Paying Agent (other than the Trustee) to pay all money held
by it to the Trustee and to account for any funds disbursed by such Paying
Agent. Upon complying with this Section 2.4, the Paying Agent (if other than
either Issuer or any of its Subsidiaries) shall have no further liability for
the money delivered to the Trustee.  Upon any

									33

bankruptcy, reorganization or similar proceeding with respect to the Issuers,
the Trustee shall serve as Paying Agent for the Notes.

     SECTION 2.5. Noteholder Lists

	  The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses
of Noteholders.  If the Trustee or any Paying Agent is not the Registrar,
the Issuers shall cause the Registrar to furnish to the Trustee or any such
Paying Agent, in writing at least five Business Days before each interest
payment date and at such other times as the Trustee or any such Paying Agent
may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of Noteholders.

     SECTION 2.6. Transfer and Exchange

  (a) Transfer and Exchange of Global Notes.

	   A Global Note may not be transferred except as a whole 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 will be exchanged by the Issuers for Definitive
Notes if (i) the Depositary notifies the Issuers that it is unwilling or unable
to continue to act as Depositary or that it is no longer a clearing agency
registered under the Exchange Act and, in either case, the Issuers are unable
to locate a qualified successor Depositary within 90 days after the date of
such notice from the Depositary or (ii) the Issuers, in their discretion at any
time, determine not to have all the Notes represented by Global Notes or (iii)
a Default entitling the Holders to accelerate the maturity of the Notes has
occurred and is continuing.  Upon the occurrence of either of the preceding
events in (i), (ii) or (iii) above, Definitive Notes shall be issued in such
names as the Depositary shall instruct the Trustee in writing.  Global Notes
also may be exchanged or replaced, in whole or in part, as provided in Sections
2.7 and 2.11 hereof. Every Note authenticated and delivered in exchange for, or
in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.6
or Section 2.7 or 2.10 hereof, shall be authenticated and delivered in the form
of, and shall be, a Global Note, except as otherwise provided herein.  A Global
Note may not be exchanged for another Note other than as provided in this
Section 2.6(a), however, beneficial interests in a Global Note may be
transferred and exchanged as provided in Section 2.6(b), (c) or (f) hereof.

          (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 Indenture and the Applicable Procedures.  Beneficial interests in the
Restricted Global Notes shall be subject to restrictions on transfer comparable
to those set forth herein to the extent required by the Securities Act.
Transfers of beneficial interests in the Global Notes also shall require
compliance with either subparagraph (i) or (ii) below, as applicable, as well as
one or more of the other following subparagraphs, as applicable:

            (i) Transfer of Beneficial Interests in the Same Global Note.
Beneficial interests in any Restricted Global Note may be transferred to Persons
who take delivery thereof in the form of a beneficial interest in the same
Restricted Global Note in accordance with the transfer restrictions set forth in
the Private Placement Legend.  Beneficial interests in any Unrestricted Global
Note may be transferred to Persons who take

									34

delivery thereof in the form of a beneficial interest in an Unrestricted Global
Note.  No written orders or instructions shall be required to be delivered to
the Registrar to effect the transfers described in this Section 2.6(b)(i).

    (ii)  All Other Transfers and Exchanges of Beneficial Interests in Global
Notes.  In connection with all transfers and exchanges of beneficial interests
that are not subject to Section 2.6(b)(i) above, the transferor of such
beneficial interest must deliver to the 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 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 consummation of an
Exchange Offer by the Issuers in accordance with Section 2.6(f) hereof, the
requirements of this Section 2.6(b)(ii) shall be deemed to have been satisfied
upon receipt by the Registrar of the instructions contained in the Letter of
Transmittal delivered by the Holder of such beneficial interests in the
Restricted Global Notes.  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
Trustee shall adjust the principal amount of the relevant Global Note(s)
pursuant to Section 2.6(h) hereof.

  (iii) Transfer of Beneficial Interests to Another Restricted Global Note.  A
beneficial interest in any Restricted Global Note may be transferred to a Person
who takes delivery thereof in the form of a beneficial interest in another
Restricted Global Note if the transfer complies with the requirements of Section
2.6(b)(ii) above and the Registrar receives a certificate in the form of Exhibit
B hereto, including the certifications in item (1) or (2) thereof, as
applicable.

  (iv) Transfer and Exchange of Beneficial Interests in a Restricted Global
Note for Beneficial Interests in an Unrestricted Global Note.  A beneficial
interest in any Restricted Global Note may be exchanged by any holder thereof
for a beneficial interest in an Unrestricted Global Note or transferred to a
Person who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note if the exchange or transfer complies with the
requirements of Section 2.6(b)(ii) above and:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer
in accordance with the Registration Rights Agreement and the holder of the
beneficial interest to be transferred, in the case of an exchange, or the
transferee, in the case of a transfer, certifies in the

									35

applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a
Person participating in the distribution of the Exchange Notes or (3) a
Person who is an Affiliate of the Company;

     (B) such transfer is effected pursuant to the Shelf Registration
Statement in accordance with the Registration Rights Agreement;

     (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange
Offer Registration Statement in accordance with the Registration Rights
Agreement; or

     (D) the Registrar receives the following:

   (1) if the holder of such beneficial interest in a Restricted Global Note
proposes to exchange such beneficial interest for a beneficial interest in an
Unrestricted Global Note, a certificate from such holder in the form of Exhibit
C hereto, including the certifications in item (1)(a) thereof; or

    (2) if the holder of such beneficial interest in a Restricted Global Note
proposes to transfer such beneficial interest to a Person who shall take
delivery thereof in the form of a beneficial interest in an Unrestricted Global
Note, a certificate from such holder in the form of Exhibit B hereto, including
the certifications in item (4) thereof;

          and, in each such case set forth in this subparagraph (D), if the
          Registrar so requests or if the Applicable Procedures so require,
          an Opinion of Counsel in form reasonably acceptable to the
          Registrar to the effect that such exchange or transfer is in
          compliance with the Securities Act and that the restrictions on
          transfer contained herein and in the Private Placement Legend are
          no longer required in order to maintain compliance with the
          Securities Act.

          If any such transfer is effected pursuant to subparagraph (B) or (D)
above at a time when an Unrestricted Global Note has not yet been issued, the
Issuers shall issue and, upon receipt of an Authentication Order in accordance
with Section 2.2 hereof, the Trustee shall authenticate one or more Unrestricted
Global Notes in an aggregate principal amount equal to the aggregate principal
amount of beneficial interests transferred pursuant to subparagraph (B) or (D)
above.

     (v)  Beneficial interests in an Unrestricted Global Note cannot be
exchanged for, or transferred to Persons who take delivery thereof in the form
of, a beneficial interest in a Restricted Global Note.

          (c)  Transfer or Exchange of Beneficial Interests for Definitive
Notes.

              (i)  Beneficial Interests in Restricted Global Notes to
Restricted Definitive Notes.  If any holder of a beneficial interest in a
Restricted Global Note

									36

proposes to exchange such beneficial interest for a Restricted Definitive
Note or to transfer such beneficial interest to a Person who takes delivery
thereof in the form of a Restricted Definitive Note, then, upon receipt by the
Registrar of the following documentation:

    (A)  if the holder of such beneficial interest in a Restricted Global Note
  proposes to exchange such beneficial interest for a Restricted Definitive
  Note, a certificate from such holder in the form of Exhibit C hereto,
  including the certifications in item (2)(a) thereof;

    (B)  if such beneficial interest is being transferred to a Qualified
  Institutional Buyer in accordance with Rule 144A under the Securities Act, a
  certificate to the effect set forth in Exhibit B hereto, including the
  certifications in item (1) thereof;

    (C)  if such beneficial interest is being transferred to a Non-U.S. Person
  in an offshore transaction in accordance with Rule 903 or Rule 904 under the
  Securities Act, a certificate to the effect set forth in Exhibit B hereto,
  including the certifications in item (2) thereof;

    (D)  if such beneficial interest is being transferred pursuant to an
  exemption from the registration requirements of the Securities Act in
  accordance with Rule 144 under the Securities Act, a certificate to the
  effect set forth in Exhibit B hereto, including the certifications in
  item (3)(a) thereof;

    (E)  if such beneficial interest is being transferred to the Issuers or any
  of their respective Subsidiaries, a certificate to the effect set forth in
  Exhibit B hereto, including the certifications in item (3)(b) thereof; or

    (F)  if such beneficial interest is being transferred pursuant to an
  effective registration statement under the Securities Act, a certificate to
  the effect set forth in Exhibit B hereto, including the certifications in
  item (3)(c) thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 2.6(h) hereof, and the
Issuers shall execute and the Trustee shall upon receipt of an Authentication
Order authenticate and 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 in a Restricted Global Note pursuant to
this Section 2.6(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 Registrar through instructions from the Depositary
and the Participant or Indirect Participant.  The Trustee shall (at the expense
of the Issuers) deliver such Definitive Notes to the Persons in whose names such
Notes are so registered.  Any Definitive Note issued in exchange for a
beneficial interest in a Restricted Global Note pursuant to this Section
2.6(c)(i) shall bear the Private Placement Legend and shall be subject to all
restrictions on transfer contained therein.

   (ii) Beneficial Interests in Restricted Global Notes to Unrestricted
  Definitive Notes.  A holder of a beneficial interest in a Restricted Global
  Note may exchange such beneficial interest for an Unrestricted Definitive
  Note or may transfer such

									37

  beneficial interest to a Person who takes delivery thereof in the form of an
  Unrestricted Definitive Note only if:

     (A)  such exchange or transfer is effected pursuant to the Exchange Offer
    in accordance with the Registration Rights Agreement and the holder of such
    beneficial interest, in the case of an exchange, or the transferee, in the
    case of a transfer, certifies in the Letter of Transmittal that it is not
    (1) a Broker-Dealer, (2) a Person participating in the distribution of the
    Exchange Notes or (3) a Person who is an Affiliate of the Issuers;

      (B)  such transfer is effected pursuant to the Shelf Registration
    Statement in accordance with the Registration Rights Agreement;

      (C)  such transfer is effected by a Broker-Dealer pursuant to the
    Exchange Offer Registration Statement in accordance with the Registration
    Rights Agreement; or

      (D)  the Registrar receives the following:

         (1)  if the holder of such beneficial interest in a Restricted Global
        Note proposes to exchange such beneficial interest for a Definitive
        Note that does not bear the Private Placement Legend, a certificate
        from such holder in the form of Exhibit C hereto, including the
        certifications in item (1)(b) thereof; or

         (2)  if the holder of such beneficial interest in a Restricted Global
        Note proposes to transfer such beneficial interest to a Person who
        shall take delivery thereof in the form of a Definitive Note that does
        not bear the Private Placement Legend, a certificate from such holder
        in the form of Exhibit B hereto, including the certifications in item
        (4) thereof,

     and, in each such case set forth in this subparagraph (D), if the Registrar
     so requests or if the Applicable Procedures so require, an Opinion of
     Counsel in form reasonably acceptable to the Registrar to the effect that
     such exchange or transfer is in compliance with the Securities Act and that
     the restrictions on transfer contained herein and in the Private Placement
     Legend are no longer required in order to maintain compliance with the
     Securities Act.

     (iii)     Beneficial Interests in Unrestricted Global Notes to Unrestricted
Definitive Notes.  If any holder of a beneficial interest in an Unrestricted
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 2.6(b)(ii) hereof, the Trustee shall cause the aggregate
principal amount of the applicable Global Note to be reduced accordingly
pursuant to Section 2.6(h) hereof, and the Issuers shall execute and the Trustee
shall upon receipt of an Authentication Order authenticate and (at the
expense of

									38

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 2.6(c)(iii) 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
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall (at the expense of the Issuers) deliver
such Definitive Notes to the Persons in whose names such Notes are so
registered.  Any Definitive Note issued in exchange for a beneficial interest
pursuant to this Section 2.6(c)(iii) shall not bear the Private Placement
Legend.

          (d)  Transfer and Exchange of Definitive Notes for Beneficial
Interests in Global Notes.

    (i) Restricted Definitive Notes to Beneficial Interests in Restricted Global
Notes.  If any Holder of a Restricted Definitive Note proposes to exchange such
Note for a beneficial interest in a Restricted Global Note or to transfer such
Restricted Definitive Note to a Person who takes delivery thereof in the form of
a beneficial interest in a Restricted Global Note, then, upon receipt by the
Registrar of the following documentation:

          (A)  if the Holder of such Restricted Definitive Note proposes to
	exchange such Note for a beneficial interest in a Restricted Global Note,
	a certificate from such Holder in the form of Exhibit C hereto, including
	the certifications in item (2)(b) thereof;

          (B)  if such Restricted Definitive Note is being transferred to a
	Qualified Institutional Buyer in accordance with Rule 144A under the
	Securities Act, a certificate to the effect set forth in Exhibit B hereto,
	including the certifications in item (1) thereof;

          (C)  if such Restricted Definitive Note is being transferred to a
	Non-U.S. Person in an offshore transaction in accordance with Rule 903 or
 	Rule 904 under the Securities Act, a certificate to the effect set forth in
	Exhibit B hereto, including the certifications in item (2) thereof;

	    (D)  if such Restricted Definitive Note is being transferred pursuant
	to an exemption from the registration requirements of the Securities Act in
	accordance with Rule 144 under the Securities Act, a certificate to the
	effect set forth in Exhibit B hereto, including the certifications in item
	(3)(a) thereof;

          (E)  if such Restricted Definitive Note is being transferred to the
	Issuers or any of their respective Subsidiaries, a certificate to the
	effect set forth in Exhibit B hereto, including the certifications in item
	(3)(b) thereof; or

          (F)  if such Restricted Definitive Note is being transferred pursuant
      to an effective registration statement under the Securities Act, a

									39

	certificate to the effect set forth in Exhibit B hereto, including the
	certifications in item (3)(c) thereof;

the Trustee shall cancel the Restricted Definitive Note and increase or cause to
be increased the aggregate principal amount of the appropriate Restricted Global
Note.

    (ii)  Restricted Definitive Notes to Beneficial Interests in Unrestricted
     Global Notes.  A Holder of a Restricted Definitive Note may exchange such
     Note for a beneficial interest in an Unrestricted Global Note or transfer
     such Restricted Definitive Note to a Person who takes delivery thereof in
     the form of a beneficial interest in an Unrestricted Global Note only if:

          (A)  such exchange or transfer is effected pursuant to the Exchange
     Offer in accordance with the Registration Rights Agreement and the Holder,
     in the case of an exchange, or the transferee, in the case of a transfer,
     certifies in the Letter of Transmittal that it is not (1) a Broker-Dealer,
     (2) a Person participating in the distribution of the Exchange Notes or
     (3) a Person who is an Affiliate of the Issuers;

          (B)  such transfer is effected pursuant to the Shelf Registration
     Statement in accordance with the Registration Rights Agreement;

          (C)  such transfer is effected by a Broker-Dealer pursuant to the
     Exchange Offer Registration Statement in accordance with the Registration
     Rights Agreement; or

          (D)  the Registrar receives the following:

         (1)if the Holder of such Definitive Notes proposes to exchange
		such Notes for a beneficial interest in the Unrestricted Global
		Note, a certificate from such Holder in the form of Exhibit C
		hereto, including the certifications in item (1)(c) thereof; or

         (2)if the Holder of such Definitive Notes proposes to transfer such
		Notes to a Person who shall take delivery thereof in the form of
		a beneficial interest in the Unrestricted Global Note, a
		certificate from such Holder in the form of Exhibit B hereto,
		including the certifications in item (4) thereof;

     and, in each such case set forth in this subparagraph (D), if the Registrar
     so requests or if the Applicable Procedures so require, an Opinion of
     Counsel in form reasonably acceptable to the Registrar to the effect that
     such exchange or transfer is in compliance with the Securities Act and that
     the restrictions on transfer contained herein and in the Private Placement
     Legend are no longer required in order to maintain compliance with the
     Securities Act.

Upon satisfaction of the conditions of any of the subparagraphs in this Section
2.6(d)(ii), the Trustee shall cancel the Definitive Notes and increase or cause
to be increased the aggregate principal amount of the Unrestricted Global Note.

									40

     (iii) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted
   Global Notes.  A Holder of an Unrestricted Definitive Note may exchange such
   Note for a beneficial interest in an Unrestricted Global Note or transfer
   such Definitive Notes to a Person who takes delivery thereof in the form of a
   beneficial interest in an Unrestricted Global Note at any time.  Upon receipt
   of a written request for such an exchange or transfer, the Trustee shall
   cancel the applicable Unrestricted Definitive Note and increase or cause to
   be increased the aggregate principal amount of one of the Unrestricted
   Global Notes.

     (iv) If any such exchange or transfer from a Definitive Note to a
   beneficial interest in an Unrestricted Global Note is effected pursuant to
   subparagraphs (ii)(B), (ii)(D) or (iii) above at a time when an Unrestricted
   Global Note has not yet been issued, the Issuers shall issue and, upon
   receipt of an Authentication Order in accordance with Section 2.2 hereof,
   the Trustee shall authenticate one or more Unrestricted Global Notes in an
   aggregate principal amount equal to the principal amount of Definitive Notes
   so transferred.

          (e)  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 2.6(e), the 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 Registrar the Definitive Notes duly endorsed or accompanied by
a written instruction of transfer in form satisfactory to the 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, required pursuant to the following
provisions of this Section 2.6(e).

       (i) Restricted Definitive Notes to Restricted Definitive Notes.  Any
     Restricted Definitive Note may be transferred to and registered in the
     name of Persons who take delivery thereof in the form of a Restricted
     Definitive Note if the Registrar receives the following:

          (A)  if the transfer will be made pursuant to Rule 144A under the
     Securities Act, then the transferor must deliver a certificate in the
     form of Exhibit B hereto, including the certifications in item (1)
     thereof;

          (B)  if the transfer will be made pursuant to Rule 903 or Rule 904,
	then the transferor must deliver a certificate in the form of Exhibit B
	hereto, including the certifications in item (2) thereof; and

          (C)  if the transfer will be made pursuant to any other exemption
	from the registration requirements of the Securities Act, then the
	transferor must deliver a certificate in the form of Exhibit B hereto,
	including the certifications required by item (3) thereof.

        (ii) Restricted Definitive Notes to Unrestricted Definitive Notes.
	Any Restricted Definitive Note may be exchanged by the Holder thereof
	for an Unrestricted

									41

	Definitive Note or transferred to a Person or Persons who take delivery
	thereof in the form of an Unrestricted Definitive Note if:

          (A)  such exchange or transfer is effected pursuant to the Exchange
	Offer in accordance with the Registration Rights Agreement and the Holder,
	in the case of an exchange, or the transferee, in the case of a transfer,
	certifies in the Letter of Transmittal that it is not (1) a Broker-Dealer,
	(2) a Person participating in the distribution of the Exchange Notes or
	(3) a Person who is an Affiliate of the Company;

	    (B)  any such transfer is effected pursuant to the Shelf Registration
	Statement in accordance with the Registration Rights Agreement;

	    (C)  any such transfer is effected by a Broker-Dealer pursuant to the
	Exchange Offer Registration Statement in accordance with the Registration
	Rights Agreement; or

	    (D)  the Registrar receives the following:

               (1)  if the Holder of such Restricted Definitive Notes proposes
		to exchange such Notes for an Unrestricted Definitive Note,
		a certificate from such Holder in the form of Exhibit C hereto,
		including the certifications in item (1)(d) thereof; or

		    (2)  if the Holder of such Restricted Definitive Notes
		proposes to transfer such Notes to a Person who shall take
		delivery thereof in the form of an Unrestricted Definitive
		Note, a certificate from such Holder in the form of Exhibit
		B hereto, including the certifications in item (4) thereof;

          and, in each such case set forth in this subparagraph (D), if the
          Registrar so requests, an Opinion of Counsel in form reasonably
          acceptable to the Registrar to the effect that such exchange or
          transfer is in compliance with the Securities Act and that the
          restrictions on transfer contained herein and in the Private
	    Placement Legend are no longer required in order to maintain
          compliance with the Securities Act.

    (iii) Unrestricted Definitive Notes to Unrestricted Definitive Notes.
A Holder of Unrestricted Definitive Notes may transfer such Notes to a
Person who takes delivery thereof in the form of an Unrestricted
Definitive Note.  Upon receipt of a request to register such a
transfer, the Registrar shall register the Unrestricted Definitive
Notes pursuant to the instructions from the Holder thereof.

          (f)  Exchange Offer.

          Upon the occurrence of the Exchange Offer in accordance with the
Registration Rights Agreement, the Issuers shall issue and, upon receipt of an
Authentication Order in accordance with Section 2.2, the Trustee shall
authenticate (i) one or more Unrestricted Global Notes

									42

in an aggregate principal amount equal to the principal amount of the
beneficial interests in the Restricted Global Notes tendered for acceptance by
Persons that certify in the Letters of Transmittal that (x) they are not Broker-
Dealers, (y) they are not participating in a distribution of the Exchange Notes
and (z) they are not Affiliates of the Issuers, and accepted for exchange in the
Exchange Offer and (ii) Definitive Notes in an aggregate principal amount equal
to the principal amount of the Restricted Definitive Notes accepted for exchange
in the Exchange Offer.  Concurrently with the issuance of such Notes, the
Trustee shall cause the aggregate principal amount of the applicable Restricted
Global Notes to be reduced accordingly, and the Issuers shall execute and the
Trustee shall authenticate and (at the expense of the Issuers) deliver to the
Persons designated by the Holders of Definitive Notes so accepted Definitive
Notes in the appropriate principal amount.

          (g)  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 Indenture.

               (i) Private Placement Legend.

          (A)  Except as permitted by subparagraph (B) below, each Global Note
	and each Definitive Note (and all Notes issued in exchange therefor or
	substitution thereof) shall bear the legend in substantially the following
	form:

               "THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
          TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
          SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THIS
          NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
          OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH
          PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE
          MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF
          THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

               THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE ISSUERS
          THAT (A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE
          TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER
          REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
          RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
          REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN
          OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES
          ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
          SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV)
          PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
          ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY
          APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED

									43

	    STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED
	    TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS
	    REFERRED TO IN (A) ABOVE".

