Document:

MEMORANDUM OF UNDERSTANDING
BETWEEN
MR. CHAN CHI CHEUNG AND THE SHAREHOLDERS OF SUPER SUCCESS
ELECTRONIC COMPANY LIMITED
AND
TAGALDER (2000) INCORPORATED

This is to confirm that Mr. Chan Chi Cheong and the shareholders of Super
Success Electronic Company Limited ("Changroup") agree to sell and Tagalder
(2000) Incorporated ("Tagalder") agrees to purchase 30% of the ownership of
Super Success Electronic Company Limited ("SS") under the following terms and
condidtions.

1.   "SS" is a Hong Kong registered company:
     Certificate No: 31496569-000-12-00-A
     Address:        Room 1019, 10/F., Hollywood Plaza, 610 Nathan Road,
                     Mong Kok, Kowloon, Hong Kong

2.   "SS" is owned by "Changroup"

3.   "SS" is in the business of manufacturing/exporting electronic product.

4.   The Price
     As agreed by both parties, the evaluation of "SS" is C$2,550,000.00. The
     purchase price of 30% of the ownership is fixed at C$765,000.00.

5.   The Management

     Both parties agree that Tagalder will elect one director to the board and
     retain the current management of "SS" until further notice.

6.   The Business

     Both parties agree to further develop and expand the current core business
     through corporate restructure and acquisition.

7.   Payment

     Both parties agree that Tagalder will issue common shares to pay for the
     purchase.

     The share price:            C$0.17
     Total new shares issued     4,500,000 shares

<PAGE>

8.   Official Approval

     This Memorandum of Understanding is conditional upon the following official
     Approval:

     Tagalder's Board
     Ontario Regulatory
     Tagalder's Shareholders

9.   Attachment

     - Audited Financial Statements of Super Success Electronic Company Limited
     - Certificate of Registration of Super Success Electronic Company Limited
     - Business Executive Summary
     - Evaluation

10.  The Memorandum of Understanding is signed on March 28, 2001 by:

/s/ Mr. Chan Chi Cheung                      /s/ Tagalder (2000) Incorporated
_______________________                      ________________________________
Mr. Chan Chi Cheung                          Tagalder (2000) Incorporated
Chairman

Date: March 28, 2001                         Date: March 28, 2001

<PAGE>MEMORANDUM  OF  UNDERSTANDING
Between
MR.  NG  TUNG  WO  PAUL/TUNG  SHING  (USA-CAN)  LTD
And
TAGALDER  (2000)  INCORPORATED

This  is  to  confirm  that  Mr. Ng Tung Wo Paul/Tung Shing (USA-CAN) Ltd ("Ng")
agrees  to sell and Tagalder (2000) Incorporated ("Tagalder") agrees to purchase
additional  ownership  of  Tung  Shing  Development Ltd ("TSD") up to 40% of the
holding  under  the  following  terms  and  conditions:

1.     "TSD"  is  a  Hong  Kong  registered  company:

       Certificate  no:          07178935-000-04-007
       Flat/RM  1706,  Bonham  Trade  CTR,  50  Bonham  Strand,  Hong  Kong

2.     "TSD"  is  owned  by  "Ng".

3.     "TSD"  is  in  the  business  of  investment,  import/export, and general
       trading in the plywood business. "TSD" confirmed that "TSD" has 51%
       ownership in Jiangxi  Tung  Shing  Plywood  Factory  Co.,  Ltd  ("TSPF").

4.     "TSD"  has  acquired  75%  of Shenzhen Punluen Industrial Co., Ltd at the
       purchase  price  of  C$2,399,627.00.

5.     "Tagalder"  already  acquired  20%  of  TSD  without the Shenzhen Punluen
       Insdutrial  Co.,  Ltd.

6.     The  Price:

       As  agreed  by both parties, the purchase price of 40% of the ownership
       with the holding  in  Shenzhen  Punluen  Insdutrial  Co., Ltd is fixed at
       C$3,246,672.00. Tagalder  already  paid  C$1,113,208.00. The remaining
       balance of C$2,133,464,00 will  be  paid  at  closing.

7.     The  Management

       Both parties agree that Tagalder will elect one director to the board and
       retain the  current  management  of  "TSD"  until  further  notice.

8.     The  Business

       Both  parties  agree  to  further  develop  and expand the current core
       business through  corporate  restructure  and  acquisition.

9.     Payment

       Both  parties  agree  that  Tagalder  will  issue  common  shares to pay
       for the purchase:.

       The  price:                           C$0.17
       Total  quantity  of  shares:          12,549,788  shares

10.     Official  Approval

This  agreement  is  conditional  upon  the  following  official  approval:

-     Tagalder's  Board
-     Regulatory  Approval
-     Tagalder  shareholders

11.     This  Memorandum  of  understanding  is  signed  on  June  18,  2001 by:

"Mr.  Ng  Tung  Wo  Paul"               "Mr.Peter  Chun"
------------------------                ---------------
Tung  Shing  Development  Limited       Tagalder  (2000)  Incorporated

Date:  June  18,2001                    Date:  June  18,2001MEMORDANDUM OF UNDERSTANDING
BETWEEN
SHAREHOLDERS OF TAGALDER GLOBAL INNOVATIONS LTD
AND
TAGLADER (2000) INCORPORATED

This is to confirm that the shareholders of Tagalder Global Innovations Ltd..,
("TGI") agrees to sell and Tagalder (2000) Incorporated, a Canadian public
Corporation, ("Tagalder") agrees to purchase 30% of Tagalder Global Innovations
Ltd. under the following terms and conditions.

