Document:

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                                                                     Exhibit 4.1

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                            WEIRTON STEEL CORPORATION

                                       AND

            J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, Trustee

                                    Indenture

                            Dated as of June 18, 2002
                                   ----------

                                  $118,242,300
                        10% Senior Secured Notes Due 2008

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                  THIS INDENTURE, dated as of June 18, 2002 between WEIRTON
STEEL CORPORATION, a Delaware corporation (the "Issuer"), and J.P. MORGAN TRUST
COMPANY, NATIONAL ASSOCIATION, a national banking association (the "Trustee"),

                              W I T N E S S E T H :

                  WHEREAS, the Issuer has duly authorized the issue of its 10%
Senior Secured Notes Due 2008 (the "Securities") and, to provide, among other
things, for the authentication, delivery and administration thereof, the Issuer
has duly authorized the execution and delivery of this Indenture;

                  WHEREAS, the Securities will be secured by second priority
security interests in the Collateral (as defined hereinafter) for the benefit of
the holders of the Securities; and

                  WHEREAS, a Collateral Agency Agreement and an Intercreditor
Agreement (each as defined hereinafter) shall provide for the relative rights
and obligations of the secured parties with respect to the Collateral; and

                  WHEREAS, all things necessary to make the Securities, when
executed by the Issuer and authenticated and delivered by the Trustee as in this
Indenture provided, the valid, binding and legal obligations of the Issuer, and
to constitute these presents a valid indenture and agreement according to its
terms, have been done.

                  NOW, THEREFORE: In consideration of the premises and the
purchases of the Securities by the holders thereof, the Issuer and the Trustee
mutually covenant and agree for the equal and proportionate benefit of the
respective holders from time to time of the Securities as follows:

                                    ARTICLE I
                                   DEFINITIONS

Section 1.1. CERTAIN TERMS DEFINED. The following terms (except as otherwise
expressly provided or unless the context otherwise clearly requires) for all
purposes of this Indenture and of any indenture supplemental hereto shall have
the respective meanings specified in this Section. All other terms used in this
Indenture which are defined in the Trust Indenture Act of 1939 or the
definitions of which in the Securities Act of 1933, as amended (the "Securities
Act"), are referred to in the Trust Indenture Act of 1939 (except as herein
otherwise expressly provided or unless the context otherwise clearly requires),
shall have the meanings assigned to such terms in said Trust Indenture Act of
1939 and in said Securities Act as in force at the date of this Indenture. All
accounting terms used herein and not expressly defined shall have the meanings
given to them in accordance with generally accepted accounting principles, and
the term "GAAP" shall mean such accounting principles which are generally
accepted at the date or time of any computation or at the date hereof. The words
"herein", "hereof" and "hereunder" and other words of similar import refer to
this Indenture as a whole and not to any particular Article,

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Section or other subdivision. The terms defined in this Article include the
plural as well as the singular.

                  "Acquired Indebtedness" means Indebtedness or Preferred Stock
of any Person existing at the time such Person became a Subsidiary of the Issuer
(or such Person is merged into the Issuer or one of the Issuer's Subsidiaries)
or assumed in connection with the acquisition of assets from any such Person
(other than assets acquired in the ordinary course of business), excluding
Indebtedness or Preferred Stock incurred in connection with, or in contemplation
of, such Person becoming a Subsidiary of the Issuer.

                  "Additional Credit Facility Liens" has the meaning set forth
in the definition of "Permitted Liens".

                  "Affiliate" means, when used with reference to a specified
Person, any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Person specified. 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.

                  "Agent Members" has the meaning set forth in Section 2.7
hereof.

                  "Asset Disposition" means, (a) the sale, lease, conveyance or
other disposition of any assets or rights, other than sales of inventory in the
ordinary course of business consistent with past practices; PROVIDED, HOWEVER,
that the sale, conveyance or other disposition of all or substantially all of
the assets of the Issuer and its Subsidiaries taken as a whole will be governed
by Section 3.16 and/or Section 8.1 and not by Section 3.12 and (b) the issuance
of Capital Stock by any of the Issuer's Subsidiaries or the sale of Capital
Stock in any of its Subsidiaries.

                  Notwithstanding the preceding, the following items shall not
be deemed to be Asset Dispositions:

                  (a)      any single transaction or series of related
                           transactions that: (i) involves assets having a fair
                           market value of less than $1.0 million; or (ii)
                           results in net proceeds to the Issuer and its
                           Subsidiaries of less than $1.0 million;

                  (b)      a transfer of assets between or among the Issuer and
                           its Wholly Owned Subsidiaries and in connection with
                           the Vendor Financing Programs;

                  (c)      an issuance of Capital Stock by a Wholly Owned
                           Subsidiary to the Issuer or to another Wholly Owned
                           Subsidiary;

                  (d)      the sale or lease of equipment, inventory, accounts
                           receivable or other assets in the ordinary course of
                           business;

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                  (e)      the sale or other disposition of assets if additional
                           assets were acquired within 270 days prior to such
                           disposition for the purpose of replacing the assets
                           disposed of which are obsolete or no longer necessary
                           to the operations of the Issuer;

                  (f)      the sale or other disposition of cash or Cash
                           Equivalents;

                  (g)      the sale or other disposition of assets in exchange
                           for similar assets or for cash 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;

                  (h)      the sale or other disposition of (i) the Brown's
                           Island property or (ii) real property adjacent to the
                           Issuer's headquarters at 400 Three Springs Drive,
                           Weirton, West Virginia in connection with the Vendor
                           Financing Programs;

                  (i)      a Restricted Payment that is permitted by Section
                           3.10, including Permitted Payments;

                  (j)      the sale or other disposition of the Tandem Mill
                           Collateral in connection with a financing or sale and
                           leaseback transaction; and

                  (k)      an Asset Swap.

                  "Asset Disposition Offer" has the meaning set forth in Section
3.12(c) hereof.

                  "Asset Swap" means the execution of a definitive agreement,
subject only to customary closing conditions that the Issuer in good faith
believes will be satisfied, for a substantially concurrent purchase and sale, or
exchange, of assets used or usable in the business or businesses of the Issuer
as of the Issue Date or any related business between the Issuer or any of its
Subsidiaries and another Person or group of affiliated Persons; PROVIDED,
HOWEVER, that any amendment to or waiver of any closing condition that
individually or in the aggregate is material to the Asset Swap shall be deemed
to be a new Asset Swap; and PROVIDED, FURTHER that no Asset Swap will involve
any of the Collateral.

                  "Attributable Debt" means, with respect to any sale and
leaseback transaction, at the date of determination, the present value
(discounted at the rate of interest implicit in the terms of the lease) of the
obligation of the lessee for net rental payments during the remaining term of
the lease (including any period for which such lease has been extended or may,
at the option of the lessor, be extended); PROVIDED, HOWEVER, there shall not be
deemed to be any Attributable Debt in respect of any sale and leaseback
transaction if the Issuer or a Subsidiary would be entitled pursuant to the
provisions of clauses (a) through (c), (e), (g) and (q) under the

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definition of "Permitted Liens" to issue, assume or guarantee debt secured by a
mortgage upon the property involved in such transaction without equally and
ratably securing the Securities. "Net rental payments" under any lease for any
period means the sum of such rental and other payments required to be paid in
such period by the lessee thereunder, not including, however, any amount
required to be paid by such lessee (whether or not designated as rent or
additional rent) on account of maintenance and repairs, insurance, taxes,
assessments, water rates or similar charges required to be paid by such lessee
thereunder or any amounts required to be paid by such lessee thereunder
contingent upon the amount of sales, maintenance and repairs, insurance, taxes,
assessments, water rates or similar charges.

                  "Balance Sheet Date" has the meaning set forth in the
definition of "Excess Cash Flow".

                  "Board of Directors" means either the Board of Directors of
the Issuer or any committee of such Board duly authorized to act hereunder.

                  "Bond Indenture" mans that certain Indenture of Trust dated as
of June 18, 2002 between the City of Weirton, West Virginia and J.P. Morgan
Trust Company, National Association, as indenture trustee, as in effect on the
date hereof and as amended, supplemented or otherwise modified.

                  "Bond Trustee" means the trustee under the Bond Indenture.

                  "Business Day" means a day which, in the City of New York (or
in any of the cities, if more than one), where amounts are payable in respect of
the Securities, as specified on the face of the form of Securities set forth in
Exhibits A and B hereof, is neither a legal holiday nor a day on which banking
institutions are authorized or obligated by law or regulation to close.

                  "Capital Stock" means, with respect to any Person, any and all
shares, interests, rights to purchase, warrants, options, participations or
other equivalents of interest in (however designated) equity of such Person,
whether now outstanding or issued after the Issue Date, including, without
limitation, membership interests in limited liability companies and any
Preferred Stock.

                  "Cash Equivalents" means:

                  (a)      United States dollars;

                  (b)      securities issued or directly and fully guaranteed or
                           insured by the United States government or any agency
                           or instrumentality thereof (PROVIDED that the full
                           faith and credit of the United States is pledged in
                           support thereof) having maturities of not more than
                           six months from the date of acquisition;

                  (c)      certificates of deposit and eurodollar time deposits
                           with maturities of six months or less from the date
                           of acquisition, bankers' acceptances with maturities
                           not

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                           exceeding six months and overnight bank deposits,
                           in each case, with any domestic commercial bank
                           having capital and surplus in excess of $500 million
                           and a Thompson Bank Watch Rating of "B" or better;

                  (d)      repurchase obligations with a term of not more than
                           seven days for underlying securities of the types
                           described in clauses (b) and (c) above entered into
                           with any financial institution meeting the
                           qualifications specified in clause (c) above;

                  (e)      commercial paper having the highest rating obtainable
                           from Moody's Investors Service, Inc. or Standard &
                           Poor's Corporation and in each case maturing within
                           six months after the date of acquisition; and

                  (f)      money market funds at least 95% of the assets of
                           which constitute Cash Equivalents of the kinds
                           described in clauses (a) through (e) of this
                           definition.

                  (g)      for purposes of Section 3.12, the following are also
                           deemed to be cash or Cash Equivalents:

                           (i) any liabilities (as shown on the Issuer's or on
                           any of its Subsidiaries' most recent balance sheet or
                           in the notes thereto) of the Issuer or any Subsidiary
                           (other than liabilities that are by their terms
                           subordinated to the Securities) that are assumed by
                           the transferee of such assets without recourse to the
                           Issuer or any of its Subsidiaries; and

                           (ii) any notes or other obligations received by the
                           Issuer or such Subsidiary from such transferee that
                           are converted by the Issuer or such Subsidiary into
                           cash (to the extent of the cash received) within 180
                           days following the closing of the relevant Asset
                           Disposition.

                  "Change of Control" has the meaning set forth in Section 3.16
hereof.

                  "Collateral" means, collectively, (a) the Tandem Mill
Collateral, (b) the Tin Mill Collateral, (c) the Hot Mill Collateral, (d) all
other real or personal property hereafter pledged to or mortgaged or conveyed by
deed of trust, mortgage, deed to secure debt or otherwise to the Issuer and/or
Trustee to secure all or any portion of the Securities, (e) all proceeds of any
of the foregoing, and (f) all other assets of the Issuer or any Subsidiary or
Affiliate thereof on which the Issuer and/or Trustee is granted a Lien to secure
all or any portion of the Securities or the payment of the principal of,
premium, if any, or interest on the Securities. Notwithstanding the foregoing,
the Collateral shall not include any assets or properties consisting of the
Project, as such term is defined in the Bond Indenture.

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                  "Collateral Agency Agreement" means the Collateral Agency and
Second Lien Intercreditor Agreement, dated as of June 18, 2002, by and among the
Collateral Agent, the Trustee, and the Bond Trustee attached hereto in
substantially the form of Exhibit D, as the same may be amended from time to
time.

                  "Collateral Agent" means the collateral agent as set forth in
the Collateral Agency Agreement, until a successor replaces it in accordance
with the applicable provisions of Collateral Agency Agreement, and thereafter
means the successor, or, if the Collateral Agency Agreement is no longer in
effect, means the Trustee.

                  "Collateral Permitted Liens" means Liens of the type described
in clauses (a), (b), (e), (g), (h), (k), (l), (m) and (o) of the definition of
the term "Permitted Liens" and in clause (p) of such definition to the extent
that the Lien subject to the refinancing is included within any of the foregoing
clauses; PROVIDED, HOWEVER, that the Liens with respect to the Tandem Mill
Collateral will be released under the conditions set forth in Section 3.14(b) in
connection with a sale and leaseback transaction; and PROVIDED FURTHER that the
dollar amount of Additional Credit Facility Liens permitted in clause (a) to be
secured by Collateral will be reduced dollar for dollar by the amount applied to
make a Permanent Reduction in accordance with Section 3.12 (b)(iii)(A) or the
amount applied to make a Credit Facility Repayment in accordance with Section
3.14(b).

                  "Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Exchange Act or, if at any time
after the execution of this instrument such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act of 1939,
then the body performing such duties at such time.

                  "Commodity Agreement" means any option or futures contract or
similar agreement or arrangement designed to protect the Issuer against
fluctuations in commodity prices.

                  "Common Stock" means, with respect to any Person, any and all
shares, interests, participations and other equivalents (however designated,
whether voting or non-voting) of such Person's common stock, whether now
outstanding or issued after the Issue Date, and includes, without limitation,
all series and classes of such common stock.

                  "Consolidated EBITDA" means, for any period, on a consolidated
basis for the Issuer and its Subsidiaries, the sum for such period (without
duplication) of: (a) Consolidated Net Income; (b) income taxes (other than
income taxes positive or negative attributable to extraordinary and
non-recurring gains or losses on asset sales) with respect to such period,
determined in accordance with GAAP; (c) net interest expense for such period,
determined in accordance with GAAP; (d) depreciation and amortization expenses
(including, without duplication, amortization of debt discount and debt issue
costs), determined in accordance with GAAP; (e) other non-cash items reducing
Net Income, minus non-cash items increasing Net Income, determined in accordance
with GAAP; and (f) expense in excess of cash payments made in connection with
the Issuer's pension and other post-retirement employee benefits ("OPEB")
requirements; minus (g) cash payments in excess of expense amounts recorded for
the Issuer's pension and OPEB requirements.

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                  "Consolidated Fixed Charges" means, for any period, the sum
of: (a) the net interest expense of the Issuer and its Subsidiaries for such
period whether paid or accrued (including, without limitation, amortization of
original issue discount, non-cash interest payments, the interest component of
any deferred payment obligations, the interest component of all payments
associated with capital lease obligations and imputed interest with respect to
Attributable Debt); (b) interest incurred during the period and capitalized by
the Issuer; (c) any interest expense on Indebtedness of another Person that is
guaranteed by the Issuer or one of its Subsidiaries or secured by a Lien on
assets of the Issuer or one of its Subsidiaries (whether or not such guarantee
or Lien is called upon); and (d) the product of (i) all cash dividend payments
on any series of Preferred Stock of any Subsidiary or Disqualified Stock of the
Issuer or any of its Subsidiaries, multiplied by (ii) a fraction, the numerator
of which is one and the denominator of which is one minus the then current
combined federal, state and local statutory tax rate of the Issuer and its
Subsidiaries, expressed as a decimal, in each case, on a consolidated basis in
accordance with GAAP. For the purposes of this calculation of net interest
expense in clause (c), interest on the Securities shall be calculated at the
rate of 10.0% per annum from the Issue Date and interest on the Secured Series
2002 Bonds shall be calculated at the rate of 9.0% per annum from the issue date
of such Bonds, in each case based on the outstanding principal amount of the
Securities and the Secured Series 2002 Bonds, notwithstanding the interest rate
terms of the Securities and the Secured Series 2002 Bonds.

                  "Consolidated Indebtedness" means, as of any determination
date, Indebtedness of the Issuer and its Subsidiaries on a consolidated basis
which is secured by a Lien on the assets and properties (including accounts
receivable and inventory), of the Issuer and its Subsidiaries, calculated in
accordance with GAAP without applying the Statement of Financial Accounting
Standards No. 15 "Accounting by Debtors and Creditors for Troubled Debt
Restructurings".

                  "Consolidated Net Income" of the Issuer for any period means
the Net Income (or loss) of the Issuer and its Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP; PROVIDED, HOWEVER,
that there shall be excluded from Consolidated Net Income: (a) the Net Income of
any Person other than a Consolidated Subsidiary in which the Issuer or any of
its Consolidated Subsidiaries has a joint interest with a third party except to
the extent of the amount of dividends or distributions actually paid in cash to
the Issuer or a Consolidated Subsidiary during such period; (b) the Net Income
of any other Person accrued prior to the date it becomes a Subsidiary with
respect to which Consolidated Net Income is calculated, or is merged into or
consolidated with such Person or any of its Subsidiaries or that Person's assets
are acquired by such Person or any of its Subsidiaries; (c) the Net Income (but
only if positive) of any Subsidiary to the extent that the declaration or
payment of dividends or similar distributions by that Subsidiary to such Person
or to any other Subsidiary of such Net Income is not at the time permitted by
operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to that
Subsidiary; and (d) without duplication, any gains or losses attributable to the
sale, lease, conveyance or other disposition of assets (including without
limitation Capital Stock of any Subsidiary of such Person), whether owned on the
date of issuance of the Securities or thereafter acquired, in one or more
related transactions outside the ordinary course of business.

                  "Consolidated Net Worth" means, with respect to any Person
engaged in a merger, consolidation or sale of assets, the consolidated
stockholder's equity of such Person and

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its Subsidiaries, as determined in accordance with GAAP but excluding any
restructuring charges taken by such Person in connection with such merger,
consolidation or sale of assets.

                  "Consolidated Subsidiary" of any Person means a Subsidiary
which for financial reporting purposes is or, in accordance with GAAP, should
be, accounted for by such Person as a consolidated subsidiary.

                  "Continuing Director" has the meaning set forth in Section
3.16 hereof.

                  "Corporate Trust Office" means the office of the Trustee at
which the corporate trust business of the Trustee shall, at any particular time,
be principally administered, which office is, at the date as of which this
Indenture is dated, located at 2001 Bryan Street, 9th Floor, Dallas, Texas
75201, Attention: Institutional Trust Services.

                  "Credit Facility" means any senior credit facility to be
entered into by the Issuer and the lenders referred to therein, together with
the related documents thereto (including the notes 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.

                  "Credit Facility Repayment" has the meaning set forth in
Section 3.14(b) hereof.

                  "Currency Agreement" means any foreign exchange contract,
currency swap agreement or other similar agreement or arrangement designed to
protect the Issuer against fluctuations in currency values.

                   "Deeds of Trust" means, collectively, (a) the Hot Mill Deed
of Trust, (b) the Tandem Mill Deed of Trust, (c) the Tin Mill Deed of Trust, and
(d) any other deed of trust, mortgage, deed to secure debt or other instrument
encumbering any Collateral constituting real property which is given or made by
the Issuer or any Subsidiary thereof to or for the benefit of the Trustee to
secure all or any portion of the Securities or to secure all or any portion of
the payment of the principal of, premium, if any, or interest or purchase price
of the Securities.

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

                  "Depositary" shall mean The Depository Trust Company, its
nominees, and their respective successors.

                  "Disqualified Stock" means any Capital Stock (a) that, by its
terms (or by the terms of any security into which it is convertible or for which
it is exchangeable), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or
is redeemable at the option of the holder thereof, in whole or in part, on or
prior to the final maturity date of the Securities or (b) upon which the Issuer
or any of its

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Subsidiaries has a contractual obligation to compensate the holder thereof for
losses incurred upon the sale or other disposition thereof; PROVIDED, HOWEVER,
that any portion or series of such Capital Stock which by its terms, or upon the
happening of any event, matures or is mandatorily redeemable, pursuant to a
sinking fund or otherwise, no earlier than the day following the maturity date
of the Securities shall not constitute Disqualified Stock; and PROVIDED FURTHER,
that any Capital Stock which would not constitute Disqualified Stock but for
provisions thereof giving holders thereof the right to require the Issuer to
repurchase or redeem such Capital Stock upon the occurrence of a Change in
Control occurring on or prior to the maturity date of the Securities shall not
constitute Disqualified Stock if (i) the Change in Control provisions applicable
to such Capital Stock are no more favorable to the holders of such Capital Stock
than the provisions of Section 3.16 and (ii) such Capital Stock specifically
provides that the Issuer will not repurchase or redeem any such stock pursuant
to such provisions prior to the Issuer's repurchase of such Securities as are
required to be repurchased pursuant to the provisions of Section 3.16.

                  "Event of Default" means any event or condition specified as
such in Section 4.1 which shall have continued for the period of time or after
notice thereof, if any, therein designated.

                  "Excepted Sale" means a sale, lease, conveyance or other
disposition of any portion of the Collateral that is excepted from the
definition of the term "Asset Disposition" contained in this Indenture.

                  "Excess Cash Flow" means, as of each date such calculation
shall be made, the Consolidated EBITDA for the immediately preceding six month
period expiring on the last day of each December and June, respectively, prior
to such calculation date (such last day, the "Balance Sheet Date") plus (a)
decreases in working capital; minus the sum of (b) expenditures on capital
assets; (c) increases in working capital; and (d) interest and mandatory
principal payments on Indebtedness other than payments or pre-payments of
principal and fees or other amounts with respect to revolving credit
Indebtedness under the Credit Facility. For purposes of clause (b)(i) of Section
3.10, the initial Balance Sheet Date shall be designated as December 31, 2001
and for purposes of determining "Contingent Interest Rate" (as such term is
defined in the form of Security), the initial Balance Sheet Date shall be
designated as December 31, 2002.

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

                  "Exchange Act Reports" means the Issuer's Annual Report on
Form 10-K for the year ended December 31, 2001 filed with the Commission
pursuant to the Exchange Act.

                  "GAAP" means generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States, as in effect on the Issue Date.

                  "Global Securities" has the meaning set forth in Section 2.4
hereof.

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                  "Holder", "holder of Securities", "Securityholder" or other
similar terms means the registered holder of any Security.

                  "Hot Mill Collateral" means the real property constituting the
Issuer's Hot Strip Mill located at Issuer's Weirton, West Virginia steel-making
facility, which converts slabs into flat rolled coils, together with all
equipment and fixtures now or hereafter located thereon (whether or not later
moved), as described with particularity in the Hot Mill Deed of Trust, together
with all other property, real or personal, conveyed by or pledged under or
pursuant to the Hot Mill Deed of Trust and/or Security Agreement and otherwise
described as "Property" or "Collateral", respectively therein; provided,
however, that only that portion of the "Collateral" described in the Security
Agreement which is located on, is used in connection with or is proceeds of the
Hot Strip Mill shall be included as part of the "Hot Mill Collateral."

                  "Hot Mill Deed of Trust" means that certain Deed of Trust,
dated as of June 18, 2002 made by the Issuer in favor of Joyce Ofsa, as trustee,
for the benefit of, the Trustee and the City of Weirton, as beneficiaries, (with
the City of Weirton's rights thereunder assigned to the Bond Trustee) and
encumbering the Hot Mill Collateral, which constitutes real property, as
amended, supplemented, restated or otherwise modified from time to time.

                  "Indebtedness" means, without duplication, (i) any liability
of any entity (A) for borrowed money, or under any reimbursement obligation
relating to a letter of credit, (B) evidenced by a bond, note, debenture or
similar instrument (including a purchase money obligation) given in connection
with the acquisition of any businesses, properties or assets of any kind or with
services incurred in connection with capital expenditures, or (C) in respect of
capitalized lease obligations; (ii) any liability of others described in the
preceding clause (i) that the entity has guaranteed or that is otherwise its
legal liability; (iii) to the extent not otherwise included, obligations under
Currency Agreements, Commodity Agreements or Interest Protection Agreements;
(iv) all Disqualified Stock valued at the greatest amount payable in respect
thereof on a liquidation (whether voluntary or involuntary) plus accrued and
unpaid dividends; and (v) any amendment, supplement, modification, deferral,
renewal, extension or refunding of any liability of the types referred to in
clauses (i)-(iv) above; PROVIDED that Indebtedness shall not include accounts
payable (including, without limitation, accounts payable to the Issuer by any
Subsidiary or to any such Subsidiary by the Issuer or any other Subsidiary, in
each case, in accordance with customary industry practice) or liabilities to
trade creditors of any entity arising in the ordinary course of business.

                  "Indemnified Persons" has the meaning set forth in Section 5.6
hereof.

                  "Indenture" means this instrument as originally executed and
delivered or, if amended or supplemented as herein provided, as so amended or
supplemented.

                  "Intercreditor Agreement" means the Intercreditor Agreement,
dated as of June 18, 2002, by and among the Collateral Agent, the Trustee, the
Bond Trustee and Fleet Capital Corporation, as agent for the lenders under the
Credit Facility, in substantially the form of Exhibit E attached hereto, as the
same may be amended or supplemented from time to time.

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                  "Interest Protection Agreement" of any Person means any
interest rate swap agreement, interest rate collar agreement, option or future
contract or other similar agreement or arrangement designed to protect such
Person or any of its Subsidiaries against fluctuations in interest rates.

                  "Investments" of any Person means (i) all investments by such
Person in any other Person in the form of loans, advances or capital
contributions; (ii) all guarantees of Indebtedness or other obligations of any
other Person by such Person; (iii) all purchases (or other acquisitions for
consideration) by such Person of Indebtedness, Capital Stock or other securities
of any other Person; and (iv) all other items that would be classified as
investments (including, without limitation, purchases of assets outside the
ordinary course of business) on a balance sheet of such Person prepared in
accordance with GAAP.

                  "Issue Date" means June 18, 2002, the date on which the
Securities are originally issued under this Indenture.

                  "Issuer" means (except as otherwise provided in Article V)
Weirton Steel Corporation, a Delaware corporation, and, subject to Article VIII,
its successors and assigns.

                  "Lien" means, with respect to any Property, any mortgage,
lien, pledge, charge, security interest or encumbrance of any kind in respect of
such Property. For purposes of this definition, the Issuer shall be deemed to
own subject to a Lien any Property which it has acquired or holds subject to the
interest of a vendor or lessor under any conditional sale agreement, capital
lease or other title retention agreement relating to such Property.

                  "Losses" has the meaning set forth in Section 5.6 hereof.

                  "Net Cash Proceeds" from an Asset Disposition means cash
payments received (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or otherwise
(including any cash received upon sale or disposition of such note or
receivable), but only as and when received), excluding any other consideration
received in the form of assumption by the acquiring Person of Indebtedness or
other obligations relating to the Property disposed of in such Asset Disposition
or received in any other non-cash form unless and until such non-cash
consideration is converted into cash therefrom, in each case, net of 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, and in each case net of a reasonable reserve for the after-tax cost
of any indemnification payments (fixed and contingent) attributable to seller's
indemnities to the purchaser undertaken by the Issuer or any of its Subsidiaries
in connection with such Asset Disposition (but excluding any payments, which by
the terms of the indemnities will not, under any circumstances, be made during
the term of the Securities), and net of all payments made on any Indebtedness
which is secured by such Property, in accordance with the terms of any Lien upon
or with respect to such Property or which must by its terms or by applicable law
be repaid out of the proceeds from such Asset Disposition, and net of all
distributions and other payment made to minority interest holders in
Subsidiaries or joint ventures as a result of such Asset Disposition.

                                       12
<PAGE>

                  "Net Income" of any Person for any period means the
consolidated net income or loss, as the case may be, of such Person and its
Subsidiaries for such period determined in accordance with GAAP; PROVIDED that
there shall be excluded all extraordinary gains or losses net of respective tax
effects (less, without duplication, all fees and expenses relating thereto).

                  "Notes Documents" means, collectively, the Securities, this
Indenture, the Security Documents, and all other documents, instruments and
agreements now or hereafter evidencing, governing, securing or otherwise
pertaining to the Securities or otherwise executed and delivered by or on behalf
of the Issuer or any other party in connection with the Securities or any of the
foregoing documents, together with all amendments, modifications, renewals,
substitutions and replacements of or to any of the foregoing.

                  "Offer Amount" has the meaning set forth in Section 3.12
hereof.

                  "Offer Period" has the meaning set forth in Section 3.12
hereof.

                  "Officers' Certificate" means a certificate signed by the
Chairman of the Board of Directors or the President or any Vice President
(whether or not designated by a number or numbers or a word or words added
before or after the title "Vice President") and by the Treasurer or the
Secretary or any Assistant Secretary of the Issuer and delivered to the Trustee.
Each such certificate shall comply with Section 314 of the Trust Indenture Act
of 1939 and include the statements provided for in Section 11.5.

                  "Opinion of Counsel" means an opinion in writing signed by
legal counsel who may be an employee of or counsel to the Issuer or who may be
other counsel satisfactory to the Trustee and delivered to the Trustee. Each
such opinion shall comply with Section 314 of the Trust Indenture Act and
include the statements provided for in Section 11.5, if and to the extent
required hereby.

                  "OPEB" has the meaning set forth in the definition of
"Consolidated EBITDA."

                  "Original issue date" of any Security (or portion thereof)
means the earlier of (a) the date of such Security or (b) the date of any
Security (or portion thereof) for which such Security was issued (directly or
indirectly) on registration of transfer, exchange or substitution.

                  "Outstanding", when used with reference to Securities, shall,
subject to the provisions of Section 6.4, mean, as of any particular time, all
Securities authenticated and delivered by the Trustee under this Indenture,
except

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

                  (b) Securities, or portions thereof, for the payment or
redemption of which moneys in the necessary amount shall have been deposited in
trust with the Trustee or with any Paying Agent (other than the Issuer) or shall
have been set aside, segregated and held in trust by the Issuer (if the Issuer
shall act as its own Paying Agent); PROVIDED that if such Securities are to be
redeemed prior to the maturity thereof, notice of such redemption shall have
been given as

                                       13
<PAGE>

herein provided, or provision satisfactory to the Trustee shall have been made
for giving such notice; and

                  (c) Securities in substitution for which other Securities
shall have been authenticated and delivered, or which shall have been paid,
pursuant to the terms of Section 2.6 (unless proof satisfactory to the Trustee
is presented that any of such Securities is held by a person in whose hands such
Security is a legal, valid and binding obligation of the Issuer).

                  "Paying Agent" has the meaning set forth in Section 3.2
hereof.

                  "Permanent Reduction" has the meaning set forth in Section
3.12(b) hereof.

                  "Permitted Acquisition" means any one or more transactions or
series of transactions by the Issuer or a Subsidiary after the Issue Date,
whether effected by merger, consolidation, purchase, lease or other transfer of
assets, Permitted Joint Venture or otherwise, to acquire the properties and
related business (whether through the direct purchase of assets or of the
Capital Stock of the Person owning such assets) of any other Person (a) where
the Person to be acquired has been engaged, or the assets involved have been
deployed, in the business of making, processing or distributing steel products,
including without limitation tin mill products or other coated steel products;
and (b) the consummation of any such transaction would not otherwise result in
any Event of Default immediately thereafter.

                  "Permitted Indebtedness" means:

                  (i)      Indebtedness of the Issuer and its Subsidiaries
                           outstanding immediately following the issuance of the
                           Securities, including any outstanding Senior Notes
                           due 2004 and Senior Notes due 2005, the Secured
                           Series 2002 Bonds, any outstanding Series 1989 Bonds,
                           Indebtedness of the Issuer's 1989 ESOP guaranteed by
                           the Issuer even if acquired by the Issuer, and any
                           put obligation imposed on the Issuer by the plan or
                           by law (including Section 409 of the Internal Revenue
                           Code of 1986, as amended, and any successor
                           provision), relating to shares of the Issuer's
                           Capital Stock, authorized and issued on or before the
                           Issue Date and initially issued to the Issuer's 1989
                           ESOP or 1984 ESOP;

                  (ii)     the Securities;

                  (iii)    Indebtedness in respect of obligations of the Issuer
                           to the Trustee under this Indenture;

                  (iv)     Indebtedness incurred by the Issuer pursuant to the
                           Credit Facility; PROVIDED, HOWEVER, that immediately
                           after giving effect to any such incurrence, the
                           aggregate principal amount of all Indebtedness
                           incurred under this clause (iv) and then outstanding
                           does not exceed (1) the sum of (x)

                                       14
<PAGE>

                           65% of the inventory of the Issuer and its
                           Subsidiaries and (y) 85% of the accounts receivable
                           of the Issuer and its Subsidiaries (in each case as
                           such amounts are reflected on the consolidated
                           financial statements of the Issuer) ("Permitted
                           Working Capital Indebtedness"), plus (2) $50,000,000;

                  (v)      intercompany obligations (including intercompany debt
                           or Disqualified Stock of a Subsidiary which is held
                           by the Issuer or a Subsidiary of the Issuer) of the
                           Issuer and each of its Subsidiaries; PROVIDED,
                           HOWEVER, that the obligations of the Issuer to any of
                           its Subsidiaries with respect to such Indebtedness
                           shall be subject to a subordination agreement between
                           the Issuer and its Subsidiaries providing for the
                           subordination of such obligations in right of payment
                           from and after such time as all Securities issued and
                           outstanding shall become due and payable (whether at
                           stated maturity, by acceleration or otherwise) to the
                           payment and performance of the Issuer's obligations
                           under this Indenture and the Securities; PROVIDED,
                           FURTHER, that any Indebtedness or Disqualified Stock
                           of the Issuer or any Subsidiary owed to any other
                           Subsidiary that ceases to be a Subsidiary shall be
                           deemed to be incurred and shall be treated as an
                           incurrence for purposes of Section 3.9 at the time
                           the Subsidiary in question ceased to be a Subsidiary;

                  (vi)     Indebtedness of the Issuer under any Currency
                           Agreements, Commodity Agreements or Interest
                           Protection Agreements;

                  (vii)    the guarantee by the Issuer or any of its
                           Subsidiaries of Indebtedness of the Issuer or a
                           Subsidiary of the Issuer that was permitted to be
                           incurred by another provision of this definition or
                           Section 3.9;

                  (viii)   the accrual of interest, accretion or amortization of
                           original issue discount, the payment of interest on
                           any Indebtedness in the form of additional
                           Indebtedness with the same terms, and the payment of
                           dividends on Disqualified Stock in the form of
                           additional shares of the same class of Disqualified
                           Stock in the form of additional shares of the same
                           class of Disqualified Stock;

                  (ix)     Indebtedness (including Acquired Indebtedness)
                           incurred by Issuer or any Subsidiary in connection
                           with a Permitted Acquisition so long as (a) at the
                           time of such transaction and giving effect thereto,
                           on a pro forma basis, the Issuer or its Subsidiaries
                           may incur $1.00 in additional Indebtedness

                                       15
<PAGE>

                           (other than Permitted Indebtedness) pursuant to
                           clause (a) of Section 3.9 or (b) at the time of such
                           transaction and giving effect thereto, on a pro forma
                           basis, the ratio of Consolidated Indebtedness to
                           Consolidated EBITDA for the four fiscal quarters
                           immediately preceding such event for which financial
                           information is available consistent with the Issuer's
                           prior practice, taken as one period and calculated on
                           the assumption that all Indebtedness had been
                           incurred on the first day of such period and that the
                           related Permitted Acquisition and all its adjustments
                           being included in such pro forma calculation had also
                           occurred on such date, would be reduced;

                  (x)      Indebtedness arising from a financing transaction
                           involving the Tandem Mill Collateral including
                           without limitation a sale and leaseback transaction;

                  (xi)     Indebtedness of the Issuer and its Subsidiaries in
                           connection with the Vendor Financing Programs;

                  (xii)    obligations in respect of performance bonds, bankers'
                           acceptances, letters of credit and surety or appeal
                           bonds provided by the Issuer or any of its
                           Subsidiaries in the ordinary course of business in an
                           amount not to exceed $10,000,000 in the aggregate;

                  (xiii)   additional Indebtedness incurred by Issuer or any of
                           its Subsidiaries the aggregate principal amount at
                           maturity of which does not exceed $100,000,000; and

                  (xiv)    any Refinancing Indebtedness; PROVIDED that (A) the
                           original issue amount of the Refinancing Indebtedness
                           shall not exceed the maximum principal amount at
                           maturity and accrued interest of the Indebtedness to
                           be repaid (or if such Indebtedness was issued at an
                           original issue discount, the original issue price
                           plus amortization of the original issue discount at
                           the time of the incurrence of the Refinancing
                           Indebtedness less the amount of any prepayments on or
                           prior to the date of the Indenture, plus the
                           reasonable fees and expenses directly incurred in
                           connection with such Refinancing Indebtedness), (B)
                           Refinancing Indebtedness incurred by any Subsidiary
                           shall not be used to repay or refund outstanding
                           Indebtedness of the Issuer or any other Subsidiary,
                           and (C) with respect to any Refinancing Indebtedness
                           that refinances Indebtedness ranking junior in right
                           of payment to the Securities, (1) the Refinancing
                           Indebtedness does not require any principal payments
                           prior

                                       16
<PAGE>

                           to the maturity of the Securities and has an average
                           weighted life that is equal to or greater than the
                           average weighted life of the Securities and (2) the
                           Refinancing Indebtedness is subordinated to the
                           Securities to the same or greater extent and on
                           substantially the same terms or terms more favorable
                           to the holders of the Securities.

                  For purposes of determining compliance with Section 3.9, in
the event that an item of proposed Indebtedness meets the criteria of more than
one of the categories of Permitted Indebtedness described in clauses (i) through
(xiii) above, or is entitled to be incurred pursuant to Section 3.9, the Issuer
will be permitted to classify such item of Indebtedness on the date of its
incurrence in any manner that complies with Section 3.9.

                  "Permitted Joint Venture" means the interest of the Issuer in
any corporation, association or other business entity of which 50% or less, but
not less than 10%, of the total Voting Stock or other interest is at the time
owned or controlled, directly or indirectly, by the Issuer or one or more of its
Subsidiaries or a combination thereof; PROVIDED that (a) such corporation,
association or entity is engaged in the business or businesses of the Issuer or
any related business and (b) that any interest paid by Issuer or any Subsidiary
of Issuer on any Indebtedness incurred by the Issuer or any Subsidiary of the
Issuer in connection with such ownership interest shall not exceed the sum of
(x) any dividends, other distributions of earnings and returns of capital
received by the Issuer and any Subsidiaries on account of such ownership
interest and (y) demonstrable operating benefits derived by the Issuer and any
Subsidiaries, including cost savings and margin improvements, calculated on a
pro forma basis as determined in good faith by management of the Issuer and
adopted by resolution of the majority of the independent members of the Issuer's
Board of Directors and delivered to the Trustee in an Officers' Certificate.

                  "Permitted Liens" means, without duplication:

                  (a)      Liens on the assets of the Issuer and any Subsidiary
                           securing Indebtedness and other obligations under the
                           Credit Facility; PROVIDED that the aggregate amount
                           so secured does not exceed the amount of Permitted
                           Working Capital Indebtedness plus $75,000,000
                           ("Additional Credit Facility Liens");

                  (b)      Liens on the assets of the Issuer and any Subsidiary
                           securing Indebtedness and other obligations under the
                           Vendor Financing Programs, including, without
                           limitation, Liens on railroad locomotives and
                           railcars granted to secure Indebtedness incurred in
                           connection with sale and leaseback transaction(s)
                           involving the Issuer's general office building and
                           research and development building located in Weirton,
                           West Virginia;

                  (c)      Liens in favor of the Issuer or its Subsidiaries;

                                       17
<PAGE>

                  (d)      Liens on property or shares of Capital Stock of a
                           Person existing at the time such Person is acquired
                           by or merged with or into or consolidated with the
                           Issuer or any of its Subsidiaries; PROVIDED, HOWEVER,
                           that such Liens were in existence prior to the
                           consummation of such acquisition, merger or
                           consolidation and do not extend to property other
                           that the property or shares of Capital Stock being
                           acquired by the Issuer or its Subsidiaries (other
                           than property affixed or appurtenant thereto);

                  (e)      Liens to secure the performance of statutory
                           obligations;

                  (f)      Liens existing on the Issue Date;

                  (g)      Liens for taxes, assessments or governmental charges
                           or claims that are not yet delinquent or that are
                           being contested in good faith by appropriate
                           proceedings promptly instituted and diligently
                           concluded; PROVIDED, HOWEVER, that any reserve or
                           other appropriate provision as shall be required in
                           conformity with GAAP shall have been made therefor;

                  (h)      (i) Liens on assets subject to a sale and leaseback
                           transaction securing Attributable Debt permitted to
                           be incurred pursuant to Section 3.9, (ii) Liens in
                           connection with a financing or sale and leaseback
                           transaction involving or relating to the Tandem Mill
                           Collateral permitted to be incurred under clause (x)
                           of the definition of Permitted Indebtedness, and
                           (iii) Liens in connection with long-term tolling or
                           product supply agreements with respect to the use of
                           the Collateral; PROVIDED that the terms of such
                           agreement do not, in the good faith determination of
                           the Board of Directors and taking into account any
                           additional collateral pledged to secure the
                           Securities, impair the value of the Collateral;

                  (i)      Liens securing industrial revenue or pollution
                           control bonds, for which the Issuer has payment
                           obligations; PROVIDED, HOWEVER, that such Liens
                           relate solely to the project being financed;

                  (j)      Liens (i) arising from or in connection with clause
                           (ix) of the definition of "Permitted Indebtedness" or
                           (ii) incurred to finance the acquisition of property
                           or assets acquired by the Issuer or any of its
                           Subsidiaries after the Issue Date so long as such
                           Lien is created within 90 days of such acquisition;
                           PROVIDED that in either clause (i) or (ii), such

                                       18
<PAGE>

                           Liens do not extend to any property or assets other
                           than the property or assets acquired by the Issuer or
                           its Subsidiaries;

                  (k)      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 the Issuer or its
                           Subsidiaries or to the ownership of its properties
                           which were not incurred in connection with
                           Indebtedness and which do not individually or in the
                           aggregate materially adversely affect the value of
                           said properties or materially impair their use in the
                           operation of the business of the Issuer;

                  (l)      Liens arising from judgments or similar awards in an
                           amount permitted by the Credit Facility;

                  (m)      Liens on the Collateral effected (i) by the Deeds of
                           Trust or the Security Agreement or (ii) by the Issuer
                           for purposes of securing its obligations with respect
                           of the Secured Series 2002 Bonds;

                  (n)      Liens on assets and properties of the Issuer and its
                           Subsidiaries other than Collateral to secure up to
                           $25,000,000 of Indebtedness;

                  (o)      In connection with the financing of a Permitted
                           Acquisition secured in whole or in part by the
                           Collateral, Liens on assets and properties acquired
                           plus Liens on Collateral senior to Liens in favor of
                           the holders of the Securities; PROVIDED, HOWEVER,
                           that the Issuer or its Subsidiaries shall grant a
                           Lien on such assets and properties acquired in the
                           Permitted Acquisition (excluding working capital
                           assets) in favor of the holders of the Securities
                           which Lien shall be junior only to the Liens securing
                           any senior secured financing incurred to purchase
                           such assets;

                  (p)      Liens to secure any Refinancing Indebtedness as a
                           whole or in part secured by any Lien referred to in
                           the foregoing clauses (a), (b), (h), (i), (j), (m),
                           (n) and (o); PROVIDED, HOWEVER, that:

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

                           ii. the Indebtedness secured by such Lien at such
                           time is not increased to any amount greater than the
                           sum of (A)

                                       19
<PAGE>

                           the outstanding principal amount or, if greater,
                           committed amount of the Indebtedness described under
                           the foregoing clauses (a), (b), (h), (i), (j), (m),
                           (n) and (o); at the time the original Lien became a
                           Permitted Lien and (B) an amount necessary to pay any
                           fees and expenses, including premiums, related to
                           such refinancing, refunding, extension, renewal or
                           replacement; and

                  (q)      Liens to secure the performance of surety or appeal
                           bonds, performance bonds or other obligations of a
                           like nature incurred in the ordinary course of
                           business.

                  "Permitted Payments" means, with respect to the Issuer or any
of its Subsidiaries, (i) any dividend on shares of Capital Stock payable solely
in shares of Capital Stock (other than Disqualified Stock) or in options,
warrants or other rights to purchase Capital Stock (other than Disqualified
Stock); (ii) any dividend or other distribution with respect to Capital Stock
payable to the Issuer by any of its Subsidiaries or by a Subsidiary to another
Subsidiary; (iii) payments made by the Issuer in satisfaction of any put
obligation imposed on the Issuer by the plan or by law (including Section 409 of
the Internal Revenue Code of 1986, as amended, and any successor provision),
relating to shares of the Issuer's Capital Stock, authorized and issued on or
before the Issue Date and initially issued to the Issuer's 1989 ESOP or 1984
ESOP; and (iv) any redemption or other payments in respect of the Series C
Preferred Stock.

                  "Permitted Working Capital Indebtedness" has the meaning set
forth in the definition of "Permitted Indebtedness".

                  "Person" shall mean any individual, corporation, partnership,
joint venture, association, joint stock company, trust, trustee, estate, limited
liability company, unincorporated organization, real estate investment trust,
government or any agency or political subdivision thereof, or any other form of
entity.

                  "Pledged Account" means a cash collateral account in a
financial institution acceptable to Trustee that is pledged to the Trustee in
whole or in part as security for the benefit of the holders of the Securities.

                  "Preferred Stock" of any Person means all Capital Stock of
such Person which has a preference in liquidation or a preference with respect
to the payment of dividends.

                  "principal", wherever used with reference to the Securities or
any Security or any portion thereof, shall be deemed to include "and premium, if
any".

                  "Prohibited Investment" means, with respect to any Person, any
Investment by such Person in any Person that is not a Subsidiary of such first
Person, other than (i) an Investment in Cash Equivalents; (ii) to the extent not
included in clause (i), (a) negotiable instruments held for collection, (b)
outstanding travel, moving or other similar advances to officers, employees and
consultants of such Person, (c) lease or utility deposits or other similar
deposits or (d) Capital Stock, debt obligations or similar securities received
in settlement of debts owed to such Person or its Subsidiaries as a result of
the foreclosure, perfection or enforcement

                                       20
<PAGE>

of any Liens by such Person or any of its Subsidiaries, but, in each case, only
to the extent such Investments are made in the ordinary course of business;
(iii) sales of goods on trade credit terms consistent with the past practices of
such Person or otherwise consistent with trade credit terms in common use in the
industry; and (iv) Investments made in connection with Permitted Acquisitions.

                  "Property" of any Person means all types of real, personal,
tangible, intangible or mixed property owned by such Person whether or not
included in the most recent consolidated balance sheet of such Person and its
Subsidiaries under GAAP.

                  "Prospectus" means the prospectus dated May 3, 2002 relating
to the Securities and the Series C Preferred Stock.

                  "Purchase Date" has the meaning set forth in Section 3.12
hereof.

                  "Refinancing Indebtedness" means Indebtedness that is incurred
to refund, refinance, replace, renew, repay, extend or substitute (including
pursuant to any defeasance or discharge mechanism) any Indebtedness of the
Issuer or its Subsidiaries on the Issue Date or incurred in compliance with the
Indenture (including Indebtedness that refinances Refinancing Indebtedness).

                  "Registrar" has the meaning set forth in Section 3.2 hereof.

                  "Repurchase Date" has the meaning set forth in Section 3.16
hereof.

                  "Responsible Officer" when used with respect to the Trustee
means any officer within the Institutional Trust Services (or any successor
group) of the Trustee, including, without limitation, any vice president
(whether or not designated by numbers or words added before or after the title
"vice president"), any assistant vice president, any assistant secretary, any
assistant treasurer or any other officer or assistant officer of the Trustee
customarily performing functions similar to those performed by any of the above-
designated officers who shall in any case, be responsible for the administration
of this document or have familiarity with it, and also means with respect to
particular corporate trust matters any other officer to whom any corporate trust
matter is referred because of his knowledge of and familiarity with the
particular subject.

                  "Restricted Payment" means any of the following: (i) the
declaration or payment of any dividend or any other distribution on Capital
Stock of the Issuer or any Subsidiary of the Issuer or any payment made to the
direct or indirect holders (in their capacities as such) of Capital Stock of the
Issuer or any Subsidiary of the Issuer (other than (x) dividends or
distributions payable solely in Capital Stock (other than Disqualified Stock)
and (y) in the case of Subsidiaries of the Issuer, dividends or distributions
payable to the Issuer or to a Subsidiary of the Issuer); (ii) the purchase,
redemption or other acquisition or retirement for value of any Capital Stock
(other than Series C Preferred Stock), or any option, warrant, or other right to
acquire shares of Capital Stock, of the Issuer or any of its Subsidiaries; (iii)
the making of any principal payment on, or the purchase, defeasance, repurchase,
redemption or other acquisition or retirement for value, prior to any scheduled
maturity, scheduled repayment or scheduled sinking fund payment, of any
Indebtedness which is subordinated in right of payment to the Securities; (iv)
the making of any Prohibited Investment or guarantee of any Prohibited
Investment in any

                                       21
<PAGE>

Person; and (v) the making of any payment to a holder of Capital Stock of the
Issuer to reimburse such holder for losses incurred by such holder upon the
disposition of such Capital Stock by such holder.

                  "Secured Series 2002 Bonds" means the 9.0% Secured Pollution
Control Revenue Refunding Bonds (Weirton Steel Corporation Project) Series 2002
in the aggregate principal amount of up to $33,800,000 to be issued by the City
of Weirton, West Virginia in exchange for the Series 1989 Bonds, pursuant to the
Bond Indenture.

                  "Securities" has the meaning set forth in the Recitals.

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

                  "Security Agreement" means, collectively, (a) the Security
Agreement dated as of June 18, 2002 made by the Company for the benefit of the
Trustee and the City of Weirton, West Virginia, as beneficiaries, (with the City
of Weirton's rights thereunder assigned to the Bond Trustee) and encumbering a
portion of the Hot Mill Collateral, Tandem Mill Collateral and Tin Mill
Collateral, which constitutes personal property, as amended or supplemented from
time to time and (b) any other security agreement or other instrument
encumbering any Collateral constituting personal property which is given or made
by the Company and any Subsidiary thereof to the Trustee to secure all or any
portion of the Securities or to secure all or any portion of the payment of the
principal of, premium, if any, or interest or purchase price of the Securities.

                  "Security Documents" means the Deeds of Trust, the Security
Agreement, any Uniform Commercial Code financing statements filed in connection
with the Securities, and all other documents, instruments and agreements now or
hereafter evidencing, governing, securing or otherwise pertaining to the
Securities or otherwise executed and delivered by or on behalf of the Issuer or
any other party in connection with the Securities or any of the foregoing
documents, together with all amendments, modifications, renewals, substitutions
and replacements of or to any of the foregoing.

                  "Senior Notes due 2004" means the 11 3/8% Senior Notes due
2004 in the aggregate original principal amount of $125,000,000 issued by the
Issuer pursuant to the Indenture dated as of July 3, 1996 between the Issuer, as
issuer, and Bankers Trust Company, as trustee.

                  "Senior Notes due 2005" means the 10 3/4% Senior Notes due
2005 in the aggregate original principal amount of $125,000,000 issued by the
Issuer pursuant to the Indenture dated as of June 12, 1995, as amended and/or
supplemented between the Issuer, as issuer, and Bankers Trust Company, as
trustee.

                  "Series 1989 Bonds" means the 8 5/8% Pollution Control Revenue
Refunding Bonds (Weirton Steel Corporation Project) Series 1989 due 2014 in the
aggregate original principal amount of $56,300,000 issued by the City of
Weirton, West Virginia, pursuant to an Indenture of Trust dated as of November
1, 1989, between the City of Weirton, as issuer, and Pittsburgh National Bank,
as bond trustee.

                                       22
<PAGE>

                  "Series C Preferred Stock" means the new Series C Convertible
Redeemable Preferred Stock of the Issuer to be issued as contemplated by the
Prospectus.

                  "Subsidiary" means, with respect of any Person, any
corporation or other entity of which a majority of the Capital Stock or other
ownership interests having ordinary voting power to elect a majority of the
board of directors or other persons performing similar functions are at the time
directly or indirectly owned by such Person.