          (B)  Notwithstanding the foregoing, any Global Note or Definitive Note
     issued pursuant to subparagraphs (b)(iv), (c)(ii), (c)(iii), (d)(ii),
     (d)(iii), (e)(ii), (e)(iii) or (f) to this Section 2.6 (and all Notes
     issued in exchange therefor or substitution thereof) shall not bear the
     Private Placement Legend.

           (ii)  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
          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 SECTION 2.6
          OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT
          NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE, (III) THIS
          GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT
          TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
          TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT
          OF THE ISSUERS.

          UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
          DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
          ISSUERS OR THEIR AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
          PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
          OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
          OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY
          AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
          PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS
          WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
          INTEREST HEREIN".

          (h)  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 2.11 hereof.  At any time prior to such cancellation, if any
beneficial interest in a Global Note is exchanged for or transferred to a Person
who will take delivery thereof in the form of a beneficial interest in another
Global Note or for Definitive Notes, the principal amount of Notes represented
by such Global Note shall be

									44

reduced accordingly and an endorsement shall be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who will 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 or by the
Depositary at the direction of the Trustee to reflect such increase.

          (i)  Upon the consummation of a Private Exchange with respect to the
Initial Notes pursuant to which Holders of such Initial Notes are offered
Private Exchange Notes in exchange for their Initial Notes, all requirements
pertaining to such Initial Notes that Initial Notes issued to certain Holders be
issued in global form will still apply, and Private Exchange Notes in global
form will be available to Holders that exchange such Initial Notes in such
Private Exchange.

          (j)  General Provisions Relating to Transfers and Exchanges.

               (i)  To permit registrations of transfers and exchanges, the
      Issuers shall execute and the Trustee shall authenticate Global Notes
      and Definitive Notes upon receipt of an Authentication Order in
      accordance with Section 2.2 hereof or upon receipt of a written
      request of the Registrar.

              (ii)  No service charge shall be made to a holder of a beneficial
      interest in a Global Note or to a Holder of a Definitive Note for any
      registration of transfer or exchange, but the Issuers may require payment
      of a sum sufficient to cover any transfer tax or similar governmental
      charge payable in connection therewith (other than any such transfer taxes
      or similar governmental charge payable upon exchange or transfer pursuant
      to Sections 2.10, 3.6 and 9.5 hereof).

	       (iii)  The Registrar shall not be required to register the
      transfer of or exchange any Note selected for redemption in whole or in
      part, except the unredeemed portion of any Note being redeemed in part.

              (iv)   All Global Notes and Definitive Notes issued upon any
      registration of transfer or exchange of Global Notes or Definitive Notes
      shall be the valid obligations of the Issuers, evidencing the same debt,
      and entitled to the same benefits under this Indenture, as the Global
      Notes or Definitive Notes surrendered upon such registration of transfer
      or exchange.

              (v)  The Issuers shall not be required (A) to issue, to register
      the transfer of or to exchange any Notes during a period beginning at
      the opening of business 15 days before the day of any selection of Notes
      for redemption under Section 3.2 hereof and ending at the close of
      business on the day of selection, (B) to register the transfer of or to
      exchange any Note so selected for redemption in whole or in part, except
      the unredeemed portion of any Note being redeemed in part or (c) to
      register the transfer of or to exchange a Note between a record date and
      the next succeeding interest payment date.

             (vi)  Prior to due presentment for the registration of a transfer
      of any Note, the Trustee, any Agent and the Issuers may deem and treat
      the Person in whose

									45

	name any Note is registered as the absolute owner of such Note for the
	purpose of receiving payment of principal of and interest on such Note and
	for all other purposes, and none of the Trustee, any Agent or the Issuers
	shall be affected by notice to the contrary.

             (vii)  Each Holder of a Security agrees to indemnify the Company
	and the Trustee against any liability that may result from the transfer,
	exchange or assignment of such Holder's Security in violation of any
	provision of this Indenture and/or applicable United States Federal or
	state securities law.

               The Trustee shall have no obligation or duty to monitor,
     determine or inquire as to compliance with any restrictions on transfer
     imposed under this Indenture or under applicable law with respect to any
     transfer of any interest in any Security (including any transfers between
     or among Depositary Participants or beneficial owners of interests in any
     Global Security) 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.

               (viii)  The Trustee shall authenticate Global Notes and
     Definitive Notes in accordance with the provisions of Section 2.2 hereof.

                 (ix)  All certifications, certificates and Opinions of Counsel
	required to be submitted to the Registrar pursuant to this Section 2.6 to
	effect a registration of transfer or exchange may be submitted by
	facsimile.

	SECTION 2.7. Replacement Notes

      If a mutilated Note is surrendered to the Registrar or if the Holder of a
Note shall provide the Issuers and the Trustee with evidence to their
satisfaction that the Note has been lost, destroyed or wrongfully taken, the
Issuers shall issue and the Trustee shall authenticate a replacement Note if
the requirements of Section 8-405 of the Uniform Commercial Code are met and
the Holder satisfies any other reasonable requirements of the Trustee.  If
required by the Trustee or either of the Issuers, such Holder shall furnish an
indemnity bond sufficient in the judgment of the Issuers and the Trustee to
protect the Issuers, the Trustee, the Paying Agent, the Registrar and any
co-registrar from any loss which any of them may suffer if a Note is replaced.
The Issuers and the Trustee may charge the Holder for their expenses in
replacing a Note, including reasonable fees and expenses of counsel.  Every
replacement Note is an additional Obligation of the Issuers.

     SECTION 2.8. Outstanding Notes

     Notes outstanding at any time are all Notes authenticated by the Trustee
except for those canceled, those delivered for cancellation and those described
in this Section 2.8 as not outstanding.  A Note does not cease to be
outstanding because an Issuer or an Affiliate of an Issuer holds the Note.

									46

          If a Note is replaced pursuant to Section 2.7, it ceases to be
outstanding unless the Trustee and the Issuers receive proof satisfactory to
them that the replaced Note is held by a bona fide purchaser.

          If the Paying Agent segregates and holds in trust, in accordance with
this Indenture, on a redemption date or maturity date money sufficient to pay
all principal and interest payable on that date with respect to the 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 this Indenture, then on and after that date such Notes
(or portions thereof) cease to be outstanding and interest on them ceases to
accrue.

     SECTION 2.9. Treasury Notes

     In determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, Notes owned by any
Issuer, the Guarantor or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with any Issuer or the
Guarantor shall be considered as though not outstanding, except that for the
purposes of determining whether the Trustee shall be protected in relying on any
such direction, waiver or consent, only Notes that a Trust Officer actually
knows are so owned shall be so disregarded.

     SECTION 2.10. Temporary Notes

     Until Definitive Notes are ready for delivery, the Issuers may prepare and
the Trustee, upon receipt of an Authentication Order, shall authenticate
temporary Notes.  Temporary Notes shall be substantially in the form of
Definitive Notes but may have variations that the Issuers and the Trustee
consider appropriate for temporary Notes.  Without unreasonable delay, the
Issuers shall prepare and the Trustee shall authenticate Definitive Notes.
After the preparation of Definitive Notes, the temporary Notes shall be
exchangeable for Definitive Notes upon surrender of the temporary Notes at any
office or agency maintained by the Issuers for that purpose and such exchange
shall be without charge to the Holder.  Upon surrender for cancellation of any
one or more temporary Notes, the Issuers shall execute, and the Trustee shall
authenticate and deliver in exchange therefor, one or more Definitive Notes
representing an equal principal amount of Notes.  Until so exchanged, the
Holder of temporary Notes shall in all respects be entitled to the same
benefits under this Indenture as a Holder of Definitive Notes.

     SECTION 2.11. Cancellation

     The Issuers at any time may deliver Notes to the Trustee for cancellation.
The Registrar and the Paying Agent shall forward to the Trustee for cancellation
any Notes surrendered to them for registration of transfer or exchange or
payment. The Trustee shall cancel and dispose of (subject to the record
retention requirements of the Exchange Act) all Notes surrendered for
registration of transfer or exchange, payment or cancellation according to its
normal operating procedures and deliver a certificate of such destruction to
the Issuers unless the Issuers direct the Trustee to deliver canceled Notes to
the Issuers.  The Issuers may not issue new Notes to replace Notes they have
redeemed, paid or delivered to the Trustee for cancellation.

     SECTION 2.12. Defaulted Interest

									47

     If the Issuers default in a payment of interest on the Notes, the Issuers
shall pay defaulted interest (plus interest on such defaulted interest to the
extent lawful) at the rate specified therefor in the Notes in any lawful manner.
The Issuers may pay the defaulted interest to the Persons who are Noteholders on
a subsequent special record date.  The Issuers shall fix or cause to be fixed
(or upon the Issuers' failure to do so the Trustee shall fix) any such special
record date and payment date which specified record date shall not be less than
10 days prior to the payment date for such defaulted interest and shall promptly
mail or cause to be mailed to each Noteholder a notice that states the special
record date, the payment date and the amount of defaulted interest to be paid.
The Issuers shall notify the Trustee in writing of the amount of defaulted
interest proposed to be paid on each Note and the date of the proposed payment,
and at the same time the Issuers shall deposit with the Paying Agent an amount
of money equal to the aggregate amount proposed to be paid in respect of such
defaulted interest or shall make arrangements satisfactory to the Trustee for
such deposit prior to the date of the proposed payment, such money when so
deposited to be held in trust for the benefit of the Person entitled to such
defaulted interest as provided in this Section 2.12.

     SECTION 2.13 CUSIP Numbers

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

                                  ARTICLE III

                                   REDEMPTION

	SECTION 3.1. Notices to Trustee

	If the Issuers elect to redeem Notes pursuant to the provisions of Section
3.7, they shall notify the Trustee and the Paying Agent in writing of the
redemption date and the principal amount at maturity of Notes to be redeemed
and the redemption price.

          The Issuers shall give each notice to the Trustee and the Paying Agent
provided for in this Section 3.1 at least 15 days prior to the date notice of
redemption is to be delivered to Holders of Notes unless the Trustee and the
Paying Agent consent to a shorter period.  Such notice shall be accompanied by
an Officers' Certificate from the Issuers to the effect that such redemption
will comply with the conditions herein.  The record date relating to such
redemption shall be selected by the Issuers and set forth in the related notice
given to the Trustee and the Paying Agent, which record date shall be not less
than 15 days prior to the date selected for redemption by the Issuers.

									48

     SECTION 3.2. Selection of Notes to Be Redeemed

	In the case of any partial redemption, selection of the Notes for
redemption will be made by the Trustee in compliance with the requirements of
the principal national securities exchange, if any, on which the Notes are
listed, or, if the Notes are not so listed, on a pro rata basis, by lot or by
such other method as the Trustee in its sole discretion shall deem to be fair
and appropriate, although no Note of $1,000 in original principal amount or
less will be redeemed in part. Provisions of this Indenture that apply to Notes
called for redemption also apply to portions of Notes called for redemption.
Upon request of the Issuers, the Trustee shall notify the Issuers of the Notes
or portions of Notes to be redeemed.

     SECTION 3.3. Notice of Redemption

	At least 30 days but not more than 60 days before a date for redemption
of Notes, the Trustee at the expense of the Issuers shall mail a notice of
redemption by first-class mail to each Holder of Notes to be redeemed.

          The notice shall identify the Notes to be redeemed and shall state:

          (i)   the redemption date;

          (ii)  the redemption price;

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

          (iv)  that Notes called for redemption must be surrendered to the
	Paying Agent to collect the redemption price plus accrued and unpaid
 	interest, if any;

          (v)   if fewer than all the outstanding Notes are to be redeemed, the
	identification and principal amounts of the particular Notes to be
	redeemed;

          (vi)  that, unless the Issuers default in making such redemption
	payment or the Paying Agent is prohibited from making such payment pursuant
	to the terms of this Indenture, interest on Notes (or portion thereof)
 	called for redemption ceases to accrue on and after the redemption date;

          (vii) the CUSIP number, if any, printed on the Notes being redeemed;
	and

          (viii) that no representation is made as to the correctness or
	accuracy of the CUSIP number, if any, listed in such notice or printed
	on the Notes.

          The Trustee shall give the notice of redemption in the Issuers' name
and at the Issuers' expense.  In such event, the Issuers shall provide the
Trustee with the information required by this Section 3.3.

     SECTION 3.4. Effect of Notice of Redemption

	Once notice of redemption is mailed, Notes called for redemption shall
become due and payable on the redemption date and at the redemption price stated
in the notice.  Upon surrender to the Paying Agent, such Notes shall be paid at
the redemption price stated in the

									49

notice, plus accrued and unpaid interest, if any, to the redemption date;
provided that the Issuers shall have deposited the redemption price with the
Paying Agent or the Trustee on or before 11:00 a.m. prevailing Eastern (U.S.)
time on the date of redemption; provided, further, that if the redemption date
is after a regular record date and on or prior to the related interest payment
date, the accrued and unpaid interest shall be payable to the Noteholder of the
redeemed Notes registered on that record date. Failure to give notice or any
defect in the notice to any Holder shall not affect the validity of the notice
to any other Holder.

     SECITON 3.5. Deposit of Redemption Price

	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 Issuers shall
deposit with the Paying Agent (or, if an Issuer or a Subsidiary is the Paying
Agent, shall segregate and hold in trust) money sufficient to pay the redemption
price of and accrued and unpaid interest, if any, on all Notes to be redeemed on
that date other than Notes or portions of Notes called for redemption which are
owned by the Issuers or any of their Subsidiaries and have been delivered by the
Issuers or any such Subsidiary to the Trustee for cancellation.

          If the Issuers comply with the preceding paragraph, then, unless the
Issuers default in the payment of such redemption price, interest on the Notes
to be redeemed will cease to accrue on and after the applicable redemption date,
whether or not such Notes are presented for payment.

    SECTION 3.6. Notes Redeemed in Part

	Upon surrender of a Note that is redeemed in part, the Issuers shall
execute and the Trustee shall authenticate for the Holder (at the Issuers'
expense) a new Note equal in a principal amount at maturity to the unredeemed
portion of the Note surrendered.

    SECTION 3.7. Optional Redemption

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

          Before August 1, 2004, the Issuers may at their 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 relevant series of Notes originally issued at a redemption price
(expressed as a percentage of principal amount) of 110.75%, 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.

									50

          Further, at any time on or prior to December 31, 2002, the Issuers
may, at their option, give written notice to redeem the Notes, which notice
shall be no less than 30 nor more than 60 days prior to the redemption date, in
whole or in part at a redemption price (expressed as a percentage of principal
amount) of 101%, plus accrued and unpaid interest to the redemption date;
provided that

          (i)  the Board of Directors shall have determined not to proceed with
               the Separation (and the Guarantee of the Guarantor will stay in
               effect until the Notes are fully paid);

          (ii) if the Issuers elect to redeem the Notes in part, they may redeem
               up to an aggregate principal amount not to exceed 35% of the
               aggregate principal amount of the Notes originally issued; and

         (iii) 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).

     SECTION 3.8. Mandatory Redemption

	Except as set forth in Sections 4.11 and 4.15, the Issuers shall not be
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

                                   ARTICLE IV

                                    COVENANTS

    SECTION 4.1. Payment of Notes

          The Issuers shall promptly pay the principal of and interest on the
Notes on the dates and in the manner provided in the Notes and in this
Indenture. Principal and interest shall be considered paid on the date due if
on or before 11:00 a.m. prevailing Eastern (U.S.) time on such date the Trustee
or the Paying Agent holds (or, if an Issuer or a Subsidiary of an Issuer is the
Paying Agent, the segregated account or separate trust fund maintained by such
Issuer or such Subsidiary pursuant to Section 2.4) in accordance with this
Indenture money sufficient to pay all principal and interest then due and the
Trustee or the Paying Agent (or, if an Issuer or a Subsidiary of an Issuer is
the Paying Agent, such Issuer or such Subsidiary), as the case may be, is not
prohibited from paying such money to the Noteholders on that date pursuant to
the terms of this Indenture.

          The Issuers shall pay interest on overdue principal at the rate
specified therefor in the Notes, and they shall pay interest on overdue
installments of interest at the same rate to the extent lawful as provided in
Section 2.11.

          Notwithstanding anything to the contrary contained in this Indenture,
the Issuers or the Paying Agent may, to the extent it is required to do so by
law, deduct or withhold income or other similar taxes imposed by the United
States of America or other domestic or foreign taxing authorities from principal
or interest payments hereunder.

												51

     SECTION 4.2. Maintenance of Office or Agency

          The Issuers shall maintain an office or agency (which may be an office
of the Trustee or an affiliate of the Trustee or Registrar) where Notes may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Issuers in respect of the Notes and this Indenture may be
served.  The Issuers shall give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency.  If at any
time the Issuers shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee.

          The Issuers may also from time to time designate one or more other
offices or agencies where the Notes may be presented or surrendered for any or
all such purposes and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner relieve the
Issuers of their obligations to maintain an office or agency for such purposes.
The Issuers shall give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
office or agency.

          The Issuers hereby designate the Corporate Trust Office of the Trustee
as one such office or agency of the Issuers in accordance with Section 2.3.

     SECTION 4.3. Corporate Existence

          Except as otherwise permitted by Article V and Section 4.11, each of
the Issuers 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 such Issuer and each such Subsidiary;
provided, however, that an Issuer 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 such Issuer 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 such Issuer
and the Subsidiaries, taken as a whole.

     SECTION 4.4. SEC Reports

         (a) So long as the Guarantee in Article X is in effect, the Issuers
shall cause the Guarantor to 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 and to include financial statements and other
information with respect to the U. S. Steel Group in form and substance
consistent with the information provided in its previous Exchange Act filings,
subject to the requirements of the SEC.

         (b) Following the Separation, the Issuers will file with the SEC such
annual reports and such information, documents and other reports as are
specified in Sections 13 and

									52

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.

          (c) In addition, the Issuers shall furnish to the Holders of the Notes
and to prospective investors, upon the requests of such Holders, any information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act so
long as the Notes are not freely transferable under the Securities Act.

     SECTION 4.5. Compliance Certificate

          (a) Each of the Issuers shall deliver to the Trustee, within 120 days
after the end of each fiscal year, an Officers' Certificate stating that a
review of the activities of the Issuers and their respective Subsidiaries during
the preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether each of the Issuers and their
respective Subsidiaries has 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 each Issuer
and their respective Subsidiaries has kept, observed, performed and fulfilled
each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions hereof
(or, if a Default or Event of Default shall have occurred, describing all such
Defaults or Events of Default of which he or she may have knowledge and what
action each Issuer and their respective Subsidiaries is 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).

           (b) Each of the Issuers 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 Issuers are taking or propose to
take with respect thereto.

           (c) The Issuers shall comply with TIA Section 314(a)(4).

          SECTION 4.6. Stay, Extension and Usury Laws

          Each of the Issuers and the Guarantor covenant 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.  Each of the Issuers and the Guarantor (to the extent it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not, by resort to any such law, hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law has been
enacted.

          SECTION 4.7. Payment of Taxes and Other Claims

          Each of the Issuers shall pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (i) all material taxes,
assessments and governmental

									53

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 Issuers shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings properly instituted and diligently conducted for which adequate
reserves, to the extent required under GAAP, have been taken.

           SECTION 4.8. Maintenance of Properties and Insurance

           (a) Each of the Issuers 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 such Issuer is necessary so that the business carried
on by such Issuer and its Significant Subsidiaries may be actively conducted;
provided, however, that nothing in this Section 4.19 shall prevent such Issuer
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
each Issuer 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) Each of the Issuers 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 such Issuer, are adequate and appropriate for the conduct
of the business of such Issuer 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 such Issuer, for companies similarly situated in
the industry.

            SECTION 4.9. Investment Grade Rating

          Following the first day:

          (i)    that is after the earliest to occur of (A) the day the
                 Separation shall have occurred, (B) December 31, 2002 or (C)
                 the day the Board of Directors of USX Corporation shall have
                 determined not to proceed with the Separation,

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

          (iii)  no Default has occurred and is continuing under the Indenture,
                 the Company and its Restricted Subsidiaries will not be
                 subject to Sections 4.12, 4.13, 4.14, 4.15, 4.16, 4.17 and
                 clause (iii) of Section 5.1 (collectively, the "Suspended
                 Covenants").

									54

          The Issuers 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 4.13 as though such
section had been in effect since the date the Notes were originally issued.

          SECTION 4.10. Conditions to Separation

          The Company shall not permit the Separation to occur, unless:

     (i)   USX Corporation shall have received a private letter ruling from
           the IRS that the Separation will qualify as a tax-free transaction
           within the meaning of Section 355 of the Code,

     (ii)  the transactions that give effect to the Value Transfer as
           described in the Offering Circular shall have occurred,

     (iii) USX Corporation shall not have amended (x) the definition of
           U. S. Steel Group in its certificate of incorporation or by-laws or
           (y) its Management and Allocation Policies, in either case, in any
           manner adverse to the holders of the Notes,

     (iv)  immediately following the Separation and after giving pro forma
           effect to any subsequent payments to be made as part of the
           Separation, (x) the Company and its Subsidiaries shall have an
           aggregate of at least $400 million available in undrawn financings
           and cash, of which at least $300 million shall be available under
           facilities with terms extending at least three years after the
           date such facilities are put in place, and (y) no Default shall have
           occurred and be continuing, and

      (v)  any differences between the Separation Documents (x) as executed and
           delivered and (y) as described in the Offering Circular do not have
           a material adverse effect on the Holders of the Notes.

           SECTION 4.11. 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).

									55

          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:

     (i)  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);

    (ii)  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);

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

    (iv)  the instructions, as determined by the Company, consistent with
          this Section 4.11, 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 4.11, the Company shall
comply with the applicable securities laws and regulations and shall not be
deemed to have breached our obligations under this Section 4.11 by virtue of its
compliance with such securities laws or regulations.