1.   TGI owns a multi-media entertainment production company in Hong Kong
     known as the media entertainment division of "New Dimension Production (HK)
     Limited:

2.   The Price

     Tagalder agrees to pay C$1,942,956 for 30% of the ownership in TGI.

3.   The Management

     Tagalder will elect one director to the Board of TGI.

4.   Payment

     Both parties agree that Tagalder will issue common shares to pay for the
     purchase.

     Ownership:                30% of Taglader Global Innovations Ltd.
     Purchase Price:           C$1,942,956
     Share Price:              C$0.17
     New Issued Shares:        11,429,152

5.   Official Approval

     This Memorandum of Understanding is conditional upon the following official
     approval:

     Tagalder's Board
     Regulatory Approval
     Tagalder's Shareholders

6.   Attachment

     a. Audited Financial Statement of Tagalder Global Innovations Ltd.
     b. Certificate of Registration of Taglader Global Innovations Ltd.
     c. Business Executive Summary
     d. Evaluation

7.   This Memorandum of Understanding is signed on April 26, 2001 by:

/s/ Shareholders of Tagalder
Global Innovations Ltd.                      /s/ Taglader (2000) Incorporated
____________________________                 ________________________________
Shareholders of Taglader                     Tagalder (2000) Incorporated
Global Innovations Ltd.

Date: 04 26, 2001                            Date: 04 26, 2001<DOCUMENT>

Exhibit 4.2

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

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

UAL CORPORATION, Issuer

to

THE FIRST NATIONAL BANK OF CHICAGO, Trustee

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

INDENTURE

Dated as of December 20, 1996

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

Providing for Issuance of

Junior Subordinated Debt Securities in Series

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

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

TABLE OF CONTENTS

	 	Page
	ARTICLE 1 - DEFINITIONS AND OTHER
PROVISIONS OF GENERAL APPLICATION	1
	1.1.	DEFINITIONS	1
	1.2.	COMPLIANCE CERTIFICATES AND OPINIONS	14
	1.3.	FORM OF DOCUMENTS DELIVERED TO TRUSTEE	14
	1.4.	ACTS OF HOLDERS	15
	1.5.	NOTICES, ETC., TO TRUSTEE AND COMPANY	17
	1.6.	NOTICE TO HOLDERS; WAIVER	17
	1.7.	HEADINGS AND TABLE OF CONTENTS	18
	1.8.	SUCCESSORS AND ASSIGNS	18
	1.9.	SEPARABILITY	18
	1.10.	BENEFITS OF INDENTURE	19
	1.11.	GOVERNING LAW	19
	1.12.	LEGAL HOLIDAYS	19
	1.13.	TRUSTEE TO ESTABLISH RECORD DATES	19
	1.14.	NO RECOURSE AGAINST OTHERS	19
	

ARTICLE 2 -  SECURITY FORMS	

20
	2.1.	FORMS GENERALLY	20
	2.2.	FORM OF TRUSTEE'S CERTIFICATE OF	21
	                
AUTHENTICATION	 
	2.3.	SECURITIES IN GLOBAL FORM	21
	2.4.	FORM OF LEGEND FOR SECURITIES IN
GLOBAL FORM	22
	 	 	 
	ARTICLE 3 -  THE SECURITIES	22
	3.1.	AMOUNT UNLIMITED; ISSUABLE IN SERIES	22
	3.2.	DENOMINATIONS	27
	3.3.	EXECUTION, AUTHENTICATION, DELIVERY
AND DATING	27
	3.4.	TEMPORARY SECURITIES	31
	3.5.	REGISTRATION, REGISTRATION OF TRANSFER
AND EXCHANGE	32
	3.6.	REPLACEMENT SECURITIES	36
	3.7.	PAYMENT OF INTEREST; INTEREST RIGHTS
PRESERVED	37
	3.8.	PERSONS DEEMED OWNERS	39
	3.9.	CANCELLATION	40
	3.10.	COMPUTATION OF INTEREST	40
	3.11.	CURRENCY AND MANNER OF PAYMENT IN
RESPECT OF SECURITIES	40
	3.12.	APPOINTMENT AND RESIGNATION OF EXCHANGE
RATE AGENT	45
	3.13.	CUSIP NUMBERS	46
	

ARTICLE 4 -  SATISFACTION, DISCHARGE AND DEFEASANCE	

46
	4.1.	TERMINATION OF COMPANY'S OBLIGATIONS
UNDER THE INDENTURE	46
	4.2.	APPLICATION OF TRUST FUNDS	48
	4.3.	APPLICABILITY OF DEFEASANCE PROVISIONS;
COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE	48
	4.4.	DEFEASANCE AND DISCHARGE	49
	4.5.	COVENANT DEFEASANCE	49
	4.6.	CONDITIONS TO DEFEASANCE OR COVENANT
DEFEASANCE	50
	4.7.	DEPOSITED MONEY AND GOVERNMENT OBLIGATIONS
TO BE HELD IN TRUST	52
	4.8.	TRANSFERS AND DISTRIBUTION AT COMPANY
REQUEST	53
	

ARTICLE 5 -  DEFAULTS AND REMEDIES	

54
	5.1.	EVENTS OF DEFAULT	54
	5.2.	ACCELERATION; RESCISSION AND ANNULMENT	55
	5.3.	COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT
BY TRUSTEE	56
	5.4.	TRUSTEE MAY FILE PROOFS OF CLAIM	56
	5.5.	TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION
OF SECURITIES	56
	5.6.	DELAY OR OMISSION NOT WAIVER	56
	5.7.	WAIVER OF PAST DEFAULTS	57
	5.8.	CONTROL BY MAJORITY	57
	5.9.	LIMITATION ON SUITS BY HOLDERS	57
	5.10.	RIGHTS OF HOLDERS TO RECEIVE PAYMENT	58
	5.11.	APPLICATION OF MONEY COLLECTED	58
	5.12.	RESTORATION OF RIGHTS AND REMEDIES	59
	5.13.	RIGHTS AND REMEDIES CUMULATIVE	59
	5.14.	UNDERTAKING FOR COSTS	59
	5.15.	ACTION RESPECTING SECURITIES HELD IN UAL CORPORATION
CAPITAL TRUST	60
	