                  "Surviving Entity" has the meaning set forth in Section 8.1
hereof.

                  "Tandem Mill Collateral" means the real property constituting
the Issuer's No. 9 tin tandem mill located at Company's Weirton, West Virginia
steel-making facility, together with all equipment and fixtures now or hereafter
located thereon (whether or not later moved), as described with particularity in
the Tandem Mill Deed of Trust, together with all other property, real or
personal, conveyed by or pledged under or pursuant to the Tandem Mill Deed of
Trust and/or Security Agreement and otherwise described as "Property" or
"Collateral", respectively therein; provided, however, that only that portion of
the "Collateral" described in the Security Agreement which is located on, is
used in connection with or is proceeds of the Tandem Mill shall be included as
part of the "Tandem Mill Collateral."

                  "Tandem Mill Deed of Trust" means that certain Deed of Trust,
dated as of June 18, 2002 made by the Issuer in favor of Joyce Ofsa, as trustee,
for the benefit of the Trustee and the City of Weirton, West Virginia, as
beneficiaries, (with the City of Weirton's rights thereunder assigned to the
Bond Trustee) and encumbering the Tandem Mill Collateral which constitutes real
property, as amended, supplemented, restated or otherwise modified from time to
time.

                  "Tin Mill Collateral" means the real property constituting the
Issuer's tin mill located at the Company's Weirton, West Virginia steel-making
facility, together with all equipment and fixtures now or hereafter located
thereon (whether or not later moved), as described with particularity in the Tin
Mill Deed of Trust (excluding assets set forth in Exhibit B to the Tin Mill Deed
of Trust), together with all other property, real or personal, conveyed by or
pledged under or pursuant to the Tin Mill Deed of Trust and/or Security
Agreement and otherwise described as "Property" or "Collateral", respectively
therein; provided, however, that only that portion of the "Collateral" described
in the Security Agreement which is located on, is used in connection with or is
proceeds of the Tin Mill shall be included as part of the "Tin Mill
Collateral.".

                  "Tin Mill Deed of Trust" means that certain Deed of Trust,
dated as of June 18, 2002 made by the Issuer in favor of Joyce Ofsa, as trustee,
for the benefit of the Trustee and the City of Weirton, West Virginia, as
beneficiaries, (with the City of Weirton's rights thereunder assigned to the
Bond Trustee) and encumbering the Tandem Mill Collateral which constitutes real
property, as amended, supplemented, restated or otherwise modified from time to
time.

                  "Trustee" means the entity identified as "Trustee" in the
first paragraph hereof and, subject to the provisions of Article V, shall also
include any successor trustee.

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<PAGE>

                  "Trust Indenture Act of 1939"or "Trust Indenture Act" (except
as otherwise provided in Sections 7.1 and 7.2) means the Trust Indenture Act of
1939 as in force at the date as of which this Indenture was originally executed.

                  "Vendor Financing Programs" means the sale and leaseback
transaction of the Issuer's Foster-Wheeler Steam Generating Plant, including
related real property and certain related energy generating equipment, the sale
and leaseback transaction(s) of the Issuer's general office building and
research and development building located in Weirton, West Virginia and the
related conveyance or grant of an option to purchase certain undeveloped real
property adjacent thereto, and the transfer of a major operating lease to a
public entity and other Indebtedness of the Issuer or its Subsidiaries in
connection with the foregoing and related transactions with vendors of the
Issuer as described in the Prospectus.

                  "Voting Stock" means Capital Stock which ordinarily has voting
power for the election of directors (or persons performing similar functions),
whether at all times or only so long as no senior class of securities has such
voting power by reason of any contingency.

                  "Wholly Owned Subsidiary" means, at any time, a Subsidiary all
of the Capital Stock of which (except directors' qualifying shares) are at the
time owned directly or indirectly by the Issuer.

                                   ARTICLE II
              ISSUE, EXECUTION, FORM AND REGISTRATION OF SECURITIES

Section 2.1. AUTHENTICATION AND DELIVERY OF SECURITIES; ISSUANCE OF EXCHANGE
SECURITIES. Upon the execution and delivery of this Indenture, or from time to
time thereafter, Securities in an aggregate principal amount not in excess of
$134,200,000 (except as otherwise provided in Section 2.6), may be executed by
the Issuer and delivered to the Trustee for authentication, and the Trustee
shall thereupon authenticate and deliver said Securities to or upon the written
order of the Issuer, signed by both (a) its Chairman of the Board of Directors,
or any Vice Chairman of the Board of Directors, or its President or any Vice
President (whether or not designated by a number or numbers or a word or words
added before or after the title "Vice President") and (b) by its Treasurer or
any Assistant Treasurer, any Vice President or any Secretary without any further
action by the Issuer. In the case of the original issuance of the Securities,
the Trustee shall be entitled to receive an Opinion of Counsel of the Issuer
dated the date thereof substantially to the effect that:

             (a) The Securities have been duly authorized, executed,
authenticated and delivered to the Holders of the Securities and assuming due
authentication by the Trustee, will be (x) valid and binding obligations of the
Issuer enforceable in accordance with their terms, except as (A) the
enforceability thereof may be limited by bankruptcy, insolvency or similar laws
affecting creditors' rights generally and except as enforcement thereof is
subject to general principles of equity (regardless of whether enforcement is
considered in a proceeding in equity or at law) and (B) rights of acceleration
and the availability of equitable remedies may be limited by equitable
principles of general applicability and (y) entitled to the benefits of the
Indenture.

                                       24
<PAGE>

             (b) No consent, approval, authorization or order of, or
qualification or filing with, any governmental body or agency is required for
the issuance of the Securities or the performance by the Issuer of its
obligations under the Securities, except such as have been obtained by the date
of such opinion and such as may be required by the securities or Blue Sky laws
of the various states.

Section 2.2. EXECUTION OF SECURITIES. The Securities shall be signed on behalf
of the Issuer by both (a) its Chairman of the Board of Directors or any Vice
Chairman of the Board of Directors or its President or any Vice President
(whether or not designated by a number or numbers or a word or words added
before or after the title "Vice President") and (b) by its Treasurer or any
Assistant Treasurer or its Secretary or any Assistant Secretary, under its
corporate seal which may, but need not, be attested. Such signatures may be the
manual or facsimile signatures of the present or any future such officers. The
seal of the Issuer may be in the form of a facsimile thereof and may be
impressed, affixed, imprinted or otherwise reproduced on the Securities.
Typographical and other minor errors or defects in any such reproduction of the
seal or any such signature shall not affect the validity or enforceability of
any Security which has been duly authenticated and delivered by the Trustee. In
case any officer of the Issuer who shall have signed any of the Securities shall
cease to be such officer before the Security so signed shall be authenticated
and delivered by the Trustee or disposed of by the Issuer, such Security
nevertheless may be authenticated and delivered or disposed of as though the
person who signed such Security had not ceased to be such officer of the Issuer;
and any Security may be signed on behalf of the Issuer by such persons as, at
the actual date of the execution of such Security, shall be the proper officers
of the Issuer, although at the date of the execution and delivery of this
Indenture, any such person was not such officer.

Section 2.3. CERTIFICATE OF AUTHENTICATION. Only such Securities as shall bear
thereon a certificate of authentication substantially in the form set forth in
Exhibit C hereof, executed by the Trustee by manual signature of one of its
authorized signatories, shall be entitled to the benefits of this Indenture or
be valid or obligatory for any purpose. Such certificate by the Trustee upon any
Security executed by the Issuer shall be conclusive evidence that the Security
so authenticated has been duly authenticated and delivered hereunder and that
the holder is entitled to the benefits of this Indenture.

Section 2.4. FORM, DENOMINATION AND DATE OF SECURITIES; PAYMENTS OF INTEREST.
The Securities and the Trustee's certificates of authentication shall be
substantially in the forms attached hereto as Exhibits A-C, respectively. The
Securities shall be issuable as registered securities without coupons and in
denominations provided for in the form of Security attached hereto as Exhibits A
and B. The Securities shall be numbered, lettered, or otherwise distinguished in
such manner or in accordance with such plans as the officers of the Issuer
executing the same may determine with the approval of the Trustee. The
Securities shall be issued in registered form and may, if agreed by the Issuer
and the Holder, be issued in the form of a permanent Global security (any such
Global security, "Global Securities") in the form set forth in Exhibit A hereto.
Securities may be issued, if agreed by the Issuer and the Holder, in the form of
definitive Securities in physical form. Securities shall be issued in registered
form, substantially in the form set forth in Exhibit B hereto. Any of the
Securities may be issued with appropriate insertions, omissions, substitutions
and variations, and may have imprinted or otherwise reproduced thereon such
legend or legends, not inconsistent with the provisions of this Indenture, as
may be required to

                                       25
<PAGE>

comply with any law or with any rules or regulations pursuant thereto, or with
the rules of any securities market in which the Securities are admitted to
trading, or to conform to general usage. The Issuer shall furnish any such
legends or endorsements to the Trustee in writing. The Issuer shall approve the
form of the Securities and any notation, legend or endorsement on them.

             Each Security shall be dated the date of its authentication, shall
bear interest from the date stated therein and shall be payable on the dates
specified on the face of the applicable form of Security.

             The person in whose name any Security is registered at the close of
business on any record date with respect to any interest payment date shall be
entitled to receive the interest, if any, payable on such interest payment date
notwithstanding any transfer or exchange of such Security subsequent to the
record date and prior to such interest payment date, except if and to the extent
the Issuer shall default in the payment of the interest due on such interest
payment date, in which case such defaulted interest, if any, shall be paid to
the persons in whose names outstanding Securities are registered at the close of
business on a subsequent record date (which shall be not less than five business
days prior to the date of payment of such defaulted interest, if any,)
established by notice given by mail by or on behalf of the Issuer to the holders
of Securities not less than 15 days preceding such subsequent record date. The
term "record date" as used with respect to any interest payment date (except a
date for payment of defaulted interest, if any,) shall mean if such interest
payment date is the first day of a calendar month, the fifteenth day of the next
preceding calendar month and shall mean, if such interest payment date is the
fifteenth day of a calendar month, the first day of such calendar month, whether
or not such record date is a business day.

Section 2.5. GLOBAL LEGEND. Each Global Security shall bear the following legend
on the face thereof:

             UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
             OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
             ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
             PAYMENT, AND ANY SECURITY 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 OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
             REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

             TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
             WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR
             THEREOF OR SUCH SUCCESSOR'S NOMINEE.

                                       26
<PAGE>

Section 2.6. REGISTRATION, TRANSFER AND EXCHANGE. The Issuer will keep at each
office or agency to be maintained for the purpose as provided in Section 3.2 a
register or registers in which the transfer of Securities as in this Article
provided. Such register shall be in written form in the English language or in
any other form capable of being converted into such form within a reasonable
time. At all reasonable times, such register or registers shall be open for
inspection by the Trustee.

             The Securities are issuable only in registered form. A Holder may
transfer a Security by written application to the Registrar stating the name of
the proposed transferee and otherwise complying with the terms of this
Indenture. No such transfer shall be effected until, and such transferee shall
succeed to the rights of a Holder only upon, final acceptance and registration
of the transfer by the Registrar in the Security Register. Prior to the
registration of any transfer by a Holder as provided herein, the Issuer, the
Trustee, and any agent of the Issuer shall treat the person in whose name the
Security is registered as the owner thereof for all purposes whether or not the
Security shall be overdue, and neither the Issuer, the Trustee, nor any such
agent shall be affected by notice to the contrary. Furthermore, the Depositary
shall, by acceptance of a Global Security, agree that transfers of beneficial
interests in such Global Security may be effected only through a book-entry
system maintained by the Depositary (or its agent), and that ownership of a
beneficial interest in the Global Security shall be required to be reflected in
a book entry. When Securities are presented to the Registrar with a request to
register the transfer or to exchange them for an equal principal amount of
Securities of other authorized denominations, the Registrar shall register the
transfer or make the exchange as requested if its requirements for such
transactions are met. To permit registrations of transfers and exchanges in
accordance with the terms, conditions and restrictions hereof, the Issuer shall
execute and the Trustee shall authenticate Securities at the Registrar's
request. No service charge shall be made for any registration of transfer or
exchange or redemption of the Securities, but the Issuer 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 other
similar governmental charge payable upon exchanges pursuant to Section 2.10, 7.5
or 12.2). The Registrar shall not be required (i) to issue, register the
transfer of or exchange any Security during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of
Securities selected for redemption under Section 12.2 and ending at the close of
business on the day of such mailing, or (ii) to register the transfer of or
exchange any Security so selected for redemption in whole or in part, except the
unredeemed portion of any Security being redeemed in part.

             Upon due presentation for registration of transfer of any Security
at each such office or agency, the Issuer shall execute and the Trustee shall
authenticate and deliver in the name of the transferee or transferees a new
Security or Securities in authorized denominations for a like aggregate
principal amount.

             All Securities presented for registration of transfer, exchange,
redemption or payment shall (if so required by the Issuer or the Trustee) be
duly endorsed by, or be accompanied by a written instrument or instruments of
transfer in form satisfactory to the Issuer and the Trustee duly executed by the
holder or his attorney duly authorized in writing.

                                       27
<PAGE>

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

Section 2.7. BOOK-ENTRY PROVISIONS FOR GLOBAL SECURITIES. (a) Each Global
Security initially shall (i) be registered in the name of the Depositary or the
nominee of such Depositary and (ii) be delivered to the Trustee as custodian for
such Depositary and (iii) bear legends as set forth in Section 2.5. Except as
described in this Article II, owners of interests in the Global Securities shall
not have Securities registered in their names, will not receive physical
delivery of Securities in definitive form and will not be considered the
registered owners or holders thereof under this Indenture for any purpose.
Members of, or participants in, the Depositary ("Agent Members") shall have no
rights under this Indenture with respect to any Global Security held on their
behalf by the Depositary, or the Trustee as its custodian, or under any Global
Security and the Depositary and/or its nominee may be treated by the Issuer, the
Trustee and any agent of the Issuer or the Trustee as the absolute owner of such
Global Security for all purposes whatsoever. Notwithstanding the foregoing,
nothing herein shall prevent the Issuer, the Trustee or any agent of the Issuer
or the Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary
and its Agent Members, the operation of customary practices governing the
exercise of the rights of a holder of any Security.

             (b) Transfers of a Global Security shall be limited to transfers of
such Global Security in whole, but not in part, to the Depositary, its
successors or their respective nominees. Beneficial interests in the Global
Security may be transferred in accordance with the applicable rules and
procedures of the Depositary. In addition, definitive Securities in physical
form shall be transferred to all beneficial owners in exchange for their
beneficial interests in the Global Security if (i) the Depositary notifies the
Issuer that it is unwilling or unable to continue as Depositary for the Global
Security and a successor Depositary is not appointed by the Issuer within 90
days of such notice or (ii) there shall have occurred and be continuing an Event
of Default or any event which after notice or lapse of time or both would be an
Event of Default with respect to the Securities. Securities issued in definitive
form will be in fully registered form, without coupons, in minimum denominations
of $50 and integral multiples of $50 above that amount. Upon issuance of
Securities in definitive form, the Trustee is required to register Securities in
the name of, and cause the Securities to be delivered to, the person or persons
(or nominee thereof) identified as the beneficial owners as the Depositary shall
direct.

             (c) In connection with any transfer of a beneficial interest in a
Global Security to a transferee receiving definitive Securities in physical form
pursuant to paragraph (b) of this Section, the Registrar shall reflect on its
books and records the date and the decrease in the principal amount of the
Global Security in an amount equal to the principal amount of the beneficial
interest in the Global Security to be transferred, and the Issuer shall execute,
and the Trustee shall authenticate and deliver, one or more definitive
Securities in physical form of like tenor and amount.

             (d) In connection with the transfer of the entire Global Security
to beneficial owners pursuant to paragraph (b) of this Section, the Global
Security shall be deemed to be surrendered to the Trustee for cancellation, and
the Issuer shall execute, and the Trustee shall

                                       28
<PAGE>

authenticate and deliver, to each beneficial owner identified by the Depositary
in exchange for its beneficial interest in the Global Security, an equal
aggregate principal amount of definitive Securities in physical form or of
authorized denominations.

             (e) The registered holder of the Global Security may grant proxies
and otherwise authorize any person, including Agent Members and persons that may
hold interests through Agent Members, to take any action which a Holder is
entitled to take under this Indenture or the Securities.

Section 2.8. MUTILATED, DEFACED, DESTROYED, LOST AND STOLEN SECURITIES. In case
any temporary or definitive Security shall become mutilated, defaced or be
apparently destroyed, lost or stolen, the Issuer in its discretion may execute,
and upon the written request of any officer of the Issuer, the Trustee shall
authenticate and deliver, a new Security, bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated or defaced Security,
or in lieu of and substitution for the Security so apparently destroyed, lost or
stolen. In every case the applicant for a substitute Security shall furnish to
the Issuer and to the Trustee and any agent of the Issuer or the Trustee such
security or indemnity as may be required by them to indemnify and defend and to
save each of them harmless and, in every case of destruction, loss or theft
evidence to their satisfaction of the apparent destruction, loss or theft of
such Security and of the ownership thereof.

             Upon the issuance of any substitute Security, the Issuer may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee and its counsel) connected therewith. In
case any Security which has matured or is about to mature, shall become
mutilated or defaced or be apparently destroyed, lost or stolen, the Issuer may,
instead of issuing a substitute Security, pay or authorize the payment of the
same (without surrender thereof except in the case of a mutilated or defaced
Security), if the applicant for such payment shall furnish to the Issuer and to
the Trustee and any agent of the Issuer or the Trustee such security or
indemnity as any of them may require to save each of them harmless from all
risks, however remote, and, in every case of apparent destruction, loss or
theft, the applicant shall also furnish to the Issuer and the Trustee and any
agent of the Issuer or the Trustee evidence to their satisfaction of the
apparent destruction, loss or theft of such Security and of the ownership
thereof.

             Every substitute Security issued pursuant to the provisions of this
Section by virtue of the fact that any Security is apparently destroyed, lost or
stolen shall constitute an additional contractual obligation of the Issuer,
whether or not the apparently destroyed, lost or stolen Security shall be at any
time enforceable by anyone and shall be entitled to all the benefits of (but
shall be subject to all the limitations of rights set forth in) this Indenture
equally and proportionately with any and all other Securities duly authenticated
and delivered hereunder. All Securities shall be held and owned upon the express
condition that, to the extent permitted by law, the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, defaced, or
apparently destroyed, lost or stolen Securities and shall preclude any and all
other rights or remedies notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

                                       29
<PAGE>

Section 2.9. CANCELLATION OF SECURITIES; DESTRUCTION THEREOF. All Securities
surrendered for payment, redemption, registration of transfer or exchange, if
surrendered to the Issuer or any agent of the Issuer or the Trustee, shall be
delivered to the Trustee for cancellation or, if surrendered to the Trustee,
shall be cancelled by it; and no Securities shall be issued in lieu thereof
except as expressly permitted by any of the provisions of this Indenture. The
Trustee shall destroy cancelled Securities held by it and deliver a certificate
of destruction to the Issuer. If the Issuer shall acquire any of the Securities,
such acquisition shall not operate as a redemption or satisfaction of the
indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

Section 2.10. TEMPORARY SECURITIES. Pending the preparation of definitive
Securities, the Issuer may execute and the Trustee shall authenticate and
deliver temporary Securities (printed, lithographed, typewritten or otherwise
reproduced, in each case in form satisfactory to the Trustee). Temporary
Securities shall be issuable as registered Securities without coupons, of any
authorized denomination, and substantially in the form of the definitive
Securities but with such omissions, insertions and variations as may be
appropriate for temporary Securities, all as may be determined by the Issuer
with the concurrence of the Trustee. Temporary Securities may contain such
reference to any provisions of this Indenture as may be appropriate. Every
Temporary Security shall be executed by the Issuer and be authenticated by the
Trustee upon the same conditions and in substantially the same manner, and with
like effect, as the definitive Securities. Without unreasonable delay, the
Issuer shall execute and shall furnish definitive Securities and thereupon
temporary Securities may be surrendered in exchange therefor without charge at
each office or agency to be maintained by the Issuer for the purpose pursuant to
Section 3.2, and the Trustee shall authenticate and deliver in exchange for such
temporary Securities a like aggregate principal amount of definitive Securities
of authorized denominations. Until so exchanged, the temporary Securities shall
be entitled to the same benefits under this Indenture as definitive Securities.

Section 2.11. WIRE PAYMENTS. Notwithstanding any provisions of this Indenture
and the Securities to the contrary, if the Issuer and a Holder so agree,
payments of cash interest on, and any portion of the principal of any Securities
other than the final payment of principal on a Security, may be made by the
Paying Agent upon receipt from the Issuer in immediately available funds,
directly to the Holder of such Security (whether by Federal funds, wire transfer
or otherwise) if the Holder has delivered written instructions to the Trustee 15
days prior to such payment date requesting that such payment will be so made and
designating the bank account to which such payment shall be so made and in the
case of payments of a portion of the principal of any Securities other than the
final payment of principal on a Security, the holder of such Security surrenders
the same to the Trustee in exchange for a Security or Securities aggregating the
same principal amount as the unredeemed principal amount of the Securities
surrendered. The Trustee shall be entitled to rely on the last instruction
delivered by the Holder pursuant to this Section 2.11 unless a new instruction
is delivered 15 days prior to a payment date. The Issuer will indemnify and hold
the Trustee harmless against any loss, liability or expense (including
attorneys' fees) resulting from any act or omission to act on the part of the
Issuer or any such Holder in connection with any such agreement or which the
Paying Agent may incur as a result of making any payment in accordance with any
such agreement.

                                       30
<PAGE>

Section 2.12. DEPOSIT OF MONEYS. On or before each payment date (including a
Repurchase Date), the Issuer shall deposit with the Paying Agent (or if the
Issuer or one of its Subsidiaries or any Affiliate of any thereof is the Paying
Agent, shall segregate and hold in trust) money sufficient to make the payment
of principal of and interest due hereunder on such payment date which shall, to
the extent wire payments are to be made pursuant to Section 2.11 or otherwise
pursuant to this Indenture be made in immediately available funds.

                                   ARTICLE III
                     COVENANTS OF THE ISSUER AND THE TRUSTEE

Section 3.1. PAYMENT OF PRINCIPAL AND INTEREST. The Issuer covenants and agrees
that it will duly and punctually pay or cause to be paid the principal of and
interest on each of the Securities at the place or places, at the respective
times and in the manner provided in the Securities. Each installment of interest
on the Securities may be paid by mailing checks for such interest payable to or
upon the written order of the holders of Securities entitled thereto as they
shall appear on the registry books of the Issuer. The Issuer shall pay interest
on overdue principal at the rate borne by the Securities and shall pay interest
on overdue installments of interest at the same rate to the extent lawful.

Section 3.2. OFFICES FOR PAYMENTS, ETC. So long as any of the Securities remain
outstanding, the Issuer will maintain in the Borough of Manhattan, the City of
New York, the following:

             (a) an office or agency where the Securities may be presented for
payment (the "Paying Agent");

             (b) an office or agency where the Securities may be presented for
registration of transfer and for exchange as in this Indenture provided (the
"Registrar"); and

             (c) an office or agency where notices and demands to or upon the
Issuer in respect of the Securities or of this Indenture may be served.

             The Issuer will give to the Trustee written notice of the location
of any such office or agency and of any change of location thereof. The Issuer
hereby initially designates the Trustee's agency at J.P. Morgan as the office or
agency for each such purpose. In case the Issuer shall fail to maintain any such
office or agency or shall fail to give such notice of the location or of any
change in the location thereof, presentations and demands may be made and
notices may be served at the Corporate Trust Office. The Trustee shall initially
be the Registrar and Paying Agent; PROVIDED, HOWEVER, that the Issuer may act as
Paying Agent or Registrar.

Section 3.3. APPOINTMENT TO FILL A VACANCY IN OFFICE OF TRUSTEE. The Issuer,
whenever necessary to avoid or fill a vacancy in the office of Trustee, will
appoint, in the manner provided in Section 5.9, a Trustee, so that there shall
at all times be a Trustee hereunder.

Section 3.4. PAYING AGENTS. Whenever the Issuer shall appoint a Paying Agent
other than the Trustee, it will cause such Paying Agent to execute and deliver
to the Trustee an instrument in which such agent shall agree with the Trustee,
subject to the provisions of this Section:

                                       31
<PAGE>

             (a) that it will hold all sums received by it as such agent for the
payment of the principal of and interest on the Securities (whether such sums
have been paid to it by the Issuer or by any other obligor on the Securities) in
trust for the benefit of the holders of the Securities or of the Trustee;

             (b) that it will give the Trustee notice of any failure by the
Issuer (or by any other obligor on the Securities) to make any payment of the
principal of and interest on the Securities when the same shall be due and
payable; and

             (c) pay any such sums so held in trust by it to the Trustee upon
the Trustee's written request at any time during the continuance of the failure
referred to in clause (b) above.

             The Issuer will, prior to each due date of the principal of and
interest on the Securities, deposit with the Paying Agent a sum sufficient to
pay such principal, interest, and (unless such Paying Agent is the Trustee) the
Issuer will promptly notify the Trustee of any failure to take such action.

             If the Issuer shall act as its own Paying Agent, it will, on or
before each due date of the principal of and interest, on the Securities, set
aside, segregate and hold in trust for the benefit of the holders of the
Securities a sum sufficient to pay such principal interest, so becoming due. The
Issuer will promptly notify the Trustee of any failure to take such action.

             Anything in this Section to the contrary notwithstanding, the
Issuer may at any time, for the purpose of obtaining a satisfaction and
discharge of this Indenture or for any other reason, pay or cause to be paid to
the Trustee all sums held in trust by the Issuer or any Paying Agent hereunder,
as required by this Section, such sums to be held by the Trustee upon the trusts
herein contained.

             Anything in this Section to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section is subject to the
provisions of Sections 9.3 and 9.4.

Section 3.5. CERTIFICATE TO TRUSTEE. The Issuer will furnish to the Trustee
within 120 days after the end of each fiscal year a brief certificate (which
need not comply with Section 11.5) from the principal executive, financial or
accounting officer of the Issuer as to his or her knowledge of the Issuer's
compliance with all conditions and covenants under the Indenture during such
fiscal year (such compliance to be determined without regard to any period of
grace or requirement of notice provided under the Indenture).

Section 3.6. SECURITYHOLDERS' LISTS. If and so long as the Trustee shall not be
the Security Registrar, the Issuer will furnish or cause to be furnished to the
Trustee a list in such form as the Trustee may reasonably require of the names
and addresses of the holders of the Securities pursuant to Section 312 of the
Trust Indenture Act (a) semiannually not more than 15 days after each record
date for the payment of semiannual interest on the Securities, as herein above
specified, as of such record date, and (b) at such other times as the Trustee
may request in writing, within thirty days after receipt by the Issuer of any
such request as of a date not more than 15 days prior to the time such
information is furnished.

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<PAGE>

Section 3.7. REPORTS TO HOLDERS OF THE SECURITIES. The Issuer covenants to file
with the Trustee, within 15 days after the Issuer is required to file the same
with the Commission, copies of the annual reports and of the information,
documents, and other reports which the Issuer may be required to file with the
Commission pursuant to Section 13 or Section 15(d) of the Exchange Act. If,
during any period in which Securities with an aggregate principal amount equal
to or greater than ten percent of the aggregate principal amount of Securities
originally issued under this Indenture are outstanding, the Issuer is not
obligated to file annual reports, documents or other reports with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act, the Issuer will furnish to
the Trustee the same such annual reports, documents or other reports as if the
Issuer were so subject. In addition, whether or not required by the rules and
regulations of the Commission, the Issuer shall file a copy of all such
information and reports with the Commission for public availability (unless the
Commission will not accept such a filing) and make such information available to
securities analysts and prospective investors upon request.

Section 3.8. REPORTS BY THE TRUSTEE. Any Trustee's report required under Section
313(a) of the Trust Indenture Act of 1939 shall be transmitted on or before the
first date for the regular payment of semiannual interest on the Securities next
succeeding November 15 in each year, and shall be dated as of a date convenient
to the Trustee no more than 60 nor less than 45 days prior thereto (unless such
November 15 is less than 45 days prior to such interest payment date, in which
case such report shall be (a) so transmitted on or before the second such
interest payment date next succeeding such November 15 and (b) as of a date
determined as provided above). The Trustee also shall comply with Section
313(b)(2) of the Trust Indenture Act of 1939. In addition, the Trustee shall
transmit by mail all reports as required by Section 313(c) of the Trust
Indenture Act of 1939.

             A copy of each report, at the time of its mailing to the Holders of
Securities, shall be mailed to the Issuer and filed with the Commission and with
each stock exchange on which the Securities are listed in accordance with
Section 313(d) of the Trust Indenture Act of 1939. The Issuer shall promptly
notify the Trustee when the Securities are listed on any stock exchange or of
any delisting thereof.

Section 3.9. LIMITATIONS ON INDEBTEDNESS. The Issuer will not, and will not
permit any Subsidiary to, create, incur, assume, become liable for or guarantee
the payment of (collectively, an "incurrence") any Indebtedness (including
Acquired Indebtedness), other than Permitted Indebtedness, or permit any
Subsidiary to issue any Preferred Stock other than Preferred Stock that is
issued to and held by the Issuer or a wholly owned Subsidiary of the Issuer (so
long as the Issuer or a wholly owned Subsidiary of the Issuer owns such
Preferred Stock); PROVIDED the Issuer may incur, and may permit any Subsidiary
to incur, Indebtedness (including Acquired Indebtedness) if (a) at the time of
such event and after giving effect thereto, on a pro forma basis, the ratio of
Consolidated EBITDA to Consolidated Fixed Charges for the four fiscal quarters
immediately preceding such event for which financial information is available
consistent with the Issuer's prior practice, taken as one period and calculated
on the assumption that such Indebtedness had been incurred on the first day of
such four-quarter period and, in the case of Acquired Indebtedness, on the
assumption that the related acquisition (whether by means of purchase, merger or
otherwise) also had occurred on such date with the appropriate adjustments with
respect to such acquisition being included in such pro forma calculation, would
have been

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<PAGE>

greater than 1.75 to 1, and (b) no Default or Event of Default shall have
occurred and be continuing at the time or as a consequence of the incurrence of
such Indebtedness.

Section 3.10. LIMITATIONS ON RESTRICTED PAYMENTS. The Issuer will not, and will
not permit any of its Subsidiaries to, directly or indirectly, make any
Restricted Payment unless:

              (a) no Default or Event of Default shall have occurred and be
continuing at the time of or after giving effect to such Restricted Payment; and

              (b) immediately after giving effect to such Restricted Payment,
the aggregate of all Restricted Payments (the fair market value of any such
Restricted Payment, if other than cash, as determined in good faith by the
Issuer's Board of Directors and evidenced by a resolution of such Board of
Directors) declared or made after the Issue Date does not exceed the sum of (i)
50% of the Excess Cash Flow on a cumulative basis during the period (taken as
one accounting period) from and including January 1, 2002 and ending on the last
day of the Issuer's last fiscal quarter ending prior to the date of such
Restricted Payment, plus (ii) 100% of the aggregate net cash proceeds of, and
the fair market value of marketable securities (as determined in good faith by
the Board of Directors and evidenced by a resolution of such Board of Directors)
received by the Issuer from, the issue or sale after January 1, 2002 of Capital
Stock of the Issuer (other than the issue or sale of (A) Disqualified Stock, (B)
Capital Stock of the Issuer to any Subsidiary of the Issuer or (C) Capital Stock
convertible (whether at the option of the Issuer or the holder thereof or upon
the happening of any event) into any security other than its Capital Stock) and
any Indebtedness or other securities of the Issuer convertible into or
exercisable for Capital Stock (other than Disqualified Stock) of the Issuer
which has been so converted or exercised, as the case may be, plus (iii) the
amount by which the Indebtedness of the Issuer is reduced on the Issuer's
balance sheet upon the conversion or exchange (other than by a Subsidiary of the
Issuer) subsequent to the Issue Date of any Indebtedness of the Issuer
convertible or exchangeable for Capital Stock (other than Disqualified Stock) of
the Issuer (less the amount of any cash or the fair market value of other
property distributed to the Issuer upon such conversion or exchange);

PROVIDED that, notwithstanding the foregoing, (1) the Issuer and its
Subsidiaries shall be permitted to make Permitted Payments and (2) the Issuer
and any Subsidiary shall be permitted to make Investments in Permitted Joint
Ventures if at the time of such Investment and after giving effect thereto, on a
pro forma basis, (X) the Issuer could incur at least $1.00 of Indebtedness
(other than Permitted Indebtedness) pursuant to clause (a) of Section 3.9
(assuming for purposes of such calculation, if such Investment is made other
than with borrowed funds or funds obtained from the issuance of Capital Stock
specifically for the purpose of such Investment, that the Issuer incurred
Indebtedness in an amount equal to such Investment bearing interest at the
weighted average rate of interest paid by the Issuer on its outstanding
Indebtedness during the four fiscal quarters most recently ended) or otherwise
pursuant to clause (xi) of the definition of Permitted Indebtedness, (Y) the
aggregate amount of Investments made pursuant to this clause (2), less the
aggregate amount of dividends, other distributions of earnings and returns of
capital received by the Issuer from such Permitted Joint Ventures in cash, does
not exceed $50,000,000 and (Z) no Default or Event of Default shall have
occurred and be continuing; and PROVIDED FURTHER that the foregoing clause (b)
shall not prevent (I) the payment of any dividend within 60 days of its
declaration if such dividend could have been made on the date of its

                                       34
<PAGE>

declaration without violation of the provisions of this covenant or (II) the
redemption, repurchase, retirement or other acquisition of any Capital Stock of
the Issuer in exchange for, or out of the proceeds of, the substantially
concurrent sale (other than to a Subsidiary of the Issuer) of other Capital
Stock of the Issuer (other than any Disqualified Stock); PROVIDED that the
amount of any such net cash proceeds that are utilized for any such redemption,
repurchase, retirement or other acquisition shall be excluded from clause (ii)
of this paragraph (b); or (III) the defeasance, redemption or repurchase of
Indebtedness which is subordinated in right of payment to the Securities with
the net cash proceeds from an incurrence of Refinancing Indebtedness or the
substantially concurrent sale (other than to a Subsidiary of the Issuer) of
other Capital Stock of the Issuer (other than any Disqualified Stock); PROVIDED
that the amount of any such net cash proceeds that are utilized for any such
redemption, repurchase, retirement or other acquisition shall be excluded from
clause (ii) of this paragraph (b).

Section 3.11. LIMITATIONS ON TRANSACTIONS WITH AFFILIATES. So long as any of the
Securities remain outstanding, neither the Issuer nor any of its Subsidiaries
will directly or indirectly enter into any transaction or series of related
transactions involving aggregate consideration in excess of $ 1,000,000 in any
fiscal year with any Affiliate or holder of 5% or more of any class of Capital
Stock of the Issuer other than the Series C Preferred Stock (including any
Affiliates of such holders) except for any transaction (including any loans or
advances by or to any Affiliate) (i) the terms of which are fair and reasonable
to the Issuer or such Subsidiary, as the case may be, and are at least as
favorable as the terms which could be obtained by the Issuer or such Subsidiary,
as the case may be, in a comparable transaction made on an arm's length basis
with Persons who are not such a holder, an Affiliate of such holder or Affiliate
of the Issuer and (ii) which has been approved by a majority of the Issuer's
directors (including a majority of the Issuer's independent directors, if any)
in the exercise of their fiduciary duties; PROVIDED that any such transaction
shall be conclusively deemed to be on terms which are fair and reasonable to the
Issuer or any of its Subsidiaries and on terms which are at least as favorable
as the terms which could be obtained on an arms length basis with Persons who
are not such a holder, an Affiliate of such holder or Affiliate of the Issuer if
such transaction is approved by a majority of the Board of Directors (including
a majority of the Issuer's independent directors, if any). If the Issuer or any
Subsidiary enters into a transaction with an Affiliate (or a series of related
transactions with Affiliates related to a common plan) that involves an
aggregate fair market value of more than $10 million, the Issuer or such
Subsidiary, as the case may be, shall, prior to the consummation thereof, obtain
a favorable opinion as to the fairness of such transactions to the Issuer or the
relevant Subsidiary, as the case may be, from a financial point of view from an
independent nationally recognized investment banking firm and deliver same to
the Trustee.

              This covenant does not apply to: (a) any transaction between the
Issuer and any of its Wholly Owned Subsidiaries or between any of its Wholly
Owned Subsidiaries; PROVIDED that such transactions are not prohibited by other
provisions of this Indenture; (b) any Restricted Payment not otherwise
prohibited by Section 3.10; (c) any transaction pursuant to an agreement in
existence on the date of the Indenture and included as an exhibit to the
Issuer's Exchange Act Reports; (d) transactions between the Issuer and the 1984
ESOP, 1989 ESOP or any other employee benefit plan; (e) any transaction with a
Subsidiary or a Permitted Joint Venture which would constitute a transaction
with an Affiliate solely because the Issuer or a Subsidiary owns an equity
interest in or otherwise controls such Subsidiary or a Permitted Joint Venture;
and (f)

                                       35
<PAGE>

reasonable fees and compensation paid to, and indemnity provided on behalf of,
officers, directors or employees of the Issuer or any Subsidiary of the Issuer
as determined in good faith by the Issuer's Board of Directors.

Section 3.12. RESTRICTIONS ON DISPOSITION OF ASSETS OF THE ISSUER. (a) Subject
to the provisions of Section 8.1 and Section 10.3, the Issuer will not, and will
not permit any of its Subsidiaries to, make any Asset Disposition (excluding any
Asset Disposition of Collateral) unless (i) the Issuer (or the Subsidiary, as
the case may be) receives consideration at the time of such sale or other
disposition at least equal to the fair market value thereof, as determined in
good faith by the Issuer's Board of Directors and evidenced by a resolution of
such Board of Directors; (ii) not less than 75% of the consideration received by
the Issuer (or the Subsidiary, as the case may be) is in the form of cash or
Cash Equivalents and (iii) the Net Cash Proceeds of the Asset Disposition are
within 270 days, at the Issuer's election, applied (A) to the extent the Issuer
elects (or is so required by the terms of any Indebtedness), to prepay or repay
the Credit Facility or the Vendor Financing Programs, or (B)(i) to redeem or
make other payments in respect of the Series C Preferred Stock, or (ii) to make
an investment in properties and assets other than cash, cash equivalents or
inventory that replace the properties and assets that were the subject of the
Asset Disposition or in properties and assets that will be used in the business
of making, processing or distributing steel products, including, without
limitation, tin products or other coated steel products and related businesses,
or (C) to the extent of the balance of such Net Cash Proceeds after application
in accordance with (A) or (B), to make an Asset Disposition Offer to purchase
the Securities (on a pro rata basis if the amount available for such purchase is
less than 100% of the outstanding principal amount of the Securities) and
Secured Series 2002 Bonds on a pari passu basis, at a purchase price of the
principal amount thereof plus accrued and unpaid interest, if any, as the case
may be, to the date of repayment. Notwithstanding the foregoing, the Issuer and
its Subsidiaries will not be required to apply any Net Cash Proceeds to
effectuate an Asset Disposition Offer in accordance with this provision except
to the extent that the aggregate gross proceeds from all Asset Dispositions
which are not applied in accordance with clause (A) or (B) exceed $15,000,000.

              (b) Subject to the provisions of Section 8.1 and Section 10.3, the
Issuer will not, and will not permit any of its Subsidiaries to, make any Asset
Disposition of Collateral unless (i) the Issuer (or the Subsidiary, as the case
may be) receives consideration at the time of such sale or other disposition at
least equal to the fair market value thereof, as determined in good faith by the
Issuer's Board of Directors and evidenced by a resolution of such Board of
Directors; (ii) not less than 75% of the consideration received by the Issuer
(or the Subsidiary, as the case may be) is in the form of cash or Cash
Equivalents and (iii) the Net Cash Proceeds of the Asset Disposition are within
270 days, at the Issuer's election, applied (A) to the extent the Issuer elects
(or is so required by the terms of any Indebtedness), to prepay or repay the
Credit Facility which prepayment or repayment shall constitute a permanent
reduction of the commitment under such Credit Facility (the "Permanent
Reduction") or (B)(i) to redeem or make other payments in respect of the Series
C Preferred Stock, or (ii) to make an investment in replacement properties and
assets that will be used in the business of making, processing or distributing
steel products, including, without limitation, tin products or other coated
steel products and related businesses, and grant in favor of the Trustee for the
benefit of the holders of the Securities a Lien on such replacement properties
and assets, which Lien may be subordinated

                                       36
<PAGE>

only to senior secured Indebtedness incurred to finance or refinance, the
acquisition of such replacement properties and assets, or (C) to the extent of
the balance of such Net Cash Proceeds after application in accordance with (A)
or (B), to make an Asset Disposition Offer to purchase the Securities (on a pro
rata basis if the amount available for such purchase is less than 100% of the
outstanding principal amount of the Securities) and Secured Series 2002 Bonds on
a pari passu basis, at a purchase price of the principal amount thereof plus
accrued and unpaid interest, if any, as the case may be, to the date of
repayment. Subject to the Intercreditor Agreement, such proceeds intended to be
used as provided in clause (B)(ii) above shall be placed in and shall remain in
a Pledged Account (which Pledged Account may also secure, on a pari passu basis,
the Indebtedness relating to the Secured Series 2002 Bonds, to the extent such
Indebtedness is then outstanding) and such proceeds shall be released to the
Issuer as required to permit the purchase of such replacement assets.

              (c) In the event that the Issuer elects to purchase Securities
pursuant to Section 3.12(a)(iii)(C) or Section 3.12(b)(iii)(C) above, the Issuer
will purchase Securities tendered pursuant to a tender offer by the Issuer for
the Securities (the "Asset Disposition Offer") in accordance with the procedures
(including prorationing in the event of oversubscription) set forth in Section
3.12(d). If the aggregate purchase price of Securities tendered pursuant to the
Asset Disposition Offer is less than the Net Cash Proceeds allotted to the
purchase of the Securities, the Issuer shall apply the remaining Net Cash
Proceeds in accordance with clauses (A) and (B) of Sections 3.12(a)(iii) or
3.12(b)(iii) above, as applicable.

              (d) (i) In the event that the Issuer elects to purchase Securities
pursuant to Section 3.12(a)(iii)(C) or Section 3.12(b)(iii)(C) above, the Issuer
shall be obligated to deliver to the Trustee and send, by first-class mail to
each Holder, a written notice stating that: (A) such Holder may elect to have
his Securities purchased by the Issuer either in whole or in part (subject to
prorationing as hereinafter described in the event the Asset Disposition Offer
is oversubscribed) in multiples of $1,000 principal amount, at the applicable
purchase price, plus accrued interest and unpaid interest, to the date of
purchase by the Issuer; (B) any Security not tendered or accepted for payment
will continue to accrue interest; (C) any Security accepted for payment pursuant
to the Asset Disposition Offer shall cease to accrue interest after the Purchase
Date; and (D) Holders will be entitled to withdraw their election in the manner
described in clause (iii) below.

              The notice shall also specify a purchase date not less than 30
days nor more than 60 days after the date of such notice (the "Purchase Date"),
shall include all instructions and materials necessary to enable each Holder to
tender Securities pursuant to the Asset Disposition Offer, and shall contain
information concerning the business of the Issuer which the Issuer in good faith
believes will enable such Holders to make an informed decision (which at a
minimum will include (1) the most recently filed Annual Report on Form 10-K
(including audited consolidated financial statements) of the Issuer, the most
recent subsequently filed Quarterly Report on Form 10-Q and any Current Report
on Form 8-K of the Issuer filed subsequent to such Quarterly Report, other than
Current Reports describing other asset dispositions otherwise described in the
offering materials, (2) corresponding successor reports or reports otherwise
required pursuant to Section 3.7 to be delivered to Holders if the Issuer is no
longer filing reports pursuant to the Securities Exchange Act of 1934, (3) a
description of material developments in

                                       37
<PAGE>

the Issuer's business subsequent to the date of the latest of such reports, and
(4) if material, appropriate pro forma financial information. Substantially
simultaneously with the mailing of the notice, the Issuer shall cause a copy of
such notice to be published in The Wall Street Journal or another newspaper of
general circulation in the Borough of Manhattan, the City of New York.

              (ii) Not later than the date upon which written notice of an Asset
Disposition Offer is delivered to the Trustee as provided above, the Issuer
shall deliver to the Trustee an Officers' Certificate as to (A) the amount of
the Asset Disposition Offer (the "Offer Amount"), (B) the allocation of the Net
Cash Proceeds pursuant to which such Asset Disposition Offer is being made and
(C) the compliance of such allocation with the provisions of Section 3.12(a) or
Section 3.12(b). Not later than one Business Day prior to the Purchase Date, the
Issuer shall also irrevocably deposit with the Trustee or with a Paying Agent
(or, if the Issuer is acting as its own Paying Agent, segregate and hold in
trust) in immediately available funds an amount equal to the Offer Amount to be
held for payment in accordance with the provisions of this Section. Upon the
expiration of the period for which the Asset Disposition Offer remains open (the
"Offer Period"), the Issuer shall deliver to the Trustee the Securities or
portions thereof which have been properly tendered to and are to be accepted by
the Issuer. The Trustee or a Paying Agent (if any) shall, on the Purchase Date,
mail or deliver payment to each tendering Holder in the amount of the purchase
price. In the event that the aggregate purchase price of the Securities
delivered by the Issuer to the Trustee is less than the Offer Amount, the
Trustee shall deliver the excess to the Issuer immediately after the expiration
of the Offer Period.

              (iii) Holders electing to have a Security purchased will be
required to surrender the Security, with an appropriate form duly completed, to
the Trustee at the address specified in the notice at least one Business Day
prior to the Purchase Date. Holders will be entitled to withdraw their election
if the Trustee or Paying Agent (if any) receives not later than the close of
business on the Business Day prior to the Purchase Date a telegram, facsimile
transmission or letter setting forth the name of the Holder and a statement that
such Holder is withdrawing his election to have all or a portion of his
Securities purchased. If at the expiration of the Offer Period, the aggregate
principal amount of Securities surrendered by Holders exceeds the Offer Amount,
the Issuer shall select the Securities to be purchased on a pro rata basis (with
such adjustments as may be deemed appropriate by the Issuer so that only
Securities in denominations of $1,000 or multiples thereof shall be purchased).
Holders whose Securities are purchased only in part will be issued new
Securities equal in principal amount to the unpurchased portion of the
Securities surrendered.

              (iv) At the time the Issuer delivers Securities to the Trustee
which are to be accepted for purchase, the Issuer will also deliver an Officers'
Certificate stating that such Securities are to be accepted by the Issuer
pursuant to and in accordance with the terms of this Section. A Security shall
be deemed to have been accepted for purchase at the time the Trustee, directly
or through an agent, mails or delivers payment therefor to the surrendering
Holder.

              (e) In the event the Issuer is unable to purchase Securities from
Holders in an Asset Disposition Offer because such purchase is prohibited by any
provision of applicable law, the Issuer need not make an Asset Disposition
Offer. The Issuer shall then be obligated to apply

                                       38
<PAGE>

the Net Cash Proceeds in accordance with clause (A) or (B) of Section
3.12(a)(iii) or Section 3.12(b)(iii), as applicable.

              (f) Whenever Net Cash Proceeds are received by the Issuer, and
prior to the allocation of such Net Cash Proceeds pursuant to this Section 3.12,
such Net Cash Proceeds shall be (i) set aside by the Issuer in a separate
account pending allocation or (ii) if required under the Credit Facility, the
Security Documents or the Intercreditor Agreement, placed in a cash collateral
account pledged as security for the Credit Facility, pending allocation.

Section 3.13. LIMITATIONS ON LIENS. The Issuer will not, and will not permit any
Subsidiary to, issue, assume or guarantee any Indebtedness secured by a Lien
(other than a Permitted Lien) of or upon any Property of the Issuer or any
Subsidiary or any shares of stock or debt of any Subsidiary which owns Property,
whether such Property is owned at the date of the Indenture or thereafter
acquired, without making effective provision whereby the Securities (together
with, if the Issuer shall so determine, any other debt of the Issuer ranking
equally with the Securities and then existing or thereafter created) shall be
secured by such Lien equally and ratably with such Indebtedness, so long as such
Indebtedness shall be so secured. The Issuer shall not, and shall not permit any
of its Subsidiaries to, directly or indirectly, create, incur, assume or suffer
to exist any Lien on any Collateral now owned or hereafter acquired, or any
income or profits therefrom, except Collateral Permitted Liens.

Section 3.14. LIMITATIONS ON SALE AND LEASEBACK TRANSACTIONS. (a) The Issuer
will not and will not permit any Subsidiary to enter into any sale and leaseback
transaction with respect to any Property (whether now owned or hereafter
acquired) unless the net proceeds of the sale or transfer of the Property to be
leased are at least equal to the fair market value (as determined by the Board
of Directors) of such Property and unless the Issuer or such Subsidiary would be
entitled under Sections 3.9 and 3.13, to issue, assume or guarantee debt secured
by a mortgage on such Property in an amount at least equal to the Attributable
Debt in respect of such sale and leaseback transaction; PROVIDED, HOWEVER, that
the foregoing prohibition does not apply to leases between the Issuer and a
Subsidiary or between Subsidiaries or to sales and leasebacks with respect to
the Vendor Financing Programs.

              (b) In connection with a financing secured by the Tandem Mill
Collateral in an amount not to exceed $90 million, the Lien in favor of the
Trustee for the benefit of the holders of the Securities on the Tandem Mill
Collateral shall be subordinated and the cash proceeds of any such financing
(net of all legal, title and recording tax expenses, commissions and other fees
and expenses incurred in connection with the financing and after payment of $25
million to the lenders under the Credit Facility (the "Credit Facility
Repayment") and the release by such lenders under the Credit Facility of their
Liens on the Tandem Mill Collateral) must be used in connection with a Permitted
Acquisition and the Issuer or any of its Subsidiaries must grant a Lien in favor
of the Trustee for the benefit of the holders of the Securities on the assets
and properties so acquired (excluding working capital assets) which Lien may be
subordinated only to senior secured Indebtedness incurred to finance or
refinance, as applicable, the Permitted Acquisition and may be pari passu with a
Lien granted in favor of the Bond Trustee to secure the Indebtedness relating to
the Secured Series 2002 Bonds to the extent such Indebtedness is then
outstanding; PROVIDED, HOWEVER, that such Credit Facility Repayment shall not
reduce the amount

                                       39
<PAGE>

of Permitted Working Capital Indebtedness. In connection with a sale and
leaseback transaction with respect to the Tandem Mill Collateral, the Lien in
favor of the Trustee for the benefit of the holders of the Securities may be
released and terminated and the cash proceeds received by the Issuer (net of all
legal, title and recording tax expenses, commissions and other fees and expenses
incurred in connection with the sale and leaseback transaction and any capital
gains taxes incurred as a consequence of such transaction) shall be applied, at
the election of the Issuer, as follows: (i) to finance or refinance a Permitted
Acquisition permitted under clause (ix) of the definition of Permitted
Indebtedness, PROVIDED that the Issuer grants in favor of the Trustee for the
benefit of the holders of the Securities a Lien on the assets and properties so
acquired (excluding working capital assets) which Lien may be subordinated only
to senior secured Indebtedness incurred to finance or refinance, as applicable,
the Permitted Acquisition and may be pari passu with a Lien granted in favor of
the Bond Trustee to secure the Indebtedness relating to the Secured Series 2002
Bonds to the extent such Indebtedness is then outstanding; or (ii) for purposes
other than a Permitted Acquisition so long as not less than fifty percent (50%)
of such cash proceeds are applied by the Issuer, at its election, to (A) redeem
or purchase the Series C Preferred Stock or (B) make an offer to purchase
Securities and Secured Series 2002 Bonds on a pari passu basis and in accordance
with the procedures governing an Asset Disposition Offer set forth in Section
3.12(b)(iii). Subject to the Intercreditor Agreement, such proceeds intended to
be used as provided in clause (i) above shall be placed in and shall remain in a
Pledged Account (which Pledged Account may also secure, on a pari passu basis,
the Indebtedness relating to the Secured Series 2002 Bonds, to the extent such
Indebtedness is then outstanding) and such proceeds shall be released to the
Issuer as required to make the Permitted Acquisition.