          SECTION 4.12. 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:

									56

  (i)  Indebtedness Incurred by the Company and any Foreign Restricted
       Subsidiary pursuant to any Credit Facilities or, provided, however, that,
       immediately after giving effect to any such Incurrence, the aggregate
       principal amount of all Indebtedness Incurred under this clause (b) 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 4.15(a)(iii)(1) 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, provided further,
       however, that in no event shall the aggregate principal amount of all
       Indebtedness Incurred under this clause (i) at any time outstanding
       exceed $1.2 billion;

 (ii)  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;

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

 (iv)  Indebtedness Incurred or outstanding on or before the Separation Date
       (other than Indebtedness described in clause (i) or any other clause
       (other than clause (xvii)) of this Section 4.12(b)), to the extent it
       does not exceed (w) the amount of indebtedness that is Attributed to the
       U. S. Steel Group on its balance sheet as of March 31, 2001 less (x) the
       amount of any Indebtedness described in clause (iii) of this Section
       4.12(b) or any Indebtedness described in clause (vi) or (vii) of this
       Section 4.12(b) that is Incurred by the Company pursuant to the
       Financial Matters Agreement less (y) $629 million plus (z) $40 million;

  (v)  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 4.12(a);

									57

 (vi)  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;

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

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

 (ix)  Refinancing Indebtedness in respect of Indebtedness Incurred pursuant
       to Section 4.12(a) or pursuant to clause (iii), (iv), (v) or (vii) of
       this Section 4.12(b) or this clause (ix); provided, however, that to the
       extent such Refinancing Indebtedness directly or indirectly Refinances
       Indebtedness of a Subsidiary Incurred pursuant to clause (v) of this
       Section 4.12(b), such Refinancing Indebtedness shall be Incurred only by
       such Subsidiary or by the Company;

  (x)  Hedging Obligations directly related to Indebtedness permitted to be
       Incurred by the Company pursuant to the Indenture or to mitigate
       currency or business risk;

 (xi)  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;

(xii)  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;

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

(xiv)  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;

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

(xvi)  Purchase Money Indebtedness and Capital Lease Obligations Incurred to
       acquire property in the ordinary course of business in an aggregate
       amount

									58

       not to exceed $75 million in each of the first three years following the
       Issue Date and $50 million in each of the years thereafter; and

(xvii) 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 (i) through (xvi) of this Section 4.12(b) above or Section
       4.12(a)) does not exceed $150 million.

          (c) Notwithstanding the foregoing, the Company shall not incur any
Indebtedness under Section 4.12(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 or the Guarantee to at least the
same extent as such Subordinated Obligations.

          (d) For purposes of determining compliance with this Section 4.12, 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 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 4.12(b) into another
clause in Section 4.12(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.

            SECTION 4.13. 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 4.12(a); or (3) the aggregate amount of such Restricted

									59

Payment and all other Restricted Payments since 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 Issue Date 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

            (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 the Issue Date (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 the Issue Date;
plus

            (C) the amount by which Indebtedness of the Company (other than
Subordinated Obligations) is reduced on the Company's balance sheet (or, prior
to the Separation, on the balance sheet of the U.S. Steel Group) upon the
conversion or exchange (other than by a Subsidiary of the Company) subsequent
to the Issue Date 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:

									60

             (i) 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 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;

           (ii) 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 4.12; 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;

           (iii) 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 4.13(b); 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;

           (iv) 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

									61

(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;

           (v) prior to the Separation Date, dividends, distributions or other
payments to USX Corporation to the extent such amounts, after such dividend,
distribution or other payment, are still attributed to, or used to reduce
Indebtedness attributed to, the U. S. Steel Group in accordance with the
Management and Allocation Policies of USX Corporation; provided, however,
that such dividends, distributions or other payments shall be excluded in the
calculation of the amount of Restricted Payments;

           (vi) so long as no Default has occurred and is continuing, the
declaration and payment of one or more dividends on Steel Stock or common
stock of United States Steel Corporation with respect to the period ending on
December 31, 2003 in an aggregate amount not to exceed $50.0 million; provided
that such dividends shall be excluded in the calculation of the amount of
Restricted Payments; or

          (vii) 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 (vii) on or after the Issue Date, does not exceed
$30 million; provided, however, that such Restricted Payments shall be included
in the calculation of the amount of Restricted Payments.

     (c)   For purposes of this Section 4.13, Capital Stock or Indebtedness
(including Subordinated Obligations) of the Company shall be deemed to include
Capital Stock or Indebtedness (including Subordinated Obligations) of any Person
that is Attributed to the U. S. Steel Group (including Steel Stock, but
excluding any Preferred Stock or Subordinated Obligations of other Persons
outstanding as of the Issue Date) and proceeds of the issuance of

									62

any such Capital Stock shall be deemed received by the Company to the extent
they are Attributed to the U. S. Steel Group.

           SECTION 4.14. 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 4.14 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 4.14 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.

           SECTION 4.15. Limitation on Sales of Assets and Subsidiary Stock

									63

      (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") any Capital Stock of any Person that owns,
directly or indirectly, all or a significant portion of the Tubular Business,
unless:

       (i)	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;

      (ii)	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

     (iii)	an amount equal to 75% of the Net Available Cash from such
		disposition 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 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:

       (i)	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 Issuer of the shares and assets subject to such
		Asset Disposition and

      (ii)	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

									64

     (iii)	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): (1) 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 receipt of such Net Available Cash; (2)
		second, to the extent of the balance of such Net Available Cash after
		application in accordance with clause (1), 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 (3) third, to the extent of the balance of such
		Net Available Cash after application in accordance with clauses (1)
		and (2), 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 (1) or (3) 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 4.15(b), the
Company and the Restricted Subsidiaries shall not be required to apply any Net
Available Cash in accordance with Section 4.15(b) except to the extent that the
aggregate Net Available Cash from all Asset Dispositions which are not applied
in accordance with Section 4.15(b) exceeds $25 million. Pending application of
Net Available Cash pursuant to Section 4.15(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 4.15(a) and (b), the following are
deemed to be cash or cash equivalents: (A) 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; (B) 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; and
(C) any

									65

reduction of Indebtedness Attributed to the U. S. Steel Group in connection with
such Asset Disposition.

           (d)  In the event of an Asset Disposition that requires the purchase
of Notes (and other Senior Indebtedness) pursuant to Section (a)(iii) or (b)
(iii)(3) above, the Company shall purchase Notes tendered pursuant to an offer
by the Company for the 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 Notes will be denominations of $1,000
principal amount or multiples thereof. The Company shall not be required to make
such an offer to purchase Notes (and other Senior Indebtedness) pursuant to
Section 4.15(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 Notes pursuant to this
Section 4.15. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section 4.15, 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.

          SECTION 4.16. 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:

       (i)	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;

      (ii)	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
		(i) are satisfied and have

									66

		approved the relevant Affiliate Transaction as evidenced by a
		Board resolution; and

     (iii)	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:

       (i)	any Investment (other than a Permitted Investment) or other
		Restricted Payment, in each case permitted to be made under
		Section 4.13;

      (ii)	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;

     (iii)	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;

      (iv)	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;

       (v)	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;

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

									67

     (vii)	any transaction in connection with Separation, as described in the
		Offering Circular; and

    (viii)	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.

            SECTION 4.17.  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 4.15 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 4.13 if made on the
date of such issuance, sale, transfer or other disposition.

           SECTION 4.18.  Limitation on Liens

           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.

          SECTION 4.19. 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 4.12 and (B) create a Lien on such property securing
such Attributable Debt without equally and ratably securing the Notes under
Section 4.18;

									68

(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 4.15.

             SECTION 4.20. Certain Covenants of USS Financing

             USS Financing shall not (a) own any assets other than nominal
equity capital, (b) incur any Indebtedness other than the Notes, (c) engage in
any business other than the co-issuance of the Notes or (d) consolidate with or
merge into any Person other than United States Steel Corporation.

             SECTION 4.21. Further Instruments and Acts

             Upon reasonable request of the Trustee, the Issuers 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.

                                       ARTICLE V

                    SUCCESSOR COMPANY AND SUCCESSOR GUARANTOR

             SECTION 5.1. When Company May Merge or Transfer Assets

             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:

  (i)	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 Successor Company (if not the Company) will expressly
	assume, by supplemental indenture, executed and delivered to the Trustee,
	in form satisfactory to the Trustee, all the obligations of the Company
	under the Notes or the Guarantee thereof, as the case may be, and
	this Indenture;

 (ii)	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 the Successor Company or such Subsidiary at the time of such
	transaction), no Default or Event of Default shall have occurred and be
	continuing;

(iii) immediately after giving pro forma effect to such transaction,
	the Successor Company would be able to Incur an additional $1.00 of
	Indebtedness under Section 4.12(a);

 (iv)	immediately after giving pro forma effect to such transaction, the
	Successor Company shall have Consolidated Net Worth in an amount that

									69

	is not less than the Consolidated Net Worth of the Company immediately
	prior to such transaction;

  (v)	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

 (vi)	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 (iii) and (iv) 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 Notes.

	SECTION 5.2. When Guarantor May Merge or Transfer Assets

		So long as the Guarantee in Article X is in effect, the Guarantor
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:

       (i)	the resulting, surviving or transferee Person (the "Successor
		Guarantor") 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 Successor Guarantor (if not the Guarantor) 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 Guarantor under the Notes and the Indenture;

      (ii)	immediately after such transaction, no Default shall have occurred
		and be continuing;

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

      (iv)	the Guarantor shall have delivered to the Trustee an Officers'
		Certificate and an Opinion of Counsel, each stating that such
		consolidation, merger or

									70

		transfer and such supplemental indenture (if any) comply with the
		Indentures; and

       (v)	the Guarantor 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 clause (iii) 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 Guarantor or (B) the Guarantor merging with an
Affiliate of the Guarantor solely for the purpose and with the sole effect of
reincorporating the Guarantor in another jurisdiction.

          The Successor Guarantor will be the successor to the Guarantor and
shall succeed to, and be substituted for, and may exercise every right and power
of, the Guarantor under the Indenture, and the predecessor Guarantor, except in
the case of a lease, shall be released from its obligations under the Guarantee
of the Notes.

                                    ARTICLE VI

                              DEFAULTS AND REMEDIES

		SECTION 6.1.  Events of Default

		An "Event of Default" occurs if:

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

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

        (iii)	the Company fails to comply with its obligations under
		Article V;

         (iv)	the Company fails to comply with Section 4.4, any of Sections
		4.9 through 4.19 (other than a failure to repurchase Notes
		when required pursuant to Section 4.11 or 4.15, which failure
		shall constitute an Event of Default under Section 6.1(ii))
		and such failure continues for 30 days after the notice
		specified below;

          (v)	the Company or the Guarantor fails to comply with any of its
		agreements in the Notes, the Guarantee or this Indenture
		(other than those referred to in (i), (ii), (iii) or (iv)
		above) and such failure continues for 60 days after the
		notice specified below;

									71

         (vi)	the Company or any Significant Subsidiary of the Company fails
		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 or its foreign
		currency equivalent at the time;

        (vii)	the Company, the Guarantor 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, the Guarantor or any
          Significant Subsidiary of the Company in an involuntary case;

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

               (C)  orders the winding up or liquidation of the Company, the
          Guarantor 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;

          (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; or

          (x)  prior to the Separation, the Guarantee with respect to the Notes
     shall cease for any reason to be in full force and effect (other than in
     accordance with its terms) or the Guarantor (or its successors or assigns)
     or any Person acting on behalf of the Guarantor (or its successors or
     assigns) shall deny or disaffirm its obligations under the Guarantee.

									72

          The foregoing will constitute Events of Default whatever the reason
for any such Event of Default and whether it is voluntary or involuntary or is
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body.

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

          A Default under clause (iv) and (v) of this Section 6.1 is not an
Event of Default until the Trustee by notice to the Issuers or the Holders of at
least 25% in aggregate principal amount of the outstanding Notes by notice to
the Company give notice of the Default and the Company does not cure such
Default within the time specified in said clause (iv) and (v) after receipt of
such notice.  Such notice must specify the Default, demand that it be remedied
and state that such notice is a "Notice of Default".

          The Issuers shall deliver to the Trustee, within 30 days after its
knowledge of the occurrence thereof, written notice in the form of an Officers'
Certificate of any Event of Default under clause (vi) or (x) of this Section 6.1
and any event which with the giving of notice or the lapse of time would become
an Event of Default under clause (iv), (v) or (ix) of this Section 6.1 and what
action the Issuers is taking or proposes to take with respect thereto.

     		SECTION 6.2.  Acceleration

		If an Event of Default (other than an Event of Default specified
in Section 6.1(vii) or (viii) with respect to the Issuers) occurs and is
continuing, the Trustee by notice to the Issuers, or the Holders of at least 25%
in aggregate principal amount at maturity of the outstanding Notes by notice to
the Issuers, may declare the principal of and accrued but unpaid interest on all
the Notes to be due and payable.  Upon such a declaration, such principal and
interest shall be due and payable immediately.  If an Event of Default specified
in Section 6.1(vii) or (viii) with respect to the Issuers occurs and is
continuing, the principal of and accrued interest on all the Notes shall ipso
facto become and be immediately due and payable without any declaration or other
act on the part of the Trustee or any Holders.  The Holders of a majority in
aggregate principal amount at maturity of the outstanding Notes by notice to the
Trustee may rescind an acceleration and its consequences if the rescission would
not conflict with any judgment or decree and if all existing Events of Default
have been cured or waived except nonpayment of principal or interest that has
become due solely because of acceleration and the Trustee has been paid all
amounts then due to it pursuant to Section 7.7.  No such rescission shall affect
any subsequent Default or impair any right consequent thereto.

		SECTION 6.3.  Other Remedies

          If an Event of Default occurs and is continuing, the Trustee may
pursue any available remedy to collect the payment of principal of or interest
on the Notes or to enforce the performance of any provision of the Notes or
this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any
of the Notes or does not produce any of them in the proceeding.  A delay or
omission by the Trustee or any Noteholder in exercising any right or remedy
accruing upon an Event of Default shall not

									73

impair the right or remedy or constitute a waiver of or acquiescence in the
Event of Default.  No remedy is exclusive of any other remedy.  All available
remedies are, to the extent permitted by law, cumulative.

     		SECTION 6.4.  Waiver of Past Defaults

		The Holders of a majority in aggregate principal amount at
maturity of the Notes then outstanding by notice to the Trustee may waive any
past or existing Default and its consequences except (i) a Default in the
payment of the principal of or interest on a Note or (ii) a Default in respect
of a provision that under Section 9.2 cannot be amended without the consent of
each Noteholder affected. When a Default is waived, it is deemed cured, and any
Event of Default arising therefrom shall be deemed to have been cured, but no
such waiver shall extend to any subsequent or other Default or impair any
consequent right.

		SECTION 6.5.  Control by Majority

		Upon provision of reasonable indemnity to the Trustee satisfactory
to the Trustee, the Holders of a majority in aggregate principal amount of the
Notes then outstanding may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or of exercising any trust or
power conferred on the Trustee.  However, the Trustee, which may conclusively
rely on opinions of counsel, may refuse to follow any direction that conflicts
with law or this Indenture or, subject to Section 7.1, that the Trustee
determines is unduly prejudicial to the rights of other Noteholders or  would
involve the Trustee in personal liability; provided, however, that the Trustee
may take any other action deemed proper by the Trustee that is not inconsistent
with such direction.

		SECTION 6.6.  Limitation on Suits

		A Holder may not pursue any remedy with respect to this Indenture or
the Notes unless:

          (i)  the Holder gives to the Trustee previous written notice stating
               that an Event of Default is continuing;

         (ii)  the Holders of at least 25% in aggregate principal amount at
               maturity of the Notes then outstanding make a written request to
               the Trustee to pursue the remedy;

        (iii)  such Holder or Holders offer to the Trustee reasonable security
               or indemnity satisfactory to it against any loss, liability or
               expense;

         (iv)  the Trustee does not comply with the request within 60 days after
               receipt of the request and the offer of security or indemnity;
               and

          (v)  the Holders of a majority in aggregate principal amount of the
               Notes then outstanding do not give the Trustee a direction
               inconsistent with such request within such 60-day period.

          A Noteholder may not use this Indenture to prejudice the rights of
another Noteholder or to obtain a preference or priority over another
Noteholder.

									74

		SECTION 6.7.  Rights of Holders to Receive Payment

		Notwithstanding any other provision of this Indenture, the right of
any Holder to receive payment of the principal of and interest on the Notes held
by such Holder, on or after the respective due dates expressed in the Notes, or
to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such
Holder.

     		SECTION 6.8.  Collection Suit by Trustee

		If an Event of Default specified in Section 6.1(i) or (ii) occurs
and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against any Issuer or the Guarantor for the whole
amount then due and owing (together with interest on any unpaid interest to the
extent lawful) and the amounts provided for in Section 7.7.

		SECTION 6.9.  Trustee May File Proofs of Claim

		The Trustee may file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee and the Noteholders allowed in any judicial proceedings relative to any
Issuer, the Guarantor, its creditors or its property and shall be entitled and
empowered to collect, receive and distribute any money or other securities or
property payable or deliverable on any such claims and to distribute the same,
and any Custodian in any such judicial proceeding is hereby authorized
by each Holder to make payments to the Trustee and, in the event that  the
Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and its
counsel, and any other amounts then due the Trustee under Section 7.7.

     		SECTION 6.10.  Priorities

		If the Trustee collects any money or property pursuant to this
Article VI, it shall pay out the money or property in the following order:

          FIRST:    to the Trustee for amounts then due under Section 7.7;

          SECOND:   to Noteholders for amounts due and unpaid on the Notes for
     the principal, premium, if any, and interest, ratably, without preference
     or priority of any kind, according to the amounts due and payable on the
     Notes for the principal and interest, respectively; and

          THIRD:    to the Issuers or to such party as a court of competent
     jurisdiction shall direct.

          The Trustee may fix a record date and payment date for any payment to
Noteholders pursuant to this Section 6.10.  At least 15 days before such record
date, the Issuers shall mail to each Noteholder and the Trustee a notice that
states the record date, the payment date and amount to be paid.

     		SECTION 6.11.  Undertaking for Costs

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		In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys' fees and expenses, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 6.11 does not apply to a suit by the Trustee or a suit by
a Holder pursuant to Section 6.7.

     		SECTION 6.12.  Waiver of Stay or Extension Laws

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

                                  ARTICLE VII

                                     TRUSTEE

		SECTION 7.1.  Duties of Trustee

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

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

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

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

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

               (i)  this paragraph does not limit the effect of paragraph (b) of
     this Section 7.1;

									76

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

               (iii) the Trustee shall not be liable with respect to any
     action it takes or omits to take in good faith in accordance with a
     direction received by it pursuant to Section 6.5.

  (d)  Whether or not therein expressly so provided, every
provision of this Indenture that in any way relates to the Trustee is
subject to paragraphs (a), (b) and (c) of this Section 7.1.

  (e) Money held in trust by the Trustee need not be segregated
from other funds except to the extent required by law.

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

  (g) Every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 7.1 and to the provisions of the TIA.

		SECTION 7.2.  Rights of Trustee

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

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

  (c) The Trustee may act through agents and shall not be responsible for the
misconduct or negligence of any agent appointed with due care.

  (d) The Trustee shall not be liable for any action it takes or omits to take
in good faith which it believes to be authorized or within its rights or
powers; provided, however, that the Trustee's conduct does not constitute
wilful misconduct or negligence.

  (e) The Trustee may consult with counsel of its selection, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture and
the Notes shall be full and complete authorization and protection from liability
in respect to any action taken, omitted or suffered by it hereunder in good
faith and in accordance with the advice or opinion of such counsel.

									77

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

  (g) The Trustee shall not be charged with knowledge of any Default or Event of
Default with respect to the Notes unless either (1) a Trust Officer shall have
actual knowledge of such Default or Event of Default or (2) written notice of
such Default or Event of Default making reference to this Indenture and to the
Notes shall have been given to the Trustee by the Issuer or by any Holder of the
Notes.

  (h) The Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Company, personally or by agent or attorney at the
sole cost of the Company and shall incur no liability or additional liability of
any kind by reason of such inquiry or investigation.

  (i) The Trustee may require any Paying Agent(s) to pay to it all sums held by
such Agent upon the occurrences of an Event of Default.

		SECTION 7.3.  Individual Rights of Trustee

          The Trustee in its individual or any other capacity may become the
owner or pledgee of Notes and may otherwise deal with the Issuers or their
respective Affiliates with the same rights it would have if it were not Trustee.

          Any Paying Agent, Registrar, co-registrar or co-paying agent may do
the same with like rights.  However, the Trustee must comply with Sections 7.10
and 7.11.

		SECTION 7.4.  Money Held in Trust

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

		SECTION 7.5.  Trustee's Disclaimer

          The Trustee shall not be responsible for and makes no representation
as to the validity or adequacy of this Indenture or the Notes.  It shall not be
accountable for the Issuers' use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Issuers in this Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Trustee's certificate of authentication.

		SECTION 7.6.  Notice of Defaults

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          If a Default or an Event of Default occurs and is continuing and if
it is known to the Trustee, the Trustee must mail to each Noteholder notice of
the Default within 90 days after it occurs.  Except in the case of a Default in
payment of principal of, premium (if any) or interest on any Note, the Trustee
may withhold notice if and so long as a committee of its Trust Officers in good
faith determines that withholding notice is not opposed to the interests of
Noteholders.

		SECTION 7.7.  Reports by Trustee to Holders

          As promptly as practicable after each May 15 beginning with May 15
following the date of this Indenture, the Trustee shall mail to each Noteholder
a brief report dated as of such May 15 that complies with TIA Section 313(a).
The Trustee also shall comply with TIA Section 313(b).  The Trustee shall
promptly deliver to the Issuer a copy of any report it delivers to Holders
pursuant to this Section 7.6.

          A copy of each report at the time of its mailing to Noteholders shall
be filed by the Trustee with the SEC and each stock exchange (if any) on which
the Notes are listed.  The Issuers agree to notify promptly the Trustee whenever
the Notes become listed on any stock exchange and of any delisting thereof.