ARTICLE 6 -  THE TRUSTEE	

60
	6.1.	CERTAIN DUTIES AND RESPONSIBILITIES	60
	6.2.	RIGHTS OF TRUSTEE	61
	6.3.	TRUSTEE MAY HOLD SECURITIES	63
	6.4.	MONEY HELD IN TRUST	63
	6.5.	TRUSTEE'S DISCLAIMER	63
	6.6.	NOTICE OF DEFAULTS	63
	6.7.	REPORTS BY TRUSTEE TO HOLDERS	63
	6.8.	SECURITYHOLDER LISTS	64
	6.9.	COMPENSATION AND INDEMNITY	64
	6.10.	REPLACEMENT OF TRUSTEE	65
	6.11.	ACCEPTANCE OF APPOINTMENT BY SUCCESSOR	67
	6.12.	ELIGIBILITY; DISQUALIFICATION	68
	6.13.	MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION
TO BUSINESS	68
	6.14.	APPOINTMENT OF AUTHENTICATING AGENT	69
	6.15.	TRUSTEE'S APPLICATION FOR INSTRUCTIONS FROM
THE COMPANY	70
	

ARTICLE 7 -  CONSOLIDATION, MERGER OR SALE BY THE COMPANY	

71
	

ARTICLE 8 -  SUPPLEMENTAL INDENTURES	

72
	8.1.	SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS	72
	8.2.	SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS	73
	8.3.	COMPLIANCE WITH TRUST INDENTURE ACT	75
	8.4.	EXECUTION OF SUPPLEMENTAL INDENTURES	75
	8.5.	EFFECT OF SUPPLEMENTAL INDENTURES	75
	8.6.	REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES	75
	

ARTICLE 9 -  COVENANTS	

76
	9.1.	PAYMENT OF PRINCIPAL, PREMIUM, IF
ANY, AND INTEREST	76
	9.2.	MAINTENANCE OF OFFICE OR AGENCY	76
	9.3.	MONEY FOR SECURITIES TO BE HELD
IN TRUST; UNCLAIMED MONEY	78
	9.4.	CORPORATE EXISTENCE	79
	9.5.	INSURANCE	79
	9.6.	REPORTS BY THE COMPANY	79
	9.7.	ANNUAL REVIEW CERTIFICATE	80
	9.8.	LIMITATION ON DIVIDENDS AND CAPITAL
STOCK ACQUISITIONS	80
	9.9.	NOTICE OF DEFAULT	81
	

ARTICLE 10 - REDEMPTION	

81
	10.1.	APPLICABILITY OF ARTICLE	81
	10.2.	ELECTION TO REDEEM; NOTICE TO TRUSTEE	81
	10.3.	SELECTION OF SECURITIES TO BE REDEEMED	82
	10.4.	NOTICE OF REDEMPTION	82
	10.5.	DEPOSIT OF REDEMPTION PRICE	83
	10.6.	SECURITIES PAYABLE ON REDEMPTION
DATE	84
	10.7.	SECURITIES REDEEMED IN PART	85
	

ARTICLE 11 - SINKING FUNDS	

85
	11.1.	APPLICABILITY OF ARTICLE	85
	11.2.	SATISFACTION OF SINKING FUND PAYMENTS
WITH SECURITIES	85
	11.3.	REDEMPTION OF SECURITIES FOR SINKING
FUND	86
	

ARTICLE 12 - SUBORDINATION OF SECURITIES	

86
	12.1.	SECURITIES SUBORDINATED TO SENIOR
INDEBTEDNESS	86
	12.2.	COMPANY NOT TO MAKE
PAYMENTS WITH RESPECT TO SECURITIES IN CERTAIN CIRCUMSTANCES; LIMITATIONS
ON ACCELERATION OF SECURITIES	87
	12.3.	SECURITIES SUBORDINATED TO PRIOR
PAYMENT OF ALL SENIOR INDEBTEDNESS ON DISSOLUTION, LIQUIDATION OR REORGANIZATION
OF THE COMPANY	89
	12.4.	HOLDERS TO BE SUBROGATED TO RIGHTS
OF HOLDERS OF SENIOR INDEBTEDNESS	91
	12.5.	OBLIGATION OF THE COMPANY UNCONDITIONAL	91
	12.6.	KNOWLEDGE OF TRUSTEE	92
	12.7.	APPLICATION BY TRUSTEE OF MONEYS
DEPOSITED WITH IT	93
	12.8.	SUBORDINATION RIGHTS NOT IMPAIRED
BY ACTS OR OMISSIONS OF COMPANY OR HOLDERS OF SENIOR INDEBTEDNESS	93
	12.9.	HOLDERS AUTHORIZE TRUSTEE TO EFFECTUATE
SUBORDINATION OF SECURITIES	94
	12.10	RIGHT OF TRUSTEE TO HOLD SENIOR
INDEBTEDNESS	94
	12.11	ARTICLE 12 NOT TO PREVENT EVENTS
OF DEFAULT	94
	12.12	PAYING AGENTS OTHER THAN THE TRUSTEE	94
	12.13	TRUSTEE'S COMPENSATION NOT PREJUDICED	95
	12.14	TRUST MONEYS NOT SUBORDINATED	95
	12.15	RELIANCE ON JUDICIAL ORDER OR CERTIFICATE
OF LIQUIDATING AGENT	95
	12.16	TRUSTEE NOT FIDUCIARY FOR HOLDERS
OR SENIOR INDEBTEDNESS OF THE COMPANY	95

 
Reconciliation and tie between Indenture dated as of December 20, 1996
and the Trust Indenture Act of 1939, as amended.