Section 3.15. LIMITATIONS ON DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING
SUBSIDIARIES. The Issuer will not, and will not permit any of its Subsidiaries
to, directly or indirectly, create or otherwise cause or suffer to exist or
become effective any consensual encumbrance or restriction on the ability of any
Subsidiary of the Issuer to: (a)(i) pay dividends or make any other
distributions on its Capital Stock, or any other interest or participation in or
measured by its profits, owned by the Issuer or a Subsidiary of the Issuer, or
(ii) pay any Indebtedness owed to the Issuer or a Subsidiary of the Issuer; (b)
make loans or advances to the Issuer or a Subsidiary of the Issuer; or (c)
transfer any of its properties or assets to the Issuer or a Subsidiary of the
Issuer, except for Permitted Liens and such other encumbrances or restrictions
existing under or by reason of (i) any restrictions, with respect to a
Subsidiary that is not a Subsidiary on the date of this Indenture, under any
agreement in existence at the time such Subsidiary becomes a Subsidiary (unless
such agreement was entered into in connection with, or in contemplation of, such
entity becoming a Subsidiary on or after the date of the Indenture), (ii) any
restrictions under any agreement evidencing any Acquired Indebtedness of a
Subsidiary of the Issuer incurred pursuant to the provisions of Section 3.9;
PROVIDED that such restrictions shall not restrict or encumber any assets of the
Issuer or its Subsidiaries other than such Subsidiary, (iii) terms relating to
the nonassignability of any operating lease, (iv) any encumbrance or restriction
existing under any agreement that refinances or replaces the agreements
containing restrictions described in clauses (i)-(iii); PROVIDED that the terms
and conditions of any such restrictions are no less favorable to the holders of
the Securities than those under the agreement so refinanced or replaced, or (v)
any encumbrance or restriction due to applicable law.

                                       40
<PAGE>

Section 3.16. CHANGE OF CONTROL OPTION. In the event that there shall occur a
Change of Control, each Holder of Securities shall have the right, at such
Holder's option, to require the Issuer to purchase all or any part of such
Holder's Securities, on the date (the "Repurchase Date") that is 90 days after
notice of the Change of Control, at 101% of the principal amount of the
Securities plus accrued interest, if any, to the Repurchase Date.

              On or before the thirtieth day after the Change of Control, the
Issuer is obligated to mail, or cause to be mailed, to all Holders of record of
such Securities a notice regarding the Change of Control and the repurchase
right. Substantially simultaneously with mailing of the notice, the Issuer shall
cause a copy of such notice to be published in The Wall Street Journal or
another newspaper of general circulation in the Borough of Manhattan, the City
of New York.

              Each such notice of a repurchase right shall state: (i) the
Repurchase Date; (ii) the date by which the repurchase right must be exercised;
(iii) the price for such Securities; and (iv) the procedure which the Holder of
Securities must follow to exercise such right.

              To exercise a repurchase right, the holder of such Securities must
deliver, at least two Business Days prior to the Repurchase Date, written notice
to the Issuer (or an agent designated by the Issuer for such purpose) of the
Holder's exercise of such right, together with the Securities with respect to
which the right is being exercised, duly endorsed for transfer. Such written
notice from the Holder shall be irrevocable unless the rescission thereof is
duly approved by the Continuing Directors.

              In the event a repurchase right shall be exercised in accordance
with the terms hereof, the Issuer shall pay or cause to be paid the price
payable with respect to the Security or Securities as to which the repurchase
price has been exercised in cash to the Holder of such Security or Securities,
on the Repurchase Date. In the event that a repurchase right is exercised with
respect to less than the entire principal amount of a surrendered Security, the
Issuer shall execute and deliver to the Trustee and the Trustee shall
authenticate for issuance in the name of the Holder a new Security or Securities
in the aggregate principal amount of that portion of such surrendered Security
not repurchased.

              The Issuer will comply with all applicable tender offer rules and
regulations, including Section 14(e) of the Exchange Act and the rules
thereunder, if the Issuer is required to give a notice of right of repurchase as
a result of a Change of Control.

              As used herein, "Change of Control" means (i) any sale, lease or
other transfer (in one transaction or a series of transactions) of more than 75%
of the assets of the Issuer to any Person (other than a Wholly Owned Subsidiary
of the Issuer); (ii) a "person" or "group" (within the meaning of Sections 13(d)
and 14(d)(2) of the Exchange Act (other than the 1984 ESOP, the 1989 ESOP or any
other employee benefit plan of the Issuer)) becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act) of Capital Stock of the Issuer
representing more than 50% of the voting power of such Capital Stock unless such
acquisition of beneficial ownership of shares of voting power of Capital Stock
of the Issuer occurs, directly or indirectly, in connection with the financing
of a Permitted Acquisition; (iii) Continuing Directors cease to constitute at
least a majority of the Board of Directors of the Issuer; or (iv) the
stockholders of the Issuer approve any plan or proposal for the liquidation or
dissolution of the Issuer.

                                       41
<PAGE>

              As used herein, "Continuing Director" means a director who either
was a member of the Board of Directors of the Issuer on the date of the
Indenture or who became a director of the Issuer subsequent to such date and
whose election, or nomination for election by the Issuer's stockholders, was
duly approved by a majority of the Continuing Directors then on the Board of
Directors of the Issuer.

Section 3.17. IMPAIRMENT OF SECURITY INTEREST. The Issuer shall not and shall
not permit any of its Subsidiaries to take, or knowingly or negligently omit to
take any action, which action or omission might or would have the result of
materially impairing the security interest in favor of the Trustee on behalf of
the Holders with respect to the Collateral and the Issuer shall not grant to any
Person (other than the Trustee on behalf of the Holders and the Bond Trustee on
behalf of the holders of the Secured Series 2002 Bonds) any interest whatsoever
in the Collateral other than Collateral Permitted Liens and Liens otherwise
permitted by the Security Documents.

Section 3.18. INSURANCE.
  The Issuer or its Subsidiaries will at all times keep all of the Collateral
which is of any insurable nature reasonably insured with insurers, believed by
Issuer to be responsible, against loss or damage to the extent that property of
similar character is usually so insured by corporations similarly situated and
owning like properties in the same general geographic areas in which the Issuer
and its Subsidiaries operate; provided, however, that the Issuer will maintain
insurance on the Collateral in such amounts required under the Credit Facility.
All insurance policies relating to the Collateral shall be endorsed, to name the
Trustee as an additional insured, and the Trustee as loss payee or mortgagee
thereunder, as its respective interests may appear, with loss payable to the
Trustee, without contribution, under a standard West Virginia (or local
equivalent) mortgagee clause.

Section 3.19.  USE OF INSURANCE PROCEEDS; CONDEMNATION AWARDS.
  Subject to the Intercreditor Agreement, the Collateral Agency Agreement, and
the Security Documents, all cash proceeds of Collateral consisting of insurance
arising from damage to or destruction of, the Collateral and all cash proceeds
of condemnation awards with respect to the Collateral, shall be promptly
delivered to the Trustee and placed in a Pledged Account pending resolution of
its application (provided, that if such pledged amounts are at any time
thereafter required to be applied to the Securities); and (a) if the Issuer
determines that it desires to repair, rebuild or replace the applicable
Collateral with such proceeds, such proceeds shall remain in Pledged Account
(which Pledged Account may also secure, on a pari passu basis, the Indebtedness
relating to the Secured Series 2002 Bonds to the extent such Indebtedness is
then outstanding) and shall be released to Issuer as required in order to permit
the repair, rebuilding or replacement of the applicable Collateral, or (b) if
the Issuer determines not to repair, rebuild or replace the applicable
Collateral, such amount shall be applied to purchase Securities and the Secured
Series 2002 Bonds, on a pro rata basis based on the outstanding principal amount
of the Securities and the Secured Series 2002 Bonds at the time of such
application.

                                       42
<PAGE>

                                   ARTICLE IV
             REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF
                                    DEFAULT

Section 4.1. EVENT OF DEFAULT DEFINED; ACCELERATION OF MATURITY; WAIVER OF
DEFAULT. In case one or more of the following Events of Default (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body) shall have occurred and be continuing, that
is to say:

             (a) default in the payment of any installment of interest upon any
of the Securities as and when the same shall become due and payable, and
continuance of such default for a period of 30 days; or

             (b) default in the payment of all or any part of the principal on
any of the Securities as and when the same shall become due and payable either
at maturity, by declaration or otherwise; or

             (c) failure on the part of the Issuer duly to observe or perform
any other of the covenants or agreements on the part of the Issuer contained in
the Securities or in this Indenture for a period of 60 days after the date on
which written notice specifying such failure, stating that such notice is a
"Notice of Default" hereunder and demanding that the Issuer remedy the same,
shall have been given by registered or certified mail, return receipt requested,
to the Issuer by the Trustee, or to the Issuer and the Trustee by the holders of
at least 25% in aggregate principal amount of the Securities at the time
outstanding; or

             (d) an event of default, as defined in any indenture or instrument
evidencing or under which the Issuer has at the date of this Indenture or shall
hereafter have outstanding at least $25,000,000 aggregate principal amount of
indebtedness for borrowed money, shall happen and be continuing and such
indebtedness shall have been accelerated so that the same shall be or become due
and payable prior to the date on which the same would otherwise have become due
and payable, and such acceleration shall not be rescinded or annulled within ten
days after notice thereof shall have been given to the Issuer by the Trustee (if
such event be known to it), or to the Issuer and the Trustee by the holders of
at least 25% in aggregate principal amount of the Securities at the time
outstanding; PROVIDED that if such event of default under such indenture or
instrument shall be remedied or cured by the Issuer or waived by the holder of
such indebtedness, then the Event of Default hereunder by reason thereof shall
be deemed likewise to have been thereupon remedied, cured or waived without
further action upon the part of either the Trustee or any of the
Securityholders, and PROVIDED FURTHER that, subject to the provisions of
Sections 5.1 and 5.2, the Trustee shall not be charged with knowledge of any
such default unless written notice thereof shall have been given to the Trustee
by the Issuer, by the holder or an agent of the holder of any such indebtedness,
by the trustee then acting under any indenture or other instrument under which
such default shall have occurred, or by the holders of not less than 25% in the
aggregate principal amount at maturity of the Securities at the time
outstanding; or

                                       43
<PAGE>

             (e) the repudiation by the Issuer of any of its obligations under
the Security Documents or the unenforceability in any material respect of the
Security Documents against the Issuer; or

             (f) failure by the Issuer to maintain insurance as required by
Section 3.18; or

             (g) upon an "Event of Default" as defined in any of the Security
Documents after the lapse of any applicable grace period; provided, however,
that notwithstanding the foregoing, an Event of Default arising solely under
Section 2.1(c) of each of the Deeds of Trust or Section 7.1(b) of the Security
Agreement or otherwise constituting an Event of Default under each of the Deeds
of Trust or the Security Agreement solely by reason of a breach of any of the
terms, covenants, terms or provisions of documents relating to the Secured
Series 2002 Bonds shall not, in and of itself, constitute an Event of Default
hereunder unless (i) the Bond Trustee shall declare all or any portion of the
Secured Series 2002 Bonds to be immediately due and payable, or (ii) the Bond
Trustee or any other party shall seek to enforce any remedy under the terms of
any of the Deeds of Trust or the Security Agreement; or

             (h) a court having jurisdiction in the premises shall enter a
decree or order for relief in respect of the Issuer in an involuntary case under
any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of the Issuer or for any substantial part of
its property or ordering the winding up or liquidation of its affairs, and such
decree or order shall remain unstayed and in effect for a period of 60
consecutive days; or

             (i) the Issuer shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
consent to the entry of an order for relief in an involuntary case under any
such law, or consent to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
the Issuer or for any substantial part of its property, or make any general
assignment for the benefit of creditors.

             Then, and in each and every such case, unless the principal of all
of the Securities shall have already become due and payable, either the Trustee
or the holders of not less than 25% in aggregate principal amount of the
Securities then outstanding hereunder, by notice in writing to the Issuer (and
to the Trustee if given by Securityholders), may declare the entire principal of
all the Securities, the interest accrued thereon, to be due and payable
immediately, and upon any such declaration the same shall become immediately due
and payable. This provision, however, is subject to the condition that if, at
any time after the principal of the Securities shall have been so declared due
and payable, and before any judgment or decree for the payment of the moneys due
shall have been obtained or entered as hereinafter provided, the Issuer shall
pay or shall deposit with the Trustee a sum sufficient to pay all matured
installments of interest upon all the Securities and the principal of any and
all Securities which shall have become due otherwise than by acceleration (with
interest upon such principal and, to the extent that payment of such interest is
enforceable under applicable law, on overdue installments of interest at the
same rate as the rate of interest specified in the Securities, to the date of
such payment or deposit) and if any and all Events of Default under the
Indenture, other than the non-payment of the principal of Securities which shall
have become due by acceleration, shall have been cured, waived or

                                       44
<PAGE>

otherwise remedied as provided herein--then and in every such case the holders
of a majority in aggregate principal amount of the Securities then outstanding,
by written notice to the Issuer and to the Trustee, may waive all defaults and
rescind and annul such declaration and its consequences, but no such waiver or
rescission and annulment shall extend to or shall affect any subsequent default
or shall impair any right consequent thereon.

Section 4.2. COLLECTION OF INDEBTEDNESS BY TRUSTEE; TRUSTEE MAY PROVE DEBT. The
Issuer covenants that (a) in case default shall be made in the payment of any
installment of interest on any of the Securities when such interest shall have
become due and payable, and such default shall have continued for a period of 30
days or (b) in case default shall be made in the payment of all or any part of
the principal of any of the Securities when the same shall have become due and
payable, whether upon maturity or upon any redemption or by declaration or
otherwise--then upon demand of the Trustee, the Issuer will pay to the Trustee
for the benefit of the holders of the Securities the whole amount that then
shall have become due and payable on all such Securities for principal and
interest, as the case may be (with interest to the date of such payment upon the
overdue principal and, to the extent that payment of such interest is
enforceable under applicable law, on overdue installments of interest at the
same rate as the rate of interest specified in the Securities); and in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including reasonable compensation to the Trustee and
each predecessor Trustee, their respective agents, attorneys and counsel, and
any expenses and liabilities incurred, and all advances made, by the Trustee and
each predecessor Trustee except as a result of its negligence or willful
misconduct. In connection therewith, the Trustee shall comply with the
provisions of Section 313(b)(2) of the Trust Indenture Act of 1939 to the extent
applicable.

             Until such demand is made by the Trustee, the Issuer may pay the
principal of and interest on the Securities to the registered holders, whether
or not the Securities be overdue. In case the Issuer shall fail forthwith to pay
such amounts upon such demand, the Trustee, in its own name and as trustee of an
express trust, shall be entitled and empowered to institute any action or
proceedings at law or in equity for the collection of the sums so due and
unpaid, and may prosecute any such action or proceedings to judgment or final
decree, and may enforce any such judgment or final decree against the Issuer or
other obligor upon the Securities and collect in the manner provided by law out
of the property of the Issuer or other obligor upon the Securities, wherever
situated, the moneys adjudged or decreed to be payable.

             In case there shall be pending proceedings relative to the Issuer
or any other obligor upon the Securities under Title 11 of the United States
Code or any other applicable Federal or state bankruptcy, insolvency or other
similar law, or in case a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Issuer or its property or such other
obligor, or in case of any other comparable judicial proceedings relative to the
Issuer or other obligor upon the Securities, or to the creditors or property of
the Issuer or such other obligor, the Trustee, irrespective of whether the
principal of the Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Trustee shall
have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such proceedings or otherwise:

                                       45
<PAGE>

             (a) to file and prove a claim or claims for the whole amount of
principal and interest owing and unpaid in respect of the Securities, and to
file such other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee (including any claim for reasonable compensation
to the Trustee and each predecessor Trustee, and their respective agents,
attorneys and counsel, and for reimbursement of all expenses and liabilities
incurred, and all advances made, by the Trustee and each predecessor Trustee,
except as a result of negligence or willful misconduct) and of the
Securityholders allowed in any judicial proceedings relative to the Issuer or
other obligor upon the Securities, or to the creditors or property of the Issuer
or such other obligor;

             (b) unless prohibited by applicable law and regulations, to vote on
behalf of the holders of the Securities in any election of a trustee or a
standby trustee in arrangement, reorganization, liquidation or other bankruptcy
or insolvency proceedings or person performing similar functions in comparable
proceedings; and

             (c) to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute all amounts received with
respect to the claims of the Securityholders and of the Trustee on their behalf;
and any trustee, receiver, or liquidator, custodian or other similar official is
hereby authorized by each of the Securityholders to make payments to the
Trustee, and, in the event that the Trustee shall consent to the making of
payments directly to the Securityholders, to pay to the Trustee such amounts as
shall be sufficient to cover reasonable compensation to the Trustee, each
predecessor Trustee and their respective agents, attorneys and counsel, and all
other expenses and liabilities incurred, and all advances made, by the Trustee
and each predecessor Trustee except as a result of negligence or willful
misconduct.

             Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or vote for or accept or adopt on behalf of any
Securityholder any plan or reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Securityholder in
any such proceeding except, as aforesaid, to vote for the election of a trustee
in bankruptcy or similar person.

             All rights of action and of asserting claims under this Indenture,
or under any of the Securities, may be enforced by the Trustee without the
possession of any of the Securities or the production thereof on any trial or
other proceedings relative thereto, and any such action or proceedings
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Trustee, each predecessor
Trustee and their respective agents and attorneys, shall be for the ratable
benefit of the holders of the Securities.

             In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party) the Trustee shall be held to represent all the holders
of the Securities, and it shall not be necessary to make any holders of the
Securities parties to any such proceedings.

Section 4.3. APPLICATION OF PROCEEDS. Any moneys collected by the Trustee
pursuant to this

                                       46
<PAGE>

Article shall be applied in the following order at the date or dates fixed by
the Trustee and, in case of the distribution of such moneys on account of
principal and interest upon presentation of the several Securities and stamping
(or otherwise noting) thereon the payment, or issuing Securities in reduced
principal amounts in exchange for the presented Securities if only partially
paid, or upon surrender thereof if fully paid:

                  First: To the payment of costs and expenses, including
         reasonable compensation to the Trustee and each predecessor Trustee and
         their respective agents and attorneys and of all expenses and
         liabilities incurred, and all advances made, by the Trustee and each
         predecessor Trustee except as a result of negligence or willful
         misconduct;

                  Second: In case the principal of the Securities shall not have
         become and be then due and payable, to the payment of interest in
         default in the order of the maturity of the installments of such
         interest with interest (to the extent that such interest has been
         collected by the Trustee) upon the overdue installments of interest at
         the same rate as the rate of interest specified in the Securities, such
         payments to be made ratably to the persons entitled thereto, without
         discrimination or preference;

                  Third: In case the principal of the Securities shall have
         become and shall be then due and payable, to the payment of the whole
         amount then owing and unpaid upon all the Securities for principal,
         interest, with interest upon the overdue principal, and (to the extent
         that such interest has been collected by the Trustee) upon overdue
         installments of interest at the same rate as the rate of interest
         specified in the Securities; and in case such moneys shall be
         insufficient to pay in full the whole amount so due and unpaid upon the
         Securities, then to the payment of such principal and interest, without
         preference or priority of principal over interest or of interest over
         principal, or of any installment of interest over any other installment
         of interest or of any Security over any other Security, ratably to the
         aggregate of such principal and accrued and unpaid interest; and

                  Fourth: To the payment of the remainder, if any, to the Issuer
         or any other person lawfully entitled thereto.

Section 4.4. SUITS FOR ENFORCEMENT. In case an Event of Default has occurred,
has not been waived and is continuing, the Trustee may in its discretion proceed
to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any of such rights, either at law or in equity or in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

Section 4.5. RESTORATION OF RIGHTS ON ABANDONMENT OF PROCEEDINGS. In case the
Trustee shall have proceeded to enforce any right under this Indenture and such
proceedings shall have been discontinued or abandoned for any reason, or shall
have been determined adversely to the Trustee, then and in every such case the
Issuer and the Trustee shall be restored respectively to their former positions
and rights hereunder, and all rights, remedies and powers of the Issuer, the
Trustee and the Securityholders shall continue as though no such proceedings had
been taken.

                                       47
<PAGE>

Section 4.6. LIMITATIONS ON SUITS BY SECURITYHOLDERS. No holder of any Security
shall have any right by virtue of or by availing of any provision of this
Indenture to institute any action or proceeding at law or in equity or in
bankruptcy or otherwise upon or under or with respect to this Indenture, or for
the appointment of a trustee, receiver, liquidator, custodian or other similar
official or for any other remedy hereunder, unless such holder previously shall
have given to the Trustee written notice of default and of the continuance
thereof, as herein before provided, and unless also the holders of not less than
25% in aggregate principal amount of the Securities then outstanding shall have
made written request upon the Trustee to institute such action or proceedings in
its own name as trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby and the Trustee for 60 days after
its receipt of such notice, request and offer of indemnity shall have failed to
institute any such action or proceedings and no direction inconsistent with such
written request shall have been given to the Trustee pursuant to Section 4.8; it
being understood and intended, and being expressly covenanted by the taker and
holder of every Security with every other taker and holder and the Trustee, that
no one or more holders of Securities shall have any right in any manner whatever
by virtue or by availing of any provision of this Indenture to affect, disturb
or prejudice the rights of any other holder of Securities, or to obtain or seek
to obtain priority over or preference to any other such holder or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal, ratable and common benefit of all holders of Securities. For the
protection and enforcement of the provisions of this Section, each and every
Securityholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

Section 4.7. POWERS AND REMEDIES CUMULATIVE; DELAY OR OMISSION NOT WAIVER OF
DEFAULT. Except as provided in Section 2.6, no right or remedy herein conferred
upon or reserved to the Trustee or to the Securityholders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

             No delay or omission of the Trustee or of any holder of any of the
Securities to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power or
shall be construed to be a waiver of any such Event of Default or an
acquiescence therein; and, subject to Section 4.6, every power and remedy given
by this Indenture or by law to the Trustee or to the Securityholders may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the Securityholders.

Section 4.8. CONTROL BY SECURITYHOLDERS. The holders of a majority in aggregate
principal amount of the Securities at the time outstanding shall have the right
to direct the time, method, and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee by this Indenture; PROVIDED that such direction shall not be
otherwise than in accordance with law and the provisions of this Indenture; and
PROVIDED FURTHER that (subject to the provisions of Section 5.1) the Trustee
shall have the right to decline to follow any such direction if the Trustee,
being advised by counsel, shall determine that the action or proceeding so
directed may not lawfully be taken or if the Trustee in good faith by its board
of directors, the executive committee, or a trust committee of directors or
responsible officers of the

                                       48
<PAGE>

Trustee shall determine that the action or proceedings so directed would involve
the Trustee in personal liability or if the Trustee in good faith shall so
determine that the actions or forbearances specified in or pursuant to such
direction shall be unduly prejudicial to the interests of holders of the
Securities not joining in the giving of said direction, it being understood that
(subject to Section 5.1) the Trustee shall have no duty to ascertain whether or
not such actions or forbearances are unduly prejudicial to such holders.

             Nothing in this Indenture shall impair the right of the Trustee in
its discretion to take any action deemed proper by the Trustee and which is not
inconsistent with such direction by Securityholders.

Section 4.9. WAIVER OF PAST DEFAULTS. Prior to the declaration of the
acceleration of maturity of the Securities as provided in Section 4.1, the
holders of a majority in aggregate principal amount of the Securities at the
time outstanding may on behalf of the holders of all the Securities waive any
past default or Event of Default hereunder and its consequences, except a
default (a) in the payment of principal of and interest on any of the Securities
or (b) in respect of a covenant or provision hereof which cannot be modified or
amended without the consent of the holder of each Security affected. In the case
of any such waiver, the Issuer, the Trustee and the holders of the Securities
shall be restored to their former positions and rights hereunder, respectively;
but no such waiver shall extend to any subsequent or other default or impair any
right consequent thereon.

Upon any such waiver, such default shall cease to exist and be deemed to have
been cured and not to have occurred, and any Event of Default arising therefrom
shall be deemed to have been cured, and not to have occurred for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent thereon.

Section 4.10. NOTICE OF DEFAULTS. If a Default occurs and is continuing and if
it is known to the Trustee, the Trustee shall mail to Securityholders a notice
of the Default within 90 days after it occurs. Except in the case of a Default
in payment of principal of and interest on any Security, the Trustee may
withhold the notice if the Trustee in good faith by its board of directors, the
executive committee, or a trust committee of directors or Responsible Officers
determines that withholding the notice is in the interest of Securityholders.

Section 4.11. RIGHTS OF HOLDERS TO RECEIVE PAYMENT. Notwithstanding any other
provision of this Indenture, the right of any Holder of a Security to receive
payment of principal of and interest on the Security, on or after the respective
due dates expressed in the Security, 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 the Holder.

                                    ARTICLE V
                             CONCERNING THE TRUSTEE

Section 5.1. DUTIES AND RESPONSIBILITIES OF THE TRUSTEE; DURING DEFAULT; PRIOR
TO DEFAULT. The Trustee, prior to the occurrence of an Event of Default and
after the curing or waiving of all Events of Default which may have occurred,
undertakes to perform such duties and only such

                                       49
<PAGE>

duties as are specifically set forth in this Indenture and no covenants or
obligations shall be implied in this Indenture or the Securities. In case an
Event of Default has occurred (which has not been cured or waived), the Trustee
shall exercise such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in their exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.

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

             (a) prior to the occurrence of an Event of Default and after the
curing or waiving of all such Events of Default which may have occurred:

             (i) the duties and obligations of the Trustee shall be
         determined solely by the express provisions of this Indenture, and the
         Trustee shall not be liable except for the performance of such duties
         and obligations as are specifically set forth in this Indenture, and no
         implied covenants or obligations shall be read into this Indenture
         against the Trustee; and

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

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

             (c) the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the
direction of the holders of not less than a majority in principal amount of the
Securities at the time outstanding relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee, under this Indenture.

             (d) none of the provisions contained in this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties or in the exercise
of any of its rights or powers, if there shall be reasonable ground for
believing that the repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it.

             (e) whether or not expressly so provided, every provision of this
Indenture that in any way relates to the Trustee is subject to (a), (b), (c) and
(d) of this Section 5.1.

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<PAGE>

              This Section 5.1 is in furtherance of and subject to Sections 315
and 316 of the Trust Indenture Act of 1939.

Section 5.2. CERTAIN RIGHTS OF THE TRUSTEE. In furtherance of and subject to the
Trust Indenture Act of 1939, and subject to Section 5.1:

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

             (b) any request, direction, order or demand of the Issuer mentioned
herein shall be sufficiently evidenced by an Officers' Certificate (unless other
evidence in respect thereof be herein specifically prescribed); and any
resolution of the Board of Directors may be evidenced to the Trustee by a copy
thereof certified by the secretary or an assistant secretary of the Issuer;

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

             (d) the Trustee shall be under no obligation to exercise any of the
trusts or powers vested in it by this Indenture at the request, order or
direction of any of the Securityholders pursuant to the provisions of this
Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which might be incurred therein or thereby;

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

             (f) prior to the occurrence of an Event of Default hereunder and
after the curing or waiving of all Events of Default, 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, consent, order, approval, appraisal, bond, debenture, note, coupon,
security, or other paper or document unless requested in writing so to do by the
holders of not less than a majority in aggregate principal amount of the
Securities then outstanding; PROVIDED that, if the payment within a reasonable
time to the Trustee of the costs, expenses or liabilities likely to be incurred
by it in the making of such investigation is, in the opinion of the Trustee, not
reasonably assured to the Trustee by the security afforded to it by the terms of
this Indenture, the Trustee may require reasonable indemnity against such
expenses or liabilities as a condition to proceeding; the reasonable expenses of
every such examination shall be paid by the Issuer or, if paid by the Trustee or
any predecessor trustee, shall be repaid by the Issuer upon demand; and

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<PAGE>

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

Section 5.3. TRUSTEE NOT RESPONSIBLE FOR RECITALS, DISPOSITION OF SECURITIES OR
APPLICATION OF PROCEEDS THEREOF. The recitals contained herein and in the
Securities, except the Trustee's certificates of authentication, shall be taken
as the statements of the Issuer, and the Trustee assumes no responsibility for
the correctness of the same. The Trustee makes no representation as to the
validity or sufficiency of this Indenture or of the Securities. The Trustee
shall not be accountable for the use or application by the Issuer of any of the
Securities or of the proceeds thereof.

Section 5.4. TRUSTEE AND AGENTS MAY HOLD SECURITIES; COLLECTIONS, ETC. The
Trustee or any agent of the Issuer or the Trustee, in its individual or any
other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not the Trustee or such agent and may otherwise
deal with the Issuer and receive, collect, hold and retain collections from the
Issuer with the same rights it would have if it were not the Trustee or such
agent.

Section 5.5. MONEYS HELD BY TRUSTEE. Subject to the provisions of Section 9.4
hereof, all moneys received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were received,
but need not be segregated from other funds except to the extent required by
mandatory provisions of law. Neither the Trustee nor any agent of the Issuer or
the Trustee shall be under any liability for interest on any moneys received by
it hereunder.

Section 5.6. COMPENSATION AND INDEMNIFICATION OF TRUSTEE AND ITS PRIOR CLAIM.
The Issuer covenants and agrees to pay to the Trustee from time to time, and the
Trustee shall be entitled to, reasonable compensation (which shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust) and the Issuer covenants and agrees to pay or reimburse the
Trustee and each predecessor Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by or on behalf of it in
accordance with any of the provisions of this Indenture (including the
reasonable compensation and the expenses and disbursements of its counsel and of
all agents and other persons not regularly in its employ) except any such
expense, disbursement or advance as may arise from its negligence or willful
misconduct. The Issuer also covenants to indemnify, defend and hold the Trustee,
each predecessor Trustee and their respective directors, officers, employees and
agents (collectively, the "Indemnified Persons") harmless from and against every
loss, liability or expense, including without limitation damages, fines, suits,
actions, demands, penalties, costs, out-of-pocket or incidental expenses, legal
fees and expenses, the allocated costs and expenses of in-house counsel and
legal staff and the costs and expenses of defending or preparing to defend
against any claim (collectively, "Losses"), that may be imposed on, incurred by,
or asserted against, any Indemnified Person for or in respect of the Trustee's
(a) execution and delivery of this Indenture, (b) compliance or attempted
compliance with or reliance upon any instruction or other direction upon which
the Trustee is authorized to rely pursuant to the terms of this Indenture and
(c) performance under this Indenture, except in the case of such performance
only and with respect to any Indemnified Person to the extent that the Loss
resulted from such Indemnified Person's

                                       52
<PAGE>

negligence or willful misconduct. The obligations of the Issuer under this
Section to compensate and indemnify the Trustee and each predecessor Trustee and
to pay or reimburse the Trustee and each predecessor Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder
and shall survive the satisfaction and discharge of this Indenture and the
resignation or removal of the Trustee for any reason. Such additional
indebtedness shall be a senior claim to that of the Securities upon all property
and funds held or collected by the Trustee as such, except funds held in trust
for the benefit of the holders of particular Securities, and the Securities are
hereby subordinated to such senior claim. When the Trustee incurs expenses or
renders services after an Event of Default specified in Section 4.1(f) or (g)
occurs, the expenses and the compensation for such services are intended to
constitute expenses of administration under any bankruptcy law.

Section 5.7. RIGHT OF TRUSTEE TO RELY ON OFFICERS' CERTIFICATE, ETC. Subject to
Sections 5.1 and 5.2, whenever in the administration of the trusts of this
Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or suffering or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or willful misconduct
on the part of the Trustee, be deemed to be conclusively proved and established
by an Officers' Certificate delivered to the Trustee, and such certificate, in
the absence of negligence or willful misconduct on the part of the Trustee,
shall be full warrant to the Trustee for any action taken, suffered or omitted
by it under the provisions of this Indenture upon the faith thereof.

Section 5.8. PERSONS ELIGIBLE FOR APPOINTMENT AS TRUSTEE. The Trustee hereunder
shall at all times be a corporation having a combined capital and surplus of at
least $25,000,000, and which is eligible in accordance with the provisions of
Section 310(a) of the Trust Indenture Act of 1939. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of a Federal, State or District of Columbia supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.

Section 5.9. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR TRUSTEE. (a) The
Trustee may at any time resign by giving written notice of resignation to the
Issuer and by mailing notice thereof by first-class mail to holders of
Securities at their last addresses as they shall appear on the Security
register. Upon receiving such notice of resignation, the Issuer shall promptly
appoint a successor trustee by written instrument in duplicate, executed by
authority of the Board of Directors, one copy of which instrument shall be
delivered to the resigning Trustee and one copy to the successor trustee. If no
successor trustee shall have been so appointed and have accepted appointment
within 60 days after the mailing of such notice of resignation, the resigning
trustee, the Issuer, the resigning Trustee or the Holders of at least ten
percent in aggregate principal amount of the Securities may petition any court
of competent jurisdiction for the appointment of a successor trustee. Such court
may thereupon, after such notice, if any, as it may deem proper and prescribe,
appoint a successor trustee.

             In case at any time any of the following shall occur:

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<PAGE>

              (i) the Trustee shall fail to comply with the provisions of
         Section 310(b) of the Trust Indenture Act of 1939, after written
         request therefor by the Issuer or by any Securityholder who has been a
         bona fide holder of a Security or Securities for at least six months;
         or

              (ii) the Trustee shall cease to be eligible in accordance with
         the provisions of Section 5.8 and shall fail to resign after written
         request therefor by the Issuer or by any such Securityholder; or

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

then, in any such case, the Issuer may remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors of the Issuer, one copy of which instrument shall be
delivered to the Trustee so removed and one copy to the successor trustee, or,
subject to Section 315(e) of the Trust Indenture Act of 1939, any Securityholder
who has been a bona fide holder of a Security or Securities for at least six
months may on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor trustee. Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor trustee.

              (b) The holders of a majority in aggregate principal amount of the
Securities at the time outstanding may at any time remove the Trustee and
appoint a successor trustee by delivering to the Trustee so removed, to the
successor trustee so appointed and to the Issuer the evidence provided for in
Section 6.1 of the action in that regard taken by the Securityholders.

              (c) Any resignation or removal of the Trustee and any appointment
of a successor trustee pursuant to any of the provisions of this Section 5.9
shall become effective upon acceptance of appointment by the successor trustee
as provided in Section 5.10.

Section 5.10. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR TRUSTEE. Any successor
trustee appointed as provided in Section 5.9 shall execute and deliver to the
Issuer and to its predecessor trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor trustee
shall become effective and such successor trustee, without any further act, deed
or conveyance, shall become vested with all rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as trustee herein; but, nevertheless, on the written request of the Issuer
or of the successor trustee, upon payment of its charges then unpaid, the
trustee ceasing to act shall, subject to Section 9.4, pay over to the successor
trustee all moneys at the time held by it hereunder and shall execute and
deliver an instrument transferring to such successor trustee all such rights,
powers, duties and obligations. Upon request of any such successor trustee, the
Issuer shall execute any and all instruments in writing for more fully and
certainly vesting in and confirming to such successor trustee all such rights
and powers. Any trustee ceasing to act shall, nevertheless, retain a prior claim
upon all

                                       54
<PAGE>

property or funds held or collected by such trustee to secure any amounts then
due it pursuant to the provisions of Section 5.6.

              Upon acceptance of appointment by a successor trustee as provided
in this Section 5.10, the Issuer shall mail notice thereof by first-class mail
to the holders of Securities at their last addresses as they shall appear in the
Security register. If the acceptance of appointment is substantially
contemporaneous with the resignation, then the notice called for by the
preceding sentence may be combined with the notice called for by Section 5.9. If
the Issuer fails to mail such notice within 10 days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be mailed at the expense of the Issuer.

Section 5.11. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS OF
TRUSTEE. Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the corporate trust business of the Trustee, shall be
the successor of the Trustee hereunder; PROVIDED that such corporation shall be
eligible under the provisions of Section 5.8, without the execution or filing of
any paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.

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

Section 5.12. PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUER. The Trustee is
subject to Section 311(a) of the Trust Indenture Act of 1939, excluding any
creditor relationship listed in Section 311(b) thereof. A Trustee who has
resigned or been removed shall be subject to Section 311(a) of the Trust
Indenture Act of 1939 to the extent indicated therein.

                                   ARTICLE VI
                         CONCERNING THE SECURITYHOLDERS

Section 6.1. EVIDENCE OF ACTION TAKEN BY SECURITYHOLDERS. Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Securityholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Securityholders in person or by agent duly appointed in writing; and,
except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee.
Proof of execution of any instrument or of a writing appointing any such agent
shall be sufficient for any purpose of

                                       55
<PAGE>

this Indenture and (subject to Sections 5.1 and 5.2) conclusive in favor of the
Trustee and the Issuer, if made in the manner provided in this Article.

Section 6.2. PROOF OF EXECUTION OF INSTRUMENTS AND OF HOLDING OF SECURITIES;
RECORD DATE. Subject to Sections 5.1 and 5.2, the execution of any instrument by
a Securityholder or his agent or proxy may be proved in accordance with such
reasonable rules and regulations as may be prescribed by the Trustee or in such
manner as shall be satisfactory to the Trustee. The holding of Securities shall
be proved by the Security register or by a certificate of the registrar thereof.
The Issuer may set a record date for purposes of determining the identity of
holders of Securities entitled to vote or consent to any action referred to in
Section 6.1, which record date may be set at any time or from time to time by
notice to the Trustee, for any date or dates (in the case of any adjournment or
resolicitation) not more than 60 days nor less than five days prior to the
proposed date of such vote or consent, and thereafter, notwithstanding any other
provisions hereof, only holders of Securities of record on such record date
shall be entitled to so vote or give such consent or to withdraw such vote or
consent.

Section 6.3. HOLDERS TO BE TREATED AS OWNERS. The Issuer, the Trustee and any
agent of the Issuer or the Trustee may deem and treat the person in whose name
any Security shall be registered upon the Security register as the absolute
owner of such Security (whether or not such Security shall be overdue and
notwithstanding any notation of ownership or other writing thereon) for the
purpose of receiving payment of or on account of the principal of and, subject
to the provisions of this Indenture, interest on such Security and for all other
purposes; and neither the Issuer nor the Trustee nor any agent of the Issuer or
the Trustee shall be affected by any notice to the contrary. All such payments
so made to any such person, or upon his order, shall be valid, and, to the
extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for moneys payable upon any such Security.

Section 6.4. SECURITIES OWNED BY ISSUER DEEMED NOT OUTSTANDING. In determining
whether the holders of the requisite aggregate principal amount of Securities
have concurred in any direction, consent or waiver under this Indenture,
Securities which are owned by the Issuer or any other obligor on the Securities
or by any person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Issuer or any other obligor on the
Securities shall be disregarded and deemed not to be outstanding for the purpose
of any such determination, except that for the purpose of determining whether
the Trustee shall be protected in relying on any such direction, consent or
waiver only Securities which the Trustee knows are so owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be
regarded as outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee's right so to act with respect to such Securities and that
the pledgee is not the Issuer or any other obligor upon the Securities or any
person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Issuer or any other obligor on the Securities.
In case of a dispute as to such right, the advice of counsel shall be full
protection in respect of any decision made by the Trustee in accordance with
such advice. Upon request of the Trustee, the Issuer shall furnish to the
Trustee promptly an Officers' Certificate listing and identifying all
Securities, if any, known by the Issuer to be owned or held by or for the
account of any of the above-described persons; and, subject to Sections 5.1 and
5.2, the Trustee shall be entitled to accept such Officers' Certificate as
conclusive evidence of the facts therein set forth and of the

                                       56
<PAGE>

fact that all Securities not listed therein are outstanding for the purpose of
any such determination.

Section 6.5. RIGHT OF REVOCATION OF ACTION TAKEN. At any time prior to (but not
after) the evidencing to the Trustee, as provided in Section 6.1, of the taking
of any action by the holders of the percentage in aggregate principal amount of
the Securities specified in this Indenture in connection with such action, any
holder of a Security the serial number of which is shown by the evidence to be
included among the serial numbers of the Securities the holders of which have
consented to such action may, by filing written notice at the Corporate Trust
Office and upon proof of holding as provided in this Article, revoke such action
so far as concerns such Security. Except as aforesaid any such action taken by
the holder of any Security shall be conclusive and binding upon such holder and
upon all future holders and owners of such Security and of any Securities issued
in exchange or substitution therefor, irrespective of whether or not any
notation in regard thereto is made upon any such Security. Any action taken by
the holders of the percentage in aggregate principal amount of the Securities
specified in this Indenture in connection with such action shall be conclusively
binding upon the Issuer, the Trustee and the holders of all the Securities.

                                   ARTICLE VII
                             SUPPLEMENTAL INDENTURES

Section 7.1. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF SECURITYHOLDERS. The
Issuer, when authorized by a resolution of its Board of Directors, and the
Trustee (and with respect to the Intercreditor Agreement, the Collateral Agent,
at the written direction of the Trustee) may from time to time and at any time,
without the consent of the holders of any of the Securities at the time
outstanding, enter into an indenture or indentures supplemental hereto or amend
a Notes Document, the Intercreditor Agreement or the Collateral Agency Agreement
for one or more of the following purposes:

             (a) to convey, transfer, assign, mortgage or pledge to the Trustee
as security for the Securities any property or assets;

             (b) to evidence the succession of another corporation to the
Issuer, or successive successions, and the assumption by the successor
corporation of the covenants, agreements and obligations of the Issuer pursuant
to Article VIII;

             (c) to add to the covenants of the Issuer such further covenants,
restrictions, conditions or provisions as its Board of Directors shall consider
to be for the protection of the holders of Securities, and to make the
occurrence, or the occurrence and continuance, of a default in any such
additional covenants, restrictions, conditions or provisions an Event of Default
permitting the enforcement of all or any of the several remedies provided in
this Indenture as herein set forth; PROVIDED that in respect of any such
additional covenant, restriction, condition or provision such supplemental
indenture may provide for a particular period of grace after default (which
period may be shorter or longer than that allowed in the case of other defaults)
or may provide for an immediate enforcement upon such an Event of Default or may
limit the remedies available to the Trustee upon such an Event of Default or may
limit the right of the holders of a majority in aggregate principal amount of
the Securities to waive such an Event of Default;

                                       57
<PAGE>

             (d) to cure any ambiguity or to correct or supplement any provision
contained herein or in any supplemental indenture or in any Notes Documents or
the Intercreditor Agreement or Collateral Agency Agreement which may be
defective or inconsistent with any other provision contained herein or in any
supplemental indenture or in any Notes Documents or the Intercreditor Agreement
or Collateral Agency Agreement; or to make such other provisions in regard to
matters or questions arising under this Indenture or under any supplemental
indenture or under the Notes Documents as the Board of Directors may deem
necessary or desirable and which shall not adversely affect the interests of the
holders of the Securities; and

             (e) to provide for the issuance under this Indenture of Securities
in coupon form (including Securities registrable as to principal only) and to
provide for exchangeability of such Securities with Securities issued hereunder
in fully registered form, and to make all appropriate changes for such purpose.

             The Trustee (or Collateral Agent, as applicable) is hereby
authorized to join in the execution of any such supplemental indenture or any
such amendment to a Notes Document, the Intercreditor Agreement or Collateral
Agency Agreement, to make any further appropriate agreements and stipulations
which may be therein contained and to accept the conveyance, transfer,
assignment, mortgage or pledge of any property thereunder, but the Trustee (or
Collateral Agent, as applicable) shall not be obligated to enter into (or direct
the Collateral Agent to enter into) any such supplemental indenture or any such
amendment to a Notes Document, the Intercreditor Agreement or Collateral Agency
Agreement which affects the Trustee's (or Collateral Agent's) own rights, duties
or immunities under this Indenture, the Notes Documents, the Intercreditor
Agreement, the Collateral Agency Agreement or otherwise.

Section 7.2. SUPPLEMENTAL INDENTURES WITH CONSENT OF SECURITYHOLDERS. With the
consent (evidenced by a majority as provided in Article VI) of the holders of
not less than a majority in aggregate principal amount of the Securities at the
time outstanding, the Issuer, when authorized by a resolution of its Board of
Directors, and the Trustee (or the Collateral Agent, as applicable) may, from
time to time and at any time, enter into an indenture or indentures supplemental
hereto or amend a Notes Document, the Intercreditor Agreement or Collateral
Agency Agreement for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture or of any
supplemental indenture or any Notes Documents, the Intercreditor Agreement, or
Collateral Agency Agreement or of modifying in any manner the rights of the
holders of the Securities; PROVIDED that no such supplemental indenture shall,
without the consent of the holders of all Securities then outstanding, (a)
reduce the rate or change the time or place for payment of interest or reduce
any amount payable on redemption thereof; (b) reduce the principal of or change
the fixed maturity or place of payment of any Security; (c) change the currency
of payment of principal of and interest, if any, on any Security; (d) reduce the
principal amount of outstanding Securities necessary to modify or amend this
Indenture; (e) impair the right to institute suit for the enforcement of any
payment on or with respect to any Security; or (f) make any change in Section
4.9, 4.11 or the first paragraph of this Section 7.2. Notwithstanding the
foregoing, with the consent of the holders of not less than 85% in the aggregate
principal amount of the Securities at the time outstanding, the Issuer and the
Trustee (or the Collateral Agent, as applicable) may amend or waive provisions
of this Indenture, the Notes Documents, the Intercreditor Agreement and the
Collateral Agency Agreement, relating to the Collateral.

                                       58
<PAGE>

             Upon the request of the Issuer, accompanied by a copy of a
resolution of the Board of Directors certified by the Secretary or an Assistant
Secretary of the Issuer authorizing the execution of any such supplemental
indenture or any such amendment to a Notes Document, the Intercreditor Agreement
or Collateral Agency Agreement and upon the filing with the Trustee of evidence
of the consent of Securityholders and other documents, if any, required by
Section 6.1, the Trustee (or Collateral Agent, as applicable) shall join with
the Issuer in the execution of such supplemental indenture or such amendment to
a Notes Document, the Intercreditor Agreement or Collateral Agency Agreement
unless such supplemental indenture or such amendment to a Notes Document, the
Intercreditor Agreement or Collateral Agency Agreement, affects the Trustee's
(or Collateral Agent's) own rights, duties or immunities under this Indenture,
the Notes Document the Intercreditor Agreement, Collateral Agency Agreement or
otherwise, in which case the Trustee (or the Collateral Agent, as applicable)
may in its discretion, but shall not be obligated to, enter into (or direct the
Collateral Agent to enter into) such supplemental indenture or such amendment to
a Notes Document, the Intercreditor Agreement or Collateral Agency Agreement, as
the case may be.

             It shall not be necessary for the consent of the Securityholders
under this Section to approve the particular form of any proposed supplemental
indenture or any proposed amendment to a Notes Document, the Intercreditor
Agreement or Collateral Agency Agreement, but it shall be sufficient if such
consent shall approve the substance thereof.

             Promptly after the execution by the Issuer and the Trustee (or the
Collateral Agent, as applicable) of any supplemental indenture or any amendment
to a Notes Document, the Intercreditor Agreement or Collateral Agency Agreement,
pursuant to the provisions of this Section, the Issuer shall mail a notice
thereof by first-class mail to the holders of Securities at their addresses as
they shall appear on the registry books of the Issuer, setting forth in general
terms the substance of such supplemental indenture or such amendment to a Notes
Document, the Intercreditor Agreement or Collateral Agency Agreement. Any
failure of the Issuer to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture or such amendment to a Notes Document, the Intercreditor Agreement or
Collateral Agency Agreement.

Section 7.3. EFFECT OF SUPPLEMENTAL INDENTURE. Upon the execution of any
supplemental indenture or any amendment to the Notes Documents, the
Intercreditor Agreement or Collateral Agency Agreement, pursuant to the
provisions hereof, this Indenture shall be and be deemed to be modified and
amended in accordance therewith and the respective rights, limitations of
rights, obligations, duties and immunities under this Indenture of the Trustee,
the Issuer and the holders of Securities shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

Section 7.4. DOCUMENTS TO BE GIVEN TO TRUSTEE. The Trustee, subject to the
provisions of Sections 5.1 and 5.2, may receive an Officers' Certificate and an
Opinion of Counsel as conclusive evidence that any such supplemental indenture
complies with the applicable provisions of this Indenture and is a legal, valid
and binding obligation of the Issuer enforceable

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against the Issuer in accordance with its terms, subject to the customary
exceptions. Such supplemental indenture will comply with the Trust Indenture Act
of 1939.

Section 7.5. NOTATION ON SECURITIES IN RESPECT OF SUPPLEMENTAL INDENTURES.
Securities authenticated and delivered after the execution of any supplemental
indenture or any amendment to a Notes Document, the Intercreditor Agreement or
Collateral Agency Agreement, pursuant to the provisions of this Article may bear
a notation in form approved by the Trustee as to any matter provided for by such
supplemental indenture or such amendment to the Notes Documents, the
Intercreditor Agreement or Collateral Agency Agreement or as to any action taken
at any such meeting. If the Issuer or the Trustee shall so determine, new
Securities so modified as to conform, in the opinion of the Trustee and the
Board of Directors, to any modification of this Indenture contained in any such
supplemental indenture or any such amendment to a Notes Document may be prepared
by the Issuer, authenticated by the Trustee and delivered in exchange for the
Securities then outstanding.

                                  ARTICLE VIII
                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

Section 8.1. COVENANT NOT TO MERGE, CONSOLIDATE, SELL OR CONVEY PROPERTY EXCEPT
UNDER CERTAIN CONDITIONS. The Issuer will not consolidate or merge with or into,
or sell, lease, convey or otherwise dispose of all or substantially all of its
assets (as an entirety or substantially an entirety in one transaction or a
series of related transactions) to, any Person (other than a merger with or into
a Wholly Owned Subsidiary; PROVIDED that such Wholly Owned Subsidiary is not
organized in a foreign jurisdiction) unless: (a) the entity formed by or
surviving any such consolidation or merger (if other than the Issuer), or to
which sale, lease, conveyance or other disposition shall have been made (the
"Surviving Entity"), is a corporation organized and existing under the laws of
the United States, any state thereof or the District of Columbia; (b) the
Surviving Entity assumes by supplemental indenture all of the obligations of the
Issuer on the Securities and this Indenture in form and substance satisfactory
to the Trustee; (c) immediately after the transaction, no Default or Event of
Default shall have occurred and be continuing; (d) immediately after giving
effect to such transaction, the Consolidated Net Worth of the Surviving Entity
would be at least equal to the Consolidated Net Worth of the Issuer immediately
prior to such transaction; and (e) immediately after giving effect to such
transaction on a pro forma basis, (i) the Surviving Entity could incur at least
$1.00 of Indebtedness (other than Permitted Indebtedness) pursuant to clause (a)
of Section 3.9, or (ii) the Surviving Entity's ratio of Consolidated
Indebtedness to Consolidated EBITDA for the four fiscal quarters immediately
preceding such transaction for which financial information is available
consistent with the Issuer's prior practice, taken as one period and calculated
on the assumption that all Indebtedness had been incurred on the first day of
such period and that the related transaction and all its adjustments being
included in such pro forma calculation had also occurred on such date, would be
reduced.

Section 8.2. SUCCESSOR CORPORATION SUBSTITUTED. In case of any such
consolidation, merger, sale or conveyance, and following such an assumption by
the successor corporation, such successor corporation shall succeed to and be
substituted for the Issuer, with the same effect as if it had been named herein.