		SECTION 7.8. Compensation and Indemnity

         The Issuers shall pay to the Trustee from time to time such
compensation for its services as the Issuers and the Trustee shall from time to
time agree in writing.  The Trustee's compensation shall not be limited by any
law on compensation of a trustee of an express trust.  The Issuers shall
reimburse the Trustee upon request for all reasonable and documented fees and
expenses, including out-of-pocket expenses, incurred or made by it in connection
with the performance of its duties hereunder, including costs of collection, in
addition to such compensation for its services, except any such expense,
disbursement or advance as may arise from its negligence, wilful misconduct or
bad faith, unless the Trustee shall have complied with the applicable standard
of care required by the TIA.  Such expenses shall include the reasonable
compensation and documented out-of-pocket expenses, disbursements and advances
of the Trustee's agents, counsel, accountants and experts.  The Trustee shall
provide the Issuers reasonable notice of any expenditure not in the ordinary
course of business; provided that prior approval by the Issuers of any such
expenditure shall not be a requirement for the making of such expenditure nor
for reimbursement by the Issuers thereof.  The Issuers shall jointly and
severally indemnify each of the Trustee and any predecessor Trustees against
any and all loss, damage, claim, liability or expense and tax (including
reasonable and documented attorneys' fees and out-of-pocket expenses) (other
than taxes applicable to the Trustee's compensation hereunder) incurred by it
in connection with the acceptance or administration of this trust and the
performance of its duties hereunder.  The Trustee shall notify the Issuers
promptly of any claim for which it may seek indemnity.  Failure by the Trustee
to so notify the Issuers shall not relieve the Issuers of their obligations
hereunder.  The Issuers shall defend the claim and the Trustee may have
separate counsel, and the Issuers will pay the reasonable fees and expenses of
such counsel.  The Issuers need not reimburse any expense or indemnify against
any loss, liability or expense incurred by the Trustee through the Trustee's
own wilful misconduct, negligence or bad faith, unless the Trustee shall have
complied with the applicable standard of care required by the TIA.

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          To secure the Issuers' payment obligations in this Section 7.7, the
Trustee shall have a lien prior to the Notes on all money or property held or
collected by the Trustee other than money or property held in trust to pay
principal of and interest on particular Notes.

          When the Trustee incurs expenses after the occurrence of a Default
specified in Section 6.1(vii) or (viii) with respect to the Issuers, the
expenses are intended to constitute expenses of administration under the
Bankruptcy Law, provided, however, that this shall not affect the Trustee's
rights as set forth in the preceding paragraph or Section 6.10.  The terms of
this Section 7.8 shall survive the termination of this Indenture and the removal
or resignation of the Trustee.

		SECTION 7.9.  Replacement of Trustee

          The Trustee may resign at any time with 30 days notice to the Issuers.
The Holders of a majority in principal amount of the Notes then outstanding, may
remove the Trustee with 30 days notice to the Trustee and the Issuers and may
appoint a successor Trustee.  So long as no Default or Event of Default shall
have occurred and been outstanding within the previous 12 month period, the
Issuers may remove the Trustee at any time by appointing a successor Trustee
that complies with Section 7.10.

          If the Trustee resigns, is removed by the Issuers or by the Holders of
a majority in principal amount of the Notes and such Holders do not reasonably
promptly appoint a successor Trustee, or if a vacancy exists in the office of
Trustee for any reason (the Trustee in such event being referred to herein as
the retiring Trustee), the Issuers shall promptly appoint a successor Trustee.

          A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Issuers.  Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture.  The successor Trustee shall mail a notice of its
succession to Noteholders.  The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien
provided for in Section 7.7.

          If a successor Trustee does not take office and deliver the written
notice contemplated by this Section 7.9 within 30 days after the retiring
Trustee resigns or is removed, the retiring Trustee or the Holders of 10% in
principal amount of the Notes may, at the expense of the Issuers petition any
court of competent jurisdiction for the appointment of a successor Trustee.

          If the Trustee fails to comply with Section 7.10, any Noteholder may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.

		SECTION 7.10.  Successor Trustee by Merger

          If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or
transferee corporation without any further act shall be the

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successor Trustee, provided that such corporation shall be eligible under this
Article VII and TIA Section 3.10(a).

          In case at the time such successor or successors by merger, conversion
or consolidation to the Trustee shall succeed to the trusts created by this
Indenture any of the Notes shall have been authenticated but not delivered, any
such successor to the Trustee may adopt the certificate of authentication of any
predecessor trustee, and deliver such Notes so authenticated; and in case at
that time any of the Notes shall not have been authenticated, any successor to
the Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor to the Trustee; and in all such cases
such certificates shall have the full force which it is anywhere in the Notes or
in this Indenture provided that the certificate of the Trustee shall have.

		SECTION 7.11.  Eligibility; Disqualification

          The Trustee shall at all times satisfy the requirements of TIA Section
310(a). The Trustee shall have a combined capital and surplus of at least
$50,000,000 as set forth in its most recent published annual report of
condition.  The Trustee shall comply with TIA Section 310(b); provided, however,
that there shall be excluded from the operation of TIA Section 310(b)(1) any
indenture or indentures under which other securities or certificates of interest
or participation in other securities of the Issuers are outstanding if the
requirements for such exclusion set forth in TIA Section 310(b)(1) are met.

		SECTION 7.12.  Preferential Collection of Claims Against Issuers

          The Trustee shall comply with TIA Section 311(a), excluding any
creditor relationship listed in TIA Section 311(b).  A Trustee who has resigned
or been removed shall be subject to TIA Section 311(a) to the extent indicated.

                                  ARTICLE VIII

                       DISCHARGE OF INDENTURE; DEFEASANCE

		SECTION 8.1.  Discharge of Liability on Notes; Defeasance

         (a) When (i) the Issuers deliver to the Trustee all outstanding Notes
(other than Notes replaced pursuant to Section 2.7) for cancellation or (ii) all
outstanding Notes have become due and payable, whether at maturity or as a
result of the mailing of a notice of redemption pursuant to Article III hereof
or the Notes will become due and payable at their Stated Maturity within 91
days, or the Notes are to be called for redemption within 91 days under
arrangements satisfying the terms of this Indenture, and, in each case of this
clause (ii), the Issuers irrevocably deposit or cause to be deposited with the
Trustee funds sufficient to pay at maturity or upon redemption all outstanding
Notes, including interest thereon to maturity or such redemption date (other
than Notes replaced pursuant to Section 2.7), and if in either case the Issuers
pay all other sums payable hereunder by the Issuers, then this Indenture shall,
subject to Section 8.1(c), cease to be of further effect.  The Trustee shall
acknowledge satisfaction and discharge of this Indenture on demand of the
Issuers accompanied by an Officers' Certificate and an Opinion of Counsel from
the Issuers that all conditions precedent provided herein for relating

									81

to satisfaction and discharge of this Indenture have been complied with and at
the cost and expense of the Issuers.

          (b) Subject to Sections 8.1(c) and 8.2, the Issuers at any time may
terminate (i) all of their obligations (and the obligations of the Guarantor in
respect of the Guarantee with respect to the Notes) under the Notes and this
Indenture ("legal defeasance option") or (ii) their obligations under Sections
4.2 through 4.19 and the operation of Sections 5.1(iii), 6.1(vi), 6.1(vii) (but
only with respect to a Significant Subsidiary), 6.1(viii) (but only with respect
to a Significant Subsidiary) and 6.1(ix) ("covenant defeasance option").  The
Issuers may exercise their legal defeasance option notwithstanding its prior
exercise of its covenant defeasance option.

          If the Issuers exercise their legal defeasance option, payment of the
Notes may not be accelerated because of an Event of Default.  If the Issuers
exercise its covenant defeasance option, payment of the Notes may not be
accelerated because of an Event of Default specified in Section 6.1(iv),
6.1(vi), 6.1(vii) (but only with respect to a Significant Subsidiary), 6.1(viii)
(but only with respect to a Significant Subsidiary), 6.1(ix) or because of the
failure of the Issuers to comply with Section 5.1(iii).

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

          (c) Notwithstanding clauses (a) and (b) above, the Issuers'
obligations in Sections 2.3, 2.4, 2.5, 2.7, 4.1, Sections 4.2 through 4.19, 7.7,
7.8, 8.4, 8.5 and 8.6 (and the obligations of the Guarantor in respect of the
Guarantee with respect to the Notes) shall survive until the Notes have been
paid in full. Thereafter, the Issuers' obligations in Sections 7.7, 8.4 and 8.5
shall survive.

		SECTION 8.2.  Conditions to Defeasance

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

   (i)  the Issuers irrevocably deposit or cause 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 2.7)
        to maturity or redemption, as the case may be;

  (ii)  the Issuers deliver 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 2.7) to
        maturity or redemption, as the case may be;

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 (iii)  123 days pass after the deposit is made and during the 123-day period
        no Default specified in Section 6.1(7) or (8) with respect to the
        Issuers occurs which is continuing at the end of the period;

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

   (v)  the Issuers deliver 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;

  (vi)  in the case of the legal defeasance option, the Issuers shall have
        delivered to the Trustee an Opinion of Counsel stating that (i) the
        Issuers have 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;

 (vii)  in the case of the covenant defeasance option, the Issuers 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

(viii)  the Issuers deliver 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 Article
        VIII have been complied with.

          Before or after a deposit, the Issuers may make arrangements
satisfactory to the Trustee for the redemption of Notes at a future date in
accordance with Article III.

		SECTION 8.3.  Application of Trust Money

          The Trustee shall hold in trust money or U.S. Government Obligations
deposited with it pursuant to this Article VIII.  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.

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		SECTION 8.4.  Repayment to Issuers

          The Trustee and the Paying Agent shall promptly turn over to the
Issuers 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 Issuers 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 Issuers for
payment as general creditors.

		SECTION 8.5.  Indemnity for Government Obligations

          The Issuers and the Guarantor 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.

		SECTION 8.6.  Reinstatement

          If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with this Article VIII 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 Issuers' and the Guarantor's obligations under this Indenture,
the Notes and the Guarantee with respect to the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to this Article VIII
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 Article VIII;
provided, however, that, (a) if the Issuers or the Guarantor have made any
payment of interest on or principal of any Notes following the reinstatement of
their obligations, the Issuers or the Guarantor 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 Issuers or the Guarantor
promptly after receiving a written request therefor at any time, if such
reinstatement of the Issuers' and the Guarantor's obligations has occurred
and continues to be in effect.

                                   ARTICLE IX

                                   AMENDMENTS

		SECTION 9.1.  Without Consent of Holders

          The Issuers, the Guarantor and the Trustee may amend this Indenture,
the Notes or the Guarantee with respect to the Notes without notice to or
consent of any Noteholder:

    (i)  to cure any ambiguity, omission, defect or inconsistency;

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   (ii)  to comply with Article V;

  (iii)  to provide for uncertificated Notes in addition to or in place of
         certificated Notes (provided, however, that the uncertificated Notes
         are issued in registered form for purposes of Section 163(f) of the
         Code or in a manner such that the uncertificated Notes are as
         described in Section 163(f)(2)(B) of the Code);

   (iv)  to add Guarantees with respect to the Notes;

    (v)  to secure the Notes;

   (vi)  to add to the covenants of the Issuers for the benefit of the
         Noteholders or to surrender any right or power herein conferred
         upon the Issuers;

  (vii)  to make any change that does not materially and adversely affect the
         rights of any Noteholder; and

 (viii)  to comply with any requirements of the SEC in connection with
         qualifying this Indenture under the TIA.

          After an amendment under this Section 9.1 becomes effective, the
Issuers shall mail to Noteholders a notice briefly describing such amendment.
The failure to give such notice to all Noteholders, or any defect therein, shall
not impair or affect the validity of an amendment under this Section 9.1.

		SECTION 9.2.  With Consent of Holders

          The Issuers, the Guarantor and the Trustee may amend this Indenture,
the Notes or the Guarantee with respect to the Notes without notice to any
Noteholder but with the written consent of the Holders of at least a majority in
principal amount at maturity of the Notes then outstanding (including consents
obtained in connection with a tender offer or exchange for Notes).  However,
without the consent of each Noteholder of an outstanding Note affected, an
amendment may not:

    (i)  reduce the amount of Notes whose Holders must consent to an amendment;

   (ii)  reduce the rate of or extend the time for payment of interest on any
         Note;

  (iii)  reduce the principal of or extend the Stated Maturity of any Note;

   (iv)  reduce the amount payable upon the redemption of any Note or change
         the time at which any Note may be redeemed in accordance with
         Article III;

    (v)  make any Note payable in currency other than that stated in the Note;

   (vi)  impair the right of any Holder to receive payment of principal of and
         interest on such Holder's Notes on or after the due dates therefor
         or to

									85

         institute suit for the enforcement of any payment on or with
         respect to such Holder's Notes;

  (vii)  make any change in this second sentence of Section 9.2;

 (viii)  make any change in the ranking or priority of the Notes that would
         adversely affect the Noteholders; and

   (ix)  make any change in the Guarantee that would adversely affect the
         Holders.

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

          After an amendment under this Section 9.2 becomes effective, the
Issuers shall mail to Noteholders a notice briefly describing such amendment.
The failure to give such notice to all Noteholders, or any defect therein, shall
not impair or affect the validity of an amendment under this Section 9.2.

		SECTION 9.3.  Compliance with Trust Indenture Act

          Every amendment to this Indenture or the Notes shall comply with the
TIA as then in effect.

		SECTION 9.4.  Revocation and Effect of Consents and Waivers

          A consent to an amendment or a waiver by a Holder of a Note shall
bind the Holder and every subsequent Holder of that Note or portion of the 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 Note.  After an amendment or waiver
becomes effective, it shall bind every Noteholder.

          The Issuers 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 Indenture.  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.

		SECTION 9.5.  Notation on or Exchange of Notes

          If an amendment changes the terms of a Note, the Trustee may require
the Holder of the Note to deliver it to the Trustee. The Trustee may place an
appropriate notation on the Note regarding  the changed terms and return it to
the Holder. Alternatively, if the Issuers or the Trustee so determine, the
Issuers in exchange for the Note shall issue and the Trustee shall authenticate
a new Note that reflects the changed terms.  Failure to make the appropriate
notation or to issue a new Note shall not affect the validity of such amendment.

									86

		SECTION 9.6.  Trustee to Sign Amendments

          The Trustee shall sign any amendment authorized pursuant to this
Article IX 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 7.1) shall be fully protected in relying upon, in addition to the
documents required by Section 10.4, an Officers' Certificate and an Opinion of
Counsel stating that such amendment complies with the provisions of this Article
IX; 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.

		SECTION 9.7.  Payment for Consent

          Neither the Issuers, the Guarantor nor any affiliate of any Issuer
shall, directly or indirectly, pay or cause to be paid any consideration,
whether by way of interest, fee or otherwise, to any Holder for, or as an
inducement to any consent, waiver or amendment of any of the terms or provisions
of this Indenture or the Notes unless such consideration is offered to be paid
to all Holders that so consent, waive or agree to amend in the time frame set
forth in solicitation documents relating to such consent, waiver or agreement.

                                    ARTICLE X

                                    GUARANTEE

		SECTION 10.1.  Guarantee

         Subject to the next paragraph, until the Separation Date, the Guarantor
shall fully and unconditionally guarantee, on a senior unsecured basis, to each
Holder of a Note authenticated and delivered by the Trustee and to the Trustee
and its successors and assigns, irrespective of the validity and enforceability
of this Indenture, the Notes or the Obligations of the Issuers under this
Indenture or the Notes, that:  (i) the principal of, premium, if any, and
interest, if any, on the Notes will be paid in full when due, whether at the
maturity or interest payment or redemption date, by acceleration, call for
redemption, offer to purchase or otherwise, and interest on the overdue
principal of, premium, and interest, if any, on the Notes and all other
Obligations of the Issuers to the Holders or the Trustee under this Indenture or
the Notes will be promptly paid in full or performed, all in accordance with the
terms of this Indenture and the Notes; (ii) in case of any extension of time of
payment or renewal of any Notes or any of such other Obligations, they will be
paid in full when due or performed in accordance with the terms of the extension
or renewal, whether at maturity, by acceleration or otherwise; and (iii) any and
all costs and expenses (including reasonable and documented attorneys' fees)
incurred by the Trustee or any Holder in enforcing any rights under the
Guarantee with respect to the Notes will be paid.  Failing payment when due of
any amount so guaranteed for whatever reason, the Guarantor will be obligated
(subject to any grace periods allowed pursuant to Section 6.1 hereof) to pay
the same whether or not such failure to pay has become an Event of Default which
could cause acceleration pursuant to Section 6.2 hereof.  An Event of Default
under this Indenture or the Notes shall constitute an event of default under
the Guarantee of the Notes, and shall entitle

									87

the Holders of Notes to accelerate the Obligations of the Guarantor
hereunder in the same manner and to the same extent as the Obligations of the
Issuers. The Guarantor agrees that its Obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of the
Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, the recovery of any judgment against the Issuers, any action
to enforce the same or any other circumstance (other than payment) that might
otherwise constitute a legal or equitable discharge or defense of the Guarantor.
The Guarantor hereby waives diligence, presentment, demand of payment, filing of
claims with a court in the event of insolvency or bankruptcy of either or both
of the Issuers, protest, notice and all demands whatsoever and covenants that
its Guarantee with respect to the Notes will not be discharged except by
complete performance of its Obligations under the Notes and this Indenture.
Notwithstanding the provisions of Section 10.2, if any Holder or the Trustee is
required by any court or otherwise to return to any Issuer, the Guarantor or any
custodian, trustee, liquidator or other similar official acting in relation to
either any Issuer or the Guarantor any amount paid by any such entity to the
Trustee or such Holder, this Guarantee of the Notes, to the extent theretofore
discharged, shall be reinstated in full force and effect.  The Guarantor agrees
that it shall not be entitled to any right of subrogation in relation to the
Holder in respect of any Obligations guaranteed hereby until payment in full of
all Obligations guaranteed hereby.  The Guarantor agrees that, as between it, on
the one hand, and the Holders of Notes and the Trustee, on the other hand, (x)
the maturity of the Obligations guaranteed hereby may be accelerated as provided
in Article 6 hereof for the purposes hereof, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
Obligations guaranteed hereby, and (y) in the event of any acceleration of such
Obligations as provided in Article 6 hereof, such Obligations (whether or not
due and payable) shall forthwith become due and payable by the Guarantor for
the purpose of such Guarantee of the Notes.

          If the Separation Date does not occur on or before December 31, 2002
or if the Board of Directors determines not to proceed with the Separation, the
Guarantee of the Notes by the Guarantor shall stay in effect until the Notes
have been paid in full.

          Each Holder of a Note by its acceptance thereof agrees to and shall
be bound by the provisions of this Section 10.1.

		SECTION 10.2.  Release of Guarantor

          Upon the occurrence of the earlier of (i) the Separation Date (if the
Separation Date occurs on or prior to December 31, 2002) or (ii) the payment in
full of all of the Issuers' Obligations under the Notes and this Indenture
(other than with respect to any indemnification obligations), the Guarantor
shall be released from and relieved of its Obligations with respect to the
Notes under this Article X.

									88

                                   ARTICLE XI

                                  MISCELLANEOUS

		SECTION 11.1.  Trust Indenture Act Controls

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

		SECTION 11.2.  Notices

          Any notice or communication shall be in writing and be effective upon
receipt or refusal of delivery at the following addresses:

               if to any Issuer:

               United States Steel LLC
               600 Grant Street
               Pittsburgh, PA 15219-4776

               Attention:  Vice President - Finance and Accounting
               Facsimile:  412-433-1131

               if to the Trustee:

               The Bank of New York
               101 Barclay Street
               Floor 21 West
               New York, New York  10286

               Attention:  Corporate Trust Trustee Administration
               Facsimile:  (212) 815-5915 or (212) 815-5917

          The Issuers or the Trustee by notice to the others may designate
additional or different addresses for subsequent notices or communications.

          Any notice or communication mailed to a Noteholder shall be mailed to
the Noteholder at the Noteholder's address as it appears on the registration
books of the Registrar and shall be sufficiently given if so mailed within the
time prescribed.

          Failure to mail a notice or communication to a Noteholder or any
defect in it shall not affect its sufficiency with respect to other Noteholders.
If a notice or communication is mailed in the manner provided above, it is duly
given, whether or not the addressee receives it.

		SECTION 11.3.  Communication by Holders with Other Holders

          Noteholders may communicate pursuant to TIA Section 312(b) with other
Noteholders with respect to their rights under this Indenture or the Notes. The
Issuers, the Trustee, the Registrar and anyone else shall have the protection of
TIA Section 312(c).

								89

		SECTION 11.4.  Certificate and Opinion as to Conditions Precedent

          Upon any request or application by the Issuers to the Trustee to take
or refrain from taking any action under this Indenture, the Issuers shall
furnish to the Trustee:

   (i)  an Officers' Certificate in form and substance reasonably satisfactory
        to the Trustee stating that, in the opinion of the signer, all
        conditions precedent, if any, provided for in this Indenture relating to
        the proposed action have been complied with; and

  (ii)  an Opinion of Counsel in form and substance reasonably satisfactory to
        the Trustee stating that, in the opinion of such counsel, all such
        conditions precedent have been complied with.

		SECTION 11.5.  Statements Required in Certificate or Opinion

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

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

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

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

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

		SECTION 11.6.  When Notes Disregarded

          In determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, Notes owned by the
Issuers or by any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Issuers shall be disregarded
and deemed not to be outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Notes which a Trust Officer of the Trustee knows are so owned
shall be so disregarded.  Also, subject to the foregoing, only Notes outstanding
at the time shall be considered in any such determination.

		SECTION 11.7.  Rules by Trustee, Paying Agent and Registrar

          The Trustee may make reasonable rules for action by or at a meeting of
Noteholders.  The Registrar and the Paying Agent may make reasonable rules for
their functions.

								90

		SECTION 11.8.  Legal Holidays

          A "Legal Holiday" is a Saturday, a Sunday or a day on which banking
institutions are not required to be open in the State of New York.  If a payment
date is a Legal Holiday, payment shall be made on the next succeeding day that
is not a Legal Holiday, and no interest shall accrue on such payment for the
intervening period.  If a regular record date is a Legal Holiday, the record
date shall not be affected.