 

 

 

	Trust Indenture Act

of 1939 Section	Indenture

Section
		
	310 (a) (1)	6.12
	       (a) (2)	6.12
	       (a) (3)	TIA
	       (a) (4)	Not applicable
	       (a) (5)	TIA
	       (b)	6.10; 6.12; TIA
		
	311 (a)	TIA
	       (b)	TIA
		
	312 (a)	6.8
	       (b)	TIA
	       (c)	TIA
		
	313 (a)	6.7; TIA
	       (b)	TIA
	       (c)	TIA
	       (d)	TIA
		
	314 (a)	9.6; 9.7; TIA
	       (b)	Not Applicable
	       (c) (1)	1.2
	       (c) (2)	1.2
	       (c) (3)	Not Applicable
	       (d)	Not Applicable
	       (e)	TIA
	       (f)	TIA
		
	315 (a)	TIA
	       (b)	6.6
	       (c)	TIA
	       (d) (1)	TIA
	       (d) (2)	TIA
	       (d) (3)	TIA
	       (e)	TIA
		
	316 (a) (last sentence)	1.1
	       (a) (1) (A)	5.2; 5.8
	       (a) (1) (B)	5.7
	       (b)	5.9; 5.10
	       (c)	TIA
		
	317 (a) (1)	5.3
	       (a) (2)	5.4
	       (b)	9.3
		
	318 (a)	1.11
	       (b)	TIA
	       (c)	1.11; TIA

This reconciliation and tie section does not constitute part of the
Indenture.

 

 

          INDENTURE, dated
as of December 20, 1996, among UAL CORPORATION, a Delaware corporation
(the "Company"), as issuer, and THE FIRST NATIONAL BANK OF CHICAGO, a national
banking association, as Trustee (the "Trustee").

Recitals

--------

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

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

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

ARTICLE 1

Definitions and Other Provisions

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

of General Application

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

          Section 1.1.  
Definitions.  (a) For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

     (1)  the terms defined in this Article
have the meanings assigned to them in this Article and include the plural
as well as the singular;
     (2)  all other terms used herein which
are defined in the Trust Indenture Act, either directly or by reference
therein, have the meanings assigned to them therein;

     (3)  all accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with generally
accepted accounting principles; and

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

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

          "Agent" means
any Paying Agent or Registrar.

          "Authenticating
Agent" means any authenticating agent appointed by the Trustee pursuant
to Section 6.14.

          "Authorized Newspaper"
means a newspaper of general circulation, in the official language of the
country of publication or in the English language, customarily published
on each Business Day whether or not published on Saturdays, Sundays or
holidays, and of general circulation in the place in connection with which
the term is used or in the financial community of such place.  Whenever
successive publications in an Authorized Newspaper are required hereunder
they may be made (unless otherwise expressly provided herein) on any Business
Day and in the same or different Authorized Newspapers.

          "Bearer Security"
means any Security in the form (to the extent applicable thereto) established
pursuant to Section 2.1 which is payable to bearer.

          "Board" or "Board
of Directors" means the Board of Directors of the Company, the Executive
Committee or any other duly authorized committee thereof.

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

          "Business Day",
when used with respect to any Place of Payment or any other particular
location referred to in this Indenture or in the Securities, means, unless
otherwise specified with respect to any Securities pursuant to Section
3.1, each Monday, Tuesday, Wednesday, Thursday and Friday which is not
a day on which banking institutions in that Place of Payment or particular
location are authorized or obligated by law or executive order to close.

          "Capital Lease"
means any lease obligation of a person incurred with respect to real property
or equipment acquired or leased by such person and used in its business
that is required to be recorded on its balance sheet as a capitalized lease
in accordance with generally accepted accounting principles consistently
applied as in effect on the date hereof.

          "Commission"
means the Securities and Exchange Commission, as from time to time constituted,
created under the Securities Exchange Act of 1934, or, if at any time after
the execution of this Indenture such Commission is not existing and performing
the duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.

          "Common Securities"
shall mean the common undivided beneficial interests in the assets of the
applicable UAL Corporation Capital Trust.

          "Company" means
the Person named as the Company in the first paragraph of this Indenture
until one or more successor corporations shall have become such pursuant
to the applicable provisions of this Indenture, and thereafter means such
successors.

          "Company Order"
and "Company Request" mean, respectively, a written order or request signed
in the name of the Company by the Chairman of the Board, the President,
any Executive Vice President or any Senior Vice President, signing alone,
by any Vice President signing together with the Treasurer, any Assistant
Treasurer, the Corporate Secretary or any Assistant Secretary of the Company,
or, with respect to Sections 3.3, 3.4, 3.5 and 6.1, any other employee
of the Company named in an Officers' Certificate delivered to the Trustee.

          "Conversion Event"
means the cessation of use of (i) a Foreign Currency both by the government
of the country which issued such currency and for the settlement of transactions
by a central bank or other public institutions of or within the international
banking community, (ii) the ECU both within the European Monetary System
and for the settlement of transactions by public institutions of or within
the European Communities or (iii) any currency unit other than the ECU
for the purposes for which it was established.