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             Such successor corporation may cause to be signed, and may issue
either in its own name or in the name of the Issuer prior to such succession any
or all of the Securities issuable hereunder which theretofore shall not have
been signed by the Issuer and delivered to the Trustee; and, upon the order of
such successor corporation, instead of the Issuer, and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee shall
authenticate and shall deliver any Securities which previously shall have been
signed and delivered by the officers of the Issuer to the Trustee for
authentication, and any Securities which such successor corporation thereafter
shall cause to be signed and delivered to the Trustee for that purpose. All of
the Securities so issued shall in all respects have the same legal rank and
benefit under this Indenture as the Securities theretofore or thereafter issued
in accordance with the terms of this Indenture as though all of such Securities
had been issued at the date of the execution hereof.

             In case of any such consolidation, merger, sale, lease or
conveyance, such changes in phraseology and form (but not in substance) may be
made in the Securities thereafter to be issued as may be appropriate.

             In the event of any such sale or conveyance (other than a
conveyance by way of lease), the Issuer or any successor corporation which shall
theretofore have become such in the manner described in this Article shall be
discharged from all obligations and covenants under this Indenture and the
Securities and may be liquidated and dissolved.

Section 8.3. OPINION OF COUNSEL TO TRUSTEE. The Trustee, subject to the
provisions of Sections 5.1 and 5.2, may receive an Officers' Certificate and an
Opinion of Counsel as conclusive evidence that any such consolidation, merger,
sale, lease or conveyance, and any such assumption, and any such liquidation or
dissolution, complies with the applicable provisions of this Indenture, is in
compliance with all conditions precedent contained in this Indenture and that
such supplemental indenture, if any, constitutes the legal, valid and binding
obligation of the surviving corporation, enforceable against the surviving
corporation in accordance with its terms, subject to the customary exceptions.

                                   ARTICLE IX
            SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

Section 9.1. SATISFACTION AND DISCHARGE OF INDENTURE. If at any time (a) the
Issuer shall have paid or caused to be paid the principal of and interest on all
the Securities outstanding hereunder, as and when the same shall have become due
and payable, or (b) the Issuer shall have delivered to the Trustee for
cancellation all Securities theretofore authenticated (other than any Securities
which shall have been destroyed, lost or stolen and which shall have been
replaced or paid as provided in Section 2.6) or (c)(1) the Issuer shall have
irrevocably deposited or caused to be deposited with the Trustee as trust funds
the entire amount in cash (other than moneys repaid by the Trustee or any Paying
Agent to the Issuer in accordance with Section 9.4) or direct obligations of the
United States of America, backed by its full faith and credit, maturing as to
principal and interest in such amounts and at such times as will insure the
availability of cash sufficient to pay at maturity or upon redemption all such
Securities not theretofore delivered to the Trustee for cancellation, including
principal and interest due or to become due to such date of

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<PAGE>

maturity as the case may be, and (2) the Issuer shall have delivered to the
Trustee (i) either (A) a ruling directed to the Trustee received from the
Internal Revenue Service to the effect that the Holders of the Securities will
not recognize income, gain or loss for federal income tax purposes as a result
of the Issuer's exercise of its option under this Section 9.1(c) and will be
subject to Federal income tax on the same amount and in the same manner and at
the same times as would have been the case if such option had not been exercised
or (B) an Opinion of Counsel, reasonably satisfactory to the Trustee, to the
same effect as the ruling described in clause (A) accompanied by a ruling to
that effect published by the Internal Revenue Service and (ii) an Opinion of
Counsel, reasonably satisfactory to the Trustee, to the effect that after the
passage of 90 days following the deposit, the trust funds will not be subject to
the effect of any applicable bankruptcy, insolvency, reorganization or similar
laws affecting creditors' rights generally and if, in any such case, the Issuer
shall also pay or cause to be paid all other sums payable hereunder by the
Issuer, then this Indenture shall cease to be of further effect (except as to
(i) rights of registration of transfer and exchange, and the Issuer's right of
optional redemption, (ii) substitution of apparently mutilated, defaced,
destroyed, lost or stolen Securities, (iii) rights of holders to receive
payments of principal thereof and interest thereon, upon the original stated due
dates therefor (but not upon acceleration), (iv) the rights, obligations and
immunities of the Trustee hereunder and (v) the rights of the Securityholders as
beneficiaries hereof with respect to the property so deposited with the Trustee
payable to all or any of them), and the Trustee, on demand of the Issuer
accompanied by an Officers' Certificate and an Opinion of Counsel and at the
cost and expense of the Issuer, shall execute proper instruments acknowledging
such satisfaction of and discharging this Indenture.

             The Issuer agrees to reimburse the Trustee for any costs or
expenses thereafter reasonably incurred and to compensate the Trustee for any
services thereafter reasonably and properly rendered by the Trustee in
connection with this Indenture or the Securities.

Section 9.2. APPLICATION BY TRUSTEE OF FUNDS DEPOSITED FOR PAYMENT OF
SECURITIES. Subject to Section 9.4, all moneys deposited with the Trustee
pursuant to Section 9.1 shall be held in trust and applied by it to the payment,
either directly or through any Paying Agent (including the Issuer acting as its
own Paying Agent), to the holders of the particular Securities for the payment
or redemption of which such moneys have been deposited with the Trustee, of all
sums due and to become due thereon for principal and interest; but such money
need not be segregated from other funds except to the extent required by law.

Section 9.3. REPAYMENT OF MONEYS HELD BY PAYING AGENT. In connection with the
satisfaction and discharge of this Indenture, all moneys then held by any Paying
Agent under the provisions of this Indenture shall, upon demand of the Issuer,
be repaid to it or paid to the Trustee and thereupon such Paying Agent shall be
released from all further liability with respect to such moneys.

Section 9.4. RETURN OF MONEYS HELD BY TRUSTEE AND PAYING AGENT UNCLAIMED FOR
THREE YEARS. Any moneys deposited with or paid to the Trustee or any Paying
Agent for the payment of the principal of or interest on any Security and not
applied but remaining unclaimed for three years after the date upon which such
principal or interest shall have become due and payable, shall, upon the written
request of the Issuer and unless otherwise required by mandatory provisions of
applicable escheat or abandoned or unclaimed property law, be repaid to the
Issuer by the

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Trustee or such Paying Agent, and the holder of such Security shall, unless
otherwise required by mandatory provisions of applicable escheat or abandoned or
unclaimed property laws, thereafter look only to the Issuer for any payment
which such holder may be entitled to collect, and all liability of the Trustee
or any Paying Agent with respect to such moneys shall thereupon cease. In the
absence of a written request from the Issuer to return unclaimed funds to the
Issuer, the Trustee shall from time to time deliver all unclaimed funds to or as
directed by applicable escheat authorities, as determined by the Trustee in its
sole discretion, in accordance with the customary practices and procedures of
the Trustee. Any unclaimed funds held by the Trustee pursuant to this Section
9.4 shall be held uninvested and without any liability for interest.

                                    ARTICLE X
                             COLLATERAL AND SECURITY

Section 10.1. SECURITY DOCUMENTS. The due and punctual payment of the principal
of and interest on the Securities when and as the same shall be due and payable,
whether on an interest payment date, at maturity, by acceleration, repurchase,
redemption or otherwise, and interest on the overdue principal of and interest
(to the extent permitted by law), if any, on the Securities and performance of
all other obligations of the Issuer to the Holders of Securities or the Trustee
under this Indenture and the Securities, according to the terms hereunder or
thereunder, shall be secured as provided in the Security Documents which the
Issuer has entered into simultaneously with the execution of this Indenture.
Each Holder of Securities, by its acceptance thereof, consents and agrees to the
terms of the Security Documents, the Intercreditor Agreement and the Collateral
Agency Agreement (including, without limitation, the provisions providing for
foreclosure and release of Collateral) as the same may be in effect or may be
amended from time to time in accordance with its terms, authorizes and directs
the Trustee (or Collateral Agent, if applicable), to enter into the Security
Documents, the Intercreditor Agreement and Collateral Agency Agreement and to
perform its obligations and exercise its rights thereunder in accordance
therewith. The Issuer shall do or cause to be done all such acts and things as
may be necessary or proper, or as may be required by the provisions of the
Security Documents, the Intercreditor Agreement and the Collateral Agency
Agreement, to assure and confirm to the Trustee and the Collateral Agent the
security interest in the Collateral contemplated hereby, by the Security
Documents or any part thereof, as from time to time constituted, so as to render
the same available for the security and benefit of this Indenture and of the
Securities secured hereby, according to the intent and purposes herein
expressed. The Issuer shall take, or shall cause its Subsidiaries to take any
and all actions reasonably required to cause the Security Documents to create
and maintain, as security for the obligations of the Issuer hereunder, a valid
and enforceable perfected second priority Lien in and on all the Collateral, in
favor of the Trustee for its benefit and the ratable benefit of the Holders of
Securities, superior to and prior to the rights of all third Persons (other than
the agent on behalf of the lenders under the Credit Facility and the Bond
Trustee on behalf of the holders of the Secured Series 2002 Bonds) and subject
to no Liens (other than Liens granted by the Issuer for purposes of securing its
obligations under the Credit Facility and with respect to the Secured Series
2002 Bonds, Collateral Permitted Liens and any other Liens permitted by the
Security Documents).

Section 10.2. RECORDING AND OPINIONS. (a) The Issuer shall furnish to the
Collateral Agent and the Trustee promptly following the execution and delivery
of this Indenture, an Opinion of

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Counsel, either (i) stating that, in the opinion of such counsel, action has
been taken with respect to the recording, registering, filing, re-recording,
re-registering and re-filing of all supplemental indentures, financing
statements, continuation statements or other instruments of further assurance as
is necessary to maintain the Lien of the Security Documents and reciting with
respect to the security interests in the Collateral the details of such action
or referring to prior Opinions of Counsel in which such details are given or
(ii) stating that, in the opinion of such counsel, no such action is necessary
to make such Lien effective.

              (b) The Issuer shall furnish to the Collateral Agent and the
Trustee on April 1, in each year beginning with April 1, 2003, an Opinion of
Counsel, dated as of such date, either (i)(A) stating that, in the opinion of
such counsel, action has been taken with respect to the recording, registering,
filing, re-recording, re-registering and re-filing of all supplemental
indentures, financing statements, continuation statements or other instruments
of further assurance as is necessary to maintain the Lien of the Security
Documents and reciting with respect to the security interests in the Collateral
the details of such action or referring to prior Opinions of Counsel in which
such details are given, (B) stating that, based on relevant laws as in effect on
the date of such Opinion of Counsel, all financing statements and continuation
statements have been executed and filed that are necessary as of such date and
during the succeeding 12 months fully to preserve and protect, to the extent
such protection and preservation are possible by filing, the rights of the
Holders of Securities and the Collateral Agent and the Trustee hereunder and
under the Security Documents with respect to the security interests in the
Collateral, or (ii) stating that, in the opinion of such counsel, no such action
is necessary to maintain such Lien and assignment.

              (c) The Issuer shall otherwise comply with the provisions of
Section 314(d) of the Trust Indenture Act.

Section 10.3. RELEASE OR SUBORDINATION OF COLLATERAL. (a) Subject to subsections
(b), (c) and (d) of this Section 10.3, in the event that any Collateral is sold,
transferred or otherwise disposed of in accordance with Section 3.12, Section
3.14(b), or other transaction permitted by this Indenture (including, without
limitation, an Excepted Sale) or by the Security Documents, or otherwise
pursuant to and in accordance with the Intercreditor Agreement if then in
effect, the Collateral shall, concurrently with the disposition of such
Collateral, automatically be released from the Lien of the relevant Security
Documents, in accordance with the provisions of the Security Documents and
Intercreditor Agreement if then in effect. Subject to subsections (b), (c) and
(d) of this Section 10.3, the Collateral shall be released from the Lien and
security interest created by the Security Documents at any time or from time to
time upon satisfaction and discharge of the obligations of the Issuer under this
Indenture pursuant to Article IX and in accordance with the provisions hereof
and the Security Documents. Upon the request of the Issuer pursuant to an
Opinion of Counsel and an Officer's Certificate certifying that all conditions
precedent to such release hereunder and under the Security Documents have been
met, the Trustee shall or shall cause the Collateral Agent to, as applicable,
release Collateral. Upon receipt of such Officer's Certificate, the Trustee
shall or shall cause the Collateral Agent to (at the sole cost and expense of
the Issuer) execute, deliver or acknowledge any necessary or proper instruments
of termination, satisfaction or release to evidence the release of any
Collateral permitted to be released pursuant to this Indenture or the Security
Documents.

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<PAGE>

              (b) No Collateral shall be released from the Lien and security
interest created by the Security Documents pursuant to the provisions of the
Security Documents or the Intercreditor Agreement unless there shall have been
delivered to the Trustee or Collateral Agent, if applicable, the Opinion of
Counsel and Officer's Certificate required by this Section 10.3; PROVIDED,
HOWEVER, that if cash is to be released from a Pledged Account as provided in
this Indenture or in the Intercreditor Agreement if then in effect, one such
Opinion of Counsel and one such Officer's Certificate delivered to the Trustee
shall be sufficient to cover multiple releases of such cash from a Pledged
Account as described in such Officer's Certificate and addressed in such Opinion
of Counsel.

              (c) At any time when a Default or Event of Default shall have
occurred and be continuing and the maturity of the Securities shall have been
accelerated (whether by declaration or otherwise), no release of Collateral
pursuant to the provisions of the Security Documents shall be effective as
against the Trustee or the Holders of Securities.

              (d) The release of any Collateral from the terms of this Indenture
and the Security Documents shall not be deemed to impair the security under this
Indenture in contravention of the provisions hereof if and to the extent the
Collateral is released pursuant to the terms of the Security Documents. To the
extent applicable, the Issuer shall cause Trust Indenture Act Section 313(b),
relating to reports and Section 314(d), relating to the release of property or
securities from the Lien and security interest of the Security Documents and
relating to the substitution therefor of any property or securities to be
subjected to the Lien and security interest of the Security Documents, to be
complied with. Any certificate or opinion required by Section 314(d) of the
Trust Indenture Act may be made by an Officer of the Issuer except in cases
where Section 314(d) of the Trust Indenture Act requires that such certificate
or opinion be made by an independent Person, which Person shall be an
independent engineer, appraiser or other expert selected or approved by the
Trustee and the Collateral Agent in the exercise of reasonable care.

              (e) In the event that a Lien on Collateral in favor of the holders
of the Securities is to be subordinated in accordance with Section 3.12(b) or
Section 3.14(b), the Trustee shall execute and shall, if applicable, direct the
Collateral Agent to execute, such a subordination and/or intercreditor
agreement, as such lender may reasonably require in order to effect and evidence
such Lien subordination.

Section 10.4. CERTIFICATES OF THE ISSUER. The Issuer shall furnish to the
Trustee and Collateral Agent, if applicable, prior to each proposed release of
Collateral pursuant to the Security Documents or the Intercreditor Agreement,
(i) all documents required by Section 314(d) of the Trust Indenture Act and (ii)
an Opinion of Counsel, which may be rendered by internal counsel to the Issuer,
to the effect that such accompanying documents constitute all documents required
by Section 314(d) of the Trust Indenture Act. The Trustee may, to the extent
permitted by Sections 5.1 and 5.2 hereof, accept as conclusive evidence of
compliance with the foregoing provisions the appropriate statements contained in
such documents and such Opinion of Counsel.

Section 10.5. CERTIFICATES OF THE TRUSTEE. In the event the Issuer wishes to
release Collateral in accordance with the Security Documents and has delivered
the certificates and documents required by the Security Documents or the
Intercreditor Agreement and Sections 10.5 and 10.6

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<PAGE>

hereof, the Trustee shall determine whether it has received all documentation
required by Section 314(d) of the Trust Indenture Act in connection with such
release and, based on such determination and the Opinion of Counsel delivered
pursuant to Section 10.2, shall deliver a certificate to the Collateral Agent,
if applicable, setting forth such determination; PROVIDED, HOWEVER, that if the
Trustee is the Collateral Agent, the requirement that the Trustee deliver a
certificate to the Collateral Agent shall not be applicable.

Section 10.6. AUTHORIZATION OF ACTIONS TO BE TAKEN BY THE TRUSTEE UNDER THE
SECURITY DOCUMENTS. Subject to the provisions of Section 5.1 and 5.2 hereof and
of the Security Documents, the Trustee shall, in its sole discretion and without
the consent of the Holders of Securities, direct, on behalf of the Holders of
Securities, and, if applicable, shall direct the Collateral Agent to, take all
actions the Trustee deems necessary or appropriate in order to (a) enforce any
of the terms of the Security Documents and (b) collect, receive and distribute
any and all amounts payable in respect of the obligations of the Issuer
hereunder. The Trustee and the Collateral Agent, if applicable, shall have power
to institute and maintain such suits and proceedings as the Trustee may deem
expedient to prevent any impairment of the Collateral by any acts that may be
unlawful or in violation of the Security Documents or this Indenture, and such
suits and proceedings as the Trustee or the Collateral Agent, if applicable, may
deem expedient to preserve or protect its interests and the interests of the
Holders of Securities in the Collateral (including power to institute and
maintain suits or proceedings to restrain the enforcement of or compliance with
any legislative or other governmental enactment, rule or order that may be
unconstitutional or otherwise invalid if the enforcement of, or compliance with,
such enactment, rule or order would impair the security interest hereunder or be
prejudicial to the interests of the Holders of Securities or of the Trustee or
the Collateral Agent, if applicable).

Section 10.7. AUTHORIZATION OF RECEIPT OF FUNDS BY THE TRUSTEE UNDER THE
SECURITY DOCUMENTS. The Trustee (or the Collateral Agent, if applicable) is
authorized to receive any funds for the benefit of the Holders of Securities
distributed under the Security Documents or Intercreditor Agreement, and to make
further distributions of such funds to the Holders of Securities according to
the provisions of this Indenture, the Security Documents and the Intercreditor
Agreement.

Section 10.8. RELEASE UPON TERMINATION OF THE ISSUER'S OBLIGATIONS; TERMINATION
OF SECURITY INTEREST. If the Trustee is not the Collateral Agent, upon the
payment in full of all obligations of the Issuer under this Indenture and the
Securities, or upon the satisfaction and discharge of the obligations of the
Issuer under this Indenture pursuant to Article IX, the Trustee shall, at the
request of the Issuer, deliver a certificate to the Collateral Agent stating
that such obligations have been paid in full, and instruct the Collateral Agent
to release the Liens pursuant to this Indenture and the Security Documents.

Section 10.9. INTERCREDITOR AGREEMENT AND COLLATERAL AGENCY AGREEMENT. Each
Holder of Securities, by its acceptance hereof, consents and agrees to the terms
of the Intercreditor Agreement and the Collateral Agency Agreement and hereby
authorizes and directs the Trustee and the Collateral Agent, as applicable, to
enter into the Intercreditor Agreement and the Collateral Agency Agreement and
any modification, amendment, or supplement thereto or any

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restatement thereof and/or to enter into any replacement or additional
intercreditor agreement as contemplated thereunder (collectively, the
"Intercreditor Modification Documents") provided that either (a) the Trustee has
determined, in its sole judgment, that any such Intercreditor Modification
Document will not adversely affect the interests of the Trustee or the holders
of the Securities or (b) such Intercreditor Modification Document shall have
complied with the provisions of Article VII of this Indenture. The Trustee may
rely upon an opinion of independent counsel as conclusive evidence that any such
Intercreditor Modification Document complies with the provisions of this Section
10.9.

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

Section 11.1. INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS OF ISSUER
EXEMPT FROM INDIVIDUAL LIABILITY. No recourse under or upon any obligation,
covenant or agreement contained in this Indenture, or in any Security, or
because of any indebtedness evidenced thereby, shall be had against any
incorporator, as such or against any past, present or future stockholder,
officer or director, as such, of the Issuer or of any successor, either directly
or through the Issuer or any successor, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any legal
or equitable proceeding or otherwise, all such liability being expressly waived
and released by the acceptance of the Securities by the holders thereof and as
part of the consideration for the issue of the Securities.

Section 11.2. PROVISIONS OF INDENTURE FOR THE SOLE BENEFIT OF PARTIES AND
SECURITYHOLDERS. Nothing in this Indenture or in the Securities, expressed or
implied, shall give or be construed to give to any person, firm or corporation,
other than the parties hereto and their successors and the holders of the
Securities, any legal or equitable right, remedy or claim under this Indenture
or under any covenant or provision herein contained, all such covenants and
provisions being for the sole benefit of the parties hereto and their successors
and of the holders of the Securities.

Section 11.3. SUCCESSORS AND ASSIGNS OF ISSUER BOUND BY INDENTURE. All the
covenants, stipulations, promises and agreements in this Indenture contained by
or in behalf of the Issuer shall bind its successors and assigns, whether so
expressed or not.

Section 11.4. NOTICES AND DEMANDS ON ISSUER, TRUSTEE AND SECURITYHOLDERS. Any
notice or demand which by any provision of this Indenture is required or
permitted to be given or served by the Trustee or by the holders of Securities
to or on the Issuer shall be sufficient for every purpose hereunder (unless
otherwise herein expressly provided) if in writing and mailed, first-class
postage prepaid, to the Issuer addressed (until another address of the Issuer is
filed by the Issuer with the Trustee) to Weirton Steel Corporation, 400 Three
Springs Drive, Weirton, West Virginia 26062, Attention: Secretary and General
Counsel or transmitted by facsimile transmission (confirmed by guaranteed
overnight courier) to the following facsimile numbers:

              telephone number: (304) 797-2000

              facsimile number: (304) 797-3484.

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              Any notice, direction, request or demand by the Issuer or any
Securityholder to or upon the Trustee shall be sufficient for every purpose
hereunder if made, given, furnished or filed, in each case in writing, to or
with the Trustee at its Pittsburgh Corporate Trust Office, One Oxford Center,
301 Grant Street, Suite 1100, Pittsburgh, Pennsylvania 15219, Attention:
Institutional Trust Services or transmitted by facsimile transmission (confirmed
by guaranteed overnight courier) to the following facsimile numbers:

              telephone number: (412) 291-2083

              facsimile number: (412) 291-2070 or (412) 291-2071

              With a copy to the Dallas Corporate Trust Office, located at 2001
Bryan Street, 9th Floor, Dallas, Texas 75201, Attention: Institutional Trust
Services.

              If to the Collateral Agent, at the address provided in the
Collateral Agency Agreement for notices to be sent.

              Where this Indenture provides for notice to holders, such notice
shall be sufficiently given (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, to each holder entitled
thereto, at his last address as it appears in the Security register. In any case
where notice to holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular holder shall
affect the sufficiency of such notice with respect to other holders. Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.

              In case, by reason of the suspension of or irregularities in
regular mail service, it shall be impracticable to mail notice to the Issuer and
Securityholders when such notice is required to be given pursuant to any
provision of this Indenture, then any manner of giving such notice as shall be
satisfactory to the Trustee shall be deemed to be a sufficient giving of such
notice.

Section 11.5. OFFICERS' CERTIFICATES AND OPINIONS OF COUNSEL; STATEMENTS TO BE
CONTAINED THEREIN. Upon any application or demand by the Issuer to the Trustee
to take any action under any of the provisions of this Indenture, the Issuer
shall furnish to the Trustee an Officers' Certificate stating that all
conditions precedent provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent have been complied with,
except that in the case of any such application or demand as to which the
furnishing of such documents is specifically required by any provision of this
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

              Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture

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shall include (a) a statement that the person making such certificate or opinion
has read such covenant or condition, (b) 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, (c) a statement that, in the
opinion of such person, 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 (d) a statement as to whether
or not, in the opinion of such person, such condition or covenant has been
complied with.

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

              Any certificate, statement or opinion of an officer of the Issuer
or of counsel may be based, insofar as it relates to accounting matters, upon a
certificate or opinion of or representations by an accountant or firm of
accountants in the employ of the Issuer, unless such officer or counsel, as the
case may be, knows that the certificate or opinion or representations with
respect to the accounting matters upon which his certificate, statement or
opinion may be based as aforesaid are erroneous, or in the exercise of
reasonable care should know that the same are erroneous.

              Any certificate or opinion of any independent firm of public
accountants filed with the Trustee shall contain a statement that such firm is
independent.

Section 11.6. PAYMENTS DUE ON SATURDAYS, SUNDAYS AND HOLIDAYS. If the date of
maturity of interest on or principal of the Securities or the date fixed for
redemption of any Security shall not be a Business Day, then payment of interest
or principal need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on the date of
maturity or the date fixed for redemption, and no interest shall accrue for the
period after such date.

Section 11.7. TRUST INDENTURE ACT OF 1939. This Indenture shall be subject to
the provisions of the Trust Indenture Act of 1939 that are required to be a part
of this Indenture and shall, to the extent applicable, be governed by such
provisions. If and to the extent that any provision of this Indenture limits,
qualifies or conflicts with another provision included in this Indenture by
operation of Sections 310 to 317, inclusive, of the Trust Indenture Act of 1939
(an "incorporated provision"), such incorporated provision shall control.

Section 11.8. NEW YORK LAW TO GOVERN. This Indenture and each Security shall be
deemed

                                       69
<PAGE>

to be a contract under the laws of the State of New York, and for all purposes
shall be construed in accordance with the laws of said State, except as may
otherwise be required by mandatory provisions of law.

Section 11.9. COUNTERPARTS. This Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

Section 11.10. EFFECT OF HEADINGS. The Article and Section headings herein and
the Table of Contents are for convenience only and shall not affect the
construction hereof.

Section 11.11. CERTAIN RIGHTS. If a United States Bankruptcy Court shall find
that the grant in favor of the Holders of a Lien on the Collateral constitutes a
preferential or fraudulent transfer to which there is no defense or exception
and the Lien securing the Collateral is avoided by order of such court as a
consequence thereof, the Holders of the Securities shall be entitled to pursue a
claim for payment with respect to the Securities as such Holders would have been
entitled to pursue with respect to the Senior Notes due 2004 or Senior Notes due
2005, as the case may be, which such Holders exchanged for such Securities, as
though such Holders had never exchanged such Senior Notes due 2004 or Senior
Notes due 2005 for the Securities.

                                   ARTICLE XII
                            REDEMPTION OF SECURITIES

Section 12.1. RIGHT OF OPTIONAL REDEMPTION; PRICES. The Securities may not be
redeemed at the option of the Issuer prior to maturity, except as set forth in
this Section 12.1. The Securities may not be redeemed at the option of the
Issuer prior to April 1, 2004. At any time and from time to time on or after
April 1, 2004, the Issuer may redeem the Securities, in whole or in part, at a
redemption price from April 1, 2004 to March 31, 2005 of 105.00% of the
principal amount thereof, from April 1, 2005 to March 31, 2006 at a redemption
price of 104.00% of the principal amount thereof, from April 1, 2006 to March
31, 2007 at a redemption price of 103.00% of the principal amount thereof, and
thereafter until maturity of 100.00% of the principal amount thereof, in each
case plus accrued interest to the redemption date. Notwithstanding the
foregoing, if the date fixed for redemption as set forth in this paragraph is an
April 1 or October 1, then the interest payable on such date shall be paid to
the holder of record on the preceding March 15 or September 15. Notice of such
redemption shall be mailed not less than 30 nor more than 60 days prior to the
date fixed for redemption to the holders of Securities to be redeemed, all as
provided in the Indenture, in the circumstances set forth in this paragraph.

Section 12.2. NOTICE OF REDEMPTION; PARTIAL REDEMPTIONS. Notice of redemption to
the holders of Securities to be redeemed as a whole or in part, shall be given
by mailing notice of such redemption by first class mail, postage prepaid, at
least 30 days and not more than 60 days prior to the date fixed for redemption
to such holders of Securities at their last addresses as they shall appear upon
the registry books. Any notice which is mailed in the manner herein provided
shall be conclusively presumed to have been duly given, whether or not the
holder receives the notice. Failure to give notice by mail, or any defect in the
notice to the holder of any Security designated

                                       70
<PAGE>

for redemption as a whole or in part, shall not affect the validity of the
proceedings for the redemption of any other Security. The notice of redemption
to each such holder shall specify the principal amount of each Security held by
such holder to be redeemed, the date fixed for redemption, the redemption price,
the place or places of payment, that payment will be made upon presentation and
surrender of such Securities, that interest accrued to the date fixed for
redemption will be paid as specified in said notice and that on and after said
date interest thereon or on the portions thereof to be redeemed will cease to
accrue. In case any Security is to be redeemed in part only the notice of
redemption shall state the portion of the principal amount thereof to be
redeemed and shall state that on and after the date fixed for redemption, upon
surrender of such Security, a new Security or Securities in principal amount
equal to the unredeemed portion thereof will be issued.

              The notice of redemption of Securities to be redeemed at the
option of the Issuer shall be given by the Issuer or, at the Issuer's request,
by the Trustee in the name and at the expense of the Issuer. The Issuer shall
notify the Trustee of such redemption at least 15 days prior to the date the
notice of redemption is to be sent to the Holders (unless a shorter period of
time shall be satisfactory to the Trustee) and shall specify in such notice
whether the Trustee is to give such notice.

              At least one business day prior to the redemption date specified
in the notice of redemption given as provided in this Section, the Issuer will
deposit with the Trustee or with one or more Paying Agents (or, if the Issuer is
acting as its own Paying Agent, set aside, segregate and hold in trust as
provided in Section 3.4) an amount of money sufficient to redeem on the
redemption date all the Securities so called for redemption at the appropriate
redemption price, together with accrued interest to the date fixed for
redemption. If less than all the outstanding Securities are to be redeemed, the
Issuer will deliver to the Trustee at least 70 days prior to the date fixed for
redemption an Officers' Certificate stating the aggregate principal amount of
Securities to be redeemed.

              In the event that less than all of the Securities are to be
redeemed at any time, selection of securities for redemption will be made by the
Trustee in compliance with the requirements of the principal national securities
exchange, if any, on which the securities are listed or, if the securities are
not listed on a national securities exchange, on a pro-rata basis. The
particular Securities to be redeemed shall be selected unless otherwise provided
herein, not less than 40 days or more than 60 days prior to the redemption date
by the Trustee from the outstanding Securities not previously called for
redemption.

              The Trustee shall promptly notify the Issuer in writing of the
Securities selected for redemption and, in the case of any Security selected for
partial redemption, the principal amount thereof to be redeemed. Securities and
portions of them selected shall be in amounts of $50 or whole multiples of $50.
Except as provided in the preceding sentence, provisions of this Indenture that
apply to Securities called for redemption also apply to portions of Securities
called for redemption.

Section 12.3. PAYMENT OF SECURITIES CALLED FOR REDEMPTION. If notice of
redemption has been given as above provided, the Securities or portions of
Securities specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable

                                       71
<PAGE>

redemption price, together with interest accrued to the date fixed for
redemption, and on and after said date (unless the Issuer shall default in the
payment of such Securities at the redemption price, together with interest
accrued to said date) interest on the Securities or portions of Securities so
called for redemption shall cease to accrue and, except as provided in Sections
5.5 and 9.4, such Securities shall cease from and after the date fixed for
redemption to be entitled to any benefit or security under this Indenture, and
the holders thereof shall have no right in respect of such Securities except the
right to receive the redemption price thereof and unpaid interest to the date
fixed for redemption. On presentation and surrender of such Securities at a
place of payment specified in said notice, said Securities or the specified
portions thereof shall be paid and redeemed by the Issuer at the applicable
redemption price, together with interest accrued thereon to the date fixed for
redemption; provided that any semiannual payment of interest becoming due on the
date fixed for redemption shall be payable to the holders of such Securities
registered as such on the relevant record date subject to the terms and
provisions of Section 2.4 hereof.

              If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal shall, until paid or duly
provided for, bear interest from the date fixed for redemption at the rate borne
by the Security.

              Upon presentation of any Security redeemed in part only, the
Issuer shall execute and the Trustee shall authenticate and deliver to or on the
order of the holder thereof, at the expense of the Issuer, a new Security or
Securities, of authorized denominations, in principal amount equal to the
unredeemed portion of the Security so presented.

Section 12.4. EXCLUSION OF CERTAIN SECURITIES FROM ELIGIBILITY FOR SELECTION FOR
REDEMPTION. Securities shall be excluded from eligibility for selection for
redemption if they are identified by registration and certificate number in a
written statement signed by an authorized officer of the Issuer and delivered to
the Trustee at least 40 days prior to the last date on which notice of
redemption may be given as being owned of record and beneficially by, and not
pledged or hypothecated by either (a) the Issuer or (b) an entity specifically
identified in such written statement directly or indirectly controlling or
controlled by or under direct or indirect common control with the Issuer.

                                       72
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the date first above written.

                                     WEIRTON STEEL CORPORATION

Attest:  /s/ William R. Kiefer       By:  /s/ Mark E. Kaplan
         -----------------------          -------------------------------------
         Secretary                           Name:  Mark E. Kaplan
                                             Title: Vice President of Finance
                                                    and Administration

                                     J.P. MORGAN TRUST COMPANY, NATIONAL
                                     ASSOCIATION,
                                     As Trustee

Attest:  /s/ Jo Anne Osborn          By:  /s/ David M. Babich
         -----------------------          -------------------------------------
         Authorized Officer                  Name:  David M. Babich
                                             Title:  Vice President

                                       73
<PAGE>

Exhibit A  ---------  [FORM OF GLOBAL SECURITY]

                           [FORM OF FACE OF SECURITY]

                  UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED
         REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
         ("DTC"), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
         OR PAYMENT, AND ANY SECURITY 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 OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

                  TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
         TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A
         SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE.

No.      001                                                    $  118,242,300

                            WEIRTON STEEL CORPORATION
                        10% Senior Secured Notes Due 2008

         Weirton Steel Corporation, a Delaware corporation (the "Issuer"), for
value received hereby promises to pay to Cede & Co. or registered assigns the
principal sum of One Hundred and Eighteen Million, Two Hundred and Forty Two
Thousand, Three Hundred Dollars ($118,242,300) at the Issuer's office or agency
for said purpose in the Borough of Manhattan, the City of New York on April 1,
2008 in such coin or currency of the United States of America as at the time of
payment shall be legal tender for the payment of public and private debts. This
Security shall bear interest and the interest shall accrue and be calculated at
the rate and in the manner as set forth on the reverse hereof and shall be paid
at said office or agency.

         Reference is made to the further provisions set forth on the reverse
hereof. Such further provisions shall for all purposes have the same effect as
though fully set forth at this place.

                                       74
<PAGE>

         This Security shall not be valid or obligatory until the certificate of
authentication hereon shall have been duly manually signed by the Trustee acting
under the Indenture.

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

Dated:  June __, 2002
                                   WEIRTON STEEL CORPORATION

                                   By:
                                      ------------------------------------------
                                        Name:
                                        Title:

                                   By:
                                      ------------------------------------------
                                        Name:
                                        Title:

This is one of the Securities described in the within-mentioned Indenture.

J.P. Morgan Trust Company, National Association,
as Trustee

 _______________________    Authorized Signatory
Dated:  as of June __, 2002

                                       75
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

                            WEIRTON STEEL CORPORATION

                        10% Senior Secured Notes Due 2008

         This Security is one of a duly authorized issue of debt securities of
the Issuer, limited to the aggregate principal amount of $118,242,300 (except as
otherwise provided in the Indenture mentioned below), issued or to be issued
pursuant to an indenture dated as of June 18, 2002 (the "Indenture"), duly
executed and delivered by the Issuer to J.P. Morgan Trust Company, National
Association, Trustee (herein called the "Trustee"). Reference is hereby made to
the Indenture and all indentures supplemental thereto for a description of the
rights, limitations of rights, obligations, duties and immunities thereunder of
the Trustee, the Issuer and the holders (the words "holders" or "holder" meaning
the registered holders or registered holder) of the Securities. All capitalized
terms not defined herein shall have the meaning set forth in the Indenture.
Descriptive headings are merely for convenience and shall have no effect on the
meaning or interpretation hereof.

INTEREST

         Interest shall accrue on the principal amount of this Security from
June 18, 2002 until April 1, 2008 or the earlier redemption of the Securities as
at the respective rates per annum as set forth on the table below, and the
Issuer promises to pay such interest, semi-annually in arrears on April 1 and
October 1 of each year, on said principal sum in like coin or currency at such
rates, with the first such payment commencing on October 1, 2002. The Issuer
shall furnish an Officer's Certificate to the Trustee specifying the applicable
interest rate on or prior to April 1 and October 1 of each such year.

<TABLE>
<CAPTION>
------------------------------------------------------------ ---------------------------------------------------------
Interest Period                                              Interest Rate
------------------------------------------------------------ ---------------------------------------------------------
<S>                                                          <C>
1.  From June 18, 2002 to March 31, 2003                     1.  0.5%
------------------------------------------------------------ ---------------------------------------------------------
2.  From April 1, 2003 to March 31, 2004                     2.  The lesser of (a) the sum of (i) 0.5% and (ii)
                                                             Contingent Interest Rate(as defined below), and (b)
                                                             10.0% per annum.
------------------------------------------------------------ ---------------------------------------------------------
3.  From April 1, 2004 to March 31, 2005                     3.  The lesser of (a) the sum of (i) 0.5068% and (ii)
                                                             Contingent Interest Rate, and (b) 10.0% per annum.
------------------------------------------------------------ ---------------------------------------------------------
4.  From April 1, 2005 to March 31, 2008                     4.  10.0% per annum
------------------------------------------------------------ ---------------------------------------------------------
</TABLE>

         "Contingent Interest Rate" shall be expressed as a percentage
determined by dividing (a) 50% of the Excess Cash Flow by (b) the sum of the
principal amount of all

                                       76
<PAGE>

Outstanding Securities (including this Security) and the principal amount of all
outstanding Secured Series 2002 Bonds at the time of such determination.

         Interest on the Securities shall be computed on the basis of a 360-day
year of twelve 30-day months. The interest so payable on any April 1 and October
1 will, except as otherwise provided in the Indenture, be paid to the person in
whose name this Security is registered at the close of business on the March 15
or September 15 preceding such April 1 and October 1, whether or not such day is
a Business Day (as defined in the Indenture); PROVIDED that interest, if any,
may be paid, at the option of the Issuer, by mailing a check therefor payable to
the registered holder entitled thereto at his last address as it appears on the
Security register. If the date of redemption or purchase of this Security is
other than April 1 or October 1, then the amount of any accrued and unpaid
interest due and payable on this Security at the time of any such redemption or
purchase shall be equal to the amount determined by multiplying (i) the interest
rate in effect as of the most recent interest payment date prior thereto by (ii)
a fraction, the numerator of which is the actual number of days elapsed in the
period for which interest is payable on the date of redemption or purchase, and
the denominator of which is 360.

         Unless otherwise agreed by the Issuer and the holder of any Security,
payments by the Issuer in respect of the Securities (including principal,
premium, if any and interest) shall be paid to holders of the Securities in
same-day funds. If the date of maturity of interest on or principal of the
Securities or the date fixed for redemption of any Security shall not be a
Business Day, then payment of interest, or principal will be made on the next
succeeding Business Day, with the same force and effect as if made on the date
of maturity or the date fixed for redemption, and no interest shall accrue for
the period after such date.

DEFAULT

         In case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all the Securities may be declared
due and payable, in the manner and with the effect, and subject to the
conditions, provided in the Indenture. The Indenture provides that in certain
events such declaration and its consequences may be waived by the holders of a
majority in aggregate principal amount of the Securities then outstanding and
that, prior to any such declaration, such holders may waive any past default
under the Indenture and its consequences except a default in the payment of
principal of or interest on any of the Securities. Any such consent or waiver by
the holder of this Security (unless revoked as provided in the Indenture) shall
be conclusive and binding upon such holder and upon all future holders and
owners of this Security and any Security which may be issued in exchange or
substitution therefor, whether or not any notation thereof is made upon this
Security or such other Securities.

AMENDMENT

         The Indenture permits the Issuer and the Trustee, with the consent of
the holders of not less than a majority in aggregate principal amount of the
Securities at the time outstanding, evidenced as in the Indenture provided, to
execute supplemental indentures adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or of any Notes Document, the Intercreditor Agreement or
Collateral Agency Agreement or modifying in any manner the rights of the holders
of the

                                       77
<PAGE>

Securities; PROVIDED that no such supplemental indenture shall, without the
consent of the holders of all Securities then outstanding, (a) reduce the rate
or change the time or place for payment of interest, if any, on any Security or
reduce any amount payable on the redemption hereof; (b) reduce the principal of
or change the fixed maturity or place of payment of any Security; (c) change the
currency of payment of principal and interest, if any, on any Security; (d)
reduce the principal amount of outstanding Securities necessary to modify or
amend the Indenture; (e) impair the right to institute suit for the enforcement
of any payment on or with respect to any Security; or (f) make any changes in
Section 4.9 (waiver of past defaults), Section 4.11 (rights of holders to
receive payment), or the first paragraph of Section 7.2 (supplemental indentures
with consent of securityholders) of the Indenture. Notwithstanding the
foregoing, with the consent of the holders of not less than 85% in the aggregate
principal amount of the Securities at the time outstanding, the Issuer and the
Trustee (or Collateral Agent, as applicable) may amend or waive any provisions
of the Indenture, the Notes Document, the Intercreditor Agreement or Collateral
Agency Agreement, relating to the Collateral.

REDEMPTION

         The Securities may not be redeemed at the option of the Issuer prior to
maturity, except as set forth in the Indenture. The Securities may not be
redeemed at the option of the Issuer prior to April 1, 2004. At any time and
from time to time on or after April 1, 2004, the Issuer may redeem the
Securities, in whole or in part, at a redemption price from April 1, 2004 to
March 31, 2005 of 105.00% of the principal amount thereof, from April 1, 2005 to
March 31, 2006 at a redemption price of 104.00% of the principal amount thereof,
from April 1, 2006 to March 31, 2007 at a redemption price of 103.00% of the
principal amount thereof and thereafter until maturity at 100.00% of the
principal amount thereof, in each case plus accrued or unpaid interest to the
redemption date. Notwithstanding the foregoing, if the date fixed for redemption
as set forth in this paragraph is an April 1 or October 1, then the interest
payable on such date shall be paid to the holder of record on the preceding
March 15 or September 15. Notice of such redemption shall be mailed not less
than 30 nor more than 60 days prior to the date fixed for redemption to the
holders of Securities to be redeemed, all as provided in the Indenture, in the
circumstances set forth in this paragraph.

         Subject to payment by the Issuer of a sum sufficient to pay the amount
due on redemption, interest on this Security (or portion hereof if this Security
is redeemed in part) shall cease to accrue upon the date duly fixed for
redemption of this Security (or portion hereof if this Security is redeemed in
part).

ASSET DISPOSITION

         Subject to the terms of the Indenture, if the Issuer or any Subsidiary
consummate any Asset Disposition (excluding any Asset Disposition of
Collateral), the Net Cash Proceeds of the Asset Disposition within 270 days,
shall be, at the Issuer's election, applied (A) to the extent the Issuer elects
(or is so required by the terms of any Indebtedness), to prepay or repay the
Credit Facility or the Vendor Financing Programs, or (B)(i) to redeem or make
other payments in respect of the Series C Preferred Stock, or (ii) to make an
investment in properties and assets other than cash, cash equivalents or
inventory that replace the properties and assets that were the subject of the
Asset Disposition or in properties and assets that will be used in the business
of
                                       78
<PAGE>
making, processing or distributing steel products, including, without
limitation, tin products or other coated steel products and related businesses,
or (C) to the extent of the balance of such Net Cash Proceeds after application
in accordance with (A) or (B), to make an Asset Disposition Offer to purchase
the Securities (on a pro rata basis if the amount available for such purchase is
less than 100% of the outstanding principal amount of the Securities) and
Secured Series 2002 Bonds on a pari passu basis, at a purchase price of the
principal amount thereof plus accrued and unpaid interest, if any, as the case
may be, to the date of repayment. Notwithstanding the foregoing, the Issuer and
its Subsidiaries will not be required to apply any Net Cash Proceeds to
effectuate an Asset Disposition Offer in accordance with this provision except
to the extent that the aggregate gross proceeds from all Asset Dispositions
which are not applied in accordance with clause (A) or (B) exceed $15,000,000.

         Subject to the terms of the Indenture, if the Issuer or any Subsidiary
consummate any Asset Disposition of Collateral, then the Net Cash Proceeds of
the Asset Disposition within 270 days, shall be, at the Issuer's election,
applied (A) to the extent the Issuer elects (or is so required by the terms of
any Indebtedness), to prepay or repay the Credit Facility which prepayment or
repayment shall constitute a permanent reduction of the commitment under such
Credit Facility or (B)(i) to redeem or make other payments in respect of the
Series C Preferred Stock, or (ii) to make an investment in replacement
properties and assets that will be used in the business of making, processing or
distributing steel products, including, without limitation, tin products or
other coated steel products and related businesses, and grant in favor of the
holders of the Securities a Lien, which may be subordinated only to senior
secured Indebtedness, incurred to finance or refinance, as applicable, the
acquisition of such replacement properties and assets, or (C) to the extent of
the balance of such Net Cash Proceeds after application in accordance with (A)
or (B), to make an Asset Disposition Offer to purchase the Securities (on a pro
rata basis if the amount available for such purchase is less than 100% of the
outstanding principal amount of the Securities) and Secured Series 2002 Bonds on
a pari passu basis, at a purchase price of the principal amount thereof plus
accrued and unpaid interest, if any, as the case may be, to the date of
repayment.

CHANGE OF CONTROL

         In the event that there shall occur a Change of Control, each holder of
the Securities shall have the right, at the Holder's option, to require the
Issuer to purchase all or any part of such Holder's Securities on the Repurchase
Date that is 90 days after notice of the Change of Control, at 101% of the
principal amount of the Securities plus accrued interest, if any, to the
Repurchase Date. To be repaid, the Security must be received, with the completed
form entitled Option of Holder to Elect Purchase (set forth below), by the
Paying Agent at its then specified office at least two Business Days prior to
the Repurchase Date. Exercise of the repayment option by the Securityholder will
be irrevocable unless the rescission thereof is duly approved by the Continuing
Directors. The Issuer, the Trustee, and any authorized agent of the Issuer or
the Trustee, may deem and treat the registered holder hereof as the absolute
owner of this Security (whether or not this Security shall be overdue and
notwithstanding any notation of ownership or other writing hereon made by anyone
other than the Issuer or the Trustee or any authorized agent of the Issuer or
the Trustee), for the purpose of receiving payment of, or on account of, the
principal hereof and, subject to the provisions on the face hereof and interest
hereon and for all

                                       79
<PAGE>

other purposes, and neither the Issuer nor the Trustee nor any authorized agent
of the Issuer or the Trustee shall be affected by any notice to the contrary.

OTHER TERMS

         No recourse shall be had for the payment of the principal of or
interest on this Security, for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental
thereto, against any incorporator, shareholder, officer or director, as such,
past, present or future, of the Issuer or of any successor corporation, either
directly or through the Issuer or any successor corporation, whether by virtue
of any constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issue hereof, expressly waived
and released.

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

         The Securities are issuable only as registered Securities without
coupons in denominations of $50 and any integral multiple of $50.

         At the office or agency of the Issuer referred to on the face hereof
and in the manner and subject to the limitations provided in the Indenture,
Securities may be exchanged for a like aggregate principal amount of Securities
of other authorized denominations.

         Upon due presentment for registration of transfer of this Security at
the above-mentioned office or agency of the Issuer, a new Security or Securities
of authorized denominations, for a like aggregate principal amount, will be
issued to the transferee as provided in the Indenture. No service charge shall
be made for any such transfer, but the Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto.

                                       80
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

If you wish to have this Security purchased by the Issuer pursuant to Section
3.12 or 3.16 of the Indenture, check the Box: [ ].

If you wish to have a portion of this Security purchased by the Issuer pursuant
to Section 3.12 or 3.16 of the Indenture, state the amount (in aggregate
principal amount):

$[ ].

Date:  []   Your Signature:  []

(Sign exactly as your name appears on the other side of this Security)

Signature Guarantee:  [  ]

                                       81
<PAGE>

Exhibit B  ---------[FORM OF DEFINITIVE SECURITY]

                           [FORM OF FACE OF SECURITY]

No.                                                                $118,242,300

                            WEIRTON STEEL CORPORATION
                        10% Senior Secured Notes Due 2008

         Weirton Steel Corporation, a Delaware corporation (the "Issuer"), for
value received hereby promises to pay to Cede & Co. or registered assigns the
principal sum of One Hundred and Eighteen Million, Two Hundred and Forty Two
Thousand, Three Hundred Dollars ($118,242,300) at the Issuer's office or agency
for said purpose in the Borough of Manhattan, the City of New York on April 1,
2008 in such coin or currency of the United States of America as at the time of
payment shall be legal tender for the payment of public and private debts. This
Security shall bear interest and the interest shall accrue and be calculated at
the rate and in the manner as set forth on the reverse hereof and shall be paid
at said office or agency.

         Reference is made to the further provisions set forth on the reverse
hereof. Such further provisions shall for all purposes have the same effect as
though fully set forth at this place.

         This Security shall not be valid or obligatory until the certificate of
authentication hereon shall have been duly manually signed by the Trustee acting
under the Indenture.

                                       82
<PAGE>

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

Dated:  June __, 2002
                                  WEIRTON STEEL CORPORATION

                                  By:
                                     ------------------------------------------
                                       Name:
                                       Title:

                                  By:
                                     ------------------------------------------
                                       Name:
                                       Title:

This is one of the Securities described in the within-mentioned Indenture.

J.P. Morgan Trust Company, National Association,
as Trustee

 _______________________    Authorized Signatory
Dated:  as of June __, 2002

                                       83
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

                            WEIRTON STEEL CORPORATION

                        10% Senior Secured Notes Due 2008

         This Security is one of a duly authorized issue of debt securities of
the Issuer, limited to the aggregate principal amount of $118,242,300 (except as
otherwise provided in the Indenture mentioned below), issued or to be issued
pursuant to an indenture dated as of June 18, 2002 (the "Indenture"), duly
executed and delivered by the Issuer to J.P. Morgan Trust Company, National
Association, Trustee (herein called the "Trustee"). Reference is hereby made to
the Indenture and all indentures supplemental thereto for a description of the
rights, limitations of rights, obligations, duties and immunities thereunder of
the Trustee, the Issuer and the holders (the words "holders" or "holder" meaning
the registered holders or registered holder) of the Securities. All capitalized
terms not defined herein shall have the meaning set forth in the Indenture.
Descriptive headings are merely for convenience and shall have no effect on the
meaning or interpretation hereof.

INTEREST

         Interest shall accrue on the principal amount of this Security from
June 18, 2002 until April 1, 2008 or the earlier redemption of the Securities as
at the respective rates per annum as set forth on the table below, and the
Issuer promises to pay such interest, semi-annually in arrears on April 1 and
October 1 of each year, on said principal sum in like coin or currency at such
rates, with the first such payment commencing on October 1, 2002. The Issuer
shall furnish an Officer's Certificate to the Trustee specifying the applicable
interest rate on or prior to April 1 and October 1 of each such year.

<TABLE>

------------------------------------------------------------ ---------------------------------------------------------
Interest Period                                              Interest Rate
------------------------------------------------------------ ---------------------------------------------------------
<S>                                                          <C>
1.  From June 18, 2002 to March 31, 2003                     1.  0.5%.
------------------------------------------------------------ ---------------------------------------------------------
2.  From April 1, 2003 to March 31, 2004                     2.  The lesser of (a) the sum of (i) 0.5% and (ii)
                                                             Contingent Interest Rate (as defined below), and (b)
                                                             10.0% per annum.
------------------------------------------------------------ ---------------------------------------------------------
3.  From April 1, 2004 to March 31, 2005                     3.  The lesser of (a) the sum of (i) 0.5068% and (ii)
                                                             Contingent Interest Rate, and (b) 10.0% per annum.
------------------------------------------------------------ ---------------------------------------------------------
4.  From April 1, 2005 to March 31, 2008                     4.  10.0% per annum
------------------------------------------------------------ ---------------------------------------------------------
</TABLE>

         "Contingent Interest Rate" shall be expressed as a percentage
determined by dividing (a) 50% of the Excess Cash Flow by (b) the sum of the
principal amount of all

                                       84
<PAGE>

Outstanding Securities (including this Security) and the principal amount of all
outstanding Secured Series 2002 Bonds at the time of such determination.