		SECTION 11.9.  GOVERNING LAW.  THIS INDENTURE, THE NOTES AND THE
GUARANTEE OF THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

		SECTION 11.10.  No Recourse Against Others

          No director, officer, employee, member, incorporator or stockholder of
any Issuer or the Guarantor, as such, shall have any liability for any
obligations of any Issuer or the Guarantor under the Notes, this 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.

		SECTION 11.11.  Successors

          All agreements of the Issuers and the Guarantor in this Indenture and
the Notes shall bind their successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

		SECTION 11.12.  Multiple Originals

          The parties may sign any number of copies of this Indenture.  Each
signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

		SECTION 11.13.  Qualification of Indenture

          The Issuers shall qualify this Indenture under the TIA in accordance
with the terms and conditions of the Registration Rights Agreement and shall pay
all reasonable costs and expenses (including attorneys' fees for the Issuers,
the Trustee and the Holders) incurred in connection therewith, including, but
not limited to, costs and expenses of qualification of this Indenture and the
Notes. The Trustee shall be entitled to receive from the Issuers any such
Officers' Certificates, Opinions of Counsel or other documentation as it may
reasonably request in connection with any such qualification of this Indenture
under the TIA.

								91

		SECTION 11.14.  Table of Contents; Cross-Reference Sheet; Headings

          The table of contents, cross-reference sheet and headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not intended to be considered a part hereof and shall not
modify or restrict any of the terms or provisions hereof.

		SECTION 11.15.  Severability

          In case any provision in this Indenture or in the Notes shall be
invalid, illegal or unenforceable, in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions shall not in any way be affected or impaired thereby.

								92

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

                              Issuers:

                              UNITED STATES STEEL LLC

                                  /s/ G. R. Haggerty
                              By:---------------------------
                                 Name: G. R. Haggerty
                                 Title: Vice President-Accounting
                                        & Finance

                              UNITED STATES STEEL FINANCING CORP.

                                  /s/ R. M. Stanton
                              By:---------------------------
                                 Name: R. M. Stanton
                                 Title: President

                              Guarantor:

                              USX CORPORATION

                                  /s/ M. J. Hatcher
                              By:---------------------------
                                 Name: M. J. Hatcher
                                 Title: Assistant Treasurer-Corporate Finance

                              Trustee:

                              THE BANK OF NEW YORK

                              By:
                                 Name:
                                 Title:

                                    EXHIBIT A

                                 (Face of Note)

 [Insert the Global Note Legend, if applicable pursuant to the provisions of the
                                   Indenture]
 [Insert the Private Placement Legend, if applicable pursuant to the provisions
                                of the Indenture]

                             UNITED STATES STEEL LLC

                                       and

                       UNITED STATES STEEL FINANCING CORP.

No.  ___                                     Principal Amount $________

                                             CUSIP NO. _____________

                      10-3/4% Senior Notes due August 1, 2008

          United States Steel LLC, a Delaware limited liability company, and
United States Steel Financing Corp., a Delaware corporation, promise to pay to
Cede & Co., or registered assigns, the principal sum of ________________________
Dollars on August 1, 2008.

          Interest Payment Dates:  February 1 and August 1.

          Record Dates:  January 15 and July 15.

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

Dated:                           UNITED STATES STEEL LLC

                                 By:
                                   Name:
                                   Title:

                                 UNITED STATES STEEL FINANCING
                                 CORP.

                                 By:
                                   Name:
                                   Title:
TRUSTEE'S CERTIFICATE OF
  AUTHENTICATION

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

                                      A-1

THE BANK OF NEW YORK
  as Trustee

By:
  Authorized Signatory

                                      A-2

                                (Reverse of Note)

                      10-3/4% Senior Notes due August 1, 2008

1.  Interest

          United States Steel LLC, a Delaware limited liability company (the
"Company"), and United States Steel Financing Corp., a Delaware corporation
("USS Financing", and together with the Company, the "Issuers"), promise to pay
interest on the principal amount of this Note at the rate per annum shown above;
provided, however, that if a Registration Default (as defined in the
Registration Rights Agreement) occurs, additional cash interest will accrue on
this Note at a rate of 0.25% per annum for the first 90-day period immediately
following the occurrence of the Registration Default, and such rate shall
increase by an additional 0.25% per annum until all Registration Defaults have
been cured, calculated on the principal of this Note as of the date on which
such interest is payable; provided, however, that in no event shall the
aggregate amount of such additional interest exceed 1.0% per annum. Such
interest is payable in addition to any other interest payable from time to time
with respect to this Note.  The Trustee will not be deemed to have notice of a
Registration Default until it shall have received actual notice of such
Registration Default from the Issuers.

          The Issuers shall pay accrued interest semi-annually on each February
1 and August 1 commencing February 1, 2002 or if any such day is not a Business
Day (as defined in the Indenture referred to below), on the next Business Day.
The Issuers 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 Issuers
shall irrevocably deposit with the Trustee or the Paying Agent money sufficient
to pay such principal and/or interest.  The Issuers will pay interest (except
defaulted interest) to the Persons who are registered Holders of Notes at the
close of business on January 15 or July 15 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 Issuers 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 Registrar

          Initially, the Company will act as Paying Agent and Registrar. The
Company may appoint and change any Paying Agent, 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.

                                        A-3

4.  Indenture

          The Issuers issued the Notes under an Indenture dated as of July 27,
2001 (as it may be amended or supplemented from time to time in accordance with
the terms thereof, the "Indenture"), among the Issuers, USX Corporation, a
Delaware corporation (the "Guarantor") 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.

          The Notes are senior unsecured obligations of the Issuers limited to
$385,000,000 aggregate principal amount at maturity (subject to Section 2.1(a)
of the Indenture, which, inter alia, allows for the issuance of Additional Notes
in some circumstances).

          The Notes include the Initial Notes, any Private Exchange Note and
Exchange Notes issued in exchange for the Initial Notes pursuant to the
Indenture and the Registration Rights Agreement, and any Additional Notes
actually issued.  The Initial Notes, the Private Exchange Notes, the Exchange
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 Issuers prior to the Stated Maturity.

          Before August 1, 2004, the Issuers may at their 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 110.75%, 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

                                       A-4

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

          Further, at any time on or prior to December 31, 2002, the Issuers
may, at their option, give written notice to redeem the Notes, which notice
shall be no less than 30 nor more than 60 days prior to the redemption date, in
whole or in part at a redemption price (expressed as a percentage of principal
amount) of 101%, plus accrued and unpaid interest to the redemption date;
provided that

          (i)  the Board of Directors shall have determined not to proceed with
               the Separation (and the Guarantee of the Guarantor shall stay in
               effect until the Notes are fully paid);

         (ii)  if the Issuers elect to redeem the Notes in part, they may redeem
               up to an aggregate principal amount not to exceed 35% of the
               aggregate principal amount of the Notes originally issued; and

        (iii)  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 Issuers or their Affiliates).

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 Issuers 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.  Registration Rights

          The Issuers are parties to a Registration Rights Agreement, dated as
of July 27, 2001, among the Issuers, Credit Suisse First Boston Corporation,
J.P. Morgan Securities Inc., Lehman Brothers Inc., Salomon Smith Barney Inc.,
BNY Capital Markets, Inc., Mellon Financial Markets, Inc., NatCity Investments,
Inc., PNC Capital Markets, Inc. and Scotia Capital

                                           A-5

(USA) Inc. pursuant to which they are obligated to pay additional interest upon
the occurrence of certain Registration Defaults (as defined therein).

9.  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
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 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.

10.  Persons Deemed Owners

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

11.  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 Issuers at their request unless an
abandoned property law designates another Person.  After any such payment,
Holders entitled to the money must look only to the Issuers and not to the
Trustee for payment.

12.  Defeasance

          Subject to certain conditions set forth in the Indenture, the Issuers
at any time may terminate some or all of their obligations under the Notes and
the Indenture if the Issuers deposit 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.

13.  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 Issuers and the Trustee
may amend the Indenture or the Notes to cure any ambiguity, omission, defect or
inconsistency, or to comply with Article V of the Indenture, 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 Issuers,
or to make any

                                        A-6

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.

14.  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 Article V of the Indenture, (iv) the failure by the Company to comply for
30 days after notice with any of its obligations under Section 4.4 or any of
Sections 4.9 through 4.19 of the Indenture (in each case, other than a failure
to repurchase Notes), (v) the failure by the Company or the Guarantor to comply
for 60 days after notice with its other agreements contained in the Indenture,
(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, the Guarantor or any
Significant Subsidiary of the Company, (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, or (ix) prior to the Separation, the Guarantee with respect
to the Notes ceases for any reason to be in full force and effect (other than in
accordance with its terms) or the Guarantor denies or disaffirms its obligations
under the Guarantee.  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.

          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.

15.  Guarantee of the Notes

          Subject to the next paragraph, prior to the Separation, payment of
principal, premium, if any, and interest, if any (including interest on overdue
principal and overdue interest, if lawful), on the Notes is fully and
unconditionally guaranteed by the Guarantor pursuant to, and subject to the
terms of, Article X of the Indenture.

          If the Separation Date does not occur on or before December 31, 2002
or if the Board of Directors determines not to proceed with the Separation, the
Guarantee of the Notes by the Guarantor shall stay in effect until the Notes
have been paid in full.

                                         A-7

16.  Trustee Dealings with the Issuers

          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 Issuers or their respective Affiliates and may otherwise deal
with the Issuers or their respective Affiliates with the same rights it would
have if it were not Trustee.

17.  No Recourse Against Others

          No director, officer, employee, member, incorporator or stockholder of
the Issuers or the Guarantor, as such, shall have any liability for any
obligations of the Issuers under the Notes, the Guarantee, 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.

18.  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.

19.  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).

20.  CUSIP Numbers

          Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures the Issuers have caused CUSIP numbers to be
printed on the Notes and have 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.

21.  GOVERNING LAW

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

                                         A-8

                         NOTATION RELATING TO GUARANTEE

          The undersigned (the "Guarantor") has fully and unconditionally
guaranteed, on a senior unsecured basis (the "Guarantee"), that:  (i) the
principal of, premium, if any, and interest, if any, on the Notes will be paid
in full when due, whether at the maturity or interest payment or redemption
date, by acceleration, call for redemption, offer to purchase or otherwise, and
interest on the overdue principal of, premium, and interest, if any, on the
Notes and all other Obligations of the Issuers to the Holders of the Notes or
the Trustee under the Indenture or the Notes will be promptly paid in full or
performed, all in accordance with Article X of the Indenture and the Notes; (ii)
in case of any extension of time of payment or renewal of any Notes or any of
such other Obligations, they will be paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at maturity, by
acceleration or otherwise; and (iii) any and all costs and expenses (including
reasonable and documented attorneys' fees) incurred by the Trustee or any Holder
of the Notes in enforcing any rights under this Guarantee with respect to the
Notes will be paid.

          If the Separation Date does not occur on or before December 31, 2002
or if the Board of Directors determines not to proceed with the Separation, this
Guarantee shall stay in effect until the Notes have been paid in full.

           The obligations of the undersigned to the Holders of the Notes and to
the Trustee are expressly set forth in Article X to the Indenture and reference
is hereby made to the Indenture for the precise terms of the Guarantee.

Date:  July 27, 2001          USX CORPORATION

                              ____________________
                              By:
                              Title:

                                        A-9

                                 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 Issuers.  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)

                                     A-10

                       OPTION OF HOLDER TO ELECT PURCHASE

If you want to elect to have this Note purchased by the Issuers pursuant to
Section 4.11 or 4.15 of the Indenture, check the appropriate box:

                                Section 4.11 [ ]

                                Section 4.15 [ ]

If you want to elect to have only part of this Note purchased by the Issuers
pursuant to Section 4.11 or 4.15 of the Indenture, 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)

                                   A-11

                        [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:

          Amount of        Amount of        Principal Amount   Signature of
          decrease in      increase in      of this Global     authorized
          Principal        Principal        Note following     officer of
Date of   Amount of this   Amount of this   such decrease or   Trustee or Notes
Exchange  Global Note      Global Note      increase           Custodian
--------  --------------   --------------   ----------------   ----------------

                                        A-12

                                    EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

United States Steel LLC
600 Grant Street
Pittsburgh, PA  15219-4776
Attention:  Vice President - Finance and Accounting

The Bank of New York
101 Barclay Street
Floor 21 West
New York, NY  10286
Attention: Corporate Trust Trustee Administration

          Re:  10-3/4% Senior Notes due August 1, 2008

          Reference is hereby made to the Indenture, dated as of July [  ], 2001
(the  "Indenture"), among United States Steel LLC (the "Company"), United States
Steel  Financing  Corp.  ("USS Financing", and together with  the  Company,  the
"Issuers"),  USX  Corporation (the "Guarantor") and The Bank  of  New  York,  as
trustee.  Capitalized terms used but not defined herein shall have the  meanings
given to them in the Indenture.

          __________________  (the "Transferor") owns and proposes  to  transfer
the  Note[s]  or  interest in such Note[s] specified in Annex A hereto,  in  the
principal  amount of $_______ in such Note[s] or interests (the "Transfer"),  to
___________  (the  "Transferee"), as further specified in  Annex  A  hereto.  In
connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

1. [ ] Check  if Transferee will take delivery of a beneficial interest  in  the
144A  Global  Note or a Definitive Note Pursuant to Rule 144A. The  Transfer  is
being  effected  pursuant to and in accordance with Rule 144A under  the  United
States  Securities  Act  of  1933,  as  amended  (the  "Securities  Act"),  and,
accordingly,  the  Transferor  hereby  further  certifies  that  the  beneficial
interest or Definitive Note is being transferred to a Person that the Transferor
reasonably  believed  and  believes is purchasing  the  beneficial  interest  or
Definitive Note for its own account, or for one or more accounts with respect to
which such Person exercises sole investment discretion, and such Person and each
such  account  is a "qualified institutional buyer" within the meaning  of  Rule
144A in a transaction meeting the requirements of Rule 144A and such Transfer is
in  compliance with any applicable blue sky securities laws of any state of  the
United States. Upon consummation of the proposed Transfer in accordance with the
terms  of the Indenture, the transferred beneficial interest or Definitive  Note
will  be  subject  to  the restrictions on transfer enumerated  in  the  Private
Placement Legend printed on the 144A Global Note and/or the Definitive Note  and
in the Indenture and the Securities Act.

2. [ ] Check if Transferee will take delivery of a beneficial interest in the
Regulation S Global Note or a Definitive Note pursuant to Regulation S. The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
904 under the Securities Act and, accordingly, the Transferor hereby further
certifies that (i) the Transfer is not being made to a person in the United
States and (x) at the time

                                          B-1

the buy order was originated, the Transferee was
outside the United States or such Transferor and any Person acting on its behalf
reasonably believed and believes that the Transferee was outside the United
States or (y) the transaction was executed in, on or through the facilities of a
designated offshore securities market and neither such Transferor nor any Person
acting on its behalf knows that the transaction was prearranged with a buyer in
the United States, (ii) no directed selling efforts have been made in
contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S
under the Securities Act, (iii) the transaction is not part of a plan or scheme
to evade the registration requirements of the Securities Act and (iv) if the
proposed transfer is being made prior to the expiration of the Distribution
Compliance Period, the transfer is not being made to a U.S. Person or for the
account or benefit of a U.S. Person (other than an Initial Purchaser). Upon
consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on Transfer enumerated in the Private Placement
Legend printed on the Regulation S Global Note and/or the Definitive Note and in
the Indenture and the Securities Act.

3. [ ] Check and complete if Transferee will take delivery of a beneficial
interest in a Definitive Note pursuant to any provision of the Securities Act
other than Rule 144A or Regulation S.  The Transfer is being effected in
compliance with the transfer restrictions applicable to beneficial interests in
Restricted Global Notes and Restricted Definitive Notes and pursuant to and in
accordance with the Securities Act and any applicable blue sky securities laws
of any state of the United States, and accordingly the Transferor hereby further
certifies that (check one):
          (a) [ ] such Transfer is being effected pursuant to and in accordance
with Rule 144 under the Securities Act;

                              or

          (b) [ ] such Transfer is being effected to the Issuers or any of
their respective subsidiaries thereof;

                              or

          (c) [ ] such Transfer is being effected pursuant to an effective
registration statement  under  the  Securities  Act and in  compliance  with
the prospectus delivery requirements of the Securities Act.

4. [  ]Check  if  Transferee will take delivery of a beneficial interest  in  an
Unrestricted Global Note or of an Unrestricted Definitive Note.

          (a)[ ]Check if Transfer is Pursuant to Rule 144. (i)The Transfer is
being effected pursuant to and in accordance with Rule 144 under the Securities
Act and in compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any state of the United States
and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement  Legend  are  not required in order to maintain  compliance  with  the
Securities  Act.  Upon consummation of the proposed Transfer in accordance  with
the  terms  of the Indenture, the transferred beneficial interest or  Definitive
Note will no longer be subject to the restrictions on transfer enumerated in the
Private  Placement Legend printed on the Restricted Global Notes, on  Restricted
Definitive Notes and in the Indenture.

                                     B-2

          (b)[ ]Check if Transfer is Pursuant to Regulation S. (i)The Transfer
is being effected  pursuant to and in accordance with Rule 903 or Rule 904 under
the Securities Act and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any state of the
United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed Transfer
in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive  Note  will  no  longer be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the Restricted
Global Notes, on Restricted Definitive Notes and in the Indenture.

         (c)[ ]Check if Transfer is Pursuant to Other Exemption. (i) The
Transfer is being effected pursuant to and in compliance with an exemption from
the registration requirements of the Securities Act other than Rule 144, Rule
903 or Rule 904 and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any State of the
United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed Transfer
in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will not be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted
Global Notes or Restricted Definitive Notes and in the Indenture.

          This certificate and the statements contained herein are made for your
benefit and the benefit of the Issuers.

                              ______________________
                              [Insert Name of Transferor]

                              By:__________________
                                   Name:
                                   Title:
Dated: _______ __, ___

                                        B-3

                       ANNEX A TO CERTIFICATE OF TRANSFER

1.    The Transferor owns and proposes to transfer the following:

                            [CHECK ONE OF (a) OR (b)]

   (a)  [ ]   a beneficial interest in the:

           (i)  [ ]  144A Global Note (CUSIP _______), or

           (ii) [ ]  Regulation S Global Note (CUSIP _______); or

   (b)  [ ]   a Restricted Definitive Note.

2.    After the Transfer the Transferee will hold:

                                   [CHECK ONE]

   (c)  [ ]   a beneficial interest in the:

             (i)   [ ]  144A Global Note (CUSIP _______), or

             (ii)  [ ]  Regulation S Global Note (CUSIP _______), or

             (iii) [ ]  Unrestricted Global Note (CUSIP _______); or

   (d)  [ ]   a Restricted Definitive Note; or

   (e)  [ ]   an Unrestricted Definitive Note,

          in accordance with the terms of the Indenture.

                                     B-4

                                    EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

United States Steel LLC
600 Grant Street
Pittsburgh, PA  15219-4776
Attention:  Vice President - Finance and Accounting

The Bank of New York
101 Barclay Street
Floor 21 West
New York, NY  10286
Attention:  Corporate Trust Trustee Administration]

          Re:  10-3/4% Senior Notes due August 1, 2008

                           (CUSIP ____________________)

          Reference is hereby made to the Indenture, dated as of July [  ], 2001
(the  "Indenture"), among United States Steel LLC (the "Company"), United States
Steel  Financing  Corp.  ("USS Financing", and together with  the  Company,  the
"Issuers"),  USX  Corporation (the "Guarantor") and The Bank  of  New  York,  as
trustee.  Capitalized terms used but not defined herein shall have the  meanings
given to them in the Indenture.

          ________________  (the  "Owner") owns and  proposes  to  exchange  the
Note[s] or interest in such Note[s] specified herein, in the principal amount of
$________ in such Note[s] or interests (the "Exchange"). In connection with  the
Exchange, the Owner hereby certifies that:

1.    Exchange  of  Restricted  Definitive Notes or Beneficial  Interests  in  a
Restricted Global Note for Unrestricted Definitive Notes or Beneficial Interests
in an Unrestricted Global Note

 (a)[ ]Check if Exchange is from beneficial interest in a Restricted Global Note
to  beneficial interest in an Unrestricted Global Note. In connection  with  the
Exchange  of the Owner's beneficial interest in a Restricted Global Note  for  a
beneficial interest in an Unrestricted Global Note in an equal principal amount,
the Owner hereby certifies (i) the beneficial interest is being acquired for the
Owner's  own  account without transfer, (ii) such Exchange has been effected  in
compliance  with  the transfer restrictions applicable to the Global  Notes  and
pursuant to and in accordance with the United States Securities Act of 1933,  as
amended (the "Securities Act"), (iii) the restrictions on transfer contained  in
the  Indenture  and the Private Placement Legend are not required  in  order  to
maintain compliance with the Securities Act and (iv) the beneficial interest  in
an  Unrestricted Global Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

 (b)[ ]Check if Exchange is from beneficial interest in a Restricted Global Note
to  Unrestricted Definitive Note. In connection with the Exchange of the Owner's
beneficial  interest in a Restricted Global Note for an Unrestricted  Definitive
Note,  the Owner hereby certifies (i) the Definitive Note is being acquired  for
the  Owner's own account without transfer, (ii) such Exchange has been  effected
in compliance with the transfer restrictions applicable to the Restricted Global
Notes  and  pursuant  to and in accordance with the Securities  Act,  (iii)  the
restrictions  on  transfer contained in the Indenture and the Private  Placement
Legend are not required in order to maintain compliance with the

                                       C-1

Securities  Act and (iv) the Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

(c)[ ]Check if Exchange is from Restricted Definitive Note to beneficial
interest in an Unrestricted Global Note. In connection with the Owner's Exchange
of a Restricted Definitive Note for a beneficial interest in an Unrestricted
Global Note, the Owner hereby certifies (i) the beneficial interest is being
acquired for the Owner's own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

(d)[ ]Check if Exchange is from Restricted Definitive Note to Unrestricted
Definitive Note. In connection with the Owner's Exchange of a Restricted
Definitive Note for an Unrestricted Definitive Note, the Owner hereby certifies
(i) the Unrestricted Definitive Note is being acquired for the Owner's own
account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
Unrestricted Definitive Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

2.    Exchange  of  Restricted  Definitive  Notes  or  Beneficial  Interests  in
Restricted Global Notes for Restricted Definitive Notes or Beneficial  Interests
in Restricted Global Notes

 (a)[ ]Check if Exchange is from beneficial interest in a Restricted Global Note
to  Restricted Definitive Note. In connection with the Exchange of  the  Owner's
beneficial interest in a Restricted Global Note for a Restricted Definitive Note
with  an  equal principal amount, the Owner hereby certifies that the Restricted
Definitive Note is being acquired for the Owner's own account without  transfer.
Upon  consummation of the proposed Exchange in accordance with the terms of  the
Indenture, the Restricted Definitive Note issued will continue to be subject  to
the  restrictions on transfer enumerated in the Private Placement Legend printed
on the Restricted Definitive Note and in the Indenture and the Securities Act.