          "Corporate Trust
Office" means the principal office of the Trustee at which at any particular
time its corporate trust business shall be administered, which office at
the date of original execution of this Indenture is located at One First
National Plaza, Suite 0126, Chicago, Illinois  60670, Attention: Corporate
trust Administration, except that, with respect to presentation of the
Securities for payment or registration of transfers or exchanges and the
location of the register, such term means the office or agency of the Trustee
at which at any particular time its corporate agency business shall be
conducted, which at the date of original execution of this Indenture is
located as c/o First Chicago Trust Company of New York, 14 Wall Street-8th
Floor-Window 2, New York, New York  10005.

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

          "coupon" means
any interest coupon appertaining to a Bearer Security.

          "Declaration
of Trust" shall mean the Declaration of Trust of the UAL Corporation Capital
Trust, if any, specified in the applicable Board Resolution or supplemental
indenture establishing a particular series of Securities pursuant to Section
3.01 hereof.

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

          "Depositary",
when used with respect to the Securities of or within any series issuable
or issued in whole or in part in global form, means the Person designated
as Depositary by the Company pursuant to Section 3.1 until a successor
Depositary shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter shall mean or include each Person which
is then a Depositary hereunder, and if at any time there is more than one
such Person, shall be a collective reference to such Persons.

          "Dollar" means
the coin or currency of the United States as at the time of payment is
legal tender for the payment of public and

private debts.

          "ECU" means the
European Currency Unit as defined and revised from time to time by the
Council of the European Communities.

          "European Communities"
means the European Economic Community, the European Coal and Steel Community
and the European Atomic Energy Community.

          "European Monetary
System" means the European Monetary System established by the Resolution
of December 5, 1978 of the Council of the European Communities.

          "Exchange Rate
Agent", when used with respect to Securities of or within any series, means,
unless otherwise specified with respect to any Securities pursuant to Section
3.1, a New York Clearing House bank designated pursuant to Section 3.1
or Section 3.12.

          "Exchange Rate
Officer's Certificate" means a certificate setting forth (i) the applicable
Market Exchange Rate or the applicable bid quotation and (ii) the Dollar
or Foreign Currency amounts of principal (and premium, if any) and interest,
if any (on an aggregate basis and on the basis of a Security having the
lowest denomination principal amount in the relevant currency or currency
unit), payable with respect to a Security of any series on the basis of
such Market Exchange Rate or the applicable bid quotation, signed by the
Treasurer, any Vice President or any Assistant Treasurer of the Company.

          "Flight Equipment"
means:

     (a)  aircraft of all types and classes
used in transportation and incidental services, together with all aircraft
instruments, appurtenances parts and fixtures comprising such aircraft;
     (b)  aircraft engines of all types and
classes used in transportation and incidental services, together with all
accessories, appurtenances, parts and fixtures comprising such aircraft
engines;

     (c)  aircraft communication equipment
of all types and classes used in transportation and incidental services,
including radio, radar, radiophone and other aircraft communication apparatus,
together with all accessories, appurtenances, parts and fixtures comprising
such aircraft communication equipment;

     (d)  miscellaneous flight equipment of
all types and classes (including miscellaneous crew flight equipment) used
in transportation and incidental services; and

     (e)  spare parts, accessories and assemblies
held for use in or repair of the items described in (a) through (d) above.

          "Foreign Currency"
means any currency issued by the government of one or more countries other
than the United States or by any recognized confederation or association
of such governments.

          "Government Obligations"
means securities which are (i) direct obligations of the United States
or, if specified as contemplated by Section 3.1, the government which issued
the currency in which the Securities of a particular series are payable,
for the payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by and acting as an agency or instrumentality
of the United States or, if specified as contemplated by Section 3.1, such
government which issued the foreign currency in which the Securities of
such series are payable, the payment of which is unconditionally guaranteed
as a full faith and credit obligation by the United States or such other
government, which, in either case, are not callable or redeemable at the
option of the issuer thereof, and shall also include a depositary receipt
issued by a bank or trust company as custodian with respect to any such
Government Obligation or a specific payment of interest on or principal
of any such Government Obligation held by such custodian for the account
of the holder of a depositary receipt, provided that (except as required
by law) such custodian is not authorized to make any deduction from the
amount payable to the holder of such depositary receipt from any amount
received by the custodian in respect of the Government Obligation evidenced
by such depositary receipt.

          "Holder" means,
with respect to a Bearer Security or coupon, a bearer thereof and, with
respect to a Registered Security, a person in whose name a Security is
registered on the Register.

          "Indebtedness"
of any Person means, without duplication, the principal of, and premium,
if any, and accrued and unpaid interest (including post-petition interest)
on any obligation, whether outstanding on the date hereof or thereafter
created, incurred or assumed, which is (i) indebtedness of such Person
for money borrowed, (ii) Indebtedness Guarantees by such Person of indebtedness
for money borrowed by any other Person, (iii) indebtedness evidenced by
notes, debentures, bonds or other instruments of indebtedness for payment
of which such Person is responsible or liable, (iv) obligations for the
reimbursement of any obligor on any letter of credit, bankers' acceptance
or similar credit transaction, (v) obligations of such Person under Capital
Leases and Flight Equipment leases (the amount of the Company's obligation
under such Flight Equipment leases to be computed in accordance with Statement
of Financial Accounting Standards No. 13 as if such Flight Equipment leases
were Capital Leases), (vi) obligations (net of counterparty payments) under
interest rate and currency swaps, caps, collars, options, forward or spot
contracts or similar arrangements or with respect to foreign currency hedges,
and (vii) commitment and other bank financing fees under contractual obligations
associated with bank debt; provided, however, that Indebtedness shall not
include amounts owed to trade creditors in the ordinary course of business.