         Interest on the Securities shall be computed on the basis of a 360-day
year of twelve 30-day months. The interest so payable on any April 1 and October
1 will, except as otherwise provided in the Indenture, be paid to the person in
whose name this Security is registered at the close of business on the March 15
or September 15 preceding such April 1 and October 1, whether or not such day is
a Business Day (as defined in the Indenture); PROVIDED that interest, if any,
may be paid, at the option of the Issuer, by mailing a check therefor payable to
the registered holder entitled thereto at his last address as it appears on the
Security register. If the date of redemption or purchase of this Security is
other than April 1 or October 1, then the amount of any accrued and unpaid
interest due and payable on this Security at the time of any such redemption or
purchase shall be equal to the amount determined by multiplying (i) the interest
rate in effect as of the most recent interest payment date prior thereto by (ii)
a fraction, the numerator of which is the actual number of days elapsed in the
period for which interest is payable on the date of redemption or purchase, and
the denominator of which is 360.

         Unless otherwise agreed by the Issuer and the holder of any Security,
payments by the Issuer in respect of the Securities (including principal,
premium, if any and interest) shall be paid to holders of the Securities in
same-day funds. If the date of maturity of interest on or principal of the
Securities or the date fixed for redemption of any Security shall not be a
Business Day, then payment of interest, or principal will be made on the next
succeeding Business Day, with the same force and effect as if made on the date
of maturity or the date fixed for redemption, and no interest shall accrue for
the period after such date.

DEFAULT

         In case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all the Securities may be declared
due and payable, in the manner and with the effect, and subject to the
conditions, provided in the Indenture. The Indenture provides that in certain
events such declaration and its consequences may be waived by the holders of a
majority in aggregate principal amount of the Securities then outstanding and
that, prior to any such declaration, such holders may waive any past default
under the Indenture and its consequences except a default in the payment of
principal of or interest on any of the Securities. Any such consent or waiver by
the holder of this Security (unless revoked as provided in the Indenture) shall
be conclusive and binding upon such holder and upon all future holders and
owners of this Security and any Security which may be issued in exchange or
substitution therefor, whether or not any notation thereof is made upon this
Security or such other Securities.

AMENDMENT

         The Indenture permits the Issuer and the Trustee, with the consent of
the holders of not less than a majority in aggregate principal amount of the
Securities at the time outstanding, evidenced as in the Indenture provided, to
execute supplemental indentures adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or of any Notes Document, the Intercreditor Agreement or
Collateral Agency Agreement or modifying in any manner the rights of the holders
of the

                                       85
<PAGE>

Securities; PROVIDED that no such supplemental indenture shall, without the
consent of the holders of all Securities then outstanding, (a) reduce the rate
or change the time or place for payment of interest, if any, on any Security or
reduce any amount payable on the redemption hereof; (b) reduce the principal of
or change the fixed maturity or place of payment of any Security; (c) change the
currency of payment of principal and interest, if any, on any Security; (d)
reduce the principal amount of outstanding Securities necessary to modify or
amend the Indenture; (e) impair the right to institute suit for the enforcement
of any payment on or with respect to any Security; or (f) make any changes in
Section 4.9 (waiver of past defaults), Section 4.11 (rights of holders to
receive payment), or the first paragraph of Section 7.2 (supplemental indentures
with consent of securityholders) of the Indenture. Notwithstanding the
foregoing, with the consent of the holders of not less than 85% in the aggregate
principal amount of the Securities at the time outstanding, the Issuer and the
Trustee (or Collateral Agent, as applicable) may amend or waive any provisions
of the Indenture, the Notes Documents, the Intercreditor Agreement or Collateral
Agency Agreement, relating to the Collateral.

REDEMPTION

         The Securities may not be redeemed at the option of the Issuer prior to
maturity, except as set forth in the Indenture. The Securities may not be
redeemed at the option of the Issuer prior to April 1, 2004. At any time and
from time to time on or after April 1, 2004, the Issuer may redeem the
Securities, in whole or in part, at a redemption price from April 1, 2004 to
March 31, 2005 of 105.00% of the principal amount thereof, from April 1, 2005 to
March 31, 2006 at a redemption price of 104.00% of the principal amount thereof,
from April 1, 2006 to March 31, 2007 at a redemption price of 103.00% of the
principal amount thereof and thereafter until maturity at 100.00% of the
principal amount thereof, in each case plus accrued or unpaid interest to the
redemption date. Notwithstanding the foregoing, if the date fixed for redemption
as set forth in this paragraph is an April 1 or October 1, then the interest
payable on such date shall be paid to the holder of record on the preceding
March 15 or September 15. Notice of such redemption shall be mailed not less
than 30 nor more than 60 days prior to the date fixed for redemption to the
holders of Securities to be redeemed, all as provided in the Indenture, in the
circumstances set forth in this paragraph.

         Subject to payment by the Issuer of a sum sufficient to pay the amount
due on redemption, interest on this Security (or portion hereof if this Security
is redeemed in part) shall cease to accrue upon the date duly fixed for
redemption of this Security (or portion hereof if this Security is redeemed in
part).

ASSET DISPOSITION

         Subject to the terms of the Indenture, if the Issuer or any Subsidiary
consummate any Asset Disposition (excluding any Asset Disposition of
Collateral), the Net Cash Proceeds of the Asset Disposition within 270 days,
shall be, at the Issuer's election, applied (A) to the extent the Issuer elects
(or is so required by the terms of any Indebtedness), to prepay or repay the
Credit Facility or the Vendor Financing Programs, or (B)(i) to redeem or make
other payments in respect of the Series C Preferred Stock, or (ii) to make an
investment in properties and assets other than cash, cash equivalents or
inventory that replace the properties and assets that were the subject of the
Asset Disposition or in properties and assets that will be used in the business
of

                                       86
<PAGE>

making, processing or distributing steel products, including, without
limitation, tin products or other coated steel products and related businesses,
or (C) to the extent of the balance of such Net Cash Proceeds after application
in accordance with (A) or (B), to make an Asset Disposition Offer to purchase
the Securities (on a pro rata basis if the amount available for such purchase is
less than 100% of the outstanding principal amount of the Securities) and
Secured Series 2002 Bonds on a pari passu basis, at a purchase price of the
principal amount thereof plus accrued and unpaid interest, if any, as the case
may be, to the date of repayment. Notwithstanding the foregoing, the Issuer and
its Subsidiaries will not be required to apply any Net Cash Proceeds to
effectuate an Asset Disposition Offer in accordance with this provision except
to the extent that the aggregate gross proceeds from all Asset Dispositions
which are not applied in accordance with clause (A) or (B) exceed $15,000,000.

         Subject to the terms of the Indenture, if the Issuer or any Subsidiary
consummate any Asset Disposition of Collateral, then the Net Cash Proceeds of
the Asset Disposition within 270 days, shall be, at the Issuer's election,
applied (A) to the extent the Issuer elects (or is so required by the terms of
any Indebtedness), to prepay or repay the Credit Facility which prepayment or
repayment shall constitute a permanent reduction of the commitment under such
Credit Facility or (B)(i) to redeem or make other payments in respect of the
Series C Preferred Stock, or (ii) to make an investment in replacement
properties and assets that will be used in the business of making, processing or
distributing steel products, including, without limitation, tin products or
other coated steel products and related businesses, and grant in favor of the
holders of the Securities a Lien, which may be subordinated only to senior
secured Indebtedness incurred to finance or refinance, as applicable, the
acquisition of such replacement properties and assets, or (C) to the extent of
the balance of such Net Cash Proceeds after application in accordance with (A)
or (B), to make an Asset Disposition Offer to purchase the Securities (on a pro
rata basis if the amount available for such purchase is less than 100% of the
outstanding principal amount of the Securities) and Secured Series 2002 Bonds on
a pari passu basis, at a purchase price of the principal amount thereof plus
accrued and unpaid interest, if any, as the case may be, to the date of
repayment.

CHANGE OF CONTROL

         In the event that there shall occur a Change of Control, each holder of
the Securities shall have the right, at the Holder's option, to require the
Issuer to purchase all or any part of such Holder's Securities on the Repurchase
Date that is 90 days after notice of the Change of Control, at 101% of the
principal amount of the Securities plus accrued interest, if any, to the
Repurchase Date. To be repaid, the Security must be received, with the completed
form entitled Option of Holder to Elect Purchase (set forth below), by the
Paying Agent at its then specified office at least two Business Days prior to
the Repurchase Date. Exercise of the repayment option by the Securityholder will
be irrevocable unless the rescission thereof is duly approved by the Continuing
Directors. The Issuer, the Trustee, and any authorized agent of the Issuer or
the Trustee, may deem and treat the registered holder hereof as the absolute
owner of this Security (whether or not this Security shall be overdue and
notwithstanding any notation of ownership or other writing hereon made by anyone
other than the Issuer or the Trustee or any authorized agent of the Issuer or
the Trustee), for the purpose of receiving payment of, or on account of, the
principal hereof and, subject to the provisions on the face hereof and interest
hereon and for all

                                       87
<PAGE>

other purposes, and neither the Issuer nor the Trustee nor any authorized agent
of the Issuer or the Trustee shall be affected by any notice to the contrary.

OTHER TERMS

         No recourse shall be had for the payment of the principal of or
interest on this Security, for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental
thereto, against any incorporator, shareholder, officer or director, as such,
past, present or future, of the Issuer or of any successor corporation, either
directly or through the Issuer or any successor corporation, whether by virtue
of any constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issue hereof, expressly waived
and released.

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

         The Securities are issuable only as registered Securities without
coupons in denominations of $50 and any integral multiple of $50.

         At the office or agency of the Issuer referred to on the face hereof
and in the manner and subject to the limitations provided in the Indenture,
Securities may be exchanged for a like aggregate principal amount of Securities
of other authorized denominations.

         Upon due presentment for registration of transfer of this Security at
the above-mentioned office or agency of the Issuer, a new Security or Securities
of authorized denominations, for a like aggregate principal amount, will be
issued to the transferee as provided in the Indenture. No service charge shall
be made for any such transfer, but the Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto.

                                       88
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

If you wish to have this Security purchased by the Issuer pursuant to Section
3.12 or 3.16 of the Indenture, check the Box: [ ].

If you wish to have a portion of this Security purchased by the Issuer pursuant
to Section 3.12 or 3.16 of the Indenture, state the amount (in aggregate
principal amount):

$[ ].

Date:  []   Your Signature:  []

(Sign exactly as your name appears on the other side of this Security)

Signature Guarantee:  [  ]

                                       89<PAGE>
                                                                     Exhibit 4.3

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

                         CITY OF WEIRTON, WEST VIRGINIA

                                       AND

                 J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

                                   as Trustee

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

                               INDENTURE OF TRUST

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

                            Dated as of June 18, 2002
--------------------------------------------------------------------------------

<PAGE>

                                TABLE OF CONTENTS

             (This Table of Contents is not a part of the Indenture
               of Trust and is only for convenience of reference.)

<TABLE>
<CAPTION>

                                                                                                                PAGE
                                                                                                                ----
<S>                                                                                                              <C>
GRANTING CLAUSES..................................................................................................2

ARTICLE I  DEFINITIONS............................................................................................3

     Section 1.01  Definition of Terms............................................................................3

ARTICLE II  AUTHORIZATION AND ISSUANCE OF BONDS..................................................................17

     Section 2.01  Authorized Amount of Bonds....................................................................17

     Section 2.02  Purposes for Which Bonds May Be Issued........................................................17

     Section 2.03  Issuance and Form of Bonds; Legend............................................................17

     Section 2.04  Execution; Limited Obligations................................................................18

     Section 2.05  Authentication................................................................................19

     Section 2.06  Securities Depository Provisions..............................................................19

     Section 2.07  Temporary Bonds...............................................................................20

     Section 2.08  Delivery of the Bonds.........................................................................20

     Section 2.09  Mutilated, Lost, Stolen or Destroyed Bonds....................................................22

     Section 2.10  Interchangeability of Bonds; Negotiability....................................................22

     Section 2.11  Registration, Transfer and Exchange...........................................................22

     Section 2.12  Wire Instructions.............................................................................24

     Section 2.13  Discontinuance of Book-Entry System...........................................................24

ARTICLE III  REDEMPTION OF BONDS BEFORE MATURITY; TENDER OPTION
RIGHTS OF BONDHOLDERS; PURCHASE IN LIEU OF REDEMPTION ...........................................................25

     Section 3.01  Mandatory Redemption; Extraordinary Redemption; Optional
                     Redemption..................................................................................25

     Section 3.02  Notice of Redemption or Purchase..............................................................28

     Section 3.03  Payment of Redeemed Bonds.....................................................................28

     Section 3.04  Tender Option Right of Holders................................................................29

     Section 3.05  Purchase in Lieu of Redemption................................................................32

ARTICLE IV  BOND FUND, REBATE FUND, REVENUES AND APPLICATION THEREOF.............................................32
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                          <C>
     Section 4.01  Establishment of Bond Fund....................................................................32

     Section 4.02  Moneys to be Held in Trust....................................................................33

     Section 4.03  Payments into the Bond Fund...................................................................33

     Section 4.04  Use of Moneys in the Bond Fund................................................................33

     Section 4.05  Investment of Moneys; Tax Covenants...........................................................33

     Section 4.06  Nonpresentment of Bonds.......................................................................34

     Section 4.07  Establishment of Rebate Fund..................................................................35

     Section 4.08  Additional Funds..............................................................................36

ARTICLE V  GENERAL COVENANTS AND PROVISIONS......................................................................37

     Section 5.01  Authority of Issuer; Validity of Indenture and Bonds..........................................37

     Section 5.02  Performance of Covenants......................................................................37

     Section 5.03  Payment of Principal, Premium and Interest....................................................37

     Section 5.04  Revenues from Agreement.......................................................................37

     Section 5.05  Priority of Lien of Indenture.................................................................37

     Section 5.06  Enforcement of Duties and Obligations of the Company..........................................38

     Section 5.07  Recordation of Indenture and Agreement; Filing of Security
                     Instruments.................................................................................38

     Section 5.08  Rights Under Agreement, Deeds of Trust and the Security Agreement.............................38

     Section 5.09  List of Bondholders...........................................................................38

     Section 5.10  Cancellation..................................................................................39

     Section 5.11  Payments Due on Saturdays, Sundays and Holidays...............................................39

     Section 5.12  Instrument of Further Assurance...............................................................39

     Section 5.13  Undertaking to Provide Ongoing Disclosure.....................................................39

ARTICLE VI  DISCHARGE OF INDENTURE

     Section 6.01  Discharge of Indenture........................................................................39

     Section 6.02  Defeasance of Bonds...........................................................................40

ARTICLE VII  DEFAULTS AND REMEDIES...............................................................................41

     Section 7.01  Events of Default.............................................................................41

     Section 7.02  Acceleration..................................................................................41

     Section 7.03  Other Remedies; Rights of Owners of Bonds.....................................................42

     Section 7.04  Right of Owners of Bonds to Direct Proceedings................................................42

     Section 7.05  Appointment of Receivers......................................................................43

     Section 7.06  Waiver........................................................................................43
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                          <C>
     Section 7.07  Application of Moneys.........................................................................43

     Section 7.08  Remedies Vested in Trustee....................................................................44

     Section 7.09  Rights and Remedies of Owners of Bonds........................................................45

     Section 7.10  Termination of Proceedings....................................................................45

     Section 7.11  Waivers.......................................................................................45

ARTICLE VIII  THE TRUSTEE........................................................................................46

     Section 8.01  Appointment of Trustee and Acceptance of Duties...............................................46

     Section 8.02  Fees, Charges and Expenses of Trustee.........................................................48

     Section 8.03  Intervention by Trustee.......................................................................49

     Section 8.04  Notice to Owners of Bonds if Default Occurs...................................................49

     Section 8.05  Merger or Consolidation of Trustee............................................................49

     Section 8.06  Resignation by the Trustee....................................................................49

     Section 8.07  Removal of the Trustee........................................................................49

     Section 8.08  Appointment of Successor Trustee by the Bondholders; Temporary
                     Trustee.....................................................................................50

     Section 8.09  Concerning Successor Trustees.................................................................50

     Section 8.10  Successor Trustee as Custodian of Funds and Paying Agent......................................51

     Section 8.11  Limitation on Trustee's Responsibilities Respecting Arbitrage.................................51

ARTICLE IX  SUPPLEMENTAL INDENTURES..............................................................................52

     Section 9.01  Supplemental Indentures Not Requiring Consent of Bondholders..................................52

     Section 9.02  Supplemental Indentures Requiring Consent of Bondholders......................................52

     Section 9.03 Bond Counsel Opinion; Consent of Company to Supplemental
                     Indentures..................................................................................54

     Section 9.04  Effect of Supplemental Indentures.............................................................54

     Section 9.05  Modifications by Unanimous Action.............................................................54

ARTICLE X  AMENDMENTS TO AGREEMENT...............................................................................54

     Section 10.01  Amendments to Agreement Not Requiring Consent of Bondholders.................................54

     Section 10.02  Amendments to Agreement Requiring Consent of Bondholders.....................................55

ARTICLE XI  REMARKETING AGENT....................................................................................55

     Section 11.01  Qualifications of Remarketing Agent..........................................................55

     Section 11.02  Successor Remarketing Agent by Merger, Consolidation, Etc....................................55

     Section 11.03  Resignation of Remarketing Agent.............................................................56

     Section 11.04  Removal of Remarketing Agent.................................................................56
</TABLE>

                                      iii

<PAGE>
<TABLE>
<S>                                                                                                          <C>
     Section 11.05  Appointment of Successor Remarketing Agent...................................................56

ARTICLE XII  MISCELLANEOUS.......................................................................................56

     Section 12.01.  Consent of Bondholders......................................................................56

     Section 12.02  Limitation of Rights.........................................................................57

     Section 12.03  Severability.................................................................................57

     Section 12.04  Notices......................................................................................57

     Section 12.05  Counterparts.................................................................................59

     Section 12.06  Applicable Law...............................................................................59

     Section 12.07  No Recourse..................................................................................59

     Section 12.08  Survival.....................................................................................59

     Section 12.09  Table of Contents and Section Headings Not Controlling.......................................59

     Section 12.10  Binding Effect...............................................................................59

     Section 12.11  Intercreditor Agreement and Collateral Agency Agreement......................................59
</TABLE>

                                       iv

<PAGE>

                               INDENTURE OF TRUST

                  THIS INDENTURE OF TRUST (the "Indenture"), dated as of June
18, 2002, is between the CITY OF WEIRTON, WEST VIRGINIA, a public corporation
and an incorporated municipality duly organized and existing under the
constitution and laws of the State of West Virginia (the "Issuer"), and J.P.
MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, a banking association organized and
existing under and by virtue of the laws of the United States of America, with a
corporate trust office located at Pittsburgh, Pennsylvania (the "Trustee").

                               W I T N E S S E T H

                  WHEREAS, pursuant to and in accordance with the provisions of
The Industrial Development and Commercial Development Bond Act, Chapter 13,
Article 2C, of the West Virginia Code of 1931, as amended (the "Act"), by
Resolution of the City Council of the Issuer, and in furtherance of the purposes
of the Act, Issuer proposes to refund certain of its outstanding Pollution
Control Revenue Refunding Bonds (Weirton Steel Corporation Project) Series 1989
(the "Series 1989 Bonds") issued to finance (or refinance) the acquisition,
construction and installation of certain pollution control equipment which is
presently leased by the Issuer to, or owned by, Weirton Steel Corporation, a
Delaware corporation (the "Company"); and

                  WHEREAS, the Issuer proposes to refund a portion of the Series
1989 Bonds in the aggregate principal amount of $45,580,000 (the "Refunded
Series 1989 Bonds") by the issuance under this Indenture of its Secured
Pollution Control Revenue Refunding Bonds (Weirton Steel Corporation Project)
Series 2002 in the aggregate principal amount of $27,348,000 (the "Bonds"); and

                  WHEREAS, the Issuer has undertaken to refund the Refunded
Series 1989 Bonds by exchanging the Bonds for the Refunded Series 1989 Bonds and
is authorized to enter into an Agreement (the "Agreement"), dated as of June 18,
2002, between the Issuer and the Company under which the Issuer will make a
loan, or will be deemed to have made a loan, to the Company in the aggregate
principal amount of $27,348,000 (the "Bond Loan") and provide for payments from
the Company to the Issuer sufficient to pay when due the principal of, premium,
if any and Interest (as hereinafter defined) on the Bonds as the same become due
and related expenses; and

                  WHEREAS, all things necessary to make the Bonds when
authenticated by the Trustee and issued as in this Indenture provided, the
valid, binding and legal obligations of the Issuer according to the import
thereof, and to constitute this Indenture a valid assignment and pledge of the
amounts pledged to the payment of the principal of, premium, if any, and
Interest on the Bonds, and to constitute this Indenture a valid assignment of
the rights of the Issuer under the Agreement, have been done and performed, and
the creation, execution and delivery of this Indenture, and the creation,
execution and issuance of the Bonds, subject to the terms hereof, have in all
respects been duly authorized.

                                       1
<PAGE>

               NOW, THEREFORE, THIS INDENTURE OF TRUST WITNESSETH:

                                GRANTING CLAUSES

                  That the Issuer in consideration of the premises and the
acceptance by the Trustee of the trusts hereby created and of the purchase and
acceptance of the Bonds by the holders and owners thereof, and of the sum of one
dollar, lawful money of the United States of America, to it duly paid by the
Trustee at or before the execution and delivery of these presents, and for other
good and valuable consideration, the receipt of which is hereby acknowledged, in
order to secure the payment of the principal of, premium, if any, and Interest
on the Bonds and any additional bonds issued in accordance with the provisions
of this Indenture according to their tenor and effect and to secure the
performance and observance by the Issuer of all the covenants expressed or
implied herein and in the Bonds, does hereby assign and grant a security
interest in the following (collectively, the "Trust Estate") to the Trustee, and
its successors in trust and assigns forever, for the securing of the performance
of the obligations of the Issuer hereinafter set forth:

                              GRANTING CLAUSE FIRST

                  The Agreement, including all modifications, extensions and
renewals thereof, if any, together with all right, title and interest of the
Issuer in and to the Agreement (except under Sections 4.2(b), 6.2 and 7.4
thereof), including, but not limited to, the present and continuing right to
make claim for, collect, receive and receipt for any of the sums, amounts,
income, revenues, issues and profits and any other sums of money payable or
receivable under the Agreement (except under Sections 4.2(b), 6.2 and 7.4
thereof), to bring actions and proceedings thereunder or for the enforcement
thereof (except for amounts payable under Sections 4.2(b), 6.2 and 7.4 thereof),
and to do any and all other things which the Issuer under the Agreement is or
may become entitled to do under the Agreement.

                             GRANTING CLAUSE SECOND

                  All right, title and interest of the Issuer in and to all
moneys and securities from time to time held by the Trustee under the terms of
this Indenture, except for moneys and securities deposited with or paid to the
Trustee for the redemption of particular Bonds, notice of the redemption of
which has been duly given, and except for moneys or securities held from time to
time in the Repurchase Moneys Account of the Bond Fund or in the Rebate Fund.

                              GRANTING CLAUSE THIRD

                  The Deeds of Trust and the Security Agreement, including all
modifications, extensions and renewals thereof, if any, together with all right,
title and interest of the Issuer in and to the Deeds of Trust and Security
Agreement including all payments, revenues and receipts payable or receivable
thereunder.

                             GRANTING CLAUSE FOURTH

                  Any and all other Property of every name and nature from time
to time hereafter by delivery or by writing of any kind conveyed, mortgaged,
pledged, assigned or transferred as and for additional security hereunder by the
Company or the Issuer or by anyone in its behalf or

                                       2
<PAGE>

with its written consent in favor of the Trustee, and the Trustee is hereby
authorized to receive any and all such Property at any and all times and to hold
and apply the same subject to the terms hereof.

                  TO HAVE AND TO HOLD all and singular the Trust Estate, whether
now owned or hereafter acquired, unto the Trustee and its respective successors
and assigns forever;

                  IN TRUST NEVERTHELESS, upon the terms and trusts herein set
forth for the equal and proportionate benefit, security and protection of all
present and future holders and owners of the Bonds, from time to time, issued
under and secured by this Indenture without privilege, priority or distinction
as to the lien or otherwise of any of the Bonds over any of the other Bonds
except in the case of funds held hereunder for the benefit of particular Owners
of Bonds;

                  PROVIDED, HOWEVER, that if the Issuer, its successors or
assigns shall well and truly pay, or cause to be paid, the principal of,
premium, if any, and Interest on the Bonds due or to become due thereon, at the
times and in the manner set forth in the Bonds according to the true intent and
meaning thereof, and shall cause the payments to be made on the Bonds as
required hereunder, or shall provide, as permitted herein, for the payment
thereof by depositing with the Trustee the entire amount due or to become due
thereon, and shall well and truly cause to be kept, performed and observed all
of its covenants and conditions pursuant to the terms of this Indenture, and
shall pay or cause to be paid to the Trustee all sums of money due or to become
due to it in accordance with the terms and provisions hereof, then upon the
final payment thereof this Indenture and the rights hereby granted shall cease,
determine and be void; except to the extent specifically provided in Article VI
hereof; otherwise this Indenture shall remain in full force and effect.

                  THIS INDENTURE FURTHER WITNESSETH, and it is expressly
declared, that all Bonds issued and secured hereunder are to be issued,
authenticated and delivered and all said Property, rights and interests,
including, without limitation, the amounts payable under the Agreement and any
other amounts hereby assigned and pledged are to be dealt with and disposed of
under, upon and subject to the terms, conditions, stipulations, covenants,
agreements, trusts, uses and purposes as herein expressed, subject to the
limitations of Section 2.04 hereof, and the Issuer has agreed and covenanted and
does hereby agree and covenant with the Trustee and with the respective holders
and owners of the Bonds as follows:

                                    ARTICLE I

                                   DEFINITIONS

                  Section 1.01 DEFINITION OF TERMS. The following terms (except
as otherwise expressly provided or unless the context otherwise clearly
requires) for all purposes of this Indenture and of any Supplemental Indenture
hereto shall have the respective meanings specified in this Section. The words
"herein," "hereof" and "hereunder" and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or other
subdivision. The terms defined in this Article include the plural as well as the
singular.

                                       3
<PAGE>

                  "ACT" means The Industrial Development and Commercial
Development Bond Act, Chapter 13, Article 2C of the West Virginia Code of 1931,
as amended.

                  "AFFILIATE" means, when used with reference to a specified
Person, any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Person specified. 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.

                  "AGENT MEMBERS" has the meaning set forth in Section 2.06
hereof.

                  "AGREEMENT" means the Agreement, dated as of June 18, 2002, by
and between the Issuer and the Company, as the same may be amended from time to
time.

                  "ASSIGNMENT AGREEMENT" means that certain Assignment and
Transfer of Deeds of Trust and Security Agreement, dated as of June 18, 2002,
from the Issuer to the Trustee.

                  "AUTHORIZED INVESTMENTS" means any one or more of the
following investments, if and to the extent the same are then legal investments
under the applicable laws of the State of West Virginia for moneys proposed to
be invested therein:

                  (a) Bonds or other obligations of the State of West Virginia
         or bonds or other obligations the principal and interest of which are
         guaranteed by the State of West Virginia;

                  (b) Government Obligations;

                  (c) Obligations of agencies of the United States government
         issued by the Federal Land Bank, the Federal Home Loan Bank, the
         Federal Intermediate Credit Bank, the Bank for Cooperatives, the
         Federal Financing Bank, the Farm Credit System, the Federal Home Loan
         Mortgage Corporation (including participation certificates), the Export
         Bank of the United States, the Federal National Mortgage Association,
         the Government National Mortgage Association, or any agency or
         instrumentality of the government of the United States of America which
         shall be established for the purpose of acquiring the obligations of
         any of the foregoing;

                  (d) Bonds or other obligations issued by any public housing
         agency or municipality in the United States, which bonds or obligations
         are fully secured as to the payment of both principal and interest by a
         pledge of annual contributions under an annual contributions contract
         or contracts with the United States government, or project notes issued
         by any public housing agency, urban renewal agency, or municipality in
         the United States and fully secured as to payment of both principal and
         interest by a requisition, loan, or payment agreement with the United
         States government;

                  (e) Certificates of deposit of any banks having a combined
         capital, surplus and undivided profits of $10,000,000, the deposits of
         which are insured by the Federal Deposit Insurance Corporation or any
         successor agency (the "FDIC"), including the certificates of deposit of
         any bank, savings and loan association, or building and loan

                                       4
<PAGE>

         association acting as depository, custodian, or trustee for any such
         bond proceeds; provided, however, that the portion of such certificates
         of deposit in excess of the amount insured by the FDIC, if any such
         excess exists, shall be secured by deposit with the Federal Reserve
         Bank, or with any bank, of one or more of the following securities in
         an aggregate principal amount equal at least to the amount of such
         excess: (i) Direct and general obligations of the State of West
         Virginia or of any county or municipality in the State of West
         Virginia; (ii) Government Obligations; (iii) Obligations of agencies of
         the United States government included in subparagraph (c) of this
         definition; or (iv) Bonds, obligations, or project notes of public
         housing agencies, urban renewal agencies, or municipalities included in
         subparagraph (d) of this definition;

                  (f) A taxable or tax-exempt money market fund rated in one of
         the three highest rating categories available from a nationally
         recognized rating service, which may include any mutual fund for which
         the Trustee or an Affiliate of the Trustee serves as investment
         manager, administrator, shareholder servicing agent, and/or custodian
         or subcustodian, notwithstanding that (i) the Trustee or an Affiliate
         of the Trustee receives fees from such funds for services rendered,
         (ii) the Trustee charges and collects fees for services rendered
         pursuant to the Indenture, which fees are separate from the fees
         received from such funds, and (iii) services performed for such funds
         and pursuant to the Indenture may at times duplicate those provided to
         such funds by the Trustee or its Affiliates;

                  (g) Interest-bearing time deposits, repurchase agreements,
         reverse repurchase agreements, rate guarantee agreements, or other
         similar banking arrangements with a bank or trust company having
         capital and surplus aggregating at least $50,000,000 or with any
         government bond dealer reporting to, trading with, and recognized as a
         primary dealer by the Federal Reserve Bank of New York having capital
         aggregating at least $50,000,000 or with any corporation which is
         subject to registration with the Board of Governors of the Federal
         Reserve System pursuant to the requirements of the Bank Holding Company
         Act of 1956, provided that each such interest-bearing time deposit,
         repurchase agreement, reverse repurchase agreement, rate guarantee
         agreement, or other similar banking arrangement shall permit the moneys
         so placed to be available for use at the time provided with respect to
         the investment or reinvestment of such moneys;

                  (h) Government Obligations, the interest on which is exempt
         from federal income taxation under Section 103 of the Code and which is
         not an item of tax preference for purposes of federal alternative
         minimum tax and which are rated in one of the three highest rating
         categories available from a nationally recognized rating service;

                  (i) Any and all other obligations of investment grade quality
         having a credit rating from a nationally recognized rating service of
         at least one of the three highest rating categories available and
         having a nationally recognized market, including, but not limited to,
         collateralized mortgage obligations, owner trusts offering
         collateralized mortgage obligations, guaranteed investment contracts
         offered by any firm, agency, business, governmental unit, bank,
         insurance company, corporation chartered by the United States Congress,
         or other entity, real estate mortgage investment conduits, mortgage
         obligations, mortgage pools, and pass-through securities; and

                                       5
<PAGE>

                  (j) Any other investments which in the Opinion of Counsel are
         authorized by the laws of the State of West Virginia.

                  Any investment listed above which represents investment of
amounts in any fund created hereunder, or in any account with any such fund
either shall not have a maturity in excess of 91 days or shall be subject to
tender at the option of the holder thereof to the issuer of any such investment
or its designated agent for redemption or purchase at not less than par value at
least as frequently as every seven days until maturity, earlier redemption or
purchase by such issuer or designated agent.

                  "AUTHORIZED REPRESENTATIVE" means, in the case of the Issuer,
the Mayor, Vice-Mayor or Clerk of the Issuer; in the case of the Company, its
president or any vice president, and, in the case of both, such additional
persons as, at the time, are designated to act on behalf of the Issuer or the
Company, as the case may be, by written certificate furnished to the Trustee,
the Issuer or Company, as the case may be, containing the specimen signature of
each such person and signed on behalf of (i) the Issuer by the Mayor, Vice-Mayor
or Clerk of the Issuer and (ii) the Company by its president or any vice
president.

                  "BENEFICIAL OWNER" means, for any Bond which is held by a
nominee, the beneficial owner of such Bond.

                  "BOARD OF DIRECTORS" means the Board of Directors of the
Company or any authorized committee of the Board of Directors.

                  "BOOK ENTRY BONDS" means that part of the Bonds for which a
Securities Depository or its nominee is the Bondholder.

                  "BOND" or "BONDS" means the bonds authenticated and delivered
pursuant hereto.

                  "BOND COUNSEL" means the firm of Steptoe & Johnson, PLLC,
Charleston, West Virginia, or any other attorney or firm of attorneys designated
by the Company whose experience in matters relating to the issuance of
obligations by states and their political subdivisions is nationally recognized.

                  "BOND DEBT" means, collectively, the Bond Loan and all other
obligations, liabilities and indebtedness owing by the Company to the Issuer,
the Trustee and/or the holders of the Bonds, including, without limitation,
principal and Interest (including, without limitation, any Interest accruing
after the commencement of insolvency proceedings with respect to the Company,
whether or not such Interest is allowed as a claim in such proceedings), fees
and premiums owing by the Company to the Issuer, the Trustee and/or the holders
of the Bonds (including, without limitation, reasonable attorneys' fees and
disbursements), and all other amounts owing under the Agreement, the Deeds of
Trust, the Security Agreement or any of the other Bond Documents.

                  "BOND DOCUMENTS" means, collectively, the Bonds, this
Indenture, the Agreement, the Security Documents and all other documents,
instruments and agreements now or hereafter evidencing, governing, securing or
otherwise pertaining to the Bond Loan or the Bonds or otherwise executed and
delivered by or on behalf of the Company or any other party in

                                       6
<PAGE>

connection with the Bond Loan or the Bonds or any of the foregoing documents,
together with all amendments, modifications, renewals, substitutions and
replacements of or to any of the foregoing.

                  "BOND FUND" means the fund so designated which is created by
Section 4.01 of this Indenture.

                  "BONDHOLDER" or "HOLDER" or "OWNER" or "REGISTERED OWNER"
means the registered holder of any Bond as its name appears in the registration
books of the Issuer maintained by the Trustee as Bond Registrar.

                  "BOND LOAN" has the meaning set forth in the Recitals hereof.

                  "BOND PAYMENT DATE" means any Interest Payment Date and each
date on which principal shall be payable on or with respect to any of the Bonds
according to their respective terms so long as any of the Bonds shall be
Outstanding.

                  "BOND REGISTER" has the meaning set forth in Section 2.11
hereof.

                  "BOND REGISTRAR" has the meaning set forth in Section 2.11
hereof.

                  "BOND RESOLUTION" means the resolution of the Issuer
authorizing the issuance, execution, exchange and delivery of the Bonds and the
execution and delivery of this Indenture, the Agreement, and the Assignment
Agreement, as such resolution may be amended or supplemented from time to time.

                  "BUSINESS DAY" means a day other than a Saturday, a Sunday or
a legal holiday on which national banks located in the State of New York or the
State of West Virginia or any city where the Trustee maintains its place of
business for performance of its obligations hereunder are not open for general
banking business.

                  "CAPITAL STOCK" means, with respect to any Person, any and all
shares, interests, rights to purchase, warrants, options, participations or
other equivalents of interest in (however designated) equity of such Person,
whether now outstanding or issued after the date of issue of the Bonds,
including, without limitation, membership interests in limited liability
companies and any Preferred Stock.

                  "CODE" means, collectively, the Code of 1954 and the Code of
1986.

                  "CODE OF 1954" means the Internal Revenue Code of 1954, as
amended (but not including any amendments made by the Tax Reform Act of 1986),
and the regulations, rulings and proclamations promulgated or proposed
thereunder.

                  "CODE OF 1986" means the Internal Revenue Code of 1986, as
amended, and the regulations, rulings and proclamations promulgated or proposed
thereunder.

                  "COLLATERAL" means, collectively, (i) the Tandem Mill
Collateral, (ii) the Tin Mill Collateral, (iii) the Hot Mill Collateral, (iv)
all other real or personal property hereafter pledged

                                       7
<PAGE>

to or mortgaged or conveyed by deed of trust, mortgage, deed to secure debt,
security agreement or otherwise to the Issuer and/or Trustee to secure all or
any portion of the Bond Debt, (v) all proceeds of any of the foregoing, and (vi)
all other assets of the Company or any Subsidiary or Affiliate thereof on which
the Issuer and/or Trustee are granted a Lien to secure all or any portion of the
Bond Debt or the payment of the principal of, premium, if any or Interest on the
Bonds. Notwithstanding the foregoing, the Collateral shall not include any
assets or properties consisting of the Project.

                  "COLLATERAL AGENCY AGREEMENT" means the Collateral Agency and
Second Lien Intercreditor Agreement, dated June 18, 2002, by and among the
Collateral Agent, the Trustee and the Notes Trustee, as the same may be amended
from time to time.

                  "COLLATERAL AGENT" means the collateral agent as set forth in
the Collateral Agency Agreement, until a successor replaces it in accordance
with the applicable provisions of Collateral Agency Agreement, and thereafter
means the successor.

                  "COMMODITY AGREEMENT" means any option or futures contract or
similar agreement or arrangement designed to protect the Company against
fluctuations in commodity prices.

                  "COMPANY" means (i) Weirton Steel Corporation, a Delaware
corporation, and its successors and assigns, and (ii) any surviving, resulting
or transferee entity.

                  "CONDEMNATION" means the taking of title to, or the use of,
Property, or transfer in lieu thereof, under the exercise of the power of
eminent domain by any governmental entity or other Person acting under
governmental authority.

                  "CONTINUING DIRECTOR" has the meaning set forth in Section
3.04 hereof.

                  "CONTINUING DISCLOSURE AGREEMENT" means the Continuing
Disclosure Agreement dated as of June 18, 2002 by and among the Issuer, the
Company and the Trustee relating to the Company's undertaking to provide certain
information to the Holders of Bonds in accordance with Section (b)(5)(i) of the
Securities and Exchange Commission Rule 15c2-12 under the Exchange Act.

                  "CREDIT FACILITY" means any senior credit facility to be
entered into by the Company and the lenders referred to therein, together with
the related documents thereto (including the notes 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 any foreign exchange contract,
currency swap agreement or other similar agreement or arrangement designed to
protect the Company against fluctuations in currency values.

                                       8
<PAGE>

                  "DEBT SERVICE PAYMENT" means, with respect to any Bond Payment
Date, whether any such payment shall be due at maturity or upon redemption or
acceleration of the Bonds or otherwise, (i) the Interest payable on each such
Bond Payment Date on all Bonds then Outstanding, plus (ii) the principal, if
any, payable on such Bond Payment Date on all such Bonds, plus (iii) the
premium, if any, payable on such Bond Payment Date on all such Bonds.

                  "DEEDS OF TRUST" means, collectively, (i) the Hot Mill Deed of
Trust, (ii) the Tandem Mill Deed of Trust, (iii) the Tin Mill Deed of Trust, and
(iv) any other deed of trust, mortgage, deed to secure debt, or other instrument
encumbering any Collateral constituting real property which is given or made by
the Company or any Subsidiary thereof to or for the benefit of the Issuer or
Trustee to secure all or any portion of the Bond Debt or to secure all or any
portion of the payment of the principal of, premium, if any, or Interest or
purchase price of the Bonds.

                  "DEFAULT RATE" shall mean 9% per annum, with monthly
compounding (computed on the basis of a 360-day year for the actual number of
days elapsed).

                  "DESIGNATED EVENT" has the meaning set forth in Section 3.04
hereof.

                  "DTC" shall have the meaning given to such term in Section
2.06.

                  "EVENT OF DEFAULT" or "DEFAULT" means any Event of Default
under this Indenture as specified in and determined by Section 7.01 hereof.

                  "EXCESS CASH FLOW" means, as of each date such calculation
shall be made, the Consolidated EBITDA for the immediately preceding six-month
period expiring on the last day of each December and June, respectively, prior
to such calculation date (such last day, the "Balance Sheet Date") plus (a)
decreases in working capital; minus the sum of (b) expenditures on capital
assets; (c) increases in working capital; and (d) interest and mandatory
principal payments on Indebtedness other than payments or pre-payments of
principal and fees or other amounts with respect to revolving credit
Indebtedness under the Credit Facility. The initial Balance Sheet Date shall be
designated as December 31, 2002.

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

                  "FIXED INTEREST" means all Interest except any such Interest
that is determined by reference to the Company's Excess Cash Flow.

                  "GOVERNMENT OBLIGATIONS" means noncallable, nonprepayable (a)
direct, general obligations of the United States of America, or (b) any
obligations unconditionally guaranteed as to the full and timely payment of all
amounts due thereunder by the full faith and credit of the United States of
America (including obligations held in book-entry form), but specifically
excluding any mutual funds or unit investment trusts invested in such
obligations.

                  "HOT MILL COLLATERAL" means the real property constituting the
Company's Hot Strip Mill located at Company's Weirton, West Virginia
steel-making facility, which converts slabs into flat rolled coils, together
with all equipment and fixtures now or hereafter located thereon (whether or not
later moved), as described with particularity in the Hot Mill Deed of

                                       9
<PAGE>

Trust, together with all other property, real or personal, conveyed by or
pledged under or pursuant to the Hot Mill Deed of Trust and/or the Security
Agreement and otherwise described as "Property" or "Collateral," respectively
therein; provided, however, that only that portion of the "Collateral" described
in the Security Agreement which is located on, is used in connection with or is
proceeds of the Hot Strip Mill shall be included as part of the "Hot Mill
Collateral."

                  "HOT MILL DEED OF TRUST" means that certain Deed of Trust,
dated as of June 18, 2002, made by the Company in favor of Joyce Ofsa, as
trustee, for the benefit of the Issuer and the Notes Trustee, as beneficiaries,
and encumbering the Hot Mill Collateral which constitutes real property, as the
Issuer's rights thereunder have been assigned to the Trustee pursuant to this
Indenture and the Assignment Agreement, and as amended, supplemented, restated
or otherwise modified from time to time.

                  "INDEBTEDNESS" means, without duplication, (i) any liability
of any entity (A) for borrowed money, or under any reimbursement obligation
relating to a letter of credit, (B) evidenced by a bond, note, debenture or
similar instrument (including a purchase money obligation) given in connection
with the acquisition of any businesses, properties or assets of any kind or with
services incurred in connection with capital expenditures, or (C) in respect of
capitalized lease obligations; (ii) any liability of others described in the
preceding clause (i) that the entity has guaranteed or that is otherwise its
legal liability; (iii) to the extent not otherwise included, obligations under
Currency Agreements, Commodity Agreements or Interest Protection Agreements; and
(iv) any amendment, supplement, modification, deferral, renewal, extension or
refunding of any liability of the types referred to in clauses (i)-(iii) above,
provided that Indebtedness shall not include accounts payable (including,
without limitation, accounts payable to the Company by any of its Subsidiaries
or to any such Subsidiary by the Company or any other Subsidiary of the Company,
in each case, in accordance with customary industry practice) or liabilities to
trade creditors of any entity arising in the ordinary course of business.

                  "INDENTURE" means this Indenture of Trust, by and between the
Issuer and the Trustee, dated as of June 18, 2002, as the same may be amended or
supplemented by any Supplemental Indenture.

                  "INDEPENDENT COUNSEL" means an attorney or firm of attorneys
duly admitted to practice law before the highest court in any state of the
United States of America or in the District of Columbia and not a full-time
employee of the Issuer, the Company or the Trustee.

                  "INTERCREDITOR AGREEMENT" means the Intercreditor Agreement,
dated June 18, 2002, by and among the Trustee, the Notes Trustee, the Collateral
Agent and Fleet Capital Corporation, as agent to the lenders under the Credit
Facility, as the same may be amended from time to time.

                  "INTEREST" means any and all interest due and payable to the
Holders with respect to the Bonds under the terms of the Indenture.

                  "INTEREST PAYMENT DATE" means each date on which Interest
shall be payable on any of the Bonds in accordance with their terms.

                                       10
<PAGE>

                  "INTEREST PROTECTION AGREEMENT" of any Person means any
interest rate swap agreement, interest rate collar agreement, option or future
contract or other similar agreement or arrangement designed to protect such
Person or any of its Subsidiaries against fluctuations in interest rates.

                  "ISSUE DATE" means June 18, 2002, the date on which the Bonds
are originally issued hereunder.

                  "ISSUER" means (i) City of Weirton, West Virginia, and its
successors and assigns, and (ii) any public corporation or political subdivision
resulting from or surviving any consolidation or merger to which the Issuer or
its successors or assigns may be a party.

                  "LETTER OF REPRESENTATIONS" means that certain Letter of
Representations, executed by the Issuer, the Company and the Trustee and
delivered to the Securities Depository and any amendments thereto or successor
agreements between the Issuer, the Company and the Trustee and any successor
Securities Depository, relating to a system of Book Entry Bonds to be maintained
by the Securities Depository with respect to the Bonds.

                  "LIEN" means, with respect to any Property, any mortgage,
lien, pledge, charge, security interest or encumbrance of any kind in respect of
such Property. For purposes of this definition, the Company shall be deemed to
own subject to a Lien any Property which it has acquired or holds subject to the
interest of a vendor or lessor under any conditional sale agreement, capital
lease or other title retention agreement relating to such Property.

                  "MOODY'S" means Moody's Investors Service, Inc., a corporation
organized and existing under the laws of the State of Delaware, its successors
and assigns, and, if such corporation shall be dissolved or liquidated or shall
no longer perform the functions of a securities rating agency, "Moody's" shall
be deemed to refer to any other nationally recognized securities rating agency
designated by the Company, by notice to the Trustee.

                  "NOTES INDENTURE" means the Indenture dated as of June 18,
2002, between the Company, as issuer, and J.P. Morgan Trust Company, National
Association, as trustee, relating to the issuance by the Company of Senior
Secured Notes, as such indenture may be amended or supplemented from time to
time.

                  "NOTES TRUSTEE" means J.P. Morgan Trust Company, National
Association and its successors as trustee under the Notes Indenture, together
with any banking institution resulting from or surviving any consolidation or
merger to which it or its successors may be a party and any temporary or
successor trustee at the time serving as such thereunder.

                  "OFFICERS' CERTIFICATE" means a certificate signed by the
Chairman of the Board of Directors or the President or any Vice President
(whether or not designated by a number or numbers or a word or words added
before or after the title "Vice President") and by the Treasurer or the
Secretary or any Assistant Secretary of the Company and delivered to the
Trustee. Each such certificate shall comply with the Agreement.

                                       11
<PAGE>

                  "ORIGINAL ISSUE DISCOUNT" means that portion of Fixed Interest
that is treated for federal income tax purposes as original issue discount
within the meaning of Code Section 1273(a).

                  "OPINION OF COUNSEL" means an opinion from an attorney or firm
of attorneys, acceptable to the Company, Issuer and the Trustee, with experience
in the matters to be covered in the opinion.

                  "OUTSTANDING" or "BONDS OUTSTANDING" or "OUTSTANDING BONDS"
means as of any date, all Bonds theretofore authenticated and delivered by the
Trustee under this Indenture, or any supplement hereto, except: (i) any Bond
cancelled by the Trustee or delivered to the Trustee for cancellation; (ii) any
Bond for the payment of the principal or redemption price of and Interest on
which moneys or Government Obligations have been deposited with the Trustee on
or prior to its date of maturity, whether at its stated maturity or upon call
for redemption prior to maturity, other than as part of a defeasance of all the
Bonds pursuant to Article VI of this Indenture; (iii) any Bond deemed to be paid
in accordance with Section 6.02 of this Indenture, except that any such Bond
shall be deemed Outstanding until its date of actual payment, whether at its
stated maturity or upon call for redemption prior to maturity, solely for the
purpose of being exchanged or reregistered; and (iv) any Bond in lieu of or in
substitution for which another Bond shall have been authenticated and delivered
or which shall have been paid pursuant to Section 2.09 of this Indenture, unless
proof satisfactory to the Trustee is presented that any Bond, for which a Bond
in lieu of or in substitution therefor shall have been authenticated and
delivered, is held by a bona fide purchaser, as that term is defined in Article
8 of the Uniform Commercial Code of the State, as amended, in which case both
the Bond so substituted and replaced and the Bond or Bonds authenticated and
delivered in lieu thereof or in substitution therefor shall be deemed
Outstanding.

                  In determining whether the Holders of a requisite aggregate
principal amount of Outstanding Bonds have concurred in any request, demand,
authorization, direction, notice, consent or waiver under the provisions of any
Bond Document, Bonds which are owned by or held for the account of the Company,
the Issuer or any other obligor on the Bonds, or any Affiliate of any one of
said entities shall be disregarded and deemed not to be Outstanding hereunder
for the purpose of any such determination unless all Bonds are owned by or held
for the account of one or more such Persons; provided, however, that the Trustee
shall not be deemed to have knowledge that any Bond is owned by the Company, the
Issuer or any such obligor or Affiliate unless the Issuer or the Company is the
Holder or the Trustee has received written notice that any other Holder is such
an obligor or Affiliate. Notwithstanding the foregoing, Bonds so owned which
have been pledged in good faith may be regarded as Outstanding if the pledgee
shall establish to the satisfaction of the Trustee the pledgee's right to vote
such Bonds and that the pledgee is not a Person directly or indirectly
controlling or controlled by, or under direct or indirect common control with,
the Company, the Issuer or any other obligor on the Bonds. In case of a dispute
as to such right, any decision by the Trustee taken upon the advice of counsel
shall be full protection to the Trustee.

                  "PAYING AGENT" means the Trustee, acting as paying agent
hereunder, and any additional paying agent for the Bonds appointed pursuant to
Article VIII of this Indenture, their

                                       12
<PAGE>

respective successors and any other corporation which may at any time be
substituted in their respective places pursuant to this Indenture.

                  "PERMITTED ACQUISITION" means any one or more transactions or
series of transactions by the Company or any of its Subsidiaries after the Issue
Date, whether effected by merger, consolidation, purchase, lease or other
transfer of assets, Permitted Joint Venture or otherwise, to acquire the
properties and related business (whether through the direct purchase of assets
or of the Capital Stock of the Person owning such assets) of any other Person
(a) where the Person to be acquired has been engaged, or the assets involved
have been deployed, in the business of making, processing or distributing steel
products, including, without limitation, tin mill products or other coated steel
products and (b) the consummation of any such transaction would not otherwise
result in any "Event of Default" under and as such term is defined in the
Agreement immediately thereafter.

                  "PERMITTED JOINT VENTURE" means the interest of the Company in
any corporation, association or other business entity of which 50% or less, but
not less than 10%, of the total Voting Stock or other interest is at the time
owned or controlled, directly or indirectly, by the Company or one or more of
its Subsidiaries or a combination thereof, provided that (a) such corporation,
association or entity is engaged in the business or businesses of the Company or
any related business and (b) that any interest paid by the Company or any
Subsidiary of the Company on any Indebtedness incurred by the Company or any
Subsidiary of the Company in connection with such ownership interest shall not
exceed the sum of (x) any dividends, other distributions of earnings and returns
of capital received by the Company and any of its Subsidiaries on account of
such ownership interest and (y) demonstrable operating benefits derived by the
Company and any of its Subsidiaries, including cost savings and margin
improvements, calculated on a pro forma basis as determined in good faith by
management of the Company and adopted by resolution of the majority of the
independent members of the Company's Board of Directors and delivered to the
Trustee in an Officers' Certificate.