 (b)[ ]Check if Exchange is from Restricted Definitive Note to beneficial
interest  in  a Restricted Global Note. In connection with the Exchange  of  the
Owner's Restricted Definitive Note for a beneficial interest in the [CHECK  ONE]
144A Global Note,  Regulation S Global Note, the Owner hereby certifies (i)  the
beneficial  interest  is  being acquired for the  Owner's  own  account  without
transfer  and  (ii)  such  Exchange has been effected  in  compliance  with  the
transfer restrictions applicable to the Restricted Global Notes and pursuant  to
and in accordance with the Securities Act, and in compliance with any applicable
blue sky securities laws of any state of the United States. Upon consummation of
the  proposed  Exchange  in  accordance with the terms  of  the  Indenture,  the
beneficial  interest  issued  will be subject to the  restrictions  on  transfer
enumerated  in  the Private Placement Legend printed on the relevant  Restricted
Global Note and in the Indenture and the Securities Act.

                                          C-2

          This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                              _____________________
                              [Insert Name of Owner]

                              By:___________________
                              Name:
                              Title:

Dated:_______, ___

                                          C-3Exhibit No. 10.1
                                                              ----------------

                            STOCK PURCHASE AGREEMENT

                  This STOCK PURCHASE AGREEMENT is dated as of the 2nd day of
August, 2001 by and among Synaptic Pharmaceutical Corporation, a Delaware
corporation with its principal office at 215 College Road, Paramus, NJ 07652
(the "Company"), and each of the purchasers named in EXHIBIT A attached hereto
(each, a "Purchaser" and, collectively, the "Purchasers").

                  WHEREAS, the Company has authorized the issuance of up to
11,056 shares of its Series B Senior Convertible Preferred Stock and up to
29,944 shares of its Series C Senior Convertible Preferred Stock, which shares
are, or will be upon issuance, convertible into authorized but unissued shares
of common stock, $.01 par value per share, of the Company; and

                  WHEREAS, the Company desires to issue and sell to the
Purchasers pursuant to this Agreement, and the Purchasers, severally, desire to
purchase from the Company the number of shares of each such series of
convertible preferred stock as is set forth opposite his or its respective name
in EXHIBIT A hereto;

         NOW THEREFORE, in consideration of the mutual agreements,
representations, warranties and covenants herein contained, the parties hereto
agree as follows:

1.       Definitions.  As used in this Agreement, the following terms shall have
       the following respective meanings:

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

1.2.     "Common Stock" shall mean the common stock, $.01 par value per share,
of the Company.

1.3. "Disclosure Documents" means the Company's Annual Report on Form 10-K for
its fiscal year ended December 31, 2000, the Company's Quarterly Report on Form
10-Q for the quarter ended March 31, 2001, the Company's Proxy Statement for its
Annual Meeting of Stockholders on May 10, 2001 together in each case with any
documents incorporated by reference therein, and any disclosure schedule
delivered by the Company to the Purchasers simultaneously with the execution of
this Agreement.

1.4.     "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and all of the rules and regulations promulgated thereunder.

1.5.     "Initial Closing Date" shall mean August 3, 2001.

1.6. "Person" means an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association
or joint venture.

1.7.     "SEC" shall mean the Securities and Exchange Commission.

1.8.     "Second Closing Date" shall mean the date of the Second Closing.

1.9.     "Securities Act" shall mean the Securities Act of 1933, as amended, and
all of the rules and regulations
promulgated thereunder.

1.10. "Shares" shall mean the shares of Series B Senior Convertible Preferred
Stock, and, if the Second Closing takes place, the shares of Series C
Convertible Preferred Stock issued pursuant to this Agreement.

1.11.    "Warburg" shall refer to Warburg Pincus LLC and its Affiliates.

2.       Authorization, Purchase and Sale of Shares.

2.1. Authorization of Preferred Stock. The Company has, or on or before the
Initial Closing Date will have, authorized and created a series of its preferred
stock consisting of 11,056 shares, par value $.01 per share, designated as its
"Series B Convertible Preferred Stock" (the "Series B Preferred Stock") and a
series of its preferred stock consisting of 29,944 shares, par value $.01 per
share, designated as its "Series C Convertible Preferred Stock" (the "Series C
Preferred Stock"). The terms, limitations and relative rights and preferences of
the Series B Preferred Stock and the Series C Preferred Stock are set forth in a
Certificate of Designation, Number, Voting Powers, Preferences and Rights of the
Series B Convertible Preferred Stock and the Series C Convertible Preferred
Stock of the Company, which will have been filed on or before the Initial
Closing Date with the Secretary of State of the State of Delaware and a copy of
which is attached hereto as EXHIBIT B (the "Certificate of Designation").

2.2. Purchase and Sale. Subject to and upon the terms and conditions set forth
in this Agreement, the Company shall issue and sell to each Purchaser, and each
Purchaser, severally, shall purchase from the Company: (a) at the Initial
Closing, the total number of shares of Series B Preferred Stock set forth
opposite the name of such Purchaser under the heading "Number of Shares of
Series B Preferred to be Purchased" on EXHIBIT A hereto, at a purchase price of
$1,000 per share and (b) at the Second Closing, the total number of shares of
Series C Preferred Stock set forth opposite the name of such Purchaser under the
heading "Number of Shares of Series C Preferred to be Purchased" on EXHIBIT A
hereto, at a purchase price of $1,000 per share.

2.3. Additional Shares. At any time up to and including 5:00 PM Eastern Daylight
Time on August 7, 2001 (the "Cut-Off Date"), the Company may agree to sell to
one or more purchasers approved by the Board of Directors of the Company and
reasonably acceptable to Warburg (the "Additional Purchasers") up to the balance
of the authorized shares of Series B Preferred Stock and Series C Preferred
Stock (the "Additional Shares") in the same ratio between the two series and at
the same prices, as contemplated for the Purchasers initially named in this
Agreement. Such Agreement shall be evidenced by the execution by the Additional
Purchasers and the Company of counterpart signature pages to this Agreement and
a supplement to EXHIBIT A hereto, and upon such execution, the Additional
Purchasers shall be deemed "Purchasers" for all provisions of this Agreement and
the "Additional Shares" so sold shall be deemed "Shares" for all provisions of
this Agreement, except that the Additional Shares shall be sold only at the
Second Closing, following approval of the issuance of the Shares to be issued at
such Closing under this Agreement by the stockholders of the Company. If none
of, or less than all of, the Additional Shares are agreed to be purchased and
sold by the Cut-Off Date, then if the Second Closing occurs, at the Second
Closing, the Company shall sell to Warburg, and Warburg shall purchase, such
amount of Additional Shares as shall remain authorized and unsold, and the
Additional Shares so sold to Warburg shall be deemed "Shares" for all purposes
of this Agreement.

2.4.     Closings.

(a) The initial closing (the "Initial Closing") shall take place at the offices
of Willkie Farr & Gallagher, 787 Seventh Avenue, New York, NY 10019 on August 3,
2001. At the Initial Closing, the Company shall deliver to each Purchaser a
certificate for the number of shares of Series B Preferred Stock being purchased
by it at the Initial Closing as set forth on EXHIBIT A hereto, registered in the
name of such Purchaser, against payment to the Company of the purchase price
therefor set forth opposite the name of such Purchaser on EXHIBIT A hereto,
under the caption "Purchase Price" by wire transfer to the Company of
immediately available funds.

(b) The second closing (the "Second Closing") shall take place at the offices of
Willkie Farr & Gallagher, 787 Seventh Avenue, New York, NY 10019 on the day of
the stockholders' meeting of the Company approving the issuance of the Shares to
be issued at the Second Closing. At the Second Closing, the Company shall
deliver to each Purchaser a certificate for the number of Shares being purchased
by it at the Second Closing as set forth on EXHIBIT A hereto (as modified by
operation of the provisions of Section 2.3 hereof), against payment to the
Company of the purchase price therefor set forth opposite the name of such
Purchaser on EXHIBIT A hereto, under the caption "Purchase Price" by wire
transfer to the Company of immediately available funds. The Initial Closing and
the Second Closing are collectively referred to as the "Closings".

                  If the Initial Closing does not occur on or before August 6,
2001, this Agreement shall automatically terminate and be of no further force
and effect; provided, however, that such termination shall not release any party
from liability for any breach of this Agreement by such party that occurs prior
to such termination. The obligations of the parties to effect the transactions
to be effected at the Second Closing shall terminate if the Second Closing does
not occur on or before December 31, 2001; provided, however, that such
termination shall not release any party from liability for any breach of this
Agreement by such party that occurs prior to such termination.

3.       Representations and Warranties of the Company.  Except as set forth in
the Disclosure Documents, the Company hereby represents and warrants to each of
the Purchasers as follows:

3.1. Incorporation. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and is
qualified to do business in each jurisdiction in which the character of its
properties or the nature of its business requires such qualification, except
where the failure to so qualify would not have a material adverse effect upon
the Company. The Company has all requisite corporate power and authority to
carry on its business as now conducted. The Company has no subsidiaries.

3.2.     Capitalization.

(a) As of the date of this Agreement, the authorized capital stock of the
Company consists of 25,000,000 shares of Common Stock and 1,000,000 shares of
Preferred Stock, par value $.01 per share. As of the date of this Agreement,
there are no shares of Preferred Stock issued and outstanding. The number of
outstanding shares of Common Stock as of August 1, 2001 was 10,942,222 and the
total number of shares of Common Stock issuable pursuant to stock options
outstanding at August 1, 2001 was 1,544,593. Except for the issuance of shares
of Common Stock pursuant to the exercise of outstanding options granted pursuant
to the Company's option plans, including any such options granted after August
1, 2001, the Company has not issued any capital stock since August 1, 2001
except as described in or contemplated by the Disclosure Documents or this
Agreement. Except as set forth in or contemplated by the Disclosure Documents or
this Agreement, and except for the issuance of options to purchase shares of the
Company's Common Stock pursuant to the Company's option plans, there are no
existing options, warrants, calls, preemptive (or similar) rights, subscriptions
or other rights, agreements, arrangements or commitments of any character
obligating the Company to issue, transfer or sell, or cause to be issued,
transferred or sold, any shares of the capital stock of the Company or other
equity interests in the Company or any securities convertible into or
exchangeable for such shares of capital stock or other equity interests, and
there are no outstanding contractual obligations of the Company to repurchase,
redeem or otherwise acquire any shares of its capital stock or other equity
interests.

(b) Prior to the Initial Closing Date, the Company will have filed the
Certificate of Designation with the Secretary of State of the State of Delaware
designating 11,056 shares of its preferred stock as Series B Preferred Stock and
29,944 shares of its preferred stock as Series C Preferred Stock and, after such
filing, the Company's authorized preferred stock will include such Series B
Preferred Stock and the Series C Preferred Stock.

3.3. Authorization. All corporate action on the part of the Company, its
officers, directors and stockholders necessary for the authorization of the
Series B Preferred Stock and the Series C Preferred Stock and the filing of the
Certificate of Designation, the authorization, execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated herein has been taken. When executed and delivered by the Company,
this Agreement shall constitute the legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, except as
rights to indemnity and contribution may be limited by state or federal
securities laws or the public policy underlying such laws, and except as may be
limited by bankruptcy, insolvency, reorganization or other laws affecting
creditors' rights generally and by general equitable principles. The Company has
all requisite corporate power to enter into this Agreement and to carry out and
perform its obligations under the terms of this Agreement. The Board of
Directors of the Company has taken all action necessary to (a) render
inapplicable, as it relates to Warburg, the provisions of Section 203 of the
General Corporation Law of Delaware, and (b) waive the provisions of the Rights
Agreement, dated December 11, 1995, between the Company and Chase Mellon
Shareholder Services as Rights Agent (the "Rights Agreement"), as follows: (i)
effective as of the Initial Closing Date, so as to allow Warburg to beneficially
own, without causing Warburg to be an Acquiring Person (as defined in the Rights
Agreement), up to 17% of the Company's Common Stock calculated by dividing (x)
the number of shares of Common Stock then beneficially owned by Warburg
(assuming full conversion of the Series B Preferred Stock) by (y) the total
number of shares of Common Stock outstanding as of such date (calculated in
accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules
and Regulations under the Exchange Act (the "SEC Calculation Method")) and (ii)
effective as of the Second Closing Date, so as to allow Warburg to beneficially
own, without causing Warburg to be an Acquiring Person (as defined in the Rights
Agreement), up to 41% of the Company's Common Stock calculated by dividing (x)
the number of shares of Common Stock then beneficially owned by Warburg
(assuming full conversion of the Shares) by (y) the total number of shares of
Common Stock outstanding as of such date (calculated in accordance with the SEC
Calculation Method). At or prior to the Initial Closing, the Company will have
reserved for issuance the shares of Common Stock initially issuable upon
conversion of the Series B Preferred Stock and initially issuable upon
conversion of the Series C Preferred Stock.

3.4. Valid Issuance of the Shares. The Shares being purchased by the Purchasers
hereunder will, upon issuance pursuant to the terms hereof, be duly authorized
and validly issued, fully paid and non-assessable shares of Series B Preferred
Stock and Series C Preferred Stock, respectively, free of preemptive or similar
rights. Upon their issuance in accordance with the terms of the Series B
Preferred Stock and the Series C Preferred Stock, the shares of Common Stock
issued upon conversion of the Shares will be duly authorized, validly issued,
fully paid and non-assessable shares of Common Stock, free of all preemptive or
similar rights.

3.5. Financial Statements. The financial statements of the Company included in
the Disclosure Documents present fairly, in all material respects, the
consolidated financial condition of the Company, results of operations and cash
flows as of the dates and for the periods indicated. Such financial statements
are fairly presented, in all material respects, in accordance with generally
accepted accounting principles (except in the case of quarterly financial
statements for the absence of footnote disclosure and subject, in the case of
interim periods, to normal year-end adjustments which, individually, and in the
aggregate, will not be material). Since March 31, 2001, the Company has not
incurred any material liabilities or obligations, direct or contingent, other
than in the ordinary course of business, and there has been no material adverse
change (actual or, to the Company's knowledge, threatened) in the assets,
liabilities (contingent or other), affairs, operations or condition (financial
or other) of the Company, other than the continued incurrence of losses in the
ordinary course of business.

3.6. Absence of Litigation. Except as set forth in the Disclosure Documents,
there is no action, suit or proceeding or, to the Company's knowledge, any
investigation, pending, or to the Company's knowledge, threatened by or before
any governmental body against the Company in which an unfavorable outcome,
ruling or finding in any said matter, or for all such matters taken as a whole,
would reasonably be expected to have a material adverse effect on the Company.
The foregoing includes, without limitation, any such action, suit, proceeding or
investigation that questions this Agreement or the right of the Company to
execute, deliver and perform under same.

3.7. Intellectual Property. Except as set forth in the Disclosure Documents (i)
the Company owns or possesses sufficient rights to use all material patents,
patent rights, trademarks, copyrights, licenses, inventions, trade secrets,
trade names and know-how (collectively, "Intellectual Property") described or
referred to in the Disclosure Documents as owned or possessed by it or that are
necessary for the conduct of its business as now conducted or as proposed to be
conducted as described in the Disclosure Documents except where the failure to
currently own or possess would not have a material adverse effect on the
condition (financial or otherwise), earnings, operations or business of the
Company, and (ii) the Company, to its knowledge, is not infringing, nor has
received any notice of any asserted infringement by the Company of, any rights
of a third party with respect to any Intellectual Property that, individually or
in the aggregate, would have a material adverse effect on the financial
condition or business of the Company.

3.8. Disclosure Documents. The information contained or incorporated by
reference in the Disclosure Documents was true and correct in all material
respects as of the respective dates of the filing thereof with the SEC; and, as
of such respective dates, the Disclosure Documents did not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, except to the extent
updated or superseded by any report subsequently filed by the Company with the
SEC.

3.9. Consents. All consents, approvals, orders and authorizations required on
the part of the Company in connection with the execution, delivery or
performance of this Agreement and the consummation of the transactions
contemplated herein and therein, other than the (i) the filing of the
Certificate of Designation with the Secretary of State of the State of Delaware
and (ii) the approval by the stockholders of the Company, of the issuance of the
Shares to be issued at the Second Closing pursuant to the terms of this
Agreement, have been obtained and will be effective as of the Initial Closing
Date, other than such filings required to be made after each Closing under
applicable federal and state securities laws.

3.10. No Conflict. The execution and delivery of this Agreement by the Company
and the consummation of the transactions contemplated hereby will not conflict
with or result in any violation of or default (with or without notice or lapse
of time, or both) under, or give rise to a right of termination, cancellation or
acceleration of any obligation or to a loss of a material benefit under (i) any
provision of the Certificate of Incorporation or By-laws of the Company or (ii)
any agreement or instrument, permit, franchise, license, judgment, order,
statute, law, ordinance, rule or regulations, applicable to the Company or its
properties or assets, except, in the case of clause (ii), as would not
individually or in the aggregate have a material adverse effect on the business
or financial condition of the Company.

3.11.  Brokers or Finders.  Other than with respect to Bear Stearns & Co., Inc.,
the fees of which will be borne by the Company, the Company has not incurred,
and shall not incur, directly or indirectly, any liability for any brokerage or
finders' fees or agents commissions or any similar charges in connection with
this Agreement or any transaction contemplated hereby.

3.12. Nasdaq National Market. The Company's Common Stock is registered pursuant
to Section 12(g) of the Exchange Act and is listed on the Nasdaq National
Market, and the Company has taken no action designed to, or likely to have the
effect of, terminating the registration of the Common Stock under the Exchange
Act or de-listing the Common Stock from the Nasdaq National Market, nor has the
Company received any notification that the SEC or the National Association of
Securities Dealers, Inc. is contemplating terminating such registration or
listing.

3.13. No Manipulation of Stock. The Company has not taken and will not take, in
violation of applicable law, any action designed to or that might reasonably be
expected to cause or result in stabilization or manipulation of the price of the
Common Stock to facilitate the transactions contemplated hereby or the sale or
resale of the shares of Common Stock.

3.14. Company not an "Investment Company". The Company has been advised of the
rules and requirements under the Investment Company Act of 1940, as amended (the
"Investment Company Act"). The Company is not, and immediately after receipt of
payment for the Shares will not be, an "investment company" or an entity
"controlled" by an "investment company" within the meaning of the Investment
Company Act and shall conduct its business in a manner so that it will not
become subject to the Investment Company Act.

4.       Representations and Warranties of Each Purchaser.  Each Purchaser,
severally for itself and not jointly with the other Purchasers, represents and
warrants to the Company as follows:

4.1.     Organization.  Each Purchaser, if it is a legal entity, is duly and
validly existing under the jurisdiction of its organization.

4.2. Authorization. All action on the part of such Purchaser necessary for the
authorization, execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated herein has been taken. This
Agreement constitutes the legal, valid and binding obligation of such Purchaser,
enforceable against such Purchaser in accordance with its terms, except as such
may be limited by bankruptcy, insolvency, reorganization or other laws affecting
creditors' rights generally and by general equitable principles. Such Purchaser
has all requisite power to enter into this Agreement and to carry out and
perform its obligations under the terms of this Agreement.

4.3. Purchase Entirely for Own Account, Etc. Such Purchaser is acquiring the
Shares for its own account, and not with a view to, or for sale in connection
with, any distribution of the Shares in violation of the Securities Act. Except
as contemplated by this Agreement, such Purchaser has no present agreement,
undertaking, arrangement, obligation or commitment providing for the disposition
of the Shares. Such Purchaser, if it is a legal entity, has not been organized,
reorganized or recapitalized specifically for the purpose of investing in the
Shares or any shares of Common Stock issuable upon conversion of the Shares.

4.4. Investor Status; Etc. Such Purchaser certifies and represents to the
Company that at the time such Purchaser acquires any of the Shares, such
Purchaser will be an "accredited investor" as defined in Rule 501 of Regulation
D promulgated under the Securities Act. Such Purchaser's financial condition is
such that it is able to bear the risk of holding the Shares for an indefinite
period of time and the risk of loss of its entire investment. Such Purchaser has
been afforded the opportunity to ask questions of and receive answers from the
management of the Company concerning this investment and has sufficient
knowledge and experience in investing in companies similar to the Company in
terms of the Company's stage of development so as to be able to evaluate the
risks and merits of its investment in the Company.

4.5. Shares Not Registered. Such Purchaser understands that the Shares (and any
shares of Common Stock issuable upon conversion of the Shares) have not been
registered under the Securities Act, by reason of their issuance by the Company
in a transaction exempt from the registration requirements of the Securities
Act, and that the Shares (and any shares of Common Stock issuable upon
conversion of the Shares) must continue to be held by such Purchaser unless a
subsequent disposition thereof is registered under the Securities Act or is
exempt from such registration. Such Purchaser understands that the exemptions
from registration afforded by Rule 144 (the provisions of which are known to it)
promulgated under the Securities Act depend on the satisfaction of various
conditions, and that, if applicable, Rule 144 may afford the basis for sales
only in limited amounts.