          "Indebtedness
Guarantee" by any Person means any obligation, contingent or otherwise,
of such Person directly or indirectly guaranteeing any Indebtedness or
other obligation of any other Person and, without limiting the generality
of the foregoing, any obligation, direct or indirect, contingent or otherwise,
of such Person (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation (whether
arising by virtue of partnership arrangements, by agreement to keep-well,
to purchase assets, goods, securities or services, to take-or-pay, or to
maintain financial statement conditions or otherwise) or (ii) entered into
for the purpose of assuring in any other manner the obligee of such Indebtedness
or other obligation of the payment or performance thereof (or payment of
damages in the event of nonperformance) or to protect such obligee against
loss in respect thereof (in whole or in part); provided, however, that
the terms Indebtedness Guarantee shall not include endorsements for collection
or deposit in the ordinary course of business.  The term "Indebtedness
Guarantee" used as a verb has a corresponding meaning.

          "Indenture" means
this Indenture as originally executed or as amended or supplemented from
time to time and shall include the forms and terms (but not defined terms
established in an Officers' Certificate or a Board Resolution) of particular
series of Securities established as contemplated by Section 2.1 and Section
3.1.

          "Indexed Security"
means a Security the terms of which provide that the principal amount thereof
payable at Stated Maturity may be more or less than the principal face
amount thereof at original issuance.

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

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

          "Market Exchange
Rate" means, unless otherwise specified with respect to any Securities
pursuant to Section 3.1, (i) for any conversion involving a currency unit
on the one hand and Dollars or any Foreign Currency on the other, the exchange
rate between the relevant currency unit and Dollars or such Foreign Currency
calculated by the method specified pursuant to Section 3.1 for the Securities
of the relevant series, (ii) for any conversion of Dollars into any Foreign
Currency, the noon buying rate for such Foreign Currency for cable transfers
quoted in New York City as certified for customs purposes by the Federal
Reserve Bank of New York and (iii) for any conversion of one Foreign Currency
into Dollars or another Foreign Currency, the spot rate at noon local time
in the relevant market at which, in accordance with normal banking procedures,
the Dollars or Foreign Currency into which conversion is being made could
be purchased with the Foreign Currency from which conversion is being made
from major banks located in New York City, London or any other principal
market for Dollars or such purchased Foreign Currency, in each case determined
by the Exchange Rate Agent.  Unless otherwise specified with respect
to any Securities pursuant to Section 3.1, in the event of the unavailability
of any of the exchange rates provided for in the foregoing clauses (i),
(ii) and (iii), the Exchange Rate Agent shall use, in its sole discretion
and without liability on its part, such quotation of the Federal Reserve
Bank of New York as of the most recent available date, or quotations from
one or more major banks in New York City, London or other principal market
for such currency or currency unit in question (which may include any such
bank acting as Trustee under this Indenture), or such other quotations
as the Exchange Rate Agent shall deem appropriate.  Unless otherwise
specified by the Exchange Rate Agent, if there is more than one market
for dealing in any currency or currency unit by reason of foreign exchange
regulations or otherwise, the market to be used in respect of such currency
or currency unit shall be that upon which a nonresident issuer of securities
designated in such currency or currency unit would purchase such currency
or currency unit in order to make payments in respect of such securities.

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

          "Officer" means
the Chairman of the Board of Directors, the President, any Executive Vice
President, any Senior Vice President, any Vice President or the Corporate
Secretary of the Company.

          "Officers' Certificate"
means a certificate signed by the Chairman of the Board, the President,
any Executive Vice President or any Senior Vice President of the Company,
signing alone, or by any Vice President signing together with the Corporate
Secretary, any Assistant Secretary, the Treasurer, or any Assistant Treasurer
of the Company.

          "Opinion of Counsel"
means a written opinion of legal counsel, who may be (a) the senior attorney
employed by the Company, (b) any other Officer who is an attorney, (c)
Mayer, Brown & Platt or (d) other counsel designated by the Company
and who shall be acceptable to the Trustee.

          "Original Issue
Discount Security" means any Security which provides for an amount less
than the stated principal amount thereof to be due and payable upon declaration
of acceleration of the Maturity thereof pursuant to Section 5.2.

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

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

     (ii) Securities, or portions thereof, for
whose payment or redemption money in the necessary amount has been theretofore
deposited with the Trustee or any Paying Agent (other than the Company)
in trust or set aside and segregated in trust by the Company (if the Company
shall act as its own Paying Agent) for the Holders of such Securities and
any coupons appertaining thereto provided that, if such Securities are
to be redeemed, notice of such redemption has been duly given pursuant
to this Indenture or provisions therefor satisfactory to the Trustee have
been made;
     (iii) Securities, except to the extent provided
in Sections 4.4 and 4.5, with respect to which the Company has effected
defeasance and/or covenant defeasance as provided in Article 4; and