                  "PERSON" means any individual, corporation, partnership, joint
venture, association, joint stock company, trust, trustee, estate, limited
liability company, unincorporated organization, real estate investment trust,
government or any agency or political subdivision thereof, or any other form of
entity.

                  "PREFERRED STOCK" of any Person means all Capital Stock of
such Person which has a preference in liquidation or a preference with respect
to the payment of dividends.

                  "PRINCIPAL CORPORATE TRUST OFFICE" means the corporate trust
office of the Trustee located at Dallas, Texas, or such other office as the
Trustee may designate from time to time by written notice to the Issuer and the
Company.

                  "PROJECT" means the pollution control equipment heretofore
installed in the Company's steel manufacturing plant, located in the City of
Weirton, West Virginia, financed (or refinanced) with the proceeds of the Series
1989 Bonds, and presently owned by, or leased to, the Company.

                                       13
<PAGE>

                  "PROPERTY" of any Person means all types of real, personal,
tangible, intangible or mixed property owned by such Person whether or not
included in the most recent consolidated balance sheet of such Person and its
Subsidiaries under generally accepted accounting principles.

                  "PURCHASE IN LIEU OF REDEMPTION DATE" has the meaning set
forth in Section 3.05 hereof.

                  "QUALIFIED STATED INTEREST" means that portion of Fixed
Interest that is treated for federal income tax purpose as qualified stated
interest within the meaning of Treasury Regulation section 1.1273-1(c).

                  "REBATE FUND" means the fund so designated which is created by
Section 4.07 of this Indenture.

                  "RECORD DATE" means the fifteenth day of the month next
preceding any Bond Payment Date.

                  "REFUNDED SERIES 1989 BONDS" has the meaning set forth in the
recitals to this Indenture.

                  "REMARKETING AGENT" has the meaning set forth in Section 3.04
hereof.

                  "REMARKETING CONDITIONS" has the meaning set forth in Section
3.04 hereof.

                  "REMARKETING PRICE" has the meaning set forth in Section 3.04
hereof.

                  "REPURCHASE DATE" has the meaning set forth in Section 3.04
hereof.

                  "REPURCHASE EXERCISE DATE" has the meaning set forth in
Section 3.04 hereof.

                  "REPURCHASE PRICE" has the meaning set forth in Section 3.04
hereof.

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

                  "SECURITY AGREEMENT" means collectively, (a) the Security
Agreement dated June 18, 2002 made by the Company for the benefit of the Issuer
and the Notes Trustee encumbering a portion of the Hot Mill Collateral, Tandem
Mill Collateral and Tin Mill Collateral, which constitutes personal property, as
the Issuer's rights thereunder have been assigned to the Trustee pursuant to
this Indenture and Assignment Agreement, and as amended or supplemented from
time to time and (b) any other security agreement or other instrument
encumbering any Collateral constituting personal property which is given or made
by the Company or any Subsidiary thereof to the Trustee to secure all or any
portion of the Bond Debt or to secure all or any portion of the payment of the
principal of, premium, if any, or Interest or purchase price of the Bonds.

                  "SECURITY DOCUMENTS" means the Deeds of Trust, the Assignment
Agreement, the Security Agreement, any Uniform Commercial Code financing
statements filed in connection with the Bond Loan, and all other documents,
instruments and agreements now or hereafter

                                       14
<PAGE>

evidencing, governing, securing or otherwise pertaining to the Bond Loan, the
Bonds or otherwise executed and delivered by or on behalf of the Company or any
other party in connection with the Bond Loan, the Bonds or any of the foregoing
documents, together with all amendments, modifications, renewals, substitutions
and replacements of or to any of the foregoing.

                  "SECURITIES DEPOSITORY" means a person that is registered as a
clearing agency under Section 17A of the Securities Exchange Act of 1934 or
whose business is confined to the performance of the functions of a clearing
agency with respect to exempted securities, as defined in Section 3(a)(12) of
such Act for the purposes of Section 17A thereof.

                  "SENIOR SECURED NOTES" means the 10% Senior Secured Notes due
2008 originally issued by the Company in the aggregate principal amount of
$134,200,000 pursuant to the Notes Indenture.

                  "SERIES 1989 BONDS" means the Issuer's Pollution Control
Revenue Refunding Bonds (Weirton Steel Corporation Project) Series 1989, issued
in the original aggregate principal amount of $56,300,000.

                  "S&P" means Standard & Poor's, a division of the McGraw-Hill
Companies, Inc., a corporation organized and existing under the laws of the
State of New York, its successors and assigns, and, if such corporation shall be
dissolved or liquidated or shall no longer perform the functions of a securities
rating agency, "S&P" shall be deemed to refer to any other nationally recognized
securities rating agency designated by the Company, by notice to the Trustee.

                  "STATE" means the State of West Virginia.

                  "SUBSIDIARY" means, with respect to any Person, any
corporation or other entity of which a majority of the Capital Stock or other
ownership interests having ordinary voting power to elect a majority of the
board of directors or other persons performing similar functions are at the time
directly or indirectly owned by such Person.

                  "SUPPLEMENTAL INDENTURE" means any indenture supplemental to
or amendatory of this Indenture adopted by the Issuer in accordance with Article
IX hereof.

                  "TANDEM MILL COLLATERAL" means the real property constituting
the Company's No. 9 tin tandem mill located at the Company's Weirton, West
Virginia steel-making facility, together with all equipment and fixtures now or
hereafter located thereon (whether or not later moved), as described with
particularity in the Tandem Mill Deed of Trust, together with all other
property, real or personal, conveyed by or pledged under or pursuant to the
Tandem Mill Deed of Trust and/or the Security Agreement and otherwise described
as "Property" or "Collateral," respectively therein; provided, however, that
only that portion of the "Collateral" described in the Security Agreement which
is located on, is used in connection with or is proceeds of the Tandem Mill
shall be included as part of the "Tandem Mill Collateral."

                  "TANDEM MILL DEED OF TRUST" means that certain Deed of Trust,
dated as of June 18, 2002, made by the Company in favor of Joyce Ofsa, as
trustee, for the benefit of the Issuer and the Notes Trustee, as beneficiaries,
and encumbering the Tandem Mill Collateral which

                                       15
<PAGE>

constitutes real property, as the Issuer's rights thereunder have been assigned
to the Trustee pursuant to this Indenture and the Assignment Agreement, and as
amended, supplemented, restated or otherwise modified from time to time.

                  "TENDER OPTION RIGHT" has the meaning set forth in Section
3.04 hereof.

                  "TIN MILL COLLATERAL" means the real property constituting the
Company's tin mill located at the Company's Weirton, West Virginia steel-making
facility, together with all equipment and fixtures now or hereafter located
thereon (whether or not later moved), as described with particularity in the Tin
Mill Deed of Trust (excluding assets set forth in Exhibit B to the Tin Mill Deed
of Trust), together with all other property, real or personal, conveyed by or
pledged under or pursuant to the Tin Mill Deed of Trust and/or the Security
Agreement and otherwise described as "Property" or "Collateral," respectively
therein; provided, however, that only that portion of the "Collateral" described
in the Security Agreement which is located on, is used in connection with or is
proceeds of the Tin Mill shall be included as part of the "Tin Mill Collateral."

                  "TIN MILL DEED OF TRUST" means that certain Deed of Trust,
dated as of June 18, 2002, made by the Company in favor of Joyce Ofsa, as
trustee, for the benefit of the Issuer and the Notes Trustee, as beneficiaries,
and encumbering the Tin Mill Collateral which constitutes real property, as the
Issuer's rights thereunder have been assigned to the Trustee pursuant to this
Indenture and the Assignment Agreement and as amended, supplemented, restated or
otherwise modified from time to time.

                  "TREASURY REGULATIONS" means those treasury regulations
promulgated under the Code.

                  "TRUST ESTATE" means all Property which may from time to time
be subject to the Lien of this Indenture.

                  "TRUSTEE" means J.P. Morgan Trust Company, National
Association and its successors as trustee hereunder, together with any banking
institution resulting from or surviving any consolidation or merger to which it
or its successors may be a party and any temporary or successor trustee at the
time serving as such hereunder.

                  "VOTING STOCK" means Capital Stock which ordinarily has voting
power for the election of directors (or persons performing similar functions),
whether at all times or only so long as no senior class of securities has such
voting power by reason of any contingency.

                  "WHOLLY OWNED SUBSIDIARY" means, at any time, a Subsidiary all
of the Capital Stock of which (except directors' qualifying shares) are at the
time owned directly or indirectly by the Company.

                                       16
<PAGE>

                                   ARTICLE II

                       AUTHORIZATION AND ISSUANCE OF BONDS

                  Section 2.01 AUTHORIZED AMOUNT OF BONDS. The total principal
amount of Bonds that may be issued hereunder is hereby expressly limited to
TWENTY-SEVEN MILLION THREE HUNDRED FORTY-EIGHT THOUSAND Dollars ($27,348,000),
except as provided in Section 2.09 hereof.

                  Section 2.02 PURPOSES FOR WHICH BONDS MAY BE ISSUED. Bonds may
be issued only for the purposes of refunding the Refunded Series 1989 Bonds.

                  Section 2.03 ISSUANCE AND FORM OF BONDS; LEGEND. The Bonds
shall be designated "Secured Pollution Control Revenue Refunding Bonds (Weirton
Steel Corporation Project) Series 2002." The Bonds shall be issuable as fully
registered Bonds without coupons in the denomination of $1,000 or any integral
multiple of $1,000 in excess thereof. All Bonds issued under this Indenture
shall be in registered form in substantially the form set forth in Exhibit A
attached hereto, with appropriate variations, omissions and insertions as
permitted or required by this Indenture. The Bonds shall be numbered, lettered,
or otherwise distinguished in such manner or in accordance with such plans as
the officers of the Issuer executing the same may determine with the approval of
the Trustee. Bonds may be issued, if agreed by the Issuer and the Holder, in the
form of definitive Bonds in physical form. Any of the Bonds may have imprinted
or otherwise reproduced thereon such legend or legends, not inconsistent with
the provisions of this Indenture, as may be required to comply with any law or
with any rules or regulations pursuant thereto, or with the rules of any
securities market in which the Bonds are admitted to trading, or to conform to
general usage. The Issuer shall furnish any such legends or endorsements to the
Trustee in writing. The Issuer shall approve the form of the Bonds and any
notation, legend or endorsement on them.

                  (a) Each Bond shall bear Interest from the Issue Date and
         shall be payable in the amount and on the dates as specified on the
         form of Bond.

                           Except as otherwise provided herein, all Bonds shall
         be subject to redemption or purchase prior to maturity on the terms,
         for the reasons, in the manner, at the price or prices and as otherwise
         set forth in Article III hereof.

                  (b) [Intentionally Omitted]

                  (c) The Bonds shall be dated as of the Issue Date.

                  (d) Subject to the provisions of Section 2.06 hereof relating
         to Book Entry Bonds, the principal of and premium, if any, on the Bonds
         shall be payable, upon presentation and, in the case of payment at
         maturity or by prior redemption, surrender of such Bonds, at the
         Principal Corporate Trust Office of the Trustee. The purchase price of
         any Bonds tendered for purchase hereunder shall be payable by the
         Trustee to the Owner of Bonds entitled to receive such purchase price
         at its address shown on the registration books of the Issuer maintained
         by the Trustee. Payment of Interest on Bonds shall be made on each
         Interest Payment Date to the Owner thereof on the Record Date and shall

                                       17
<PAGE>

         be paid by check mailed or wire transfer by the Trustee to such
         registered owner at his address as it appears on the registration books
         of the Issuer maintained by the Trustee as Bond Registrar or at such
         other address as is furnished to the Trustee in writing by such
         registered owner. Payment of principal of, premium, if any, and
         Interest on and purchase price upon tender of the Bonds shall be made
         in lawful money of the United States of America which on the date of
         payment thereof shall be legal tender for the payment of public and
         private debts.

                  (e) Notwithstanding anything contained in this Indenture to
         the contrary, Interest on Bonds due on any Interest Payment Date shall
         be payable to the Person in whose name such Bond is registered at the
         close of business on the Record Date with respect to such Interest
         Payment Date, irrespective of any transfer or exchange of such Bond
         subsequent to such Record Date and prior to such Interest Payment Date,
         unless the Issuer shall default in the payment of Interest due on such
         Interest Payment Date. In the event of any such default, such defaulted
         Interest shall be payable to the Person in whose name such Bond is
         registered at the close of business on a special record date for the
         payment of such defaulted Interest established by notice mailed by or
         on behalf of the Issuer to the registered Holders of Bonds not less
         than fifteen (15) days preceding such special record date. Such notice
         shall be mailed to the Persons in whose name the Bonds are registered
         at the close of business on the fifteenth day preceding the date of
         mailing. Payment of Interest and principal on the Bonds, at the option
         of the Issuer, may be made by check mailed to the registered address of
         the Person entitled thereto.

                  Section 2.04  EXECUTION; LIMITED OBLIGATIONS.

                  (a) The Bonds shall be executed in the name and on behalf of
         the Issuer with the manual or facsimile signature of its Mayor or
         Vice-Mayor and sealed with its corporate seal or a facsimile thereof,
         each of the foregoing to be attested to by the manual or facsimile
         signature of its Clerk. Each such facsimile signature shall have the
         same force and effect as a manual signature. In case any officer whose
         manual or facsimile signature shall appear on the Bonds shall cease to
         be such officer before the delivery of such Bonds, such signature shall
         nevertheless be valid and sufficient for all purposes as if such
         officer had remained in office until such delivery; and any Bond may be
         signed on behalf of the Issuer, manually or in facsimile, by the person
         who, on the date of execution of such Bond, shall be the proper officer
         of the Issuer, even if such officer did not occupy such office on the
         date of execution of this Indenture.

                  (b) The Bonds and the Interest thereon shall not be general
         obligations of the Issuer, but shall be limited obligations payable
         solely from the amounts payable under the Agreement (except to the
         extent paid out of moneys attributable to the proceeds derived from the
         sale of the Bonds or to income from the investment thereof) and other
         amounts specifically pledged therefor under this Indenture and shall be
         a valid claim of the respective Holders thereof only against the Bond
         Fund and other moneys held by Trustee and the amounts payable under the
         Agreement, the Security Agreement and the Deeds of Trust or otherwise
         pledged therefor. Neither the Issuer, the State nor any other political
         subdivision of the State shall be obligated to pay the principal of the
         Bonds, premium, if any, or Interest thereon or other costs incident
         thereto except from the revenues and other

                                       18
<PAGE>

         amounts pledged therefor. Neither the general credit nor the taxing
         power of the Issuer or the State or any other political subdivision
         thereof is pledged to the payment of the principal of, premium, if any,
         or Interest on the Bonds or other costs incident thereto. The Bonds and
         the Interest thereon shall not be a charge upon the tax revenues of the
         Issuer, or a charge upon any other revenues or Property of the Issuer
         not specifically pledged thereto.

                  Section 2.05  AUTHENTICATION.

                  (a) No Bond shall be valid for any purpose or shall be
         entitled to any right or benefit hereunder unless there shall be
         endorsed on such Bond a Certificate of Authentication, substantially in
         the form set forth in Exhibit A attached hereto, duly executed by the
         Trustee. Such executed Certificate of Authentication by the Trustee
         upon any such Bond shall be conclusive evidence that such Bond has been
         authenticated and delivered under this Indenture. The Trustee's
         Certificate of Authentication on any Bond shall be deemed to have been
         executed by it if signed by an authorized signatory of the Trustee, but
         it shall not be necessary that the same person sign the Certificate of
         Authentication on all of the Bonds issued hereunder.

                  (b) In the event any Bond is deemed tendered to the Trustee as
         provided hereunder but is not physically so tendered, the Issuer shall
         execute and the Trustee shall authenticate a new Bond of like
         denomination as that deemed tendered.

                  Section 2.06 SECURITIES DEPOSITORY PROVISIONS. All Book Entry
Bonds shall be registered in the name of Cede & Co., as nominee of The
Depository Trust Company ("DTC"). The Issuer and the Trustee acknowledge that
they have executed and delivered a Letter of Representations with the Company
and DTC. All payments of principal of, premium, if any, and interest on the Book
Entry Bonds and all notices with respect thereto, including notices of full or
partial redemption or purchases in lieu of redemption, shall be made and given
at the times and in the manner set out in the Letter of Representations. The
terms and provisions of the Letter of Representations shall govern in the event
of any inconsistency between the provisions of this Indenture and the Letter of
Representations. The Letter of Representations may be amended without Bondholder
consent.

                  The Beneficial Owners of Book Entry Bonds will not receive
physical delivery of certificates except as provided herein. For so long as
there is a Securities Depository for Book Entry Bonds, all of such Bonds shall
be registered in the name of the nominee of the Securities Depository, all
transfers of beneficial ownership interests in such Bonds will be made in
accordance with the rules of the Securities Depository, and no investor or other
party purchasing, selling or otherwise transferring beneficial ownership of such
Bonds is to receive, hold or deliver any certificate. The Issuer, the Trustee
and the Company shall have no responsibility or liability for transfers of
beneficial ownership interests in such Bonds.

                  The Issuer, the Company and the Trustee will recognize the
Securities Depository or its nominee as the Bondholder of Book Entry Bonds for
all purposes, including receipt of payments, notices and voting; provided the
Trustee may recognize votes by or on behalf of Beneficial Owners as if such
votes were made by Bondholders of a related portion of the Book

                                       19
<PAGE>

Entry Bonds when such votes are received in compliance with an omnibus proxy of
the Securities Depository or otherwise pursuant to the rules of the Securities
Depository or the provisions of the Letter of Representations or other
comparable evidence delivered to the Trustee by the Bondholders or as provided
in Sections 7.11, 8.04 and 12.01 of this Indenture.

                  With respect to Book Entry Bonds, the Issuer, the Company and
the Trustee shall be entitled to treat the Person in whose name such Bond is
registered as the absolute owner of such Bond for all purposes of this
Indenture, and neither the Issuer, the Company nor the Trustee shall have any
responsibility or obligation to any Beneficial Owner of such Book Entry Bond.
Without limiting the immediately preceding sentence, neither the Issuer, the
Company nor the Trustee shall have any responsibility or obligation with respect
to (a) the accuracy of the records of any Securities Depository or any other
Person with respect to any ownership interest in Book Entry Bonds, (b) the
delivery to any Person, other than a Bondholder, of any notice with respect to
Book Entry Bonds, including any notice of redemption or refunding, (c) the
selection of the particular Book Entry Bonds or portions thereof to be redeemed
or refunded in the event of a partial redemption or refunding of part of the
Bonds Outstanding or (d) the payment to any Person, other than a Bondholder, of
any amount with respect to the principal of, redemption premium, if any, or
interest on Book Entry Bonds.

                  Section 2.07 TEMPORARY BONDS. Until Bonds in definitive form
are ready for delivery, the Issuer may execute, and upon the request of the
Issuer, the Trustee shall authenticate and deliver, subject to the provisions,
limitations and conditions set forth herein, one or more Bonds in temporary
form, whether printed, typewritten, lithographed or otherwise produced,
substantially in the form of the definitive Bonds, with appropriate omissions,
variations and insertions, and in authorized denominations. Until exchanged for
Bonds in definitive form, such Bonds in temporary form shall be entitled to the
Liens and benefits of this Indenture. Upon presentation and surrender of any
Bond or Bonds in temporary form, the Issuer shall, at the request of the
Trustee, execute and deliver to the Trustee, and the Trustee shall authenticate
and deliver, in exchange therefor, a Bond or Bonds in definitive form. Such
exchange shall be made by the Trustee without making any charge therefor to the
Owner of such Bond in temporary form. Notwithstanding the foregoing, Bonds in
definitive form may be issued hereunder in typewritten form.

                  Section 2.08 DELIVERY OF THE BONDS.

                  (a) Upon the execution and delivery of this Indenture, the
         Issuer shall execute and deliver the Bonds to the Trustee and the
         Trustee shall authenticate the Bonds and deliver them in accordance
         with the directions of the Issuer and the provisions of this Section
         2.08.

                  (b) Prior to or simultaneously with the delivery by the
         Trustee of any of the Bonds, there shall be filed with the Trustee at
         least:

                           1.       Original, executed counterparts of the
                                    Agreement, this Indenture, the Security
                                    Documents, the Collateral Agency Agreement
                                    and the Intercreditor Agreement.

                                       20
<PAGE>

                           2.       A certificate executed by an Authorized
                                    Representative of the Company with respect
                                    to the due authorization, execution and
                                    delivery of the Agreement.

                           3.       A copy, duly certified by an Authorized
                                    Representative of the Issuer, of the Bond
                                    Resolution.

                           4.       An Opinion of Counsel for the Company
                                    stating that, in the opinion of such
                                    counsel, the Agreement has been duly
                                    authorized, executed and delivered by the
                                    Company and is the legal, valid and binding
                                    obligation of the Company enforceable
                                    against the Company in accordance with its
                                    terms, except to the extent certain
                                    bankruptcy and insolvency laws and equitable
                                    principles may affect its enforceability.

                           5.       An Opinion of Counsel for the Issuer stating
                                    in the opinion of such counsel (i) that the
                                    Agreement and this Indenture have been duly
                                    authorized, executed and delivered by the
                                    Issuer, (ii) that the Agreement and this
                                    Indenture are legal, valid and binding
                                    obligations of the Issuer enforceable
                                    against the Issuer in accordance with their
                                    respective terms, except to the extent
                                    certain bankruptcy or insolvency laws and
                                    equitable principles may affect their
                                    enforceability, and (iii) that this
                                    Indenture creates all the Liens which it
                                    purports to create.

                           6.       An opinion of Bond Counsel as to the due
                                    existence and authority of the Issuer; the
                                    valid issuance of the Bonds under the Bond
                                    Resolution and the Act; the exemption from
                                    registration of the Bonds under the
                                    Securities Act; the exemption from
                                    qualification of the Indenture under the
                                    Trust Indenture Act of 1939, as amended; and
                                    the tax-exempt status of the Qualified
                                    Stated Interest or Original Issue Discount
                                    on the Bonds under the Code and under the
                                    laws of the State.

                           7.       An authorization to the Trustee, signed by
                                    an Authorized Representative of the Issuer,
                                    to authenticate and deliver the Bonds in
                                    accordance with such authorization.

                           8.       Assignment Agreement, in form and substance
                                    reasonably satisfactory to the Trustee,
                                    assigning the Issuer's rights under the
                                    Agreement, the Deeds of Trust and the
                                    Security Agreement, as and to the extent
                                    contemplated to be included in the Trust
                                    Estate.

                           9.       Such other documents and opinions as the
                                    Trustee may reasonably request.

                                       21

<PAGE>

                  Section 2.09  MUTILATED, LOST, STOLEN OR DESTROYED BONDS.

                  (a) In the event any Bond is mutilated, lost, stolen or
         destroyed, the Issuer may execute and, upon the request of an
         Authorized Representative of the Issuer, the Trustee shall authenticate
         and deliver a new Bond of like principal amount, maturity, interest
         rate and series as the mutilated, destroyed, lost or stolen Bond in
         exchange for a mutilated Bond or in substitution for a Bond so
         destroyed, lost or stolen, as the case may be. In every such case of
         exchange or substitution, the applicant shall furnish to the Issuer,
         the Trustee and the Company (i) such security or indemnity as may be
         reasonably required by any of them to save each of them harmless from
         all risks, however remote, and (ii) evidence to their reasonable
         satisfaction of the mutilation, destruction, loss or theft of the
         applicant's Bond and of the ownership thereof. Upon the issuance of any
         Bond upon such exchange or substitution, the Issuer, the Company or
         Trustee may require the payment of a sum sufficient to cover any tax or
         other governmental charge that may be imposed in relation thereto and
         any other expenses, including counsel fees, of the Issuer, the Company
         or the Trustee incurred in connection therewith. In case any Bond which
         has matured or is about to mature shall become mutilated or be
         destroyed, lost or stolen, the Issuer may, instead of issuing a Bond in
         exchange or substitution therefor, pay or authorize the payment of the
         same (without surrender thereof except in the case of a mutilated Bond)
         if the applicant for such payment shall furnish to the Issuer, to the
         Company and to the Trustee such security or indemnity as either of them
         may reasonably require to save them harmless, together with evidence to
         the reasonable satisfaction of the Issuer, to the Company and the
         Trustee of the mutilation, destruction, loss or theft of such Bond and
         of the ownership thereof.

                  (b) All Bonds shall be held and owned upon the express
         condition that the provisions of this Section 2.09 are exclusive with
         respect to the replacement or payment of mutilated, destroyed, lost or
         stolen Bonds and shall preclude all other rights or remedies,
         notwithstanding any law or statute now existing or hereinafter enacted
         to the contrary.

                  Section 2.10  INTERCHANGEABILITY OF BONDS; NEGOTIABILITY.

                  (a) Subject to Section 2.13 hereof, any Bond, upon surrender
         thereof at the Principal Corporate Trust Office of the Trustee together
         with a written instrument of transfer reasonably satisfactory to the
         Trustee duly executed by the registered owner or his duly authorized
         attorney, may be exchanged for an equal aggregate principal amount of
         fully registered Bonds of the same maturity, interest rate and series
         as the Bonds so surrendered in any other authorized denominations.

                  (b) All Bonds issued under this Indenture shall be negotiable,
         subject to the provisions for registration and transfer contained in
         this Indenture and in the Bonds.

                  Section 2.11  REGISTRATION, TRANSFER AND EXCHANGE.

                  (a) So long as any Bonds shall remain Outstanding, the Issuer
         shall maintain at the Principal Corporate Trust Office of the Trustee
         books for the registration and

                                       22
<PAGE>

         transfer of the Bonds ("Bond Register"). The Trustee is hereby
         appointed bond registrar ("Bond Registrar") for the Issuer for the
         purpose of registering and effecting transfers on such registration
         books. By executing this Indenture, the Trustee accepts the duties and
         obligations of Bond Registrar for the Issuer. The Trustee, as Bond
         Registrar, shall register in such books and permit to be transferred
         thereon, under such reasonable regulations as the Trustee may
         prescribe, any Bond entitled to registration or transfer.

                  (b) The Bonds are issuable only in registered form. Subject to
         the provisions of Section 2.06 hereof with respect to the transfer of
         ownership of Book Entry Bonds, a Holder may transfer a Bond by written
         application to the Bond Registrar stating the name of the proposed
         transferee and otherwise complying with the terms of this Indenture. No
         such transfer shall be effected until, and such transferee shall
         succeed to the rights of a Holder only upon, final acceptance and
         registration of the transfer by the Bond Registrar in the Bond
         Register. Prior to the registration of any transfer by a Holder as
         provided herein, the Issuer, the Trustee, and any agent of the Issuer
         shall treat the person in whose name the Bond is registered as the
         owner thereof for all purposes whether or not the Bond shall be
         overdue, and neither the Issuer, the Trustee, nor any such agent shall
         be affected by notice to the contrary. When Bonds are presented to the
         Bond Registrar with a request to register the transfer or to exchange
         them for an equal principal amount of Bonds of other authorized
         denominations, the Bond Registrar shall register the transfer or make
         the exchange as requested if its requirements for such transactions are
         met. To permit registrations of transfers and exchanges in accordance
         with the terms, conditions and restrictions hereof, the Issuer shall
         execute and the Trustee shall authenticate Bonds at the Bond
         Registrar's request.

                  (c) In all cases in which the privilege of exchanging or
         transferring Bonds is exercised, the Issuer shall execute and the
         Trustee shall authenticate and deliver Bonds in accordance with the
         provisions of this Indenture. All Bonds surrendered in any such
         exchanges or transfers shall forthwith be cancelled in accordance with
         the provisions of Section 5.10 hereof. For every such exchange or
         transfer of Bonds, the Issuer or the Trustee may impose a charge
         sufficient to reimburse it for any tax, fee or other governmental
         charge required to be paid with respect to such exchange or transfer,
         and may charge the Company for (i) the cost of preparing each new Bond
         and (ii) any other expenses of the Issuer or the Trustee incurred in
         connection therewith.

                  (d) The Trustee shall not be required to exchange or register
         a transfer of (i) any Bonds during the 15-day period next preceding the
         selection of Bonds to be redeemed and thereafter until the date of the
         mailing of a notice of redemption of Bonds selected for redemption, or
         (ii) any Bonds selected, called or being called for redemption in whole
         or in part except, in the case of any Bond to be redeemed in part, the
         portion thereof not to be so redeemed.

                  (e) Each Bond shall be transferable only on the books of the
         Issuer upon surrender thereof at the Principal Corporate Trust Office
         of the Trustee together with a written instrument of transfer
         reasonably satisfactory to the Trustee duly executed by the registered
         owner or his attorney duly authorized in writing. Upon the transfer of
         any such Bond, the Issuer shall issue in the name of the transferee a
         new, registered Bond or Bonds

                                       23
<PAGE>

         of the same aggregate principal amount, maturity, interest rate and
         series as the surrendered Bond.

                  (f) The Issuer, the Trustee and any Paying Agent may deem and
         treat the Person in whose name any Bond shall be registered upon the
         books of the Issuer as the absolute owner thereof, whether such Bond
         shall be overdue or not, for the purpose of receiving payment of the
         principal or redemption price of and (subject to the other provisions
         of this Indenture) Interest on such Bond and for all other purposes.
         All such payments so made to any such registered owner, or upon his
         order, shall satisfy and discharge the liability of the Issuer upon
         such Bond to the extent of the sum or sums so paid. The Issuer, the
         Trustee and any Paying Agent shall not be affected by any notice to the
         contrary.

                  Section 2.12 WIRE INSTRUCTIONS. Notwithstanding any provisions
of this Indenture and the Bonds to the contrary, if the Issuer and a Holder so
agree, payments of cash Interest on, and any portion of the principal of any
Bonds other than the final payment of principal on a Bond or payment of the
purchase price of any Bond upon tender thereof, may be made by the Paying Agent
upon receipt from the Issuer in immediately available funds, directly to the
Holder of such Bond (whether by Federal funds, wire transfer or otherwise) if
the Holder has delivered written instructions to the Trustee 15 days prior to
such payment date requesting that such payment will be so made and designating
the bank account to which such payment shall be so made and in the case of
payments of a portion of the principal of any Bonds other than the final payment
of principal on a Bond, the Holder of such Bond surrenders the same to the
Trustee in exchange for a Bond or Bonds aggregating the same principal amount as
the unredeemed principal amount of the Bonds surrendered. The Trustee shall be
entitled to rely on the last instruction delivered by the Holder pursuant to
this Section 2.12 unless a new instruction is delivered 15 days prior to a
payment date. The Issuer will indemnify and hold the Trustee harmless against
any loss, liability or expense (including attorneys' fees) resulting from any
act or omission to act on the part of the Issuer or any such Holder in
connection with any such agreement or which the Paying Agent may incur as a
result of making any payment in accordance with any such agreement.

                  Section 2.13 DISCONTINUANCE OF BOOK-ENTRY SYSTEM. The
book-entry registration system for all of the Book Entry Bonds may be terminated
and certificates delivered to and registered in the name of the Beneficial
Owners, under either of the following circumstances:

                  (a) DTC notifies the Issuer, the Company and the Trustee that
         it is no longer willing or able to act as Securities Depository for the
         Book Entry Bonds and a successor Securities Depository for the Book
         Entry Bonds is not appointed by the Issuer at the direction of the
         Company prior to the effective date of such discontinuation; or

                  (b) The Company determines that continuation of the book-entry
         system through DTC (or a successor Securities Depository) is not in the
         best interest of the Company.

                  In the event a successor Securities Depository is appointed by
the Issuer at the direction of the Company, the Book Entry Bonds will be
registered in the name of such successor Securities Depository or its nominee.
In the event certificates are required to be issued

                                       24
<PAGE>

to Beneficial Owners, the Trustee, the Company and the Issuer shall be fully
protected in relying upon a certificate of DTC or any DTC participant as to the
identity of and the principal amount of Book Entry Bonds held by such Beneficial
Owners.

                                   ARTICLE III

                      REDEMPTION OF BONDS BEFORE MATURITY;
                      TENDER OPTION RIGHTS OF BONDHOLDERS;
                         PURCHASE IN LIEU OF REDEMPTION

                  Section 3.01  MANDATORY REDEMPTION; EXTRAORDINARY REDEMPTION;
OPTIONAL REDEMPTION.

                  (a) The Bonds are subject to mandatory redemption prior to
         their maturity upon a "Determination of Taxability" (as hereinafter
         defined) with respect to any Bond. If so called for redemption, the
         Bonds shall be redeemed by the Issuer in whole at any time within two
         hundred ten (210) days after such Determination of Taxability, at one
         hundred percent (100%) of the aggregate principal amount of the Bonds
         then Outstanding, plus accrued Interest to the redemption date.

                  A "Determination of Taxability" shall be deemed to have been
         made upon the first to occur of the following events:

                           (i) the date on which the Company notifies the
                  Trustee that an "Event of Taxability" (as hereinafter defined)
                  has occurred, which notice is supported by one or more tax
                  schedules, returns or documents that evidence the occurrence
                  of such Event of Taxability; or

                           (ii) a final resolution that Qualified Stated
                  Interest or Original Issue Discount on any Bond is includable
                  in the gross income of the recipient thereof for Federal
                  income tax purposes (other than by reason of the recipient
                  being a "substantial user" of the Project or a "related
                  person" to a "substantial user," as such terms are defined in
                  Section 103(b)(13) of the Code of 1954), that, under
                  applicable law, is not subject to further appeal, review or
                  modification through proceedings or otherwise, including (1)
                  by the expiration of a statute of limitations or a period for
                  the filing of claims appealing from adverse determinations, or
                  recovering any refund (including by offset), (2) by a
                  decision, judgment, decree, or other order by a court of
                  competent jurisdiction, which has become final and
                  unappealable, or (3) by closing agreement, an accepted offer
                  in compromise under the Code, or comparable agreements under
                  United States federal income tax law or the laws of other
                  jurisdictions;

        provided, however, that no Determination of Taxability described in
        clause (i) above shall be deemed to have occurred if the Trustee shall
        have received an unqualified written opinion of Bond Counsel
        satisfactory to the Trustee, in form and substance satisfactory to the
        Trustee, to the effect that no Event of Taxability has occurred.

                                       25
<PAGE>

                           "Event of Taxability," with respect to any Bond,
         means a change of law or regulation, or the interpretation thereof, or
         the occurrence of any other event or the existence of any other
         circumstance (including without limitation the fact that any
         representation or warranty of the Company or the Issuer made in
         connection with the issuance of the Bonds is or was untrue) that has
         the effect of causing Qualified Stated Interest or Original Issue
         Discount on any Bond to be includable in the gross income of the
         recipient thereof for Federal income tax purposes (other than by reason
         that such Qualified Stated Interest or Original Issue Discount (i) is
         includable in the gross income of an owner or former owner of a Bond
         while such owner or former owner is or was a "substantial user" of the
         Project or a "related person" to a "substantial user," as such terms
         are defined in Section 103(b)(13) of the Code of 1954, or (ii) is
         deemed an item of tax preference, including without limitation an item
         subject to any alternative minimum tax). The Company shall promptly
         give written notice to the Issuer and the Trustee within thirty (30)
         days after becoming aware that an Event of Taxability has occurred.

                  If the Issuer or the Trustee receives written notice from any
         Owner of Bonds or taxing authority stating that a taxing authority
         proposes to include Qualified Stated Interest or Original Issue
         Discount on any Bond in the gross income of a Holder or Holders of
         Bonds for the reasons described herein or any other proceeding has been
         instituted which may lead to a final resolution as described in clause
         (ii) of the definition of "Determination of Taxability" or to an Event
         of Taxability (a "Tax Proceeding"), then the Trustee and/or the Issuer
         shall promptly give written notice to the Company of such Tax
         Proceeding and the Company shall have the right, at its own expense, to
         participate in and control the Tax Proceeding to the same extent that
         the Issuer would otherwise have the right to participate in and control
         the Tax Proceeding. The Issuer hereby agrees to execute all documents
         reasonably necessary to permit the Company to participate in and
         control any such Tax Proceeding and neither the Trustee nor the Issuer
         shall, without the prior written consent of the Company (which consent
         shall not be unreasonably withheld) agree to the entry of any judgment
         or enter into any settlement with respect to the Tax Proceeding.

                  (b) The Bonds shall be redeemed prior to maturity by the
         Issuer in whole at any time at 100% of the principal amount thereof,
         plus Interest accrued thereon to the date set for redemption, if the
         Company elects to terminate the Agreement pursuant to Section 8.1(a)
         thereof, upon the occurrence of one of the following events:

                           (i) the Project or any substantial portion of the Hot
                  Mill Collateral, Tandem Mill Collateral or the Tin Mill
                  Collateral, to the extent owned and operated by the Company
                  (each, a "Facility"), shall have been damaged or destroyed to
                  such extent that (1) in the reasonable opinion of the Company,
                  expressed in a certificate signed by an Authorized
                  Representative of the Company, the Project or such substantial
                  portion of a Facility cannot be reasonably restored within a
                  period of 6 months from the date of such damage or
                  destruction, or (2) the Company is thereby prevented or, in
                  the reasonable opinion of the Company expressed in a
                  certificate signed by an Authorized Representative of the
                  Company, is likely to be prevented from carrying on its normal
                  operation of

                                       26
<PAGE>

                  the Project or such substantial portion of a Facility for a
                  period of 6 months from the date of such damage or
                  destruction; or

                           (ii) title to, or the temporary use of, all or
                  substantially all of the Project or any substantial portion of
                  a Facility shall have been condemned by a competent authority
                  which Condemnation results or, in the reasonable opinion of
                  the Company expressed in a certificate signed by an Authorized
                  Representative of the Company, is likely to result in the
                  Company being thereby prevented from carrying on its normal
                  operation of the Project or such substantial portion of a
                  Facility for a period of 6 months; or

                           (iii) as a result of changes in the Constitution of
                  the United States of America or of the State or of legislative
                  or executive action of any political subdivision thereof or of
                  the United States of America or by final decree or judgment of
                  any court, after the contest thereof by the Company, (x) the
                  Agreement becomes void or unenforceable or, (y) in the
                  reasonable opinion of the Company expressed in a certificate
                  signed by an Authorized Representative of the Company, (A) the
                  Agreement becomes impossible of performance in accordance with
                  the intent and purposes of the parties as expressed therein or
                  (B) unreasonable burdens or excessive liabilities are imposed
                  upon the Company by reason of the operation of the Project or
                  any substantial portion of a Facility; or

                           (iv) a change shall have occurred in the economic
                  availability of raw materials, manufactured products, energy
                  sources, operating supplies or facilities necessary for the
                  operation of the Project or any substantial portion of a
                  Facility for the purposes for which the Project or such
                  substantial portion of a Facility was originally constructed,
                  or such technological or other changes shall have occurred
                  that, in the reasonable opinion of the Company expressed in a
                  certificate signed by an Authorized Representative of the
                  Company, the Project or such substantial portion of a Facility
                  is rendered uneconomic, impractical or unfeasible for the
                  purposes for which it was originally constructed.

                  (c) The Bonds also shall be redeemed prior to maturity by the
         Issuer, at the option of the Company, in whole at any time or in part
         on any Interest Payment Date, on or after April 1, 2004, upon payment
         in each case of the applicable redemption price (expressed as a
         percentage of the principal amount of such Bonds to be so redeemed), as
         set forth in the schedule below, together with Interest accrued
         thereon, if any, to the date set for redemption, if redeemed during the
         12-month period beginning April 1 of the years indicated below:

                          Year                       Redemption Price
                          ----                       ----------------
                          2004                        102%
                          2005                        101%
                          2006 and thereafter         100%

                  (d) The Bonds shall also be redeemed prior to maturity by the
         Issuer in whole or in part on the first Interest Payment Date for which
         adequate notice of redemption can

                                       27
<PAGE>

         be given hereunder, in the amount of any prepayment of the Bond Loan
         required under Section 8.4 of the Agreement at a redemption price equal
         to 100% of the principal amount redeemed plus accrued Interest thereon
         to the redemption date.

                  (e) In the event that less than all of the Bonds are to be
         redeemed at any time, selection of the Bonds for redemption will be
         made by the Trustee by lot and, for such purposes, the Trustee shall
         treat such Bonds in a denomination greater than $1,000 in principal
         amount as if it were that number of separate Bonds derived by dividing
         its denomination by $1,000.

                  Section 3.02  NOTICE OF REDEMPTION OR PURCHASE.

                  (a) Whenever Bonds are to be redeemed pursuant to Section 3.01
         hereof or purchased pursuant to Section 3.05 hereof, the Trustee shall
         give written notice of the redemption or purchase of the Bonds in the
         name of the Issuer stating: (i) the Bonds or portions thereof to be
         redeemed or purchased; (ii) the redemption or purchase date; (iii) the
         redemption or purchase price; and (iv) that if moneys or Government
         Obligations sufficient for such redemption have been deposited with the
         Trustee, from and after the redemption date, Interest on any Bond so
         called for redemption shall cease to accrue.

                  (b) Notice required by this Section 3.02 shall be given by the
         Trustee by first-class mail, postage prepaid, at least thirty (30) days
         and not more than forty-five (45) days prior to the redemption or
         purchase date, to the registered owners of any Bonds to be redeemed or
         purchased at the addresses of such registered owners appearing on the
         registration books. Any failure to give such notice or any defect
         therein shall not affect the proceedings for redemption or purchase of
         any Bond as to which no such failure or defect has occurred.

                  Section 3.03  PAYMENT OF REDEEMED BONDS.

                  (a) After notice shall have been given in the manner provided
         in Section 3.02 hereof, Bonds or portions thereof called for redemption
         shall become due and payable on the redemption date so designated, upon
         presentation and surrender of such Bonds at the Principal Corporate
         Trust Office of the Trustee. If there shall be called for redemption
         less than all of a Bond, the Issuer shall, upon the surrender of such
         Bond and without charge to the Owner thereof, (i) pay the redemption
         price of the $1,000 unit or units of principal amount called for
         redemption and (ii) execute and cause the Trustee to authenticate and
         deliver for the unredeemed balance of the principal amount of any such
         Bond so surrendered new Bonds in any authorized denominations having
         the same maturity and interest rate and of the same series as such
         redeemed Bonds.

                  (b) If, on the redemption date, moneys or Government
         Obligations in an amount sufficient for the redemption of all Bonds or
         portions thereof to be redeemed, and Interest thereon to the redemption
         date, shall be held by the Trustee, the Bonds or portions thereof so
         called for redemption shall cease to bear Interest and such Bonds or
         portions thereof shall no longer be Outstanding hereunder or be secured
         by or entitled to the benefits of this Indenture. If such moneys or
         Government Obligations shall not be so

                                       28
<PAGE>

         available on or prior to the redemption date, such Bonds or portions
         thereof shall continue to bear Interest until paid at the same rate as
         would have been applicable had they not been called for redemption and
         shall continue to be secured by and entitled to the benefits of this
         Indenture.

                  Section 3.04  TENDER OPTION RIGHT OF HOLDERS.

                  (a) In the event that there shall occur a Designated Event (as
         defined below), each Holder of Bonds shall have the right (the "Tender
         Option Right"), at such Holder's option, to tender all or any part of
         the Bonds owned by it (but only in denominations of $1,000 or any
         integral multiple thereof) for purchase on the date (the "Repurchase
         Date") that is 90 days after notice of such Designated Event, at a
         purchase price equal to 101% of the principal amount thereof, plus any
         accrued Interest, if any, thereon to the Repurchase Date (the
         "Repurchase Price").

                  (b) On or before the thirtieth (30th) day following the
         Designated Event, at the request of the Company (which request the
         Company has agreed to make in Section 4.2(e) of the Agreement not more
         than 21 days after the Designated Event), the Trustee shall promptly
         give notice of a Designated Event and of the Tender Option Right
         arising as a result thereof by registered or certified mail to each
         Bondholder at such Holder's address appearing in the registration
         books. The Trustee shall also cause a copy of such notice to be
         published in The Wall Street Journal or another newspaper of general
         circulation in the Borough of Manhattan, the City of New York. Each
         such notice of a Tender Option Right shall state:

                           (i) the Repurchase Date;

                           (ii) the date by which the Tender Option Right must
                  be exercised, which date shall not be earlier than forty-five
                  (45) days nor later than thirty (30) days prior to the
                  Repurchase Date (the "REPURCHASE EXERCISE DATE");

                           (iii) the Repurchase Price, if the Tender Option
                  Right is exercised; and

                           (iv) a description of the procedure which a
                  Bondholder must follow to exercise the Tender Option Right.

No failure of the Company to request the Trustee to give, or any failure of the
Trustee to give, the foregoing notice shall limit any Bondholder's right to
exercise a Tender Option Right.

                  (c) To exercise a Tender Option Right, a Holder of Bonds shall
         deliver to the Trustee and the Company (or an agent designated by the
         Company for such purpose in the notice referred to in (b) above) on or
         prior to the Repurchase Exercise Date (i) written notice of the
         Bondholder's exercise of the Tender Option Right, which notice shall
         set forth the name of the Holder, the principal amount of the Bonds (or
         portion thereof) being tendered for purchase, and a statement that the
         Tender Option Right is being exercised thereby and (ii) the Bonds with
         respect to which the Tender Option Right is being exercised, duly
         endorsed for transfer. Such written notice shall be irrevocable unless
         the rescission thereof is duly approved by the Continuing Directors.

                                       29
<PAGE>

                  (d) In the event a Tender Option Right shall be exercised in
         accordance with the terms hereof, the Company has agreed, in Section
         4.2(e) of the Agreement, to pay or cause to be paid the Repurchase
         Price for any Bond or Bonds tendered for purchase in cash to the Holder
         of such Bond or Bonds on the Repurchase Date to the extent that
         remarketing proceeds are not available or are insufficient to pay the
         Repurchase Price thereof in full. In the event that a Tender Option
         Right is exercised with respect to less than the entire principal
         amount of a surrendered Bond, the Issuer shall execute and deliver to
         the Trustee and the Trustee shall authenticate for issuance in the name
         of the Holder a new Bond or Bonds in the aggregate principal amount of
         that portion of such surrendered Bond or Bonds not tendered for
         purchase.

                  (e) In the event that a Designated Event has occurred and
         notice thereof has been given to Bondholders as provided in this
         Section 3.04, the Company shall have the option to remarket all or any
         Bonds tendered by a Bondholder pursuant to its Tender Option Right,
         provided that the Remarketing Conditions have been satisfied and, in
         connection therewith, shall have the right to appoint a remarketing
         agent (the "Remarketing Agent") reasonably acceptable to the Issuer in
         order to remarket such Bonds. The Company shall notify the Issuer and
         Trustee of its election to remarket Bonds and of the appointment of a
         Remarketing Agent in writing no less than fifteen (15) days prior to
         the Repurchase Date. In connection with the appointment of any
         Remarketing Agent, the Company shall promptly enter into a written
         agreement with the Remarketing Agent in which, among other things, (i)
         the Remarketing Agent shall designate its principal office to the
         Company, the Issuer and the Trustee, (ii) the Remarketing Agent shall
         agree to perform the duties and obligations imposed upon it hereunder,
         (iii) the Remarketing Agent shall agree to hold all money delivered to
         it hereunder in trust for the benefit of the Person which shall have so
         delivered such money until the Bonds to be purchased with such money
         shall have been delivered to or for the account of such Person, and
         (iv) the Company and the Remarketing Agent shall agree upon the
         compensation to be paid to the Remarketing Agent by the Company for
         remarketing the Bonds.

                  (f) If a Remarketing Agent has been appointed to remarket
         Bonds tendered for purchase pursuant to this Section 3.04, the
         Remarketing Agent shall use its best efforts to remarket such Bonds at
         the highest possible purchase price at which all Bonds to be tendered
         for purchase pursuant to Section 3.04 hereof can be sold and, not less
         than seven (7) days prior to the Repurchase Date, the Remarketing Agent
         shall provide the Company with written notice of such purchase price
         (the "Remarketing Price"). Upon receipt of such notice, the Company
         shall have the option to either direct the Remarketing Agent to proceed
         with the remarketing of such Bonds at the Remarketing Price or to
         direct that the Remarketing Agent reject the Remarketing Price and
         cease all further efforts to remarket such Bonds. In any event, such
         direction to the Remarketing Agent will be given by the Company to the
         Remarketing Agent in writing and a copy of such notice will also be
         delivered to the Trustee no later than five (5) days prior to the
         Repurchase Date. If the Company has elected to proceed with the
         remarketing of such Bonds, then no later than the Business Day prior to
         the Repurchase Date, the Remarketing Agent shall provide the Trustee in
         writing with the names, addresses, tax identification numbers and all
         other information requested by the Trustee relating to the

                                       30
<PAGE>

         purchasers of the Bonds which have been remarketed by the Remarketing
         Agent, and shall further provide the Trustee and the Company with the
         amount of the Remarketing Price to be paid by each of such purchasers.
         By no later than 10:00 a.m., New York, New York time on the Repurchase
         Date, the Remarketing Agent shall provide the Trustee and the Company
         with written notice of the amount of proceeds being held by the
         Remarketing Agent with respect to Bonds which have been remarketed and
         shall, no later than 10:30 a.m., New York, New York time on the
         Repurchase Date, deliver such proceeds to the Trustee. The Trustee
         shall prepare new Bonds (with appropriate changes, deletions and
         insertions) for each Bond purchased on the Repurchase Date, shall
         register such new Bonds in the name of the Persons identified by the
         Remarketing Agent as the purchasers thereof, or in the name of the
         Company if such Bonds have not been remarketed but have been purchased
         by the Company pursuant to the provisions hereof and of Section 4.2(e)
         of the Agreement, and shall deliver such new Bonds to such purchasers
         or to the Company, as the case may be, by 4:00 p.m., New York, New York
         time on the Repurchase Date.

                  (g) To the extent that the remarketing proceeds from the
         remarketing of Bonds pursuant to this Section 3.04 are unavailable
         (either because no remarketing has occurred or because the Remarketing
         Agent has failed to deposit any proceeds with respect to remarketed
         Bonds with the Trustee by 10:30 a.m., New York, New York time on the
         Repurchase Date) or are insufficient to pay the Repurchase Price in
         full on the Repurchase Date, then, in accordance with Section 4.2(e) of
         the Agreement, the Company shall be required to deposit with the
         Trustee, no later than 11:00 a.m., New York, New York time on the
         Repurchase Date, the amount of any such deficiency in order to effect
         the purchase of all Bonds tendered for purchase on the Repurchase Date.

                  (h) Notwithstanding the foregoing or anything to the contrary
         contained herein, no remarketing of any of the Bonds under this Section
         3.04 shall occur unless each of the following conditions has been fully
         satisfied (collectively, the "Remarketing Conditions"): (a) the Trustee
         shall have received an opinion of Bond Counsel to the effect that the
         remarketing of the Bonds will not adversely affect the exclusion from
         gross income of the Qualified Stated Interest or Original Issue
         Discount on the Bonds for Federal income tax purposes or the exemption
         from taxation by the State (except inheritance, estate and transfer
         taxes) of the Bonds and the income therefrom, and (b) the Trustee shall
         have received an official statement or remarketing memorandum of the
         Issuer with respect to the Bonds that are being remarketed.

                  (i) As used herein, a "Designated Event" means (A) any sale,
         lease or other transfer (in one transaction or a series of
         transactions) of more than 75% of the assets of the Company to any
         Person (other than a Wholly Owned Subsidiary of the Company); (B) a
         "person" or "group" (within the meanings of Sections 13(d) and 14(d)(2)
         of the Exchange Act (other than the Company's 1984 Employee Stock
         Ownership Plan or 1989 Employee Stock Ownership Plan or any other
         employee benefit plan of the Company) becomes the "beneficial owner"
         (as defined in Rule 13d-3 under the Exchange Act) of Capital Stock
         representing more than fifty percent (50%) of the voting power of such
         Capital Stock unless such acquisition of beneficial ownership of shares
         of voting power of Capital Stock of the Company occurs, directly or
         indirectly, in connection with the

                                       31
<PAGE>

         financing of a Permitted Acquisition; (C) Continuing Directors cease to
         constitute at least a majority of the Board of Directors of the
         Company; or (D) the stockholders of the Company approve any plan or
         proposal for the liquidation or dissolution of the Company.