4.6. No Conflict. The execution and delivery of this Agreement by such Purchaser
and the consummation of the transactions contemplated hereby will not conflict
with or result in any violation of or default by such Purchaser (with or without
notice or lapse of time, or both) under, or give rise to a right of termination,
cancellation or acceleration of any obligation or to a loss of a material
benefit under (i) any provision of the organizational documents of such
Purchaser or (ii) any agreement or instrument, permit, franchise, license,
judgment, order, statute, law, ordinance, rule or regulations, applicable to
such Purchaser or its respective properties or assets.

4.7.     Brokers.  Such Purchaser has not retained, utilized or been represented
by any broker or finder in connection with the transactions contemplated by this
Agreement.

4.8.     Consents.  All consents, approvals, orders and authorizations required
on the part of such Purchaser in connection with the execution, delivery or
performance of this Agreement and the consummation of the transactions
contemplated herein have been obtained and will be effective as of the Closing
Date.

5.       Covenants.

5.1.     Board Nominees.

(a) The Company will use its best efforts to cause the Board of Directors to
nominate and recommend the election by the Company's stockholders and use its
best efforts to effect the election as directors of (a) two (2) individuals
designated by Warburg, for so long as Warburg owns beneficially (within the
meaning of Rule 13d-3 under the Exchange Act) at least 75% of the shares of
Common Stock issued to Warburg pursuant to this Agreement (including as owned
and outstanding for this purpose shares of Common Stock issuable upon conversion
of the Shares) and (b) one (1) individual designated by Warburg, for so long as
Warburg owns beneficially (within the meaning of such Rule 13d-3) at least 25%
of the shares of Common Stock issued to Warburg pursuant to this Agreement
(including as owned and outstanding for this purpose shares of Common Stock
issuable upon conversion of the Shares). Any director elected by the holders of
the Series B Preferred Stock shall be deemed to be a director satisfying the
requirements of this Section 5.1. Any vacancy created by the death, disability,
retirement or removal of such individual shall be filled by an individual
similarly designated by Warburg and acceptable to the Company's Board of
Directors acting in good faith.

(b) Warburg hereby designates Messrs. Jonathan Leff and Stewart Hen as the
initial directors to be elected by the holders of the Series B Preferred Stock
to commence their term immediately upon the Initial Closing.

(c) Prior to the Initial Closing, the Bylaws of the Company shall have been
amended to provide for a Board of Directors consisting of nine members. Promptly
following the Initial Closing, Warburg and the Company shall agree upon and
designate a mutually acceptable candidate for election as such additional member
of the Board of Directors, whereupon the Company shall use its best efforts to
cause its Board of Directors to fill the vacancy on the Board created by its
expansion to nine members with the individual so designated, and thereafter to
use its best efforts to cause its Board of Directors to nominate and recommend
to the stockholders of the Company the election of such individual (or such
other individual as the Company and Warburg shall thereafter agree from time to
time) for so long as Warburg shall continue to be represented on the Board of
Directors by at least one member of the Board.

5.2. Covenant Pending Each Closing. Between the date of this Agreement and the
date of each Closing, the Company will promptly advise each Purchaser of any
action or event of which it becomes aware which has the effect of making
incorrect, in any material respect, any of the Company's representations or
warranties or which has the effect of rendering any of the Company's covenants
incapable of performance.

5.3. Best Efforts. The Company shall use its best efforts to (a) prepare and
file with the SEC, promptly after the date hereof, preliminary proxy materials
with respect to a meeting of the stockholders for the purpose of approving the
issuance of Shares to be issued at the Second Closing as contemplated by this
Agreement. Promptly after comments are received from the SEC with respect to the
preliminary proxy materials and after the furnishing by the Company of all
information required to be contained therein, the Company shall file with the
SEC the definitive proxy statement and (b) acting through its Board of
Directors, (i) call a special meeting of the holders of the Company's Common
Stock for the purpose of voting upon the approval of the issuance of Shares to
be issued at the Second Closing as contemplated by this Agreement and (ii)
include in the proxy statement the recommendation of its Board of Directors that
holders of the Company's Common Stock approve such issuance as contemplated by
this Agreement.

5.4.     Subscription Right.

(a) If at any time after the date hereof and prior to the fifth anniversary of
the date hereof, or, if earlier, the date on which there shall no longer remain
outstanding at least 25% of the Shares (or if the Second Closing does not take
place, the shares of Series B Preferred Stock issued at the Initial Closing),
the Company proposes to issue equity securities of any kind (the term "equity
securities" shall include for these purposes any warrants, options or other
rights to acquire equity securities and debt securities convertible into equity
securities) of the Company, other than (i) shares of Common Stock issuable upon
conversion of the Series B Preferred Stock or the Series C Preferred Stock, (ii)
to the public in a firm commitment underwriting pursuant to a registration
statement filed under the Securities Act with anticipated gross proceeds to the
Company of at least $20 million, or (iii) issued in connection with bona fide
acquisitions, mergers, joint ventures or similar transactions, the terms of
which are approved by the Company's Board of Directors, or (iv) pursuant to any
stock option, stock purchase or similar plan or arrangement for the benefit of
the employees of the Company or its subsidiaries, adopted by the Board of
Directors, then, as to each Purchaser, the Company shall:

(i) give written notice to such Purchaser (no less than ten (10) days prior to
the closing of such issuance) setting forth in reasonable detail (A) the
designation and all of the terms and provisions of the securities proposed to be
issued (the "Proposed Securities"), including, where applicable, the voting
powers, preferences and relative participating, optional or other special
rights, and the qualification, limitations or restrictions thereof and interest
rate and maturity; (B) the price and other terms of the proposed sale of such
securities; (C) the amount of such securities proposed to be issued; and (D)
such other information as such Purchaser may reasonably request in order to
evaluate the proposed issuance; and

(ii) offer to issue and sell to such Purchaser, on such terms as the Proposed
Securities are issued, upon full payment by such Purchaser, a portion of the
Proposed Securities equal to a percentage determined by dividing (A) the number
of shares of Common Stock issued or issuable upon conversion of the Shares then
held by such Purchaser, assuming conversion in full of the Shares, by (B) the
total number of shares of Common Stock then outstanding, including for purposes
of this calculation all shares of Common Stock issuable upon conversion or
exercise in full of any convertible or exercisable securities (other than
employee stock options) then outstanding (including shares of Common Stock
issuable upon conversion of convertible securities or issuable upon exercise of
outstanding warrants).

(b) Each Purchaser must exercise its purchase rights hereunder within ten (10)
days after receipt of such notice from the Company. To the extent that the
Company offers two or more securities in units, each Purchaser must purchase
such units as a whole and will not be given the opportunity to purchase only one
of the securities making up such unit. The closing of the exercise of such
subscription right shall take place simultaneously with the closing of the sale
of the Proposed Securities giving rise to such subscription right.

(c) Upon the expiration of the 10-day offering period described above, the
Company will be free to sell such Proposed Securities that the Purchasers have
not elected to purchase during the ninety (90) days following such expiration on
terms and conditions no more favorable to the purchasers thereof than those
offered to such holders. Any Proposed Securities offered or sold by the Company
after such 90 day period must be reoffered to the Purchasers pursuant to this
Section 5.4.

(d) The election by any Purchaser not to exercise its subscription rights under
this Section 5.4 in any one instance shall not affect its right (other than in
respect of a reduction in its percentage holdings) as to any subsequent proposed
issuance. Any sale of such securities by the Company without first giving each
Purchaser the rights described in this Section 5.4 shall be void and of no force
and effect.

5.5. "Market Stand-off" Agreement. Each Purchaser agrees, severally and not
jointly, if requested by the Company and the managing underwriter of equity
securities of the Company, not to offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, any shares of Common Stock or
securities convertible into or exchangeable or exercisable for any such shares
(such shares of Common Stock and other securities collectively, the
"Securities"), enter into a transaction which would have the same effect, or
enter into any swap, hedge or other arrangement that transfers, in whole or in
part, any of the economic consequences of ownership of the Securities, whether
any such aforementioned transaction is to be settled by delivery of the
Securities, in cash or otherwise, or publicly disclose the intention to make any
such offer, sale, pledge or disposition, or to enter into any such transaction,
swap, hedge or other arrangement, during the period commencing with the filing
of a registration statement containing a preliminary prospectus identifying such
managing underwriter and extending for a period not to exceed 180 days following
the closing of such underwritten offering, or in the case of a Rule 144A
transaction commencing upon the circulation to qualified institutional buyers of
a preliminary offering memorandum and extending for a period not to exceed 180
days following the consummation of the offering contemplated by such offering
memorandum, in each case without the prior written consent of such managing
underwriter, provided that all officers and directors of the Company and each
beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of
five percent (5%) or more of the Company's then outstanding Common Stock enter
into similar agreements.

6.       Conditions Precedent.

6.1. Conditions to the Obligation of the Purchasers to Consummate each Closing.
The several obligations of each Purchaser to consummate the transactions to be
consummated at a Closing and to purchase and pay for the Shares being purchased
by it at such Closing pursuant to this Agreement are subject to the satisfaction
of the following conditions precedent:

(a) The representations and warranties contained herein of the Company shall be
true and correct on and as of the respective Closing Date with the same force
and effect as though made on and as of the respective Closing Date (it being
understood and agreed by each Purchaser that, in the case of any representation
and warranty of the Company contained herein (i) which is not hereinabove
qualified by application thereto of a materiality standard, such representation
and warranty need be true and correct only in all material respects in order to
satisfy as to such representation or warranty the condition precedent set forth
in the foregoing provisions of this Section 6.1 (a) or (ii) which is made as of
a specific date, such representation and warranty need be true and correct only
as of such specific date in order to satisfy as to such representation and
warranty the condition precedent set forth in the foregoing provisions of this
Section 6.1(a)).

(b) The Company shall have performed in all material respects all obligations
and conditions herein required to be performed or observed by the Company on or
prior to the respective Closing Date.

(c) Each Purchaser shall have received a certificate, dated the respective
Closing Date, signed by each of the President and the Chief Financial Officer of
the Company, certifying on behalf of the Company, that the conditions specified
in the foregoing Sections 6.1(a) and (b) have been fulfilled.

(d) The purchase of and payment for the Shares by each Purchaser shall not be
prohibited or enjoined by any law or governmental or court order or regulation.

(e)      Each Purchaser shall have received from the Company's counsel, Baker
Botts L.L.P., an opinion substantially in the form of EXHIBIT C hereto
applicable to such Closing.

(f) The Certificate of Designation shall have been filed by the Company with the
Secretary of State of the State of Delaware.

6.2. Conditions to the Obligation of the Company to Consummate each Closing. The
obligation of the Company to consummate the transactions to be consummated at a
Closing and to issue and sell to each Purchaser the Shares to be purchased by it
at the respective Closing pursuant to this Agreement is subject to the
satisfaction of the following conditions precedent:

(a) The representations and warranties contained herein of such Purchaser shall
be true and correct on and as of the respective Closing Date with the same force
and effect as though made on and as of such Closing Date (it being understood
and agreed by the Company that, in the case of any representation and warranty
of such Purchaser contained herein which is not hereinabove qualified by
application thereto of a materiality standard, such representation and warranty
need be true and correct only in all material respects in order to satisfy as to
such representation or warranty the condition precedent set forth in the
foregoing provisions of this Section 6.2(a)).

(b) Such Purchaser shall have performed in all material respects all obligations
and conditions herein required to be performed or observed by such Purchaser on
or prior to the respective Closing Date.

(c)      The sale of the Shares by the Company shall not be prohibited or
enjoined by any law or governmental or court order or regulation.

(d) The Certificate of Designation shall have been filed by the Company with the
Secretary of State of the State of Delaware.

                  Each Purchaser's obligations under this Section 6.2 shall be
several and independent from the obligations of each other Purchaser; and the
failure by any Purchaser to fulfill or comply with any of the conditions set
forth in this Section 6.2. shall not affect the obligations of the Company to
any other Purchaser to consummate the transactions contemplated by this
Agreement.

6.3. Conditions to the Obligation of Each Purchaser and the Company to
Consummate the Second Closing. The obligations of each Purchaser and the Company
to consummate the transactions to be consummated at the Second Closing shall be
subject to the additional condition precedent that the Company's stockholders
shall have approved the issuance of the Shares to be sold at the Second Closing
pursuant to the terms of this Agreement.

7.       Registration of the Shares; Compliance with the Securities Act.

7.1. Securities Law Transfer Restrictions. No Purchaser shall sell, assign,
pledge, transfer or otherwise dispose or encumber any of the Shares being
purchased by it hereunder or any shares of Common Stock issuable upon conversion
of the Shares, except (i) pursuant to an effective registration statement under
the Securities Act or (ii) pursuant to an available exemption from registration
under the Securities Act and applicable state securities laws and, if requested
by the Company, upon delivery by such Purchaser of an opinion of counsel
reasonably satisfactory to the Company to the effect that the proposed transfer
is exempt from registration under the Securities Act and applicable state
securities laws. Any transfer or purported transfer of the Shares or underlying
shares of Common Stock in violation of this Section 7.1 shall be voidable by the
Company. The Company shall not register any transfer of the Shares or underlying
shares of Common Stock in violation of this Section 7.1. The Company may, and
may instruct any transfer agent for the Company, to place such stop transfer
orders as may be required on the transfer books of the Company in order to
ensure compliance with the provisions of this Section 7.1.

7.2. Legends. Each certificate representing any of the Shares, and each
certificate representing any shares of Common Stock issuable upon conversion of
the Shares, shall be endorsed with the legends set forth below, and each
Purchaser covenants that, except to the extent such restrictions are waived by
the Company, it shall not transfer the shares represented by any such
certificate without complying with the restrictions on transfer described in
this Agreement and the legends endorsed on such certificate:

 "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED
TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION
UNDER SAID ACT AND, IF REQUESTED BY THE COMPANY, UPON DELIVERY OF AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT THE PROPOSED TRANSFER IS
EXEMPT FROM SAID ACT."

7.3.     Registration Procedures and Other Matters.  The Company shall:

(a) subject to receipt of necessary information from each Purchaser for
inclusion in such filing, prepare and file with the SEC, within 10 days after
the Second Closing Date, or, in case the Company's stockholders do not approve
sale of Shares at the Second Closing, 10 days following the stockholder meeting
at which such action was taken), or, if no such meeting is held prior to
December 31, 2001, within 10 days after such date, a registration statement (the
"Registration Statement") to enable the resale of the Common Stock issued or
issuable upon conversion of the Shares (the "Registrable Securities") by each
Purchaser, or the Holders (defined in Section 7.4 below), from time to time, in
compliance with the Securities Act;

(b) use its reasonable best efforts to cause the Registration Statement to
become effective within 60 days after the Registration Statement is filed by the
Company such efforts to include, without limiting the generality of the
foregoing, preparing and filing with the SEC in such 60-day period any financial
statements that are required to be filed prior to the effectiveness of such
Registration Statement;

(c) use its reasonable best efforts to prepare and file with the SEC such
amendments and supplements to the Registration Statement and the Prospectus used
in connection therewith as may be necessary to keep the Registration Statement
current, effective and free from any material misstatement or omission to state
a material fact for a period not exceeding, with respect to each Holder's
Registrable Securities, the earlier of (i) the second anniversary of the date of
the effectiveness of the Registration Statement, (ii) the date on which each
Holder may sell all Registrable Securities then held by such Holder without
restriction by the volume limitations of Rule 144(e) of the Securities Act, or
(iii) such time as all Registrable Securities purchased by such Holder have been
sold pursuant to a registration statement or are otherwise freely tradeable;

(d) furnish to each Holder with respect to the Registrable Securities registered
under the Registration Statement such number of copies of the Registration
Statement, Prospectuses and Preliminary Prospectuses in conformity with the
requirements of the Securities Act and such other documents as such Holder may
reasonably request, in order to facilitate the public sale or other disposition
of all or any of the Registrable Securities by such Holder; provided, however,
that the obligation of the Company to deliver copies of Prospectuses or
Preliminary Prospectuses to such Holder shall be subject to the receipt by the
Company of reasonable assurances from such Holder that such Holder will comply
with the applicable provisions of the Securities Act and of such other
securities or blue sky laws as may be applicable in connection with any use of
such Prospectuses or Preliminary Prospectuses;

(e) file documents required of the Company for normal blue sky clearance in
states specified in writing by each Holder and use its reasonable best efforts
to maintain such blue sky qualifications during the period the Company is
required to maintain the effectiveness of the Registration Statement pursuant to
Section 7.3(c); provided, however, that the Company shall not be required to
qualify to do business or consent to service of process in any jurisdiction in
which it is not now so qualified or has not so consented;

(f) bear all expenses in connection with the procedures in paragraph (a) through
(f) of this Section 7.3 and the registration of the Registrable Securities
pursuant to the Registration Statement (provided that the Holders shall bear the
cost of all underwriting discounts and selling commissions and similar fees
applicable to the sale of Registrable Securities and all fees and expenses of
legal counsel for any Holder and all transfer taxes); and

(g) advise each Holder, promptly after it shall receive notice or obtain
knowledge of the issuance of any stop order by the SEC delaying or suspending
the effectiveness of the Registration Statement or of the initiation or threat
of any proceeding for that purpose; and it will promptly use its reasonable best
efforts to prevent the issuance of any stop order or to obtain its withdrawal at
the earliest possible moment if such stop order should be issued.

                  Notwithstanding anything to the contrary herein, the
Registration Statement shall cover only the Registrable Securities. In no event
at any time before the Registration Statement becomes effective with respect to
the Registrable Securities shall the Company publicly announce or file any other
registration statement, other than registration statements on Form S-8, without
the prior written consent of a majority in interest of the Holders.

                  The Company understands that the Holders disclaim being
underwriters, but any Holder being deemed an underwriter by the SEC shall not
relieve the Company of any obligations it has hereunder; provided, however that
if the Company receives notification from the SEC that any Holder is deemed an
underwriter, then the period by which the Company is obligated to submit an
acceleration request to the SEC shall be extended to the earlier of (i) the 90th
day after such SEC notification, or (ii) 120 days after the initial filing of
the Registration Statement with the SEC.

7.4.     Transfer of Registrable Securities; Suspension.

(a) Each Purchaser agrees that in case of any disposition of its shares of
Series B Preferred Stock or Series C Preferred Stock to a third party who agrees
to be bound, by the provisions of this Section 7 and makes the representations
to the Company contained in Section 4 hereof (in each case the "Transferee", and
together with the Purchasers, the "Holders"), such Purchaser will promptly
notify the Company of any changes in the information set forth in the
Registration Statement regarding the Holders or their plans of distribution. The
Company agrees, in case of such sale or transfer (to the extent made in
accordance with Section 7.1), to promptly file one or more post-effective
amendments to the Registration Statement or a supplement to the related
Prospectus, naming each Transferee as a Selling Shareholder in accordance with
the provisions of the Securities Act.

(b) Except in the event that paragraph (c) below applies, the Company shall (i)
prepare and file from time to time with the SEC a post-effective amendment to
the Registration Statement or a supplement to the related Prospectus or a
supplement or amendment to any document incorporated therein by reference or
file any other required document so that such Registration Statement will not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and so that, as thereafter delivered to the purchasers of
Registrable Securities being sold thereunder, such Prospectus will not contain
an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading; (ii) provide each
Holder copies of any documents filed pursuant to Section 7.4(b)(i); and (iii)
inform each Holder that the Company has complied with its obligations in Section
7.4(b)(i) (or that, if the Company has filed a post-effective amendment to the
Registration Statement which has not yet been declared effective, the Company
will notify each Holder to that effect, will use its reasonable best efforts to
secure the effectiveness of such post-effective amendment as promptly as
possible and will promptly notify each Holder pursuant to Section 7.4(b)(i)
hereof when the amendment has become effective).

(c) Subject to paragraph (d) below, in the event (i) of any request by the SEC
or any other federal or state governmental authority during the period of
effectiveness of the Registration Statement for amendments or supplements to a
Registration Statement or related Prospectus or for additional information; (ii)
of the issuance by the SEC or any other federal or state governmental authority
of any stop order suspending the effectiveness of a Registration Statement or
the initiation of any proceedings for that purpose; (iii) of the receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; (iv) of any event or circumstance which, upon the advice of its
counsel, necessitates the making of any changes in the Registration Statement or
Prospectus, or any document incorporated or deemed to be incorporated therein by
reference, so that, in the case of the Registration Statement, it will not
contain any untrue statement of a material fact or any omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the Prospectus, it will not
contain any untrue statement of a material fact or any omission to state a
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; or (v) the Company determines in good faith that offers and sales
pursuant to the Registration Statement should not be made by reason of the
presence of material undisclosed circumstances or developments with respect to
which the disclosure that would be required in such a Registration Statement or
related Prospectus is premature, would have an adverse effect on the Company or
is otherwise inadvisable, then the Company shall deliver a certificate in
writing to each Holder (the "Suspension Notice") to the effect of the foregoing
and, upon receipt of such Suspension Notice, such Holder will refrain from
selling any Registrable Securities pursuant to the Registration Statement (a
"Suspension") until such Holder's receipt of copies of a supplemented or amended
Prospectus prepared and filed by the Company, or until it is advised in writing
by the Company that the current Prospectus may be used, and has received copies
of any additional or supplemental filings that are incorporated or deemed
incorporated by reference in any such Prospectus. In the event of any
Suspension, the Company will use its reasonable best efforts to cause the use of
the Prospectus so suspended to be resumed as soon as reasonably practicable
after the delivery of a Suspension Notice to each Holder. In addition to and
without limiting any other remedies (including, without limitation, at law or at
equity) available to such Holder, such Holder shall be entitled to specific
performance in the event that the Company fails to comply with the provisions of
this Section 7.4(c).