     (iv) Securities which have been paid pursuant
to Section 3.6 or in exchange for or in lieu of which other Securities
have been authenticated and delivered pursuant to this Indenture, other
than any such Securities in respect of which there shall have been presented
to the Trustee proof satisfactory to it that such Securities are held by
a bona fide purchaser in whose hands such Securities are valid obligations
of the Company; provided, however, that in determining whether the Holders
of the requisite principal amount of the Outstanding Securities have given
any request, demand, authorization, direction, notice, consent or waiver
hereunder, or whether sufficient funds are available for redemption or
for any other purpose, and for the purpose of making the calculations required
by section 313 of the Trust Indenture Act, (w) the principal amount of
any Original Issue Discount Securities that may be counted in making such
determination or calculation and that shall be deemed to be Outstanding
for such purpose shall be equal to the amount of principal thereof that
would be (or shall have been declared to be) due and payable, at the time
of such determination, upon a declaration of acceleration of the maturity
thereof pursuant to Section 5.2, (x) the principal amount of any Security
denominated in a Foreign Currency that may be counted in making such determination
or calculation and that shall be deemed Outstanding for such purpose shall
be equal to the Dollar equivalent, determined as of the date such Security
is originally issued by the Company as set forth in an Exchange Rate Officer's
Certificate delivered to the Trustee, of the principal amount (or, in the
case of an Original Issue Discount Security, the Dollar equivalent as of
such date of original issuance of the amount determined as provided in
clause (w) above) of such Security, (y) the principal amount of any Indexed
Security that may be counted in making such determination or calculation
and that shall be deemed outstanding for such purpose shall be equal to
the principal face amount of such Indexed Security at original issuance,
unless otherwise provided with respect to such Security pursuant to Section
3.1, and (z) Securities owned by the Company or any other obligor upon
the Securities or any Affiliate of the Company or of such other obligor
shall be disregarded and deemed not to be outstanding, except that, in
determining whether the Trustee shall be protected in making such calculation
or in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Securities which the Trustee knows to be
so owned shall be so disregarded. Securities so owned which have been pledged
in good faith may be regarded as outstanding if the pledgee establishes
to the satisfaction of the Trustee the pledgee's right so to act with respect
to such Securities and that the pledgee is not the Company or any other
obligor upon the Securities or any Affiliate of the Company or such other
obligor.

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

          "Periodic Offering"
means an offering of Securities of a series from time to time the specific
terms of which Securities, including, without limitation, the rate or rates
of interest or formula for determining the rate or rates of interest thereon,
if any, the Stated Maturity or Stated Maturities thereof, the original
issue date or dates thereof, the redemption provisions, if any,  with
respect thereto, and any other terms specified as contemplated by Section
3.1 with respect thereto, are to be determined by the Company upon the
issuance of such Securities.

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

          "Place of Payment",
when used with respect to the Securities of or within any series, means
the place or places where, subject to the provisions of Section 9.2, the
principal of, premium, if any, and interest, if any, on such Securities
are payable as specified as contemplated by Section 3.1.

          "Predecessor
Security" of any particular Security means every previous Security evidencing
all or a portion of the same debt as that evidenced by such particular
Security; and, for the purposes of this definition, any Security authenticated
and delivered under Section 3.6 in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.

          "Preferred Securities"
means the preferred undivided beneficial interests in the assets of the
applicable UAL Corporation Capital Trust.

          "Redeemable Stock"
means, with respect to any person, any equity security of such person that
by its terms or otherwise (i) is required to be redeemed prior to the maturity
of any of the Securities, or is redeemable at the option of the holder
thereof at any time prior to the maturity of any of the Securities, and
(ii) creates a financial obligation on such person if any required or optional
redemption obligation is not timely satisfied.

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

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

          "Registered Security"
means any Security in the form (to the extent applicable thereto) established
pursuant to Section 2.1 which is registered as to principal and interest
in the Register.

          "Regular Record
Date" for the interest payable on any Interest Payment Date on the Registered
Securities of or within any series means the date specified for that purpose
as contemplated by Section 3.1.

          "Responsible
Officer", when used with respect to the Trustee, shall mean the chairman
or any vice chairman of the board of directors, the chairman or any vice
chairman of the executive committee of the board of directors, the chairman
of the trust committee, the president, any senior vice president, any vice
president, any assistant vice president, the secretary, the treasurer,
any assistant treasurer, the cashier, any assistant cashier, any senior
trust officer, any trust officer, the controller, any assistant controller,
or any other officer of the Trustee customarily performing functions similar
to those performed by the persons who at the time shall be such officers,
respectively, and also means, with respect to a particular corporate trust
matter, any other officer to whom such corporate trust matter is referred
because of his knowledge of and familiarity with the particular subject.

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

          "Security Exchange,"
when used with respect to the Securities of any series which are held as
trust assets of a UAL Corporation Capital Trust pursuant to the Declaration
of Trust of such UAL Corporation Capital Trust, shall mean the distribution
of the Securities of such series by such UAL Corporation Capital Trust
in exchange for the Preferred Securities and Common Securities of such
UAL Corporation Capital Trust in dissolution of such UAL Corporation Capital
Trust pursuant to the Declaration of Trust of such UAL Corporation Capital
Trust.

          "Senior Indebtedness
of the Company" means all Indebtedness of the Company (other than the Securities),
unless such Indebtedness, by its terms or the terms of the instrument creating
or evidencing it, is subordinate in right of payment to or pari passu with
the Securities, and, in particular, the Securities shall rank pari passu
with all other debt securities and guarantees in respect of those debt
securities issued to any other UAL Corporation Capital Trust or any indebtedness
of the Company to a Subsidiary.

          "Special Record
Date" for the payment of any Defaulted Interest on the Registered Securities
of any issue means a date fixed by the Trustee pursuant to Section 3.7.

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

          "Subsidiary"
means any corporation of which the Company at the time owns or controls,
directly or indirectly, more than 50% of the shares of outstanding stock
having general voting power under ordinary circumstances to elect a majority
of the Board of Directors of such corporation (irrespective of whether
or not at the time stock of any other class or classes of such corporation
shall have or might have voting power by reason of the happening of any
contingency).