                  (j) As used herein, the term "Continuing Director" shall mean
         a director who either was a member of the Board of Directors of the
         Company on the date of this Indenture or who became a director of the
         Company subsequent to such date and whose election, or nomination for
         election by the Company's stockholders, was duly approved by a majority
         of the Continuing Directors then on the Board of Directors of the
         Company.

                  Section 3.05  PURCHASE IN LIEU OF REDEMPTION.

                  (a) Any Bonds called for redemption under this Indenture may
         be purchased by the Company on the date upon which such Bonds were to
         have been redeemed (the "Purchase in Lieu of Redemption Date") at a
         purchase price equal to the redemption price thereof, plus accrued
         Interest, if any, thereon to, but not including, the Purchase in Lieu
         of Redemption Date. On or prior to the designated Purchase in Lieu of
         Redemption Date, the Company shall give written notice to the Trustee
         and the Paying Agent of the aggregate principal amount of Bonds for
         which an election to purchase pursuant to this Section 3.05 is being
         made. Bonds to be purchased by the Company which are not delivered to
         the Trustee on the Purchase in Lieu of Redemption Date shall be deemed
         to have been purchased by the Company and the Company shall be the
         Owner of such Bonds for all purposes under this Indenture, and Interest
         accruing on such Bonds on and after the Purchase In Lieu of Redemption
         Date shall be payable solely to the Company. The Trustee shall
         authenticate (and the Issuer shall execute, if necessary) and deliver
         to the Company a new Bond as provided in Section 2.11 hereof.

                  (b) It is the intention of the parties hereto that the
         purchase of the Bonds pursuant to this Section 3.05 shall not
         constitute an optional prepayment of the Bond Loan or a merger or
         extinguishment of the indebtedness of the Company represented by the
         Agreement or the Bonds so purchased and that such Bonds shall for all
         purposes be regarded as Outstanding hereunder except as otherwise
         expressly provided herein. Upon the purchase of any Bond pursuant to
         this Section 3.05, the notice of redemption thereof shall NUNC PRO TUNC
         be null, void and of no force and effect.

                                   ARTICLE IV

            BOND FUND, REBATE FUND, REVENUES AND APPLICATION THEREOF

                  Section 4.01 ESTABLISHMENT OF BOND FUND. There is hereby
created and established with the Trustee a trust fund to be designated "Bond
Fund 2002 - Weirton Steel Corporation Project" (the "Bond Fund") which shall be
held, maintained and administered by the Trustee in accordance with this
Indenture.

                  Within the Bond Fund, there is hereby created and established
certain trust accounts to be designated "General Account" and the "Repurchase
Moneys Account."

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<PAGE>

                  Section 4.02 MONEYS TO BE HELD IN TRUST. All moneys deposited
with, paid to or received by the Trustee for the account of the Issuer pursuant
to this Indenture shall be held by the Trustee in trust and shall be subject to
the Lien of this Indenture and held for the security of all Holders of the Bonds
until paid in full; provided, however, that moneys which have been deposited
with, paid to or received by the Trustee for the redemption or purchase in lieu
thereof of a portion of the Bonds, notice of the redemption of which has been
given shall be held in trust for and subject to a Lien in favor of only the
Holders of Bonds so called for redemption or purchase in lieu thereof; provided,
further, however, that moneys which have been deposited with, paid to or
received by the Trustee for the purchase of Bonds tendered for purchase pursuant
to Section 3.04 hereof, shall be held in trust for and subject to a Lien in
favor of only the Holders of Bonds so tendered for purchase.

                  Section 4.03 PAYMENTS INTO THE BOND FUND. There shall be
deposited in the Bond Fund from time to time all payments specified in Sections
4.2(a), 4.2(d) and 4.2(e) of the Agreement and all other moneys received by the
Trustee under and pursuant to any of the provisions of the Agreement or the
Indenture which are required to be or which are accompanied by directions that
such moneys are to be paid into the Bond Fund. Any moneys deposited in the Bond
Fund pursuant to Sections 4.2(a) or 4.2(d) of the Agreement and any moneys paid
by the Company for the purchase of Bonds in lieu of redemption pursuant to
Section 3.05 hereof shall be placed in the General Account of the Bond Fund. Any
moneys paid by the Company under Section 4.2(e) of the Agreement and any
proceeds of a remarketing of the Bonds pursuant to Section 3.04 hereof shall be
deposited in the Repurchase Moneys Account of the Bond Fund.

                  Section 4.04 USE OF MONEYS IN THE BOND FUND. Except as
provided in Section 4.05 hereof, moneys in the Bond Fund (other than in the
Repurchase Moneys Account thereof) shall be used solely for the payment of the
principal of, premium, if any, and Interest on the Bonds as the same mature and
come due and for the redemption of the Bonds or the purchase in lieu thereof
prior to maturity. The Issuer hereby authorizes and directs the Trustee to
withdraw moneys from the Bond Fund (other than from the Repurchase Moneys
Account thereof) to pay the principal of, premium, if any, and Interest on the
Bonds as the same become due and payable and to make said funds so withdrawn
available to the Paying Agent for the purpose of paying such principal of,
premium, if any, and Interest. Moneys in the Repurchase Moneys Account shall be
used for the purchase of Bonds pursuant to Section 3.04 hereof and for no other
purpose. Moneys in the Repurchase Moneys Account shall not be subject to the
Lien of the Indenture or otherwise available for the payment of principal of,
premium, if any, and Interest on the Bonds except for the purchase of Bonds
pursuant to Section 3.04 hereof.

                  Section 4.05  INVESTMENT OF MONEYS; TAX COVENANTS.

                  (a) Any moneys held as a part of the Bond Fund or any other
         fund established pursuant to this Indenture shall be invested or
         reinvested by the Trustee to the extent permitted by law, at the
         written request of and as directed by an Authorized Representative of
         the Company, in any of the Authorized Investments.

                  (b) The Trustee may make any and all such investments through
         its own bond or investment department or the bond or investment
         department of any bank or trust company under common control with the
         Trustee. All such investments shall at all times

                                       33
<PAGE>

         be a part of the fund or account from which the moneys used to acquire
         such investments shall have come and all income and profits on such
         investments shall be credited to, and losses thereon shall be charged
         against, such fund. All investments hereunder shall be registered in
         the name of the Trustee, as Trustee under the Indenture. All
         investments hereunder shall be held by or under the control of the
         Trustee. The Trustee may sell and reduce to cash a sufficient amount of
         investments in the Bond Fund whenever the cash balance in the Bond Fund
         is insufficient, together with any other funds available therefor, to
         pay the principal and Interest on the Bonds or the purchase price
         thereof when due.

                  (c) Any investment herein authorized is subject to the
         condition that no use of the proceeds of the issuance of the Bonds or
         of any other moneys (including without limitation the proceeds of any
         insurance or any Condemnation award with respect to the Project) shall
         be made which would cause the Bonds to be "arbitrage bonds" within the
         meaning of such quoted term under Section 148 of the Code of 1986;
         provided, however, that the Company shall be solely responsible for the
         selection of any Authorized Investment under Section 4.05(a) hereof,
         and the Trustee shall be entitled to rely on any investment direction
         given to it by the Company pursuant to Section 4.05(a) above without
         liability to the Company, the Issuer, any Bondholder or any other
         Person in the event that any such investment shall cause all or any of
         the Bonds to be or become "arbitrage bonds" within the meaning of
         Section 148(a) of the Code of 1986.

                  (d) The Issuer shall not take any action or omit to take any
         action, or knowingly permit the Company to take any action or omit to
         take any action, that would cause the Qualified Stated Interest or
         Original Issue Discount on the Bonds not to be excludable from the
         gross income of the recipients thereof for Federal income tax purposes.

                  Section 4.06  NONPRESENTMENT OF BONDS.

                  (a) In the event any Bond shall not be presented for payment
         when the principal thereof becomes due, either at maturity, or at the
         date fixed for redemption thereof, or otherwise, if moneys or
         Government Obligations sufficient to pay any such Bond and Interest
         thereon shall have been made available to the Trustee for the benefit
         of the Owner thereof, all liability of the Issuer to the Owner thereof
         for the payment of such Bond shall forthwith cease, terminate and be
         completely discharged, and thereupon it shall be the duty of the
         Trustee to hold such funds, without liability for interest thereon, for
         the benefit of the Owner of such Bond who shall thereafter be
         restricted exclusively to such funds for any claim of whatever nature
         on his part under this Indenture with respect to such Bond.

                  (b) Any moneys or Government Obligations so deposited with and
         held by the Trustee not so applied to the payment of Bonds or Interest
         thereon within two (2) years after the date on which the same shall
         have become due shall be repaid by the Trustee to the Company upon
         direction of an Authorized Representative of the Company, and
         thereafter Owners of Bonds shall be entitled to look only to the
         Company for payment, and then to the extent of the amount so repaid,
         and all liability of the Trustee with respect to such money shall
         thereupon cease, and the Company shall not be liable for any Interest

                                       34
<PAGE>

         thereon and shall not be regarded as a trustee of such money. In the
         absence of a written request from the Company to return unclaimed funds
         to the Company, the Trustee shall from time to time deliver all
         unclaimed funds to or as directed by applicable escheat authorities, as
         determined by the Trustee in its sole discretion, in accordance with
         the customary practices and procedures of the Trustee. Any unclaimed
         funds held by the Trustee pursuant to this Section shall be held
         uninvested and without any liability for interest.

                  Section 4.07  ESTABLISHMENT OF REBATE FUND.

                  (a) There is hereby established a special trust fund which
         shall be designated "Rebate Fund 2002 - Weirton Steel Corporation
         Project" (the "Rebate Fund") which shall be held separate and apart
         from all other funds established under this Indenture. The Trustee
         shall be the depository, custodian and disbursing agent for the Rebate
         Fund.

                  (b) To the extent there are excess amounts in the Bond Fund
         and rebatable arbitrage becomes payable to the United States, the
         Trustee shall transfer such excess amounts to the Rebate Fund. There
         shall also be deposited in the Rebate Fund such amounts as are required
         to be deposited therein as determined in accordance with Section 5.3(c)
         of the Agreement and certified in writing by the Company to the
         Trustee. Subject to the payment provisions provided in subsection (c)
         below, all amounts on deposit at any time in the Rebate Fund shall be
         held by the Trustee in trust, to the extent required to pay rebatable
         arbitrage to the United States of America, and neither the Company, the
         Issuer, nor the Bondholders shall have any rights in or claim to such
         moneys. All amounts held in the Rebate Fund shall be governed by this
         Section.

                  (c) The Trustee shall remit all rebate installments and a
         final rebate payment to the United States in accordance with written
         instructions received from the Company. The Trustee shall have no
         obligation to pay any amounts required to be rebated pursuant to this
         Section, other than from moneys held in the Rebate Fund or from other
         moneys provided to it by the Company. Any moneys remaining in the
         Rebate Fund after redemption or payment at maturity of all of the Bonds
         and payment and satisfaction of any rebatable arbitrage, as certified
         in writing by the Company to the Trustee, shall be withdrawn and paid
         to the Company. Any excess amounts on deposit in the Rebate Fund, as
         determined by the rebate analyst retained by the Company shall, at the
         Company's option, be returned to the Company or retained in the Rebate
         Fund as a credit against future deposits. The Trustee will retain such
         records with respect to the Rebate Fund as described in the arbitrage
         certificate executed in connection with the issuance of the Bonds.

                  (d) Notwithstanding any other provision of this Indenture, the
         obligation to pay rebatable arbitrage to the United States and to
         comply with all other requirements of this Section shall survive the
         defeasance or payment in full of the Bonds.

                  (e) Notwithstanding anything else contained in this Indenture
         to the contrary, unless specifically agreed to in a separate written
         agreement, neither the Trustee nor any Bondholder shall be liable or
         responsible for any calculation or determination which may

                                       35
<PAGE>

         be required in connection with or for the purpose of complying with
         Section 148 of the Code of 1986 or any successor statute, or any
         regulation, ruling or other judicial or administrative interpretation
         thereof, including, without limitation, the calculation of amounts
         required to be paid to the United States of America or the
         determination of the maximum amount which may be invested in Nonpurpose
         Investments having a Yield higher than the Yield on the Bonds, and
         neither the Trustee nor any Bondholder shall be liable or responsible
         for monitoring compliance by the Company or the Issuer with any of the
         requirements of Section 148 of the Code of 1986, or any applicable
         regulation, ruling or other judicial or administrative interpretation
         thereof, it being acknowledged and agreed that the obligations of the
         Trustee in this regard shall be limited to the receipt of funds for
         deposit in the Rebate Fund and the disbursement thereof pursuant to
         written instructions of the Company or the Issuer, as applicable, and
         the investment of moneys received by the Trustee pursuant to the
         written instructions of the Company.

                  (f) The term "Nonpurpose Investments" shall mean any
         investment property (as defined in Section 148(b) of the Code of 1986)
         which is acquired with the Gross Proceeds of the Bonds and which is not
         acquired to carry out the governmental purpose of the Bonds.

                  (g) The term "Gross Proceeds" shall mean the aggregate of:

                           (i) the net amount of Bond proceeds received by the
                  Issuer as a result of the sale of the Bonds;

                           (ii) all amounts received by the Issuer as a result
                  of the investment of the Bond proceeds;

                           (iii) any amounts held in any fund under this
                  Indenture to the extent that the Issuer reasonably expects to
                  use the amounts in such fund to pay principal of, premium, if
                  any, or Interest on the Bonds; and

                           (iv) any securities or obligations pledged by the
                  Issuer or by the Company as security for the payment of
                  principal of, premium, if any, or Interest on the Bonds.

                  (h) The term "Yield" shall mean yield as defined in Section
         148(h) of the Code of 1986 and any applicable Treasury Regulations
         promulgated with respect thereto.

                  Section 4.08 ADDITIONAL FUNDS. The Trustee is hereby
authorized to establish and create, from time to time, such other funds and
accounts as may be necessary for the deposit of moneys (including, without
limitation, insurance proceeds and/or Condemnation awards) received by the
Trustee pursuant to the terms hereof and of the Deeds of Trust, the Security
Agreement or any of the other Bond Documents.

                                       36
<PAGE>

                                    ARTICLE V

                        GENERAL COVENANTS AND PROVISIONS

                  Section 5.01 AUTHORITY OF ISSUER; VALIDITY OF INDENTURE AND
BONDS. The Issuer hereby covenants that it is duly authorized under the
Constitution and laws of the State, including, particularly and without
limitation, the Act, to issue the Bonds authorized hereby, to execute this
Indenture and to pledge the revenues and receipts in the manner and to the
extent herein set forth; that all action on its part for the issuance of the
Bonds authorized hereby and the execution and delivery of this Indenture has
been duly and effectively taken; and that the Bonds in the hands of the Holders
thereof are and will be valid and enforceable limited obligations of the Issuer
according to the import thereof.

                  Section 5.02 PERFORMANCE OF COVENANTS. The Issuer hereby
covenants, and the Trustee by executing this Indenture covenants, that each will
faithfully observe and perform at all times any and all covenants, undertakings,
stipulations and provisions on its part to be observed or performed contained
(i) in this Indenture, (ii) in any Bond executed, authenticated and delivered
hereunder and (iii) in the Agreement, the Assignment Agreement, the Deeds of
Trust or in the Security Agreement.

                  Section 5.03 PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST. The
Issuer hereby covenants that it will promptly pay or cause to be paid the
principal of, whether at maturity, by acceleration or call for redemption or
otherwise, premium, if any, and Interest on and purchase price of every Bond
issued under this Indenture at the place, on the dates and in the manner
provided herein and therein. All such principal, premium, Interest and purchase
price payments on the Bonds shall be payable solely from revenues and receipts
derived from the Agreement (except to the extent derived from income from the
investment thereof) and otherwise as provided herein and in the Agreement and
from the proceeds of any security therefor which amounts are hereby specifically
pledged to the payment thereof in the manner and to the extent herein specified.
Nothing in the Bonds or in this Indenture shall be construed as a pledge of any
funds or assets of the Issuer other than those pledged hereby. Neither the State
nor any political subdivision thereof (other than the Issuer to the extent
provided herein) shall in any event be liable for the payment of any such
principal, premium, Interest or purchase price payment on any of the Bonds or
for the performance of any pledge, obligation or agreement undertaken by the
Issuer.

                  Section 5.04 REVENUES FROM AGREEMENT. The Issuer hereby
covenants that so long as any of the Bonds are Outstanding it will deposit, or
cause to be deposited, with the Trustee for its account all revenues and
receipts derived pursuant to the Agreement, this Indenture or otherwise to pay
the Debt Service Payments on the Bonds or the purchase price thereof as the same
become due and payable.

                  Section 5.05 PRIORITY OF LIEN OF INDENTURE. The Issuer hereby
covenants that it has not created or permitted to be created any Lien upon the
Trust Estate, except for the security interest in the Trust Estate created by
this Indenture, and the Issuer covenants not to create or to permit to be
created any Lien upon the Trust Estate or any part thereof other than the Lien
of this Indenture.

                                       37
<PAGE>

                  Section 5.06 ENFORCEMENT OF DUTIES AND OBLIGATIONS OF THE
COMPANY. The Issuer hereby covenants that, to the extent requested by the
Trustee, it shall take all legally available action to cause the Company to
perform fully all duties and acts, and to comply fully with the covenants of the
Company, required by the Agreement, in the manner and at the times provided in
the Agreement.

                  Section 5.07  RECORDATION OF INDENTURE AND AGREEMENT; FILING
OF SECURITY INSTRUMENTS.

                  (a) The Issuer hereby covenants that it will cause this
         Indenture, the Agreement (or a memorandum thereof), the Deeds of Trust,
         the Security Agreement and all supplements hereto and thereto, together
         with all necessary security instruments and financing statements, to be
         recorded or filed, as the case may be, in such manner and in such
         places, if any, as may be required by law in order to perfect the Lien
         of, and the security interests created by, this Indenture.

                  (b) The Issuer hereby covenants that it will execute, and, to
         the extent requested by the Trustee or otherwise required, will cause
         the Company or the Trustee to execute, for filing where appropriate,
         all documents, including, without limitation, continuation statements
         under the Uniform Commercial Code of the State, in such manner and in
         such places as may be required by the law of the State in order to
         protect and maintain in force the Lien of, and the security interests
         created by, this Indenture.

                  Section 5.08 RIGHTS UNDER AGREEMENT, DEEDS OF TRUST AND THE
SECURITY AGREEMENT. The Agreement, the Deeds of Trust and the Security
Agreement, duly executed counterparts of which have been filed with the Trustee,
set forth the respective covenants and obligations of the Issuer and the
Company. Reference is hereby made thereto for detailed statements of the
covenants, obligations and rights of the Company and the Issuer thereunder. The
Issuer agrees that the Trustee, in its name or in the name of the Issuer, may
enforce all rights of the Issuer and all obligations of the Company under and
pursuant to the Agreement, the Deeds of Trust and the Security Agreement, to the
extent pledged and assigned to the Trustee hereunder for and on behalf of the
Bondholders, whether or not a Default exists hereunder.

                  Section 5.09  LIST OF BONDHOLDERS.

                  (a) The Trustee, as Bond Registrar, shall maintain a list of
         the names and addresses of the Holders of all Bonds which from time to
         time may be registered on the registration books kept by the Trustee.
         At reasonable times and under reasonable regulations established by the
         Trustee, said list may be inspected and copied by the Company or any
         Holder (or a designated representative thereof) of Bonds then
         Outstanding.

                  (b) Each Bondholder, by the purchase and acceptance of a Bond,
         consents to the disclosure of his name and address and the principal
         amount of Bonds held by him in accordance with this Section 5.09 and
         agrees that the Trustee shall not be held accountable for the
         disclosure of any such information made in accordance with this Section
         5.09.

                                       38
<PAGE>

                  Section 5.10 CANCELLATION. Unless otherwise specified in this
Indenture, all Bonds which have been paid, redeemed or surrendered for transfer
or exchange or have matured shall be cancelled and cremated or otherwise
destroyed by the Trustee. The Trustee shall deliver to the Issuer and the
Company a certificate evidencing such cremation or destruction.

                  Section 5.11 PAYMENTS DUE ON SATURDAYS, SUNDAYS AND HOLIDAYS.
In any case where the date fixed for payment of Interest or premium on or
principal or purchase price of the Bonds or the date fixed for redemption or
purchase of any Bonds shall not be a Business Day, then payment of such
Interest, premium, principal or purchase price need not be made on such date but
may be made on the next succeeding Business Day with the same force and effect
as if made on such date of maturity or the date fixed for such redemption or
purchase, as the case may be.

                  Section 5.12 INSTRUMENT OF FURTHER ASSURANCE. The Issuer will
do, execute, acknowledge and deliver or cause to be done, executed, acknowledged
and delivered, such indentures supplemental hereto and such further acts,
instruments and transfers as the Trustee may reasonably require for the better
assuring, transferring, conveying, pledging, assigning and confirming unto the
Trustee all and singular the amounts pledged hereby to the payment of the
principal of, premium, if any, and Interest on the Bonds. The Issuer, except as
herein and in the Agreement provided, will not sell, convey, mortgage, encumber
or otherwise dispose of any part of the amounts, revenues and receipts payable
under the Agreement or its rights under the Agreement.

                  Section 5.13 UNDERTAKING TO PROVIDE ONGOING DISCLOSURE. The
Company has undertaken in the Continuing Disclosure Agreement to provide ongoing
disclosure for the benefit of the Bondholders pursuant to Section (b)(5)(i) of
the Securities and Exchange Commission Rule 15c2-12 under the Exchange Act. The
Continuing Disclosure Agreement is hereby assigned by the Issuer to the Trustee
for the benefit of the Bondholders. Such assignment is a present absolute
assignment and not the assignment of a security interest. The Company's
obligations under the Continuing Disclosure Agreement shall be enforceable by
any Bondholder and the Trustee.

                                   ARTICLE VI

                             DISCHARGE OF INDENTURE

                  Section 6.01 DISCHARGE OF INDENTURE. If (i) the Issuer shall
pay or cause to be paid, in accordance with the provisions of this Indenture, to
the Owners of the Bonds, the principal of, premium, if any, and Interest due or
to become due on all the Bonds at the times and in the manner stipulated
therein, (ii) the Issuer shall not then be in default in the performance of any
of its other covenants and promises in the Bonds or in this Indenture and (iii)
the Issuer shall pay or cause to be paid to the Trustee and any additional
Paying Agents all sums of money due or to become due according to the provisions
hereof, then these presents and the estate and rights hereby granted shall
cease, terminate and be void, whereupon the Trustee shall cancel and discharge
the Lien of this Indenture, and execute and deliver to the Issuer such
instruments in writing as shall be required to release the Lien hereof and
reconvey, release, assign and deliver unto the Issuer any and all of the Trust
Estate except (i) amounts in the Bond Fund required to be

                                       39
<PAGE>

paid to the Company under the terms of this Indenture, (ii) amounts held by the
Trustee for the payment of the principal or purchase price of, premium, if any,
or Interest on particular Bonds, and (iii) amounts held in the Rebate Fund
required to be paid to the United States.

                  Section 6.02  DEFEASANCE OF BONDS.

                  (a) Any Bond shall be deemed to be paid within the meaning of
         this Article and for all purposes of this Indenture when (i) payment of
         the principal of and premium, if any, on such Bond, plus Interest
         thereon to the due date thereof (whether such due date is by reason of
         maturity or upon redemption as provided herein), either (1) shall have
         been made or caused to be made in accordance with the terms thereof, or
         (2) shall have been provided for by irrevocably depositing with the
         Trustee, in trust and irrevocably set aside exclusively for such
         payment, (A) moneys sufficient to make such payment and/or (B)
         Government Obligations maturing as to principal and interest in such
         amounts and at such times, without reinvestment, as will insure the
         availability of sufficient moneys to make such payment, (ii) all
         necessary and proper fees, compensation and expenses of the Trustee,
         any additional Paying Agent and the Issuer pertaining to the Bonds with
         respect to which such deposit is made, including payments required to
         be made to the Rebate Fund, shall have been paid or the payment thereof
         provided for to the satisfaction of the Trustee, and (iii) the Trustee
         is provided with an opinion of Bond Counsel dated the date of the
         defeasance to the effect that the defeasance of the Bonds pursuant to
         this Section 6.02 shall not adversely affect the tax-exempt status of
         the Qualified Stated Interest or Original Issue Discount on the Bonds.
         At such time as a Bond shall be deemed to be paid hereunder, as
         aforesaid, such Bond shall no longer be secured by or entitled to the
         benefits of this Indenture, except for the purposes of any such payment
         from such moneys or Government Obligations.

                  (b) Notwithstanding the foregoing, no deposit under Section
         6.02(a)(i)(2) above shall be deemed payment of such Bonds as aforesaid
         until (i) proper notice of redemption of such Bonds shall have been
         previously given in accordance with Article III of this Indenture or,
         in the event said Bonds are not by their terms subject to redemption
         within the next succeeding forty-five (45) days, until the Company
         shall have given the Trustee on behalf of the Issuer, in form
         satisfactory to the Trustee, irrevocable instructions to notify, as
         soon as practicable, the Owners of the Bonds that the deposit required
         by Section 6.02(a)(i)(2) hereof has been made with the Trustee and that
         such Bonds are deemed to have been paid in accordance with this Section
         6.02 and stating the maturity or redemption date upon which moneys are
         to be available for the payment of the principal of such Bonds, plus
         Interest thereon to the due date thereof, plus premium, if any; or (ii)
         the maturity of such Bonds.

                  (c) All moneys so deposited with the Trustee as provided in
         this Section 6.02 may also be invested and reinvested, at the direction
         of the Company, in Government obligations, maturing in the amounts and
         times as hereinbefore set forth, and all income from all Government
         Obligations in the hands of the Trustee pursuant to this Section 6.02
         which is not required for the payment of the Bonds and Interest (and
         premium, if any) thereon with respect to which such moneys shall have
         been so deposited shall be paid to the Company as and when realized and
         collected.

                                       40
<PAGE>

                  (d) The Issuer hereby covenants that no deposit will knowingly
         be made or accepted and no use knowingly made of any such deposit which
         would cause the Bonds to be treated as "arbitrage bonds" within the
         meaning of Section 148(a) of the Code of 1986.

                  (e) Notwithstanding any other provision of this Indenture, all
         moneys or Government Obligations set aside and held in trust pursuant
         to the provisions of this Section 6.02 for the payment of Bonds
         (including Interest and any premium thereon) shall be applied to and
         used solely for the payment of the particular Bonds (including the
         Interest and any premium thereon) with respect to which such moneys or
         Government obligations have been so set aside in trust.

                  (f) Anything in Article IX hereof to the contrary
         notwithstanding, if moneys or Government Obligations have been
         deposited or set aside with the Trustee pursuant to this Section 6.02
         for the payment of Bonds and such Bonds shall not have in fact been
         actually paid in full, no amendment to the provisions of this Section
         6.02 shall be made without the consent of the Owner of each Bond
         affected thereby.

                                   ARTICLE VII

                              DEFAULTS AND REMEDIES

                  Section 7.01 EVENTS OF DEFAULT. If any of the following events
occur, it is hereby declared to constitute an "Event of Default" or "Default"
hereunder:

                  (a) A default in the payment of Interest on any Bond within
         three (3) days after such payment was due;

                  (b) A default in the payment of all or any part of the
         principal of or premium, if any, on any of the Bonds as and when the
         same shall become due and payable either at maturity, by declaration or
         otherwise;

                  (c) A default in the performance or observance of any other
         covenant, agreement or undertaking on the part of the Issuer contained
         in this Indenture or in the Bonds and the continuance thereof for a
         period of ninety (90) days after written notice thereof given to the
         Issuer by the Trustee or by the Owners of not less than twenty-five
         percent (25%) in aggregate principal amount of Outstanding Bonds;

                  (d) A default in the due and punctual payment of the purchase
         price of any Bond tendered by the Holder thereof pursuant to Section
         3.04 or Section 3.05 of this Indenture at the time required by Section
         3.04 or Section 3.05 hereof; or

                  (e) The occurrence and continuance of any other "Event of
         Default" as defined in and under the Agreement.

                  Section 7.02 ACCELERATION. Upon the occurrence of any Event of
Default under Section 7.01 hereof, the Trustee may, and at the written request
of the owners of not less than twenty-five percent (25%) in aggregate principal
amount of Outstanding Bonds shall, by notice

                                       41
<PAGE>

in writing delivered to the Issuer and the Company, declare the principal of all
Bonds and the Interest accrued thereon to the date of such acceleration
immediately due and payable. Upon any declaration of acceleration hereunder, the
Trustee shall immediately declare the payments required to be made by the
Company under Sections 4.2(a) and 4.5 of the Agreement to be immediately due and
payable in an amount sufficient to pay the principal of all Outstanding Bonds
and the accrued Interest (and any premium) thereon to the date of acceleration.

                  Section 7.03  OTHER REMEDIES; RIGHTS OF OWNERS OF BONDS.

                  (a) Upon the occurrence of an Event of Default, the Trustee
         may pursue any available remedy at law or in equity to enforce the
         payment of the principal of, premium, if any, and Interest on the
         Outstanding Bonds. Such remedies shall include but not be limited to
         taking whatever action at law or in equity may appear necessary or
         desirable to collect the payments on the Bonds and the sums payable
         hereunder and under the Agreement then due and thereafter to become
         due, or to enforce performance and observance of any obligation,
         agreement or covenant of the Company under the Agreement, including,
         without limitation, the remedies of a secured creditor under the
         Uniform Commercial Code of the State.

                  (b) If an Event of Default shall have occurred and be
         continuing and if requested so to do by the Owners of twenty-five
         percent (25%) in aggregate principal amount of Outstanding Bonds and
         provided the Trustee is indemnified as provided in Section
         8.01(b)(xiii) hereof, the Trustee shall be obligated to exercise such
         one or more of the rights and powers conferred by this Section and by
         Section 8.03 hereof, as the Trustee, being advised by counsel, shall
         deem most expedient in the interests of the Owners of Bonds.

                  (c) No remedy by the terms of this Indenture conferred upon or
         reserved to the Trustee (or to the Owners of Bonds) is intended to be
         exclusive of any other remedy, but each and every such remedy shall be
         cumulative and shall be in addition to any other remedy given to the
         Trustee or to the Owners of Bonds hereunder or now or hereafter
         existing at law or in equity.

                  (d) No delay or omission to exercise any right or power
         accruing upon any Default shall impair any such right or power or shall
         be construed to be a waiver of any such Default or acquiescence
         therein; such right or power may be exercised from time to time as
         often as may be deemed expedient.

                  (e) No waiver of any Event of Default hereunder, whether by
         the Trustee or by the Owners of Bonds, shall extend to or shall affect
         any subsequent Event of Default or shall impair any rights or remedies
         consequent thereon.

                  Section 7.04 RIGHT OF OWNERS OF BONDS TO DIRECT PROCEEDINGS.
Anything in this Indenture to the contrary notwithstanding, the Owners of a
majority in aggregate principal amount of the Outstanding Bonds shall have the
right, at any time, by an instrument or instruments in writing executed and
delivered to the Trustee, to direct the method and place of conducting all
proceedings to be taken in connection with the enforcement of the terms and

                                       42
<PAGE>

conditions of this Indenture, or for the appointment of a receiver or any other
proceedings hereunder provided that such direction shall not be otherwise than
in accordance with the provisions of law and of this Indenture.

                  Section 7.05 APPOINTMENT OF RECEIVERS. Upon the occurrence of
an Event of Default, and upon the filing of a suit or other commencement of
judicial proceedings to enforce the rights of the Trustee and of the owners of
Bonds under this Indenture, the Trustee shall be entitled, as a matter of right,
to the appointment of a receiver or receivers of the Trust Estate and of the
revenues, earnings, income, products and profits thereof, pending such
proceedings, with such powers as the court making such appointment shall confer.

                  Section 7.06 WAIVER. Upon the occurrence of an Event of
Default, to the extent that such rights may then lawfully be waived, neither the
Issuer nor anyone claiming through or under it, shall set up, claim or seek to
take advantage of any appraisement, valuation, stay, extension or redemption
laws of any jurisdiction now or hereafter in force, in order to prevent or
hinder the enforcement of this Indenture, and the Issuer, for itself and all who
may claim through or under it, hereby waives, to the extent that it lawfully may
do so, the benefit of all such laws.

                  Section 7.07 APPLICATION OF MONEYS. All moneys received by the
Trustee pursuant to any right given or action taken under the provisions of this
Article shall, after payment of the costs and expenses of the proceedings
resulting in the collection of such moneys and of the expenses, liabilities and
advances incurred or made by the Trustee, be deposited in the Bond Fund and
applied as follows:

                  (a) Unless the principal of all the Bonds shall have become or
         shall have been declared due and payable, all such moneys shall be
         applied:

                           FIRST - To the payment to the persons entitled
                  thereto of all installments of Interest then due on the Bonds,
                  in the order of the maturity of the installments of such
                  Interest (with interest on overdue installments of such
                  Interest, to the extent permitted by law, at the Default Rate)
                  and, if the amount available shall not be sufficient to pay in
                  full any particular installment, then to the payment ratably,
                  according to the amounts due on such installment, to the
                  persons entitled thereto, without any discrimination or
                  privilege; and

                           SECOND - To the payment to the persons entitled
                  thereto of the unpaid principal of and premium, if any, on any
                  of the Bonds which shall have become due (other than Bonds
                  matured or called for redemption for the payment of which
                  moneys are held pursuant to the provisions of this Indenture)
                  (with interest on overdue installments of principal and
                  premium, if any, to the extent permitted by law, at the
                  Default Rate) and, if the amount available shall not be
                  sufficient to pay in full all Bonds due on any particular
                  date, together with any premium then due and owing thereon,
                  then to the payment ratably according to the amount of
                  principal and premium due on such date, to the persons
                  entitled thereto without any discrimination or privilege; and

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<PAGE>

                           THIRD - To the payment to the persons entitled
                  thereto as the same shall become due of the principal,
                  premium, if any, and Interest on the Bonds which may
                  thereafter become due and, if the amount available shall not
                  be sufficient to pay in full Bonds due on any particular date,
                  together with Interest and premium, if any, then due and owing
                  thereon, payment shall be made ratably according to the amount
                  of Interest, premium and principal due on such date to the
                  persons entitled thereto without any discrimination or
                  privilege.

                  (b) If the principal of all the Bonds shall have become due or
         shall have been declared due and payable, all such moneys shall be
         applied to the payment of the principal and Interest then due and
         unpaid upon the Bonds, without preference or priority of principal over
         Interest or of Interest over principal, or of any installment of
         Interest over any other installment of Interest, or of any Bond over
         any other Bond, ratably, according to the amounts due, respectively,
         for principal and Interest, to the persons entitled thereto without any
         discrimination or privilege, with interest on overdue installments of
         principal or Interest, to the extent permitted by law, at the Default
         Rate.

                  (c) If the principal of all the Bonds shall have been declared
         due and payable and if such declaration shall thereafter have been
         rescinded and annulled under the provisions of this Article, then,
         subject to the provisions of Section 7.07(b) hereof, in the event that
         the principal of all the Bonds shall later become due or be declared
         due and payable, the moneys shall be applied in accordance with the
         provisions of Section 7.07(a) hereof.

                  (d) Whenever moneys are to be applied pursuant to the
         provisions of this Section, such moneys shall be applied at such times,
         and from time to time, as the Trustee shall determine, having due
         regard for the amount of such moneys available for application and the
         likelihood of additional moneys becoming available for such application
         in the future. Whenever the Trustee shall apply such funds, it shall
         fix the date upon which such application is to be made and upon such
         date Interest on the amounts of principal to be paid on such dates
         shall cease to accrue. The Trustee shall give such notice as it may
         deem appropriate of the deposit with it of any such moneys and of the
         fixing of any such date, and shall not be required to make payment to
         the Owner of any Bond until such Bond shall be presented to the Trustee
         for appropriate endorsement or for cancellation if fully paid.

                  (e) Whenever the principal of, premium, if any, and Interest
         on all Bonds have been paid under the provisions of this Section and
         all expenses and charges of the Trustee have been paid or duly provided
         for, any balance remaining in the Bond Fund shall be paid to the
         Company.

                  Section 7.08 REMEDIES VESTED IN TRUSTEE. All rights of action
(including the right to file proof of claims) under this Indenture or under any
of the Bonds may be enforced by the Trustee without the possession of any of the
Bonds or the production thereof in any trial or other proceeding relating
thereto, and any such suit or proceeding instituted by the Trustee shall be
brought in its name as Trustee without the necessity of joining as plaintiffs or
defendants any Owners of the Bonds, and any recovery of judgment shall be for
the equal and ratable benefit of the owners of the Outstanding Bonds.

                                       44
<PAGE>

                  Section 7.09 RIGHTS AND REMEDIES OF OWNERS OF BONDS. No Owner
of any Bond shall have any right to institute any suit, action or proceeding at
law or in equity for the enforcement of this Indenture or for the execution of
any trust hereof or for the appointment of a receiver or any other remedy
hereunder, unless (i) an Event of Default has occurred of which the Trustee has
been notified as provided in Section 8.01(b)(viii) hereof, or of which by reason
of such subsection it is deemed to have notice, (ii) the Owners of twenty-five
percent (25%) in aggregate principal amount of Outstanding Bonds shall have made
a written request to the Trustee and shall have offered it reasonable
opportunity either to proceed to exercise the powers hereinbefore granted or to
institute such action, suit or proceeding and shall have offered to the Trustee
indemnity as provided in Section 8.01(b)(xiii), and (iii) the Trustee shall
thereafter fail or refuse to exercise the powers hereinbefore granted, or to
institute such action, suit or proceeding. Such notification, request and offer
of indemnity are hereby declared in every case at the option of the Trustee to
be conditions precedent to the execution of the powers and trusts of this
Indenture, and to any action or cause of action for the enforcement of this
Indenture, or for the appointment of a receiver or for any other remedy
hereunder; it being understood and intended that no one or more Owners of the
Bonds shall have any right in any manner whatsoever to affect, disturb or
prejudice the Lien of this Indenture by their action or to enforce any right
hereunder except in the manner herein provided, and that all proceedings at law
or equity shall be instituted, had and maintained in the manner herein provided
and for the equal and ratable benefit of the Owners of all Outstanding Bonds.
However, nothing contained in this Indenture shall affect or impair the right of
any Owner of Bonds to enforce the payment of the principal or purchase price of,
premium, if any, and Interest on any Bond at and after the maturity thereof, or
the obligation of the Issuer to pay the principal of, premium, if any, and
Interest on each of the Bonds issued hereunder to the respective Owners thereof
at the time and place, from the source and in the manner in the Bonds expressed.

                  Section 7.10 TERMINATION OF PROCEEDINGS. In the event that the
Trustee shall have proceeded to enforce any right under this Indenture by the
appointment of a receiver or otherwise, and such proceedings shall have been
discontinued or abandoned for any reason, or shall have been determined
adversely, then and in every such case, the Issuer, the Trustee and the Owners
of Bonds shall be restored to their former positions and rights hereunder,
respectively, with regard to the property subject to this Indenture, and all
rights, remedies and powers of the Trustee shall continue as if no such
proceedings had been taken.

                  Section 7.11 WAIVERS. The Trustee may in its discretion waive
any Event of Default hereunder and its consequences and rescind any declaration
of acceleration of principal, and shall do so upon the written request of the
Owners of (i) not less than a majority in aggregate principal amount of all
Outstanding Bonds in respect of which default in the payment of principal,
premium or Interest exists or (ii) not less than a majority in aggregate
principal amount of Outstanding Bonds in the case of any other Default;
PROVIDED, HOWEVER, that any Event of Default under subsection (a) or (b) of
Section 7.01 hereof may not be waived unless prior to such waiver, all arrears
of principal, premium and Interest (other than principal of, premium, if any, or
Interest on the Bonds which became due and payable by declaration of
acceleration) and all expenses of the Trustee and any additional Paying Agent in
connection with such Event of Default shall have been paid or provided for to
the satisfaction of the Trustee. In case of any waiver or rescission described
above, or in case any proceeding taken by the Trustee on account of any such
Event of Default shall have been discontinued or concluded or determined
adversely,

                                       45
<PAGE>

then and in every such case the Issuer, the Trustee and the Owners of Bonds
shall be restored to their former positions and rights hereunder, respectively,
but no such waiver or rescission shall extend to any subsequent or other Event
of Default, or impair any right consequent thereon.

                                  ARTICLE VIII

                                   THE TRUSTEE

                  Section 8.01  APPOINTMENT OF TRUSTEE AND ACCEPTANCE OF DUTIES.

                  (a) J.P. Morgan Trust Company, National Association is hereby
         appointed as Trustee and Paying Agent. The Trustee shall signify its
         acceptance of the duties and obligations of the Trustee, subject to the
         terms and conditions set forth in subsection (b) of this Section 8.01,
         by executing this Indenture.

                  (b) The acceptance by the Trustee of the trusts imposed upon
         it by this Indenture and its agreement to perform said trusts is
         subject to the following express terms and conditions, and no implied
         covenants or obligations shall be read into this Indenture against the
         Trustee:

                           (i) Prior to the occurrence of an Event of Default,
                  the Trustee undertakes to perform such duties and only such
                  duties as are specifically set forth in this Indenture and the
                  Agreement. In case an Event of Default has occurred and has
                  not been cured or waived, the Trustee shall exercise such
                  rights and powers vested in it by this Indenture and by the
                  Agreement and shall use the same degree of care and skill in
                  their exercise as a reasonable and prudent corporate trustee
                  under a trust agreement would use, under the circumstances.

                           (ii) The Trustee may execute any of the trusts or
                  powers conferred upon it in this Indenture and perform any of
                  its duties hereunder by or through attorneys, agents or
                  employees, shall be entitled to act upon the opinion or advice
                  of its counsel concerning all matters with respect to the
                  trust and its duties hereunder and may in all cases pay from
                  the appropriate Fund as provided herein such reasonable
                  compensation to all such attorneys and agents as may
                  reasonably be employed in connection with the trust hereunder.
                  The Trustee may act upon an opinion of Independent Counsel and
                  shall not be responsible for any loss or damage resulting from
                  any action taken or omitted to be taken in good faith in
                  reliance upon such opinion of Independent Counsel.

                           (iii) The Trustee shall not be responsible for any
                  recital herein or in the Bonds (except in respect of the
                  Certificate of Authentication of the Trustee endorsed on the
                  Bonds), for the validity of the execution by the Issuer of
                  this Indenture, or any supplements hereto or any instruments
                  of further assurance in connection herewith, for the
                  sufficiency of the security for the Bonds, for any value of or
                  title to any Property securing the Bonds or for the
                  performance or observance of any covenants, conditions or
                  agreements on the part of the Issuer under this Indenture or
                  on the part of the Company under the Agreement.

                                       46
<PAGE>

                           (iv) The Trustee may become the Owner of Bonds
                  secured hereby with the same rights which it would have if it
                  were not the Trustee.

                           (v) The Trustee shall be protected in acting in good
                  faith upon any notice, request, consent, certificate, order,
                  affidavit, letter, telegram or other paper or document
                  believed by it to be genuine and to have been signed or sent
                  by the proper Person or Persons.

                           (vi) The Trustee, without further investigation, may
                  rely upon the information and judgment of the Issuer contained
                  in:

                                    (1) a certificate, signed by an Authorized
                           Representative of the Issuer,

                                             (x) as to the existence or
                                    nonexistence of any fact or facts stated
                                    therein;

                                             (y) as to the sufficiency or
                                    validity of any instrument, paper or
                                    proceeding, other than a resolution of the
                                    Issuer; and

                                             (z) prior to the occurrence of an
                                    Event of Default of which the Trustee has
                                    been notified as provided in Section
                                    8.01(b)(viii) hereof or of which by reason
                                    of said Section the Trustee is deemed to
                                    have notice, as to the necessity or
                                    appropriateness of any particular dealing,
                                    transaction or action; and

                                    (2) a certificate, signed by an Authorized
                           Representative of the Issuer, as to the due adoption
                           and validity of a resolution of the Issuer.

                           (vii) The permissive right of the Trustee to do or
                  refrain from doing things enumerated in this Indenture shall
                  not be construed as a duty and the Trustee shall not be
                  answerable for other than its negligence or willful
                  misconduct, subject to the limitation of paragraph (i) of this
                  subsection (b).

                           (viii) The Trustee shall not be required to take
                  notice or be deemed to have notice of any Event of Default
                  hereunder except for Events of Default specified in
                  subsections (a), (b) or (d) of Section 7.01 hereof, unless the
                  Trustee shall be specifically notified in writing of such
                  Event of Default by the Issuer or by the Owners of at least
                  twenty-five percent (25%) in aggregate principal amount at
                  maturity of Outstanding Bonds, and all notices or other
                  instruments required by this Indenture to be delivered to the
                  Trustee, must, in order to be effective, be delivered at the
                  Principal Corporate Trust Office of the Trustee, and in the
                  absence of such notice so delivered the Trustee may
                  conclusively assume there is no Default except as aforesaid.

                           (ix) All moneys received by the Trustee shall be held
                  in trust in the manner and for the purposes for which they
                  were received but need not be segregated from other moneys
                  held by the Trustee except to the extent expressly

                                       47
<PAGE>

                  required by this Indenture or by law. The Trustee shall not be
                  liable for interest on any moneys received hereunder.

                           (x) At any reasonable time, the Trustee and its duly
                  authorized agents, experts and representatives may (but shall
                  not be obligated to) inspect any of the security for the Bonds
                  and any books, papers and records of the Issuer pertaining to
                  the Project, the Collateral or the Bonds.

                           (xi) The Trustee shall not be required to give any
                  bond or surety in respect of the execution of the trusts and
                  powers intended to be conferred upon it in this Indenture or
                  otherwise in respect of the premises.

                           (xii) The Trustee may (but shall not be obligated to)
                  demand, as a condition precedent to the authentication of any
                  Bonds, the withdrawal of any moneys, the release of any
                  Property or the taking of any other action contemplated by
                  this Indenture, any certificates, opinions, appraisals or
                  other information or any corporate action or evidence thereof
                  (in addition to any other prerequisites required in any other
                  Section of this Indenture) which the Trustee may reasonably
                  deem desirable for the purpose of establishing the right of
                  the Issuer to the authentication of the Bonds, the withdrawal
                  of the moneys, the release of the Property or the taking of
                  such other action.

                           (xiii) Before taking any action under this Indenture
                  (other than paying the principal or purchase price of,
                  premium, if any, and Interest on the Bonds as the same shall
                  become due and payable), the Trustee may require that
                  satisfactory security or indemnity be furnished to it for the
                  reimbursement of all expenses to which it may be put and to
                  protect it against all liability, except liability which may
                  be adjudicated to have resulted from its own negligence or
                  willful misconduct by reason of any action so taken.

                           (xiv) The Trustee shall not be personally liable for
                  any debts contracted, for damages arising from injury to
                  Persons or damage to Property, for salaries or for
                  non-fulfillment of contracts during any period when it may be
                  in the possession of or managing any Property provided for in
                  this Indenture, unless such have resulted from its negligence
                  or willful misconduct.

                           (xv) 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 or other paper or documents, but the Trustee in its
                  discretion may make such further inquiry or investigation, and
                  it shall be entitled to examine the books, records and
                  premises of the Issuer, personally or by agent or attorney.

                  (c) None of the provisions of this Section 8.01 shall apply to
         or limit the Trustee's mandatory obligations under Section 7.02 hereof.

                  Section 8.02 FEES, CHARGES AND EXPENSES OF TRUSTEE. The
Trustee shall be entitled to payment of reasonable fees for its services
rendered hereunder and reimbursement of

                                       48
<PAGE>

all advances, counsel fees and other expenses, including allocated costs and
expenses of in-house counsel and legal staff, reasonably made or incurred by the
Trustee in connection with such services. The Trustee also shall be entitled to
indemnification by the Company as provided in the Agreement. Upon the occurrence
of an Event of Default, but only upon the occurrence of an Event of Default, the
Trustee shall have a first Lien with right of payment prior to payment on
account of principal of, premium, if any, and Interest on any Bond upon the
Trust Estate (exclusive of any moneys set aside for the payment of Bondholders)
for the foregoing fees, charges and expenses of the Trustee. The Issuer shall
have no liability to pay any fees, charges or other expenses of the Trustee
hereinabove mentioned except from the amounts pledged under this Indenture.

                  Section 8.03 INTERVENTION BY TRUSTEE. In any judicial
proceeding to which the Issuer is a party, the Trustee may, and if so requested
in writing by the Owners of at least twenty-five percent (25%) in aggregate
principal amount of the Bonds then Outstanding shall, intervene, to the extent
permitted by law, on behalf of Bondholders. The Trustee shall not be required to
intervene without receiving indemnity from the Bondholders for such undertaking.

                  Section 8.04 NOTICE TO OWNERS OF BONDS IF DEFAULT OCCURS. If
an Event of Default occurs of which the Trustee has been notified as provided in
Section 8.01(b)(viii) hereof, or of which by said subsection it is deemed to
have notice, then the Trustee shall promptly give notice thereof to the Issuer,
the Company and to the Owner of each Bond.

                  Section 8.05 MERGER OR CONSOLIDATION OF TRUSTEE. Any
corporation or association into which the Trustee may be converted or merged,
with which it may be consolidated or to which it may sell or transfer its trust
business and assets as a whole or substantially as a whole, or any corporation
or association resulting from any such conversion, sale, merger, consolidation
or transfer to which it is a party shall be licensed to accept the trusts
created hereby and, ipso facto, shall be and become successor Trustee hereunder
and be and become vested with all the trusts, powers, discretions, immunities,
privileges and all other matters vested in its predecessor without the execution
or filing of any instrument or any further act, deed or conveyance on the part
of any of the parties hereto.

                  Section 8.06 RESIGNATION BY THE TRUSTEE. The Trustee and any
successor Trustee may, at any time, resign from the trusts hereby created and be
discharged of its duties and obligations under this Indenture by giving not less
than thirty (30) days written notice to the Company and the Issuer and, by
first-class mail, to each registered Holder of Bonds then Outstanding. Such
resignation shall take effect upon the date specified in such notice, provided,
however, that in no event shall such a resignation take effect until a successor
Trustee or temporary Trustee has been appointed pursuant to Section 8.08 hereof.
The Trustee may petition a court to have a successor Trustee appointed
hereunder.

                  Section 8.07 REMOVAL OF THE TRUSTEE. The Trustee may be
removed at any time without cause by an instrument which (i) is signed by the
Owners of not less than fifty percent (50%) in aggregate principal amount of the
Bonds then Outstanding, (ii) specifies the date on which such removal shall take
effect and the name and address of the successor Trustee and (iii) is delivered
to the Trustee, the Issuer and the Company. The Trustee may also be removed at
any time for any breach of trust or for acting or proceeding, in violation of,
or for failing to act

                                       49
<PAGE>

or proceed in accordance with, any provision of this Indenture by any court of
competent jurisdiction upon the application by the Issuer, the Company or the
Owners of not less than twenty-five percent (25%) in aggregate principal amount
of the Bonds then Outstanding. In addition, prior to the occurrence of an Event
of Default, or an event which, with the passage of time, the giving of notice,
or both, would constitute an Event of Default, the Trustee may be removed at any
time without cause by an instrument in writing delivered to the Trustee and to
the Issuer and signed by the Company. The removal of the Trustee hereunder shall
not take effect until a successor Trustee or temporary Trustee has been
appointed pursuant to Section 8.08 hereof.

                  Section 8.08  APPOINTMENT OF SUCCESSOR TRUSTEE BY THE
BONDHOLDERS; TEMPORARY TRUSTEE.