(d) Notwithstanding the foregoing paragraphs of this Section 7.4, no Holder
shall be prohibited from selling Registrable Securities under the Registration
Statement as a result of Suspensions on more than two occasions of not more than
45 days each in any twelve month period, unless, in the good faith judgment of
the Company's Board of Directors, upon the written opinion of counsel, the sale
of Registrable Securities under the Registration Statement in reliance on this
paragraph 7.4(d) would be reasonably likely to cause a violation of the
Securities Act or the Exchange Act and result in liability to the Company.

(e) Provided that a Suspension is not then in effect, each Holder may sell
Registrable Securities under the Registration Statement, provided that it
arranges for delivery of a current Prospectus to the transferee of such
Registrable Securities. Upon receipt of a request therefor, the Company will
provide an adequate number of current Prospectuses to such Holder and to supply
copies to any other parties requiring such Prospectuses. Each Holder agrees not
to take any action with respect to any distribution deemed to be made pursuant
to such Registration Statement that constitutes a violation of Regulation M
under the Exchange Act or any other applicable rule, regulation or law.

(f) Each Holder acknowledges and agrees that the Registrable Securities sold
pursuant to the Registration Statement are not transferable on the books of the
Company unless the stock certificate submitted to the transfer agent evidencing
such Registrable Securities is accompanied by a certificate reasonably
satisfactory to the Company to the effect that (i) the Registrable Securities
have been sold in accordance with such registration statement and (ii) the
requirement of delivering a current prospectus has been satisfied.

(g) In the event of a sale of Registrable Securities by any Holder pursuant to
the Registration Statement, such Holder shall deliver to the Company's transfer
agent an appropriate notification of the sale, so that the shares of Common
Stock may be properly transferred.

7.5.     Company Registration.

(a) If the Company shall determine to register any of its equity securities
either for its own account or for the account of other stockholders, other than
a registration relating solely to employee benefit plans, or a registration
relating solely to a Commission Rule 145 transaction, or a registration on any
registration form which does not permit secondary sales or does not include
substantially the same information as would be required to be included in a
registration statement covering the sale of Registrable Securities, the Company
will:

(i) promptly give to each of the Holders a written notice thereof (which shall
include a list of the jurisdictions in which the Company intends to attempt to
qualify such securities under the applicable blue sky or other state securities
laws); and

(ii) if so requested by the Holders of at least 51% or more of the Registrable
Securities, include in such registration (and any related qualification under
blue sky laws or other compliance), and in any underwriting involved therein,
all the Registrable Securities specified in a written request or requests, made
by the Holders within fifteen (15) days after receipt of the written notice from
the Company described in clause (i) above, except as set forth in Section 7.5(b)
below. Such written request may specify all or a part of the Holders'
Registrable Securities. In the event any Holder requests inclusion in a
registration pursuant to this Section 7.5 in connection with a distribution of
Registrable Securities to its partners, the registration shall provide for the
resale by such partners, if requested by such Holder.

(b) Underwriting. If the registration of which the Company gives notice is for a
registered public offering involving an underwriting, the Company shall so
advise each of the Holders as a part of the written notice given pursuant to
Section 7.5(a)(i). In such event, the right of each of the Holders to
registration pursuant to this Section 7.5 shall be conditioned upon such
Holders' participation in such underwriting and the inclusion of such Holders'
Registrable Securities in the underwriting to the extent provided herein. The
Holders whose shares are to be included in such registration shall (together
with the Company and the other stockholders distributing their securities
through such underwriting) enter into an underwriting agreement in customary
form with the representative of the underwriter or underwriters selected for
underwriting by the Company. Notwithstanding any other provision of this Section
7.5, if the representative determines that marketing factors require a
limitation on the number of shares to be underwritten, the representative may
limit the number of Registrable Securities to be included in the registration
and underwriting. The Company shall so advise all holders of securities
requesting registration, and the number of shares of securities that are
entitled to be included in the registration and underwriting shall be allocated
in the following manner: The securities of the Company held by officers,
directors and other stockholders of the Company (other than Registrable
Securities and other than securities held by holders who by contractual right
demanded such registration ("Demanding Holders")) shall be excluded from such
registration and underwriting to the extent required by such limitation, and, if
a limitation on the number of shares is still required, the number of shares
that may be included in the registration and underwriting by each of the Holders
and Demanding Holders shall be reduced, on a pro rata basis (based on the number
of shares held by such Holder), by such minimum number of shares as is necessary
to comply with such limitation. If any of the Holders or any officer, director
or other stockholder disapproves of the terms of any such underwriting, he may
elect to withdraw therefrom by written notice to the Company and the
underwriter. Any Registrable Securities or other securities excluded or
withdrawn from such underwriting shall be withdrawn from such registration.

7.6.     Indemnification.

(a)      For the purpose of this Section 7.6:

(i)      the term "Selling Stockholder" shall include each Holder and any
Affiliate of such Holder;

(ii) the term "Registration Statement" shall include the Prospectus in the form
first filed with the SEC pursuant to Rule 424(b) of the Securities Act or filed
as part of the Registration Statement at the time of effectiveness if no Rule
424(b) filing is required, exhibit, supplement or amendment included in or
relating to the Registration Statement referred to in Section 7.1; and

(iii) the term "untrue statement" shall include any untrue statement or alleged
untrue statement, or any omission or alleged omission to state in the
Registration Statement a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

(b) The Company agrees to indemnify and hold harmless each Selling Stockholder
and its officers, directors or partners and each underwriter of Registrable
Securities, if any, and each person who controls any such underwriter from and
against any losses, claims, damages or liabilities to which such Person may
become subject (under the Securities Act or otherwise) and each person who
controls any such underwriter, insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of, or are
based upon (i) any untrue statement of a material fact contained in the
Registration Statement as amended at the time of effectiveness or any omission
of a material fact required to be stated therein or necessary to make the
statements therein not misleading, or (ii) any failure by the Company to fulfill
any undertaking included in the Registration Statement as amended at the time of
effectiveness, and the Company will reimburse such Selling Stockholder for any
reasonable legal or other expenses reasonably incurred in investigating,
defending or preparing to defend any such action, proceeding or claim, or
preparing to defend any such action, proceeding or claim, provided, however,
that the Company shall not be liable in any such case to the extent that such
loss, claim, damage or liability arises out of, or is based upon, an untrue
statement made in such Registration Statement or any omission of a material fact
required to be stated therein or necessary to make the statements therein not
misleading in reliance upon and in conformity with written information furnished
to the Company by or on behalf of such Selling Stockholder specifically for use
in preparation of the Registration Statement or the failure of such Selling
Stockholder to comply with its covenants and agreements contained in Section 7.4
hereof respecting sale of the Registrable Securities or any statement or
omission in any Prospectus that is corrected in any subsequent Prospectus that
was delivered to the Selling Stockholder prior to the pertinent sale or sales by
the Selling Stockholder. The Company shall reimburse each Selling Stockholder
for the amounts provided for herein on demand as such expenses are incurred.

(c) Each Selling Stockholder, severally, agrees to indemnify and hold harmless
the Company (and each Person, if any, who controls the Company within the
meaning of Section 15 of the Securities Act, each officer of the Company who
signs the Registration Statement and each director of the Company) from and
against any losses, claims, damages or liabilities to which the Company (or any
such officer, director or controlling person) may become subject (under the
Securities Act or otherwise), insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of, or are
based upon, (i) any failure to comply with the covenants and agreements
contained in Section 7.4 hereof respecting the sale of the Registrable
Securities, or (ii) any untrue statement of a material fact contained in the
Registration Statement or any omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading if such
untrue statement or omission was made in reliance upon and in conformity with
written information furnished by or on behalf of any Selling Stockholder
specifically for use in preparation of the Registration Statement, and each
Selling Stockholder, severally, will reimburse the Company (or such officer,
director or controlling person), as the case may be, for any legal or other
expenses reasonably incurred in investigating, defending or preparing to defend
any such action, proceeding or claim; provided that obligation of each Selling
Stockholder to indemnify the Company shall be limited to the net amount received
by such Selling Stockholder from the sale of its Registrable Securities, except
in the event of fraud by such Selling Stockholder.

(d) Promptly after receipt by any indemnified person of a notice of a claim or
the beginning of any action in respect of which indemnity is to be sought
against an indemnifying person pursuant to this Section 7.6, such indemnified
person shall notify the indemnifying person in writing of such claim or of the
commencement of such action, but the omission to so notify the indemnifying
person will not relieve it from any liability which it may have to any
indemnified person under this Section 7.6 (except to the extent that such
omission materially and adversely affects the indemnifying person's ability to
defend such action) or from any liability otherwise than under this Section 7.6.
Subject to the provisions hereinafter stated, in case any such action shall be
brought against an indemnified person, the indemnifying person shall be entitled
to participate therein, and, to the extent that it shall elect by written notice
delivered to the indemnified person promptly after receiving the aforesaid
notice from such indemnified person, shall be entitled to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified person. After
notice from the indemnifying person to such indemnified person of its election
to assume the defense thereof, such indemnifying person shall not be liable to
such indemnified person for any legal expenses subsequently incurred by such
indemnified person in connection with the defense thereof, provided, however,
that if there exists or shall exist a conflict of interest that would make it
inappropriate, in the opinion of counsel to the indemnified person, for the same
counsel to represent both the indemnified person and such indemnifying person or
any affiliate or associate thereof, the indemnified person shall be entitled to
retain its own counsel at the expense of such indemnifying person; provided,
however, that no indemnifying person shall be responsible for the fees and
expenses of more than one separate counsel (together with appropriate local
counsel) for all indemnified parties. In no event shall any indemnifying person
be liable in respect of any amounts paid in settlement of any action unless the
indemnifying person shall have approved the terms of such settlement; provided
that such consent shall not be unreasonably withheld. No indemnifying person
shall, without the prior written consent of the indemnified person, effect any
settlement of any pending or threatened proceeding in respect of which any
indemnified person is or could have been a party and indemnification could have
been sought hereunder by such indemnified person, unless such settlement
includes an unconditional release of such indemnified person from all liability
on claims that are the subject matter of such proceeding.

(e) If the indemnification provided for in this Section 7.6 is unavailable to or
insufficient to hold harmless an indemnified person under subsection (a) or (b)
above in respect of any losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) referred to therein, then each indemnifying
person shall contribute to the amount paid or payable by such indemnified person
as a result of such losses, claims, damages or liabilities (or actions in
respect thereof) in such proportion as is appropriate to reflect the relative
fault of the Company on the one hand and any Purchaser, as well as any other
Selling Shareholders under such registration statement on the other in
connection with the statements or omissions or other matters which resulted in
such losses, claims, damages or liabilities (or actions in respect thereof), as
well as any other relevant equitable considerations. The relative fault shall be
determined by reference to, among other things, in the case of an untrue
statement, whether the untrue statement relates to information supplied by the
Company on the one hand or any Purchaser or other Selling Shareholder on the
other and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such untrue statement. The Company and each
Purchaser agree that it would not be just and equitable if contribution pursuant
to this subsection (e) were determined by pro rata allocation (even if the
Purchasers and other Selling Shareholders were treated as one entity for such
purpose) or by any other method of allocation which does not take into account
the equitable considerations referred to above in this subsection (e). The
amount paid or payable by an indemnified person as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above
in this subsection (e) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified person in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this
subsection (e), no Selling Stockholder shall be required to contribute any
amount in excess of the amount by which the net amount received by such Selling
Stockholder from the sale of the Registrable Securities to which such loss
relates exceeds the amount of any damages which such Selling Stockholder has
otherwise been required to pay by reason of such untrue statement (except in the
event of fraud by such Selling Stockholder). No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Selling Stockholder's obligations in this
subsection to contribute shall be in proportion to the respective sale of
Registrable Securities of such Selling Stockholder to which such loss relates
and shall not be joint with any other Selling Shareholders.

(f) The parties to this Agreement hereby acknowledge that they are sophisticated
business persons who were represented by counsel during the negotiations
regarding the provisions hereof including, without limitation, the provisions of
this Section 7.6, and are fully informed regarding said provisions. They further
acknowledge that the provisions of this Section 7.6 fairly allocate the risks in
light of the ability of the parties to investigate the Company and its business
in order to assure that adequate disclosure is made in the Registration
Statement as required by the Securities Act and the Exchange Act. The parties
are advised that federal or state public policy as interpreted by the courts in
certain jurisdictions may be contrary to certain of the provisions of this
Section 7.6, and the parties hereto hereby expressly waive and relinquish any
right or ability to assert such public policy as a defense to a claim under this
Section 7.6 and further agree not to attempt to assert any such defense.

7.7. Termination of Conditions and Obligations. The conditions precedent imposed
by this Section 7 upon the transferability of the Registrable Securities shall
cease and terminate as to any particular number of the Registrable Securities
when such Registrable Securities shall have been effectively registered under
the Securities Act and sold or otherwise disposed of in accordance with the
intended method of disposition set forth in the Registration Statement covering
such Registrable Securities or at such time as an opinion of counsel reasonably
satisfactory to the Company shall have been rendered to the effect that such
conditions are not necessary in order to comply with the Securities Act.

7.8. Information Available. So long as the Registration Statement is effective
covering the resale of Registrable Securities owned by the each Holder, the
Company will furnish to each Holder, upon the reasonable request of such Holder,
an adequate number of copies of the Prospectuses to supply to any other party
requiring such Prospectuses; and upon the reasonable request of any Purchaser,
the President or the Chief Financial Officer of the Company (or an appropriate
designee thereof) will meet with such Purchaser or a representative thereof at
the Company's headquarters to discuss all information relevant for disclosure in
the Registration Statement covering the Registrable Securities and will
otherwise cooperate with any Holder's conducting an investigation for the
purpose of reducing or eliminating such Holder exposure to liability under the
Securities Act, including the reasonable production of information at the
Company's headquarters; provided, that the Company shall not be required to
disclose any confidential information to any holder or meet at its headquarters
with any Purchaser until and unless such Holder or Purchaser shall have entered
into a confidentiality agreement in form and substance reasonably satisfactory
to the Company with the Company with respect thereto.

7.9. Delay of Registration. The Holders shall have no right to take any action
to restrain, enjoin or otherwise delay any registration pursuant to this Section
7 as a result of any controversy that may arise with respect to the
interpretation or implementation of this Agreement.

8.       Miscellaneous Provisions.

8.1. Public Statements or Releases. No Purchaser shall make, issue, or release
any announcement, whether to the public generally, or to any of its suppliers or
customers, with respect to this Agreement or the transactions provided for
herein, or make any statement or acknowledgment of the existence of, or reveal
the status of, this Agreement or the transactions provided for herein, without
the prior consent of the other parties, which shall not be unreasonably withheld
or delayed, provided that nothing in this Section 8.1 shall prevent any of the
parties hereto from making such public announcements as it may consider
necessary in order to satisfy its legal obligations, but to the extent not
inconsistent with such obligations, it shall provide the other parties with an
opportunity to review and comment on any proposed public announcement before it
is made.

8.2. Further Assurances. Each party agrees to cooperate fully with the other
party and to execute such further instruments, documents and agreements and to
give such further written assurances, as may be reasonably requested by the
other party to better evidence and reflect the transactions described herein and
contemplated hereby, and to carry into effect the intents and purposes of this
Agreement.

8.3. Rights Cumulative. Each and all of the various rights, powers and remedies
of the parties shall be considered to be cumulative with and in addition to any
other rights, powers and remedies which such parties may have at law or in
equity in the event of the breach of any of the terms of this Agreement. The
exercise or partial exercise of any right, power or remedy shall neither
constitute the exclusive election thereof nor the waiver of any other right,
power or remedy available to such party.

8.4.     Pronouns.  All pronouns or any variation thereof shall be deemed to
refer to the masculine, feminine or neuter, singular or plural, as the identity
of the person, persons, entity or entities may require.

8.5.     Notices.

(a) Any notices, reports or other correspondence (hereinafter collectively
referred to as "correspondence") required or permitted to be given hereunder
shall be sent by postage prepaid first class mail, courier or fax or delivered
by hand to the party to whom such correspondence is required or permitted to be
given hereunder. The date of giving any notice shall be the date of its actual
receipt.

(b)      All correspondence to the Company shall be addressed as follows:

                           Synaptic Pharmaceutical Corporation
                           215 College Road
                           Paramus, NJ 07652
                           Attention:  President and Chief Executive Officer

                           Facsilimile:

(c)      All correspondence to any Purchaser shall be sent to such Purchaser at
the address set forth in EXHIBIT A.

(d)      Any Person may change the address to which correspondence to it is to
be addressed by notification as provided for herein.

8.6.     Captions.  The captions and paragraph headings of this Agreement are
solely for the convenience of reference and shall not affect its interpretation.

8.7. Severability. Should any part or provision of this Agreement be held
unenforceable or in conflict with the applicable laws or regulations of any
jurisdiction, the invalid or unenforceable part or provisions shall be replaced
with a provision which accomplishes, to the extent possible, the original
business purpose of such part or provision in a valid and enforceable manner,
and the remainder of this Agreement shall remain binding upon the parties
hereto.

8.8.     Governing Law; Injunctive Relief.

(a) This Agreement shall be governed by and construed in accordance with the
internal and substantive laws of Delaware and without regard to any conflicts of
laws concepts which would apply the substantive law of some other jurisdiction.

(b) Each of the parties hereto acknowledges and agrees that damages will not be
an adequate remedy for any material breach or violation of this Agreement if
such material breach or violation would cause immediate and irreparable harm (an
"Irreparable Breach"). Accordingly, in the event of a threatened or ongoing
Irreparable Breach, each party hereto shall be entitled to seek, in any state or
federal court in Delaware, equitable relief of a kind appropriate in light of
the nature of the ongoing or threatened Irreparable Breach, which relief may
include, without limitation, specific performance or injunctive relief;
provided, however, that if the party bringing such action is unsuccessful in
obtaining the relief sought, the moving party shall pay the non-moving party's
reasonable costs, including attorney's fees, incurred in connection with
defending such action. Such remedies shall not be the parties' exclusive
remedies, but shall be in addition to all other remedies provided in this
Agreement.

8.9. Waiver. No waiver of any term, provision or condition of this Agreement,
whether by conduct or otherwise, in any one or more instances, shall be deemed
to be, or be construed as, a further or continuing waiver of any such term,
provision or condition or as a waiver of any other term, provision or condition
of this Agreement.

8.10. Expenses. The Company shall pay the reasonable fees and expenses of
Warburg incurred in connection with its due diligence related to its investment
in the Shares and in connection with the negotiation, preparation, execution and
delivery of this Agreement and the other instruments and agreements entered into
pursuant to this Agreement, and any amendments to the same, up to an aggregate
amount of $250,000, said payment to be made no later than 30 days after a bill
for such fees and expenses has been sent by Warburg to the Company.

8.11. Assignment. The rights and obligations of the parties hereto shall inure
to the benefit of and shall be binding upon the authorized successors and
permitted assigns of each party. None of the parties may assign its rights or
obligations under this Agreement or designate another person (i) to perform all
or part of its obligations under this Agreement or (ii) to have all or part of
its rights and benefits under this Agreement, in each case without the prior
written consent of the other party, provided, that Warburg shall have the right
to assign and transfer all or a portion of its rights and obligations under this
Agreement to one or more of its Affiliates. In the event of any assignment in
accordance with the terms of this Agreement, the assignee shall specifically
assume and be bound by the provisions of the Agreement by executing and agreeing
to an assumption agreement reasonably acceptable to the Company.

8.12. Survival. The respective representations and warranties given by the
parties hereto shall survive the Closings and the consummation of the
transactions contemplated herein for a period of one year, without regard to any
investigation made by any party. The other covenants and agreements contained
herein shall survive for the period specified therein, or if not specified, for
a period of two years.

8.13.             Counterparts.  This Agreement may be signed in one or more
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument

8.14. Entire Agreement. This Agreement constitutes the entire agreement between
the parties hereto respecting the subject matter hereof and supersedes all prior
agreements, negotiations, understandings, representations and statements
respecting the subject matter hereof, whether written or oral. No modification,
alteration, waiver or change in any of the terms of this Agreement shall be
valid or binding upon the parties hereto unless made in writing and duly
executed by the Company and Purchasers beneficially holding in the aggregate at
least a majority, on an as converted to Common Stock-basis, of the Shares issued
pursuant to this Agreement.

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement under seal as of the day and year first above written.

                                            Synaptic Pharamaceutical Corporation

                                            By:/s/ Kathleen P. Mullinix
                                               -------------------------------
                                            Name:  Kathleen P. Mullinix
                                            Title: Chairman, President and CEO

 WARBURG PINCUS LLC

 By:  WARBURG, PINCUS & CO.,
 General Partner

 By: /s/Jonathan Leff
     ----------------
 Name: Jonathan Leff
 Title:  Partner

 DR. DAVID HIRSH
 By: /s/ David Hirsch
     ----------------
Name: David Hirsch
                                 - - - - - - - -

                         Additional Purchasers (if any)

<PAGE>

                                    EXHIBIT A
                                    ---------

                                   PURCHASERS

                          No. of Shares   No. of Shares   Purchase    Purchase
                          of Series B     of Series C     Price       Price
                          Preferred       Preferred C     Payable at  Payable at
         Purchaser        Stock to be     Stock to be     Initial     Second
      Name and Address    Purchased       Purchased       Closing     Closing
----------------------    ----------     ------------     ---------   ----------
Warburg Pincus LLC          9,398          25,452        $9,398,000  $25,452,000
466 Lexington Avenue
New York, NY 10017
Attention: Jonathan Leff
Fax No. (212) 878-9361

David Hirsh                    40             110           $40,000     $110,000
College of Physicians
 and Surgeons
Columbia University
630 West 168th Street
Rm 5-424
New York, NY 10032
Fax No. (212) 305-7932

                                 - - - - - - - -

                         ADDITIONAL PURCHASERS (if any)

<PAGE>

                                    EXHIBIT B
                                    ---------

                          CERTIFICATE OF DESIGNATION OF
            THE SERIES B PREFERRED STOCK AND SERIES C PREFERRED STOCK

<PAGE>

                                    EXHIBIT C
                                    ---------

                       FORM OF BAKER BOTTS L.L.P. OPINION

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