                  (a) In case the Trustee hereunder shall resign, be removed, be
         dissolved, be in the course of dissolution or liquidation or otherwise
         become incapable of acting hereunder, or in case it shall be taken
         under the control of any public officer or officers or of a receiver
         appointed by a court, a successor Trustee may be appointed by (i) prior
         to the occurrence of an Event of Default or an event which, with the
         passage of time, the giving of notice, or both, would constitute an
         Event of Default, the Company by an instrument signed by the Company
         and delivered to such successor Trustee, the predecessor Trustee and
         the Issuer, and, thereafter, (ii) the Owners of not less than fifty
         percent (50%) in aggregate principal amount of the Bonds then
         Outstanding by an instrument signed by such Bondholders and delivered
         to such successor Trustee, the predecessor Trustee, the Issuer and the
         Company.

                  (b) In case of the occurrence of any event affecting the
         Trustee hereunder described in subsection (a) of this Section 8.08, the
         Issuer, by an instrument signed by an Authorized Representative of the
         Issuer, shall promptly appoint a temporary Trustee to fill such vacancy
         until a successor Trustee shall be appointed by the Company or the
         Bondholders, as the case may be, in the manner provided in subsection
         (a) of this Section 8.08. Such instrument appointing such temporary
         Trustee by the Issuer shall be delivered to the temporary Trustee so
         appointed, to the predecessor Trustee and to the Company. Any such
         temporary Trustee appointed by the Issuer shall immediately and without
         further act be superseded by any successor Trustee appointed by the
         Company or the Bondholders, as the case may be.

                  (c) Any Trustee appointed pursuant to the provisions of this
         Section 8.08 shall be a trust company, bank or national banking
         association which is authorized to exercise the corporate trust powers
         intended to be conferred upon it by this Indenture and which has a
         combined capital and surplus of at least $50,000,000.

                  Section 8.09  CONCERNING SUCCESSOR TRUSTEES.

                  (a) Every successor Trustee appointed hereunder shall execute,
         acknowledge and deliver to its predecessor Trustee and to the Issuer an
         instrument accepting such appointment hereunder. Thereupon, such
         successor Trustee, without any further act,

                                       50
<PAGE>

         deed or conveyance, shall become fully vested with all the Properties,
         rights, powers, trusts, duties and obligations of its predecessor
         Trustee.

                  (b) Every predecessor Trustee shall, upon the written request
         of the Issuer or the successor Trustee, execute and deliver an
         instrument transferring to such successor Trustee all the Properties,
         rights, powers and trusts of such predecessor Trustee hereunder and
         under the Agreement. Every predecessor Trustee shall deliver to its
         successor Trustee all securities and moneys held by it as Trustee
         hereunder. If any instrument from the Issuer shall be requested by any
         successor Trustee to more fully vest the successor trustee with the
         Properties, rights, powers and duties vested hereby or intended to be
         vested hereunder, any and all such instruments shall be executed,
         acknowledged and delivered by the Issuer.

                  (c) The resignation of any Trustee and the instrument or
         instruments removing any Trustee and appointing a successor Trustee
         hereunder, together with all other instruments provided for in this
         Article VIII, shall be filed and/or recorded by the successor Trustee
         in each recording office where this Indenture shall have been filed
         and/or recorded, if any.

                  Section 8.10 SUCCESSOR TRUSTEE AS CUSTODIAN OF FUNDS AND
PAYING AGENT. In the event of a change of Trustees, the predecessor Trustee
shall cease to be (i) custodian of the Funds created pursuant to Section 4.01
hereof and of all other moneys, Properties, rights and assets constituting the
Trust Estate, (ii) Bond Registrar and (iii) Paying Agent, and the successor
Trustee shall become such custodian, Bond Registrar and Paying Agent. Every
predecessor Trustee shall deliver to its successor Trustee all books of account,
the registration books, the list of Bondholders and all other records, documents
and instruments relating to its duties as such custodian, Bond Registrar and
Paying Agent.

                  Section 8.11 LIMITATION ON TRUSTEE'S RESPONSIBILITIES
RESPECTING ARBITRAGE. Notwithstanding any provision of this Indenture to the
contrary the Trustee shall not be liable or responsible for any calculation or
determination which may be required in connection with or for the purpose of
complying with Section 148 of the Code of 1986 including, without limitation,
the calculation of amounts required to be paid to the United States under the
provisions of such Section 148 of the Code of 1986, the maximum amount which may
be invested in Nonpurpose Investments (as defined in Section 4.7 hereof) and the
fair market value of any investments made hereunder; and the sole obligation of
the Trustee with respect to investments of funds hereunder shall be to invest
the moneys received by the Trustee as provided herein pursuant to the written
instructions of the Company.

                                       51
<PAGE>

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

                  Section 9.01  SUPPLEMENTAL INDENTURES NOT REQUIRING CONSENT
OF BONDHOLDERS.

                  (a) Without the consent of or notice to any of the
         Bondholders, the Issuer and the Trustee may, with the consent of the
         Company, enter into one or more Supplemental Indentures, for any one or
         more of the following purposes:

                           (i) To cure any ambiguity, inconsistency or omission
                  in this Indenture or to cure, correct or supplement any
                  defective provision of this Indenture in such manner as shall
                  not impair the security hereof or adversely affect the
                  Bondholders;

                           (ii) To grant to or confer upon the Trustee for the
                  benefit of the Bondholders any additional rights, remedies,
                  powers or authority that may lawfully be granted to or
                  conferred upon the Bondholders or the Trustee;

                           (iii) To add to the covenants and agreements of the
                  Issuer in this Indenture other covenants and agreements to be
                  observed by the Issuer;

                           (iv) To more precisely identify the Trust Estate;

                           (v) To subject to the Lien of this Indenture
                  additional Property;

                           (vi) To evidence the appointment of a separate
                  Trustee or a Co-Trustee or the succession of a new Trustee
                  hereunder; or

                           (vii) To effect any other change herein which, in the
                  judgment of the Trustee, is not to the prejudice of the
                  Trustee or the Owners of Bonds.

                  (b) The Trustee may rely upon an opinion of Independent
         Counsel as conclusive evidence that any such Supplemental Indenture
         complies with the foregoing conditions and provisions.

                  Section 9.02  SUPPLEMENTAL INDENTURES REQUIRING CONSENT OF
BONDHOLDERS.

                  (a) Exclusive of Supplemental Indentures permitted by Section
         9.01 hereof and subject to the terms and provisions of this Section
         9.02, the Holders of not less than a majority in aggregate principal
         amount of the Bonds then Outstanding shall have the right, from time to
         time, to consent to and approve the execution by the Issuer and the
         Trustee of such Supplemental Indentures as shall be deemed necessary
         and desirable by the Issuer for the purpose of modifying, altering,
         amending, adding to or rescinding any of the terms or provisions
         contained in this Indenture, in any Supplemental Indenture or in the
         Bonds; provided, however, that nothing contained in this Section 9.02
         shall permit, without, in each case, the consents of all of the Holders
         of the Bonds then Outstanding:

                                       52
<PAGE>

                           (i) A change in the terms of redemption or maturity
                  of the principal of, premium, if any, or the Interest on any
                  Outstanding Bond or a reduction in the principal amount or
                  purchase price of or redemption premium on any Outstanding
                  Bond or the rate of interest thereon;

                           (ii) The creation of a Lien upon the Trust Estate
                  ranking prior to or on a parity with the Lien created by this
                  Indenture, or any part thereof;

                           (iii) A preference or priority of any Bond or Bonds
                  over any other Bond or Bonds;

                           (iv) A reduction in the aggregate principal amount of
                  the Bonds required (a) under Article IX for consent to such
                  Supplemental Indenture or (b) under Article X for any
                  modification or waiver of the provisions of the Agreement;

                           (v) The deprivation of the Holder of any Outstanding
                  Bond of the Lien of the Indenture created on the Trust Estate;
                  or

                           (vi) The release of the Lien on any of the Trust
                  Estate.

                  (b) If at any time the Issuer shall request the Trustee to
         enter into a Supplemental Indenture for any of the purposes enumerated
         in Section 9.02(a) hereof, the Trustee, upon being satisfactorily
         indemnified with respect to expenses, shall cause notice of the
         proposed execution of a Supplemental Indenture to be mailed, by
         first-class mail, to the Company and all registered owners of Bonds
         then Outstanding at their addresses shown on the registration books
         kept by the Trustee. Such notice shall briefly summarize the contents
         of the proposed Supplemental Indenture and shall state that copies
         thereof are on file at the office of the Trustee for inspection by all
         Bondholders. The Trustee shall not, however, be subject to any
         liability to any Bondholder by reason of its failure to mail the notice
         required by this Section 9.02(b).

                  (c) If, within such period after the mailing of the notice
         required by Section 9.02(b) hereof as the Issuer shall prescribe with
         the approval of the Trustee, the Issuer shall deliver to the Trustee
         and the Company an instrument or instruments executed by the Holders of
         a majority in the aggregate principal amount of the Bonds Outstanding,
         referring to the proposed Supplemental Indenture as described in such
         notice and consenting to and approving the execution thereof, the
         Trustee shall execute such Supplemental Indenture.

                  (d) If the Holders of not less than a majority in aggregate
         principal amount of the Bonds Outstanding at the time of the execution
         of any such Supplemental Indenture shall have consented to and approved
         in writing the execution thereof as herein provided, no Holder of any
         Bond shall have any right to object to any of the terms and provisions
         contained therein, to question in any manner the propriety of the
         execution thereof or to enjoin or restrain the Trustee or the Issuer
         from executing the same or from taking any action pursuant to the
         provisions thereof.

                                       53
<PAGE>

                  (e) The Trustee may rely upon an opinion of Independent
         Counsel as conclusive evidence that (i) any Supplemental Indenture
         entered into by the Issuer and the Trustee and (ii) the evidence of
         requisite Bondholder consent thereto, comply with the provisions of
         this Section 9.02.

                  Section 9.03 BOND COUNSEL OPINION; CONSENT OF COMPANY TO
SUPPLEMENTAL INDENTURES. Notwithstanding anything contained in this Indenture to
the contrary, no Supplemental Indenture shall become effective unless and until
(a) the Company shall have consented in writing to the execution and delivery of
such Supplemental Indenture and (b) the Trustee shall have received an opinion
of Bond Counsel, satisfactory to the Trustee, to the effect that the execution,
delivery and performance of the Supplemental Indenture will not adversely affect
the exclusion from gross income of the Qualified Stated Interest or Original
Issue Discount on the Bonds for Federal income tax purposes or the exemption of
the Bonds and the income therefrom from taxation by the State except
inheritance, estate and transfer taxes.

                  Section 9.04 EFFECT OF SUPPLEMENTAL INDENTURES. Any
Supplemental Indenture executed in accordance with the provisions of this
Article IX shall thereafter form a part of this Indenture. All the terms and
conditions contained in any such Supplemental Indenture shall be part of the
terms and conditions of this Indenture for any and all purposes.

                  Section 9.05 MODIFICATIONS BY UNANIMOUS ACTION.
Notwithstanding anything contained in this Article IX, the rights and
obligations of the Issuer and of the Holders of the Bonds and the terms and
provisions of the Indenture or any Supplemental Indenture may be modified or
amended in any respect upon the adoption of a Supplemental Indenture by the
Issuer and the Trustee with the prior written consent of the Company and the
Holders of all of the Outstanding Bonds, the consent of such Bondholders to be
given as provided in Section 12.01 of this Indenture.

                                    ARTICLE X

                             AMENDMENTS TO AGREEMENT

                  Section 10.01 AMENDMENTS TO AGREEMENT NOT REQUIRING CONSENT OF
BONDHOLDERS. Without the consent of or notice to any of the Bondholders, (a) the
Issuer may enter into, and the Trustee may consent to, any amendment, change or
modification of the Agreement or the Security Documents or (b) the Trustee may
enter into any amendment, change or modification of the Collateral Agency
Agreement or the Intercreditor Agreement, in either case as may be required (i)
by the provisions thereof or of this Indenture, (ii) for the purpose of curing
any ambiguity, defect or omission therein, (iii) so as to more precisely
identify the Project or the Collateral or to substitute or add additional
improvements or equipment to the Project or Collateral or additional rights or
interests in Property acquired in accordance with the provisions of the
Agreement, the Security Documents, the Collateral Agency Agreement or the
Intercreditor Agreement, (iv) to enter into a Supplemental Indenture as provided
herein or (v) in connection with any other change therein which, in the sole
judgment of the Trustee, does not adversely affect the interests of the Trustee
or the Holders of the Bonds. The Trustee may rely upon an opinion of Independent
Counsel as conclusive evidence that any such amendment, change or modification
complies with the provisions of this Section 10.01.

                                       54
<PAGE>

                  Section 10.02 AMENDMENTS TO AGREEMENT REQUIRING CONSENT OF
BONDHOLDERS. Except for amendments, changes, or modifications as provided in
Section 10.01 hereof, neither the Issuer nor the Trustee shall consent to any
amendment, change or modification of the Agreement, the Security Documents, the
Collateral Agency Agreement or the Intercreditor Agreement without the mailing
of notice to and the approval or consent of the Holders of not less than a
majority in aggregate principal amount of the Bonds at the time Outstanding,
such written approval or consent to be procured and given in the manner set
forth with respect to supplemental indentures; provided, however, that nothing
contained in this Section 10.02 shall permit any amendment, change or
modification of the Agreement that would permit the termination or cancellation
of the Agreement or any Security Document (except as otherwise set forth
therein) or a change in the provisions of Sections 4.2(a), 4.2(d), 4.2(e) or 4.5
of the Agreement without the consent of the Owners of all of the Outstanding
Bonds. The Trustee may rely upon an opinion of Independent Counsel as conclusive
evidence that any such amendment, change or modification and the evidence of
requisite Bondholder consent comply with the requirements of this Section 10.02
and may further require that an opinion of Bond Counsel be furnished to the
effect that such amendment, change or modification will not adversely affect the
exclusion of Qualified Stated Interest or Original Issue Discount on the Bonds
from gross income for Federal income tax purposes. Upon receipt of evidence of
requisite Bondholder consent as provided hereinabove, the Trustee shall consent
to such amendment, change or modification of the Agreement, the Security
Documents, the Collateral Agency Agreement or the Intercreditor Agreement and
enter into such instruments as the Company may reasonably request in order to
evidence such consent.

                                   ARTICLE XI

                                REMARKETING AGENT

                  Section 11.01 QUALIFICATIONS OF REMARKETING AGENT. Any
Remarketing Agent appointed pursuant to the provisions of Section 3.04 of this
Indenture shall be, if there be such an institution willing, qualified and able
to accept the duties of the Remarketing Agent upon customary terms, a member of
the National Association of Securities Dealers, Inc., a bank or trust company or
any entity rated Baa3/Prime-3 or better, within or without the State, in good
standing and having reported capital and surplus of not less than $10,000,000
and rated Baa3/Prime-3 or better by Moody's (or a substantially equivalent
rating by S&P). Any such Remarketing Agent shall have an office in the State and
shall be reasonably acceptable to the Trustee. Written notice of such
appointment shall be given by the Company to the Trustee.

                  Section 11.02 SUCCESSOR REMARKETING AGENT BY MERGER,
CONSOLIDATION, ETC. Any corporation or association into which the Remarketing
Agent may be converted or merged, or with which it may be consolidated, or to
which it may sell or transfer its trust business and assets as a whole or
substantially as a whole, or any corporation or association resulting from any
such conversion, sale, merger, consolidation or transfer to which it is a party,
shall be and become the successor Remarketing Agent hereunder, without the
execution or filing of any instrument or any further act, deed or conveyance on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

                                       55
<PAGE>

                  Section 11.03 RESIGNATION OF REMARKETING AGENT. The
Remarketing Agent may at any time resign by giving thirty (30) days' notice to
the Issuer, the Trustee and the Company. Such resignation shall not take effect
until the appointment of a successor Remarketing Agent.

                  Section 11.04 REMOVAL OF REMARKETING AGENT. The Remarketing
Agent may be removed at any time by an instrument in writing delivered to the
Trustee by the Company. In no event, however, shall any removal of the
Remarketing Agent take effect until a successor Remarketing Agent shall have
been appointed.

                  Section 11.05 APPOINTMENT OF SUCCESSOR REMARKETING AGENT. In
case the Remarketing Agent shall resign or be removed, or be dissolved, or shall
be in the course of dissolution or liquidation, or otherwise become incapable of
acting as Remarketing Agent, or in case it shall be taken under the control of
any public officer or officers, or of a receiver appointed by a court, a
successor may be appointed by the Company in accordance with the provisions of
this Indenture. Every successor Remarketing Agent shall meet the qualifications
specified in Section 11.01 hereof. Any successor Remarketing Agent shall execute
and deliver an instrument accepting such appointment and thereupon such
successor, without further act, deed or conveyance, shall become fully vested
with all the rights, powers, duties and obligations of its predecessor, with
like effect as if originally named as Remarketing Agent, but such predecessor
shall nevertheless, on the written request of the Company, the Trustee or the
Issuer, or of the successor, execute and deliver such instruments and do such
other things as may reasonably be required to more fully and certainly vest and
confirm in such successor all rights, powers, duties and obligations of such
predecessor. If no successor Remarketing Agent has accepted appointment in the
manner provided above within 90 days after the Remarketing Agent has given
notice of its resignation as provided above, the Remarketing Agent may petition
any court of competent jurisdiction for the appointment of a temporary successor
Remarketing Agent; provided that any Remarketing Agent so appointed shall
immediately and without further act be superseded by a Remarketing Agent
appointed by the Company as provided above.

                                   ARTICLE XII

                                  MISCELLANEOUS

                  Section 12.01. CONSENT OF BONDHOLDERS. (a) Any consent,
request, direction, approval, objection or other instrument required or
permitted by this Indenture to be signed and executed by the Bondholders may be
in any number of writings of similar tenor and may be signed or executed by such
Bondholders in person or by agent appointed in writing. Proof of the execution
of any such consent, request, direction, approval, objection or other
instrument, or of the writing appointing any such agent and of the ownership of
Bonds, if made in the following manner, shall be sufficient for any of the
purposes of this Indenture and may be conclusively relied upon by the Trustee
with regard to any action taken thereunder:

                           (i) The fact and date of the execution by any
                  Bondholder or his attorney of such instrument may be proved by
                  acknowledgement before a notary public or other officer
                  empowered to take acknowledgments or by an affidavit of a
                  witness to such execution or in any other manner which the
                  Trustee deems sufficient and in accordance with such
                  reasonable rules as the Trustee may

                                       56
<PAGE>

                  determine. The authority of the person or persons executing
                  any such instrument on behalf of a corporate Bondholder may be
                  established without further proof if such instrument is signed
                  by a person purporting to be the President or a Vice President
                  of such corporation, affixed with a corporate seal and
                  attested to by a person purporting to be its Secretary or an
                  Assistant Secretary.

                           (ii) The ownership of Bonds, the amount, numbers and
                  other identification and the date of holding of the same shall
                  be proved by the registration books kept by the Trustee as
                  Bond Registrar.

                  (b) Any request, consent or vote of the Owner of any Bond
         shall bind all future owners of such Bond with respect to anything
         done, suffered to be done or omitted to be done by the Issuer or the
         Trustee in accordance therewith, unless and until such request, consent
         or vote is revoked by the filing with the Trustee of a writing, signed
         and executed by the Owner of the Bond, in form and substance and within
         such time as shall be satisfactory to the Trustee.

                  (c) Any of the provisions of Sections 9.02 and 12.01 of this
         Indenture notwithstanding, where any Bonds are registered in the name
         of a Securities Depository, any request, approval, consent or vote of
         the Owner of any such Bond so registered may be given or made by an
         electronic communication from the Securities Depository to the Trustee
         and any such request, approval, consent or vote so given or made
         electronically by the Securities Depository shall be valid and
         effective for all purposes of this Indenture.

                  Section 12.02  LIMITATION OF RIGHTS.

                  With the exception of rights herein expressly conferred,
nothing expressed or mentioned in or to be implied from this Indenture or the
Bonds is intended or shall be construed to give to any Person, other than the
parties hereto and the Holders of the Bonds, any right, remedy or claim under or
with respect to this Indenture or any covenants, conditions and provisions
herein contained. This Indenture and all of the covenants, conditions and
provisions hereof are intended to be for the sole and exclusive benefit of the
parties hereto and the Holders of the Bonds as herein provided.

                  Section 12.03 SEVERABILITY. (a) If any provision of this
Indenture shall, for any reason, be held to be or shall in fact be inoperative
or unenforceable in any particular case, such circumstance shall not render the
provision in question inoperative or unenforceable in any other case or
circumstance or render any other provision herein contained inoperative or
unenforceable.

                  (b) The invalidity of any one or more phrases, sentences,
         clauses, paragraphs or Sections in this Indenture shall not affect the
         remaining portions of this Indenture.

                  Section 12.04  NOTICES.

                  (a) Except as otherwise expressly provided herein, all
         notices, certificates or other communications hereunder shall be in
         writing and either shall be mailed by certified mail, postage prepaid,
         return receipt requested, or sent by overnight air courier

                                       57
<PAGE>

         service, or personally delivered to a representative of the receiving
         party, or sent by facsimile (provided an identical notice is also sent
         simultaneously by mail, overnight courier, or personal delivery as
         otherwise provided in this Section 12.04). All such communications
         shall be mailed, sent or delivered, addressed to the party for whom it
         is intended at its address set forth below.

         If to the Issuer:      City of Weirton
                                200 Municipal Plaza
                                Weirton, West Virginia 26062
                                Attention: City Manager
                                Facsimile: (304) 797-8598

         If to the Trustee:     J.P. Morgan Trust Company, National Association
                                One Oxford Centre
                                301 Grant Street, Suite 1100
                                Pittsburgh, Pennsylvania 15219
                                Attention:  Institutional Trust Service
                                Facsimile:  (412) 291-2070
                                or:         (412) 291-2071

         With a copy to:        J.P. Morgan Trust Company, National Association
                                Institutional Trust Services
                                2001 Bryan Street
                                9th Floor
                                Dallas, Texas 75201
                                Facsimile:  (214) 468-6494

         If to the Company:     Weirton Steel Corporation
                                400 Three Springs Drive
                                Weirton, West Virginia 26062
                                Attention:  Secretary
                                Facsimile: (304) 797-3484

                  (b) Any communication so addressed and mailed shall be deemed
         to be given on the earliest of (i) when actually delivered, (ii) on the
         first Business Day after deposit with an overnight air courier service,
         or (iii) on the third Business Day after deposit in the United States
         mail, postage prepaid, in each case to the address of the intended
         addressee, and any communication so delivered in person shall be deemed
         to be given when receipted for by, or actually received by, the Issuer,
         the Company or the Trustee, as the case may be. If given by facsimile,
         a notice shall be deemed given and received when the facsimile is
         transmitted to the party's facsimile number specified above, and
         confirmation of complete receipt is received by the transmitting party
         during normal business hours or on the next Business Day if not
         confirmed during normal business hours, and an identical notice is also
         sent simultaneously by mail, overnight courier, or personal delivery as
         otherwise provided in this Section 12.04. Any party may designate a
         change of address by written notice to the other parties by giving at
         least 10 days prior written notice of such change of address.

                                       58
<PAGE>

                  Section 12.05 COUNTERPARTS. This Indenture may be executed in
several counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

                  Section 12.06  APPLICABLE LAW. This Indenture shall be
governed exclusively by the applicable laws of the State.

                  Section 12.07 NO RECOURSE. All covenants, stipulations,
promises, agreements and obligations of the Issuer contained in this Indenture,
the Agreement, the Deeds of Trust, the Security Agreement and all other Bond
Documents shall be deemed to be the covenants, stipulations, promises,
agreements and obligations of the Issuer and not of any member, officer,
employee or agent of the Issuer in his individual capacity, and no recourse
under or upon any obligation, covenant or agreement contained in the Bond
Documents or otherwise based upon or in respect to the Bond Documents, or any
documents supplemental thereto, or for any of the Bonds or for any claim based
thereon or otherwise in respect thereof, shall be had against any past, present
or future members, officers, employees or agents, as such, of the Issuer or any
successor public corporation or political subdivision thereof or any person
executing the Bond Documents, either directly or through the Issuer or any
successor public corporation or political subdivision thereof, it being
expressly understood that the Bond Documents to which the Issuer is a party are
solely corporate obligations, and that no such personal liability whatever shall
attach to, or shall be incurred by, any such member, officer, employee or agent
of the Issuer or any successor public corporation or political subdivision
thereof or any person executing the Bond Documents because of the creation of
the indebtedness thereby authorized, or under or by reason of the obligations,
covenants or agreements contained in the Bond Documents or implied therefrom;
and that any and all such personal liability of, and any and all such rights and
claims against, every such member, officer, employee or agent because of the
indebtedness thereby authorized, or under or by reason of the obligations,
covenants or agreements contained in the Bond Documents or implied therefrom
are, to the extent permitted by law, expressly waived and released as a
condition of, and as consideration for, the execution of the Bond Documents.

                  Section 12.08 SURVIVAL. This Indenture shall remain in full
force and effect until terminated pursuant to Article VI hereof.

                  Section 12.09 TABLE OF CONTENTS AND SECTION HEADINGS NOT
CONTROLLING. The Table of Contents and the headings of the several Sections of
this Indenture have been prepared for convenience of reference only and shall
not control, affect the meaning of or be taken as an interpretation of any
provision of this Indenture.

                  Section 12.10 BINDING EFFECT. This Indenture shall be binding
upon the Issuer and the Trustee and their respective successors and assigns.

                  Section 12.11 INTERCREDITOR AGREEMENT AND COLLATERAL AGENCY
AGREEMENT. The Issuer hereby authorizes and directs the Trustee to enter into
the Intercreditor Agreement and the Collateral Agency Agreement in the forms
attached hereto as Composite Exhibit B and hereby further authorizes the Trustee
to enter into any modification, amendment, or supplement thereto or any
restatement thereof and/or to enter into any replacement or additional
intercreditor agreement as contemplated thereunder (collectively, the
"Intercreditor Modification

                                       59
<PAGE>

Documents") provided that (a) the Trustee has determined, in its sole judgment,
that any such Intercreditor Modification Document will not adversely affect the
interests of the Trustee or the Bondholders, in which event (i) the Issuer and
the Trustee shall have received an opinion of Bond Counsel to the effect that
any such Intercreditor Modification Document will not adversely affect the
exclusion of Qualified Stated Interest or Original Issue Discount on the Bonds
from gross income of the recipients thereof for federal income tax purposes and
(ii) the Trustee may request an opinion of Independent Counsel that any such
Intercreditor Modification Document complies with provisions of this Section
12.11, upon which the Trustee may conclusively rely, or (b) such Intercreditor
Modification Documents shall have complied with Article X of this Indenture.

                                       60
<PAGE>

                  IN WITNESS WHEREOF, the Issuer has caused these presents to be
signed in its name and behalf by its Mayor and, to evidence its acceptance of
the Trust hereby created, the Trustee has caused these presents to be signed in
its name and behalf by its duly authorized representative, all as of the date
first above written.

                                  CITY OF WEIRTON, WEST VIRGINIA

                                  By:  /s/ Dean M. Harris
                                      -------------------
                                  Name:  Dean M.  Harris

                                  Title: Mayor

(SEAL)

ATTEST:

/s/ Melissa Farley
------------------
Name:  Melissa Farly
Title:  Clerk

                                  J.P. MORGAN TRUST COMPANY,
                                  NATIONAL ASSOCIATION
                                  As Trustee

                                  By:  /s/ David M. Babich
                                     ----------------------
                                  Name:  David M. Babich
                                  Title:  Vice President

(SEAL)

ATTEST:

/s/ Jo Anne Osborn
------------------
Name:  Jo Anne Osborn
Title:   Assistant Vice President/Authorized Officer

<PAGE>

                                                                       EXHIBIT A

                             (Form of Face of Bond)

REGISTERED                                                            REGISTERED

No.                                                                   $

                         CITY OF WEIRTON, WEST VIRGINIA
                SECURED POLLUTION CONTROL REVENUE REFUNDING BOND
                 (Weirton Steel Corporation Project) Series 2002

BOND RATE                 MATURITY DATE        DATED DATE             CUSIP
                            April 1, 2012

REGISTERED OWNER:

PRINCIPAL AMOUNT:                                                        DOLLARS

                  CITY OF WEIRTON, WEST VIRGINIA (the "Issuer"), a public
corporation and an incorporated municipality duly organized and existing under
the Constitution and laws of the State of West Virginia (the "State"),
acknowledges itself indebted and for value received promises to pay, solely from
the sources and as hereinafter provided, to the Registered Owner named above, or
registered assigns, the Principal Amount set forth above, on the Maturity Date
set forth above, unless redeemed prior thereto as hereinafter provided, and in
like manner to bear interest from and including June 18, 2002 on said Principal
Amount at the Bond Rate set forth on the reverse hereof, payable semiannually on
the first days of April and October in each year commencing October 1, 2002
(each an "Interest Payment Date"), until the Issuer's obligation with respect to
such Principal Amount has been discharged.

                  Interest on this bond shall accrue from June 18, 2002 and
shall be calculated as set forth on the reverse hereof. The principal of and
premium, if any, on this bond is payable in lawful money of the United States of
America upon presentation and surrender of this bond at the principal corporate
trust office of J.P. Morgan Trust Company, National Association, as trustee
(together with its successors in trust, the "Trustee"), or at the duly
designated office of any successor Trustee under an indenture of trust, dated as
of June 18, 2002, between the Issuer and the Trustee (which indenture, as from
time to time amended and supplemented, is hereinafter referred to as the
"Indenture"). Payment of interest on this bond shall be made on each Interest
Payment Date to the person in whose name this bond is registered at the close of
business on the fifteenth day of the month next preceding any Interest Payment
Date (the "Record Date"), as further provided in the Indenture, and shall be
paid by check mailed or wire transfer by the Trustee to such registered owner at
his address as it appears on the registration books of the Issuer maintained by
the Trustee as bond registrar or at such other address as is furnished to the
Trustee in writing by such registered owner.

                                       1
<PAGE>

                  Reference is hereby made to the further provisions of this
bond set forth on the reverse side hereof, which provisions shall for all
purposes have the same effect as if set forth on the face hereof.

                  This bond is issued pursuant to and in full compliance with
the Constitution and laws of the State of West Virginia, and pursuant to
proceedings of the Issuer authorizing the execution and delivery of, among other
things, this bond and the Indenture.

                  It is hereby certified, recited and declared that all acts,
conditions and things required to exist, happen and be performed precedent to
and in the authorization, execution and delivery of the Indenture and the
issuance of this bond do exist, have happened and have been performed in due
time, form and manner as required by law, and that this bond and the issue of
which it forms a part, together with all other obligations of the Issuer, do not
exceed or violate any constitutional or statutory limitations.

                  THIS BOND AND THE INTEREST HEREON ARE A LIMITED OBLIGATION OF
THE ISSUER PAYABLE SOLELY FROM THE MONEYS PLEDGED THEREFOR AND SHALL NOT BE A
DEBT OF THE STATE OF WEST VIRGINIA OR ANY POLITICAL SUBDIVISION THEREOF,
INCLUDING THE CITY OF WEIRTON, WEST VIRGINIA, AND NEITHER THE STATE OF WEST
VIRGINIA NOR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE CITY OF WEIRTON,
WEST VIRGINIA, SHALL BE LIABLE HEREON. NEITHER THE FAITH AND CREDIT NOR THE
TAXING POWER OF THE ISSUER, THE STATE OR ANY OTHER POLITICAL SUBDIVISION OF THE
STATE IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF THIS BOND OR THE INTEREST
HEREON. THIS BOND AND THE INTEREST HEREON SHALL NOT BE A GENERAL OBLIGATION OF
THE ISSUER OR A CHARGE UPON THE TAX REVENUES OF THE ISSUER OR UPON ANY OTHER
REVENUES OR PROPERTY OF THE ISSUER NOT SPECIFICALLY PLEDGED THERETO. NO MEMBER
OR OFFICER OF THE ISSUER OR ANY PERSON EXECUTING THIS BOND ON BEHALF OF THE
ISSUER SHALL BE PERSONALLY LIABLE HEREON.

                  This bond shall not be valid, become obligatory for any
purpose or be entitled to any security or benefit under the Indenture until the
Certificate of Authentication hereon shall have been signed by the Trustee.

                                       2
<PAGE>

                  IN WITNESS WHEREOF, CITY OF WEIRTON, WEST VIRGINIA, has caused
this bond to be executed in its name by the manual or facsimile signature of its
Mayor, has caused its corporate seal or a facsimile thereof to be affixed,
impressed, imprinted or otherwise reproduced hereon and has caused such
signature and such seal to be attested to by the manual or facsimile signature
of its Clerk all on and as of the above Dated Date.

                                   CITY OF WEIRTON, WEST VIRGINIA

                                   By:
                                        ---------------------------------------
                                   Name:  Dean M. Harris
                                   Title: Mayor

(SEAL)

ATTEST:

------------------------------
Name:
       -----------------------
Title:  Clerk

                          (To Be Endorsed on All Bonds)

                (FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION)

                  This bond is one of the Bonds of the series therein specified
described in the within-mentioned Indenture.

                                        J.P. Morgan Trust Company, National
                                        Association, as Trustee

                                        By
                                            ----------------------------------
                                        Name:  David M. Babich
                                        Title:  Vice President

                                       3
<PAGE>

                                [Reverse of Bond]

                         CITY OF WEIRTON, WEST VIRGINIA
                SECURED POLLUTION CONTROL REVENUE REFUNDING BOND
                 (Weirton Steel Corporation Project) Series 2002

                  This bond is one of a duly authorized series of bonds limited
in aggregate principal amount to TWENTY-SEVEN MILLION THREE HUNDRED FORTY-EIGHT
THOUSAND DOLLARS ($27,348,000) (the "Series 2002 Bonds"), issued and authorized
to be issued for the purpose of refunding certain of the Issuer's outstanding
pollution control revenue bonds (the "Series 1989 Bonds") issued to finance (or
refinance) the acquisition, construction and installation of certain pollution
control equipment (the "Project") presently owned by, or leased to, Weirton
Steel Corporation, a Delaware corporation (the "Company") and located in the
Company's steel manufacturing plant in the City of Weirton, West Virginia, so as
to promote the job opportunities, health, general prosperity and welfare of the
inhabitants of the State of West Virginia. All capitalized terms not defined
herein shall have the meaning set forth in the Indenture. Descriptive headings
are merely for convenience and shall have no effect on the meaning or
interpretation hereof.

                  The Series 2002 Bonds are all issued under and are equally and
ratably secured and entitled to the security given by the Indenture. The
Indenture, among other things, assigns to the Trustee for the benefit of the
Bondholders certain of the rights and remedies of the Issuer under an agreement
(the "Agreement"), dated as of June 18, 2002, between the Issuer and the
Company, including the right to collect and receive certain amounts payable
thereunder, as security for the payment of the principal of, and premium, if
any, and interest on the Series 2002 Bonds, and assigns to the Trustee certain
right, title, and interest in the Security Documents.

                  The date or dates of such additional bonds, the rate or rates
of interest on such additional bonds, the time or times of payment of the
interest thereon and the principal thereof, and (except as otherwise provided in
the Indenture) the redemption provisions, if any, with respect thereto all shall
be provided in the supplemental indenture authorizing such additional bonds,
rather than as provided in the Indenture, and may differ from the provisions
with respect to the Series 2002 Bonds. Said additional bonds and the Series 2002
Bonds are collectively referred to herein as the "Bonds."

                  Reference is hereby made to the Agreement, the Security
Documents, the Collateral Agency Agreement, the Intercreditor Agreement and the
Indenture and to all amendments and supplements thereto (a copy of each of which
is and will be on file at the Principal Corporate Trust Office of the Trustee)
for the provisions, among others, with respect to the nature and extent of the
security for the Bonds, the rights, duties and obligations of the Issuer, the
Company, the Trustee and the Owners of the Bonds and the terms upon which the
Bonds are issued and secured.

                                       1
<PAGE>

INTEREST

                  Interest shall accrue on the principal amount of this bond
from June 18, 2002 until April 1, 2012 or the earlier redemption of the Bonds at
the respective rates per annum as set forth on the table below, and the Issuer
promises to pay such interest, semi-annually in arrears on April 1 and October 1
of each year, on said principal sum in like coin or currency at such rates, with
the first such payment commencing on October 1, 2002. The Company shall furnish
an Officer's Certificate to the Trustee specifying the applicable interest rate
on or prior to April 1 and October 1, 2003 and April 1 and October 1, 2004.

<TABLE>
<CAPTION>
Interest Period                                                  Interest Rate
<C>                                                              <C>      <C>
1.       From June 18, 2002 to March 31, 2003                    1.       0.5%

2.       From April 1, 2003 to March 31, 2005                    2.       The lesser of (a) the sum of 0.5% plus
                                                                          Contingent Interest Rate (as determined
                                                                          below) and (b) 9.0%.
3.       From April 1, 2005 to March 31, 2012                    3.       9.0%
</Table>

                  "Contingent Interest Rate" shall be expressed as a percentage
and determined by dividing (a) 50% of the Excess Cash Flow by (b) the sum of the
principal amount of all Outstanding Bonds (including this bond) and the
principal amount of all Outstanding Senior Secured Notes at the time of such
determination.

                  Interest on the Bonds shall be computed on the basis of a
360-day year of twelve 30-day months. The interest so payable on any April 1 and
October 1 will, except as otherwise provided in the Indenture, be paid to the
person in whose name this bond is registered at the close of business on the
March 15 or September 15 preceding such April 1 and October 1, whether or not
such day is a Business Day (as defined in the Indenture); provided that
Interest, if any, may be paid, at the option of the Issuer, by mailing a check
therefor payable to the registered holder entitled thereto at his last address
as it appears on the Bond Register. If the date of redemption or purchase of
this bond is other than an Interest Payment Date, then the amount of any accrued
and unpaid Interest due and payable on this bond at the time of any such
redemption or purchase shall be equal to the amount determined by multiplying
(i) the interest rate in effect as of the most recent Interest Payment Date
prior thereto by (ii) a fraction, the numerator of which is the actual number of
days elapsed in the period for which Interest is payable on the date of
redemption or purchase, and the denominator of which is 360.

                  Unless otherwise agreed by the Issuer and the holder of any
Bond, payments by the Issuer in respect of the Bonds (including principal,
premium, if any, and Interest) shall be paid to holders of the Bonds in
immediately available funds. If the date of maturity of Interest on or principal
of the Bonds or the date fixed for redemption of any Bond shall not be a
Business Day, then payment of Interest, or principal will be made on the next
succeeding Business Day, with the same force and effect as if made on the date
of maturity or the date fixed for redemption, and no Interest shall accrue for
the period after such date.

                  The Bonds are issuable as fully registered bonds without
coupons in the denominations of $1,000 or any integral multiple of $1,000 in
excess thereof.

                                       2
<PAGE>

                  This bond is fully negotiable and transferable, as provided in
the Indenture, only upon the books of the Issuer kept by the Trustee, and,
subject to the limitations provided in the Indenture, may be negotiated and
transferred by the registered owner hereof in person or by his attorney duly
authorized in writing upon the surrender of this bond together with a written
instrument of transfer reasonably satisfactory to the Trustee. Thereupon, a new
bond or bonds, in registered form, in the same aggregate unpaid principal amount
and of the same maturity, interest rate and series as this bond shall be issued
to the transferee in exchange herefor as provided in the Indenture.

                  The Issuer, the Trustee and any paying agent may deem and
treat the person in whose name this bond is registered as the absolute owner
hereof, whether this bond shall be overdue or not, for the purpose of receiving
payment of the principal of, premium, if any, and (subject to the provisions of
the Indenture) Interest on this bond and for all other purposes. All such
payments so made to the registered owner hereof shall satisfy and discharge the
liability upon this bond to the extent of the sum or sums so paid, and the
Issuer, the Trustee and any paying agent shall not be affected by any notice to
the contrary.

REDEMPTION

                  The Bonds are subject to mandatory redemption prior to their
maturity upon a "Determination of Taxability" (as hereinafter defined) with
respect to any Bond. If so called for redemption, the Bonds shall be redeemed by
the Issuer in whole at any time within two hundred ten (210) days after such
Determination of Taxability, at one hundred percent (100%) of the aggregate
principal amount of the Bonds then Outstanding, plus accrued Interest to the
redemption date.

                  A "Determination of Taxability" shall be deemed to have been
made upon the first to occur of the following events:

                           (i) the date on which the Company notifies the
                  Trustee that an "Event of Taxability" (as hereinafter defined)
                  has occurred, which notice is supported by one or more tax
                  schedules, returns or documents that evidence the occurrence
                  of such Event of Taxability; or

                           (ii) a final resolution that Qualified Stated
                  Interest or Original Issue Discount on any Bond is includable
                  in the gross income of the recipient thereof for Federal
                  income tax purposes (other than by reason of the recipient
                  being a "substantial use" of the Project or a "related person"
                  to a "substantial user," as such terms are defined in Section
                  103(b)(13) of the Code of 1954), that, under applicable law,
                  is not subject to further appeal, review or modification
                  through proceedings or otherwise, including (1) by the
                  expiration of a statute of limitations or a period for the
                  filing of claims appealing from adverse determinations, or
                  recovering any refund (including by offset), (2) by a
                  decision, judgment, decree, or other order by a court of
                  competent jurisdiction, which has become final and
                  unappealable, or (3) by closing agreement, an accepted offer
                  in compromise under the code, or comparable agreements under
                  United States federal income tax law or the laws of other
                  jurisdictions; provided, however, that

                                       3
<PAGE>

                  no Determination of Taxability described in clause (i) above
                  shall be deemed to have occurred if the Trustee shall have
                  received an unqualified written opinion of Bond Counsel
                  satisfactory to the Trustee, in form and substance
                  satisfactory to the Trustee, to the effect that no Event of
                  Taxability has occurred.

                  "Event of Taxability," with respect to any Bond, means a
change of law or regulation, or the interpretation thereof, or the occurrence of
any other event or the existence of any other circumstance (including without
limitation the fact that any representation or warranty of the Company or the
Issuer made in connection with the issuance of the Bonds is or was untrue) that
has the effect of causing Qualified Stated Interest or Original Issue Discount
on any Bond to be includable in the gross income of the recipient thereof for
Federal income tax purposes (other than by reason that such Qualified Stated
Interest or Original Issue Discount (i) is includable in the gross income of an
owner or former owner of a Bond while such owner or former owner is or was a
"substantial user" of the Project or a "related person" to a "substantial user,"
as such terms are defined in Section 103(b)(13) of the Code of 1954, or (ii) is
deemed an item of tax preference, including without limitation an item subject
to any alternative minimum tax). The Company shall give written notice to the
Issuer and the Trustee within thirty (30) days after becoming aware that an
Event of Taxability has occurred.

                  If the Issuer or the Trustee receives written notice from any
Owner of Bonds or taxing authority stating that a taxing authority proposes to
include Qualified Stated Interest or Original Issue Discount on any Bond in the
gross income of a holder or holders of Bonds for the reasons described herein or
any other proceeding has been instituted which may lead to a final resolution as
described in clause (ii) of the definition of "Determination of Taxability" or
to an Event of Taxability (a "Tax Proceeding"), then the Trustee and/or the
Issuer shall promptly give written notice to the Company of such Tax Proceeding
and the Company shall have the right, at its own expense, to participate in and
control the Tax Proceeding to the same extent that the Issuer would otherwise
have the right to participate in and control the Tax Proceeding. The Issuer
hereby agrees to execute all documents reasonably necessary to permit the
Company to participate in and control any such Tax Proceeding and neither the
Trustee nor the Issuer shall, without the prior written consent of the Company
(which consent shall not be unreasonably withheld) agree to the entry of any
judgment or enter into any settlement with respect to the Tax Proceeding.

                  The Bonds shall be redeemed prior to maturity by the Issuer in
whole at any time at 100% of the principal amount thereof, plus Interest accrued
thereon to the date set for redemption, if the Company elects to terminate the
Agreement upon the occurrence of one of the following events:

                           (i) the Project or any substantial portion of the Hot
                  Mill Collateral, Tandem Mill Collateral or the Tin Mill
                  Collateral, to the extent owned and operated by the Company
                  (each, a "Facility") shall have been damaged or destroyed to
                  such extent that (1) in the reasonable opinion of the Company,
                  expressed in a certificate signed by an Authorized
                  Representative of the Company, the Project or such substantial
                  portion of a Facility cannot be reasonably restored within a
                  period of 6 months from the date of such damage or
                  destruction, or (2) the Company is thereby prevented or, in
                  the reasonable opinion

                                       4
<PAGE>

                  of the Company expressed in a certificate signed by an
                  Authorized Representative of the Company, is likely to be
                  prevented from carrying on its normal operation of the Project
                  or such substantial portion of a Facility for a period of 6
                  months from the date of such damage or destruction; or

                           (ii) title to, or the temporary use of, all or
                  substantially all of the Project or any substantial portion of
                  a Facility shall have been condemned by a competent authority
                  which Condemnation results or, in the reasonable opinion of
                  the Company expressed in a certificate signed by an Authorized
                  Representative of the Company, is likely to result in the
                  Company being thereby prevented from carrying on its normal
                  operation of the Project or such substantial portion of a
                  Facility for a period of 6 months; or

                           (iii) as a result of changes in the Constitution of
                  the United States of America or of the State or of legislative
                  or executive action of any political subdivision thereof or of
                  the United States of America or by final decree or judgment of
                  any court, after the contest thereof by the Company, (x) the
                  Agreement becomes void or unenforceable or, (y) in the
                  reasonable opinion of the Company expressed in a certificate
                  signed by an Authorized Representative of the Company, (A) the
                  Agreement becomes impossible of performance in accordance with
                  the intent and purposes of the parties as expressed therein or
                  (B) unreasonable burdens or excessive liabilities are imposed
                  upon the Company by reason of the operation of the Project or
                  any substantial portion of a Facility; or

                           (iv) a change shall have occurred in the economic
                  availability of raw materials, manufactured products, energy
                  sources, operating supplies or facilities necessary for the
                  operation of the Project or any substantial portion of a
                  Facility for the purposes for which such Project or such
                  substantial portion of a Facility was originally constructed,
                  or such technological or other changes shall have occurred
                  that, in the reasonable opinion of the Company expressed in a
                  certificate signed by an Authorized Representative of the
                  Company, the Project or such substantial portion of a Facility
                  is rendered uneconomic, impractical or unfeasible for the
                  purposes for which it was originally constructed.

                  The Bonds also shall be redeemed prior to maturity by the
Issuer, at the option of the Company, in whole at any time or in part on any
Interest Payment Date on or after April 1, 2004, upon payment in each case of
the applicable redemption price (expressed as a percentage of the principal
amount of such Bonds to be so redeemed), as set forth in the schedule below,
together with Interest accrued thereon, if any, to the date set for redemption
if during the 12-month period beginning on April 1 of years indicated below:

                           Year                        Redemption Price
                           ----                        ----------------
                           2004                               102%
                           2005                               101%
                           2006 and thereafter                100%

                                       5
<PAGE>

                  The Bonds shall also be redeemed prior to maturity by the
Issuer in whole or in part on the first Interest Payment Date for which adequate
notice of redemption can be given hereunder, in the amount of any prepayment of
the Bond Loan required under Section 8.2(b) of the Agreement at a redemption
price equal to 100% of the principal amount redeemed plus accrued Interest
thereon to the redemption date.

                  In the event of redemption of less than all the Bonds
Outstanding, selection of the Bonds will be made by lot and, for such purposes,
the Trustee shall treat each Bond in a denomination greater than $1,000 in
principal amount at maturity as if it were that number of separate Bonds derived
by dividing its denomination by $1,000.

                  Whenever Bonds are to be redeemed as aforesaid or purchased
pursuant to Section 3.05 of the Indenture, the Trustee shall give written notice
of the redemption or purchase of the Bonds in the name of the Issuer stating:
(i) the Bonds or portions thereof to be redeemed or purchased; (ii) the
redemption or purchase date; (iii) the redemption or purchase price; and (iv)
that if moneys or Government Obligations sufficient for such redemption have
been deposited with the Trustee, from and after the redemption date, Interest on
any Bond so called for redemption shall cease to accrue.

                  Notice required as aforesaid shall be given by the Trustee by
first-class mail, postage prepaid, at least thirty (30) days and not more than
forty-five (45) days prior to the redemption or purchase date, to the registered
owners of any Bonds to be redeemed or purchased at the addresses of such
registered owners appearing on the registration books. Any failure to give such
notice or any defect therein shall not affect the proceedings for redemption or
purchase of any Bond as to which no such failure or defect has occurred.

                  On the redemption date, all Bonds or portions thereof so
called for redemption shall cease to bear Interest and shall no longer be
secured by or entitled to the benefits of the Indenture, provided that moneys or
Government Obligations for their redemption are on deposit with the Trustee at
that time.

                  In the event the date fixed for payment of Interest or
premium, if any, on or principal or purchase price of this bond or the date
fixed for redemption or purchase of this bond shall not be a Business Day, then
the payment of Interest or premium on or the principal or purchase price of this
bond, as the case may be, need not be made on such date but shall be made on the
next succeeding Business Day with the same force and effect as if made on such
date fixed for payment or such date fixed for redemption or purchase, as the
case may be, and no Interest attributable to any such delay shall accrue.
"Business Day" shall mean a day other than a Saturday, a Sunday or a legal
holiday on which national banks located in the State of New York or the State of
West Virginia or any city where the Trustee maintains its place of business for
performance of its obligations under the Indenture are not open for general
banking business.

OTHER TERMS

                  In the event that there shall occur a Designated Event, the
Owner of this bond may tender this bond for purchase and require the purchase of
this bond (but only in

                                       6
<PAGE>

denominations of $1,000 or any integral multiple thereof) on the Repurchase
Date, all as more fully described in the Indenture.

                  Upon the occurrence of an Event of Default, the principal
hereof and Interest hereon may be declared to be forthwith due and payable in
the manner, upon the conditions and with the effect provided in the Indenture.

                  The Owner of this bond shall have no right to enforce the
provisions of the Indenture, to institute any action to enforce the covenants
therein, to take any action with respect to any Event of Default thereunder or
to institute, appear in or defend any suit or other proceedings with respect
thereto, except as otherwise expressly provided in the Indenture. In addition,
the right of the Owner of this bond to institute or prosecute a suit for the
enforcement of payment hereof or to enter a judgment in any such suit is limited
to the extent that such action would result in the surrender, impairment, waiver
or loss of the Lien of the Indenture for the equal and ratable benefit of all
Bondholders.

                  Modifications or alterations of the Indenture or the Agreement
(or any supplements thereto) may be made only to the extent and under the
circumstances permitted by the Indenture.

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

                  The following abbreviations, when used in the inscription on
the face of this bond, shall be construed as though they were written out in
full according to applicable laws or regulations:

TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN  - as joint tenants with right of survivorship and not as tenants in
          common
UNIF GIFT MIN ACT - ____________ Custodian __________________
                      (Cust)                      (Minor)
                       under Uniform Gifts to Minors
                       Act ____________________
                                 (State)

Additional abbreviations may also be used though not in the above list.

                                       7
<PAGE>

                              (FORM OF ASSIGNMENT)

                  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto

PLEASE INSERT TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE

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

--------------------------------------------------------------------------------
            (please print or typewrite name and address of assignee)

the within bond and all rights and title thereunder, and hereby irrevocably
constitutes and appoints _________________________ attorney to transfer the
within bond on the books kept for registration  thereof, with full power of
substitution in the premises.

Dated:
        -----------------------------          ------------------------------

---------------------------------------
NOTICE: The signature above must correspond with the name as it appears upon the
face of the within bond in every particular, without enlargement or alteration,
and the Taxpayer Identification Number must be furnished.

Signature Guaranty:
                     ----------------------------------------------------------

The signature must be guaranteed by a member of a national securities exchange
or the National Association of Securities Dealers, Inc. or by a commercial bank
or trust company located in the United States of America.

                                       1

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