          "Trust Indenture
Act" means the Trust Indenture Act of 1939, as amended, as in effect on
the date of this Indenture, except as provided in Section 8.3.

          "Trustee" means
the party named as such in the first paragraph of this Indenture until
a successor Trustee replaces it pursuant to the applicable provisions of
this Indenture, and thereafter means such successor Trustee and if, at
any time, there is more than one Trustee, "Trustee" as used with respect
to the Securities of any series shall mean the Trustee with respect to
the Securities of that series.

          "UAL Corporation
Capital Trust" shall mean any statutory business trust created under the
laws of the State of Delaware specified in or pursuant to the applicable
Board Resolution or supplemental indenture establishing a particular series
of Securities pursuant to Section 3.1 hereof.

          "United States"
means, unless otherwise specified with respect to the Securities of any
series as contemplated by Section 3.1, the United States of America (including
the States and the District of Columbia), its territories, its possessions
and other areas subject to its jurisdiction.

          "U.S. Person"
means, unless otherwise specified with respect to the Securities of any
series as contemplated by Section 3.1, a citizen, national or resident
of the United States, a corporation, partnership or other entity created
or organized in or under the laws of the United States or any political
subdivision thereof, or an estate or trust the income of which is subject
to United States federal income taxation regardless of its source.

          "Yield to Maturity"
means the yield to maturity, calculated by the Company at the time of issuance
of a series of Securities or, if applicable, at the most recent determination
of interest on such series, in accordance with accepted financial practice.

          (b)  The
following terms shall have the meanings specified in the Sections referred
to opposite such term below:

 

	Term	Section
	 	 
	"Act"	1.4(a)
	"Bankruptcy Law"	5.1
	"Component Currency"	3.11(d)
	"Conversion Date"	3.11(d)
	"Custodian"	5.1
	"Defaulted Interest"	3.7(b)
	"Election Date"	3.11(h)
	"Event of Default"	5.1
	"Register"	3.5
	"Registrar"	3.5
	"Valuation Date"	3.7(c)

          Section 1.2.  
Compliance Certificates and Opinions.  Upon any application or request
by the Company to the Trustee to take any action under any provision of
this Indenture, the Company shall furnish to the Trustee an Officers' Certificate
stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with and an Opinion
of Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with, except that in the case of
any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to
such particular application or request, no additional certificate or opinion
need be furnished.

          Every certificate
or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than pursuant to Sections 2.3, 3.3 and 9.7)
shall include:

     (1)  a statement that each individual
signing such certificate or opinion has read such condition or covenant
and the definitions herein relating thereto;
     (2)  a brief statement as to the nature
and scope of the examination or investigation upon which the statements
or opinions contained in such certificate or opinion are based;

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

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

          Section 1.3.  
Form of Documents Delivered to Trustee.  In any case where several
matters are required to be certified by, or covered by an opinion of, any
specified Person, it is not necessary that all such matters be certified
by, or covered by the opinion of, only one such Person, or that they be
so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

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

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

          Section 1.4.  
Acts of Holders.  (a)  Any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Indenture to be
given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person
or by agent duly appointed in writing.  Except as herein otherwise
expressly provided, such action shall become effective when such instrument
or instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Company.  Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred
to as the "Act" of the Holders signing such instrument or instruments. 
Proof of execution of any such instrument or of a writing appointing any
such agent shall be sufficient for any purpose of this Indenture and conclusive
in favor of the Trustee and the Company, if made in the manner provided
in this Section.

          (b)  The
fact and date of the execution by any Person of any such instrument or
writing may be proved by the affidavit of a witness of such execution or
by a certificate of a notary public or other officer authorized by law
to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him or her the execution thereof. 
Where such execution is by a signer acting in a capacity other than his
individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority.  The fact and date of the execution
of any such instrument or writing, or the authority of the Person executing
the same, may also be proved in any other reasonable manner which the Trustee
deems sufficient.

          (c)  The
ownership of Bearer Securities may be proved by the production of such
Bearer Securities or by a certificate executed by any trust company, bank,
broker or other depositary, wherever situated, if such certificate shall
be deemed by the Trustee to be satisfactory, showing that at the date therein
mentioned such Person had on deposit with such depositary, or exhibited
to it, the Bearer Securities therein described; or such facts may be proved
by the certificate or affidavit of the Person holding such Bearer Securities,
if such certificate or affidavit is deemed by the Trustee to be satisfactory. 
The Trustee and the Company may assume that such ownership of any Bearer
Security continues until (i) another such certificate or affidavit bearing
a later date issued in respect of the same Bearer Security is produced,
(ii) such Bearer Security is produced to the Trustee by some other Person,
(iii) such Bearer Security is surrendered in exchange for a Registered
Security or (iv) such Bearer Security is no longer outstanding.  The
ownership of Bearer Securities may also be proved in any other reasonable
manner which the Trustee deems sufficient.

          (d)  The
ownership of Registered Securities shall be proved by the Register.

          (e)  Any
request, demand, authorization, direction, notice, consent, waiver or other
Act of the Holder of any Security shall bind every future Holder of the
same Security and the holder of every Security issued upon the registration
of transfer thereof or in exchange therefor or in lieu thereof in respect
of anything done, omitted or suffered to be done by the Trustee or the
Company in reliance thereon, whether or not notation of such action is
made upon such Security.

          (f)  If
the Company shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Company may, at its
option, by or pursuant to an Officers' Certificate delivered to the Trustee,
fix in advance a record date for the determination of Holders entitled
to give such request, demand, authorization, direction, notice, consent,
waiver or other Act, but the Company shall have no obligation to do so. 
If such a record date is fixed, such request, demand, authorization, direction,
notice, consent, waiver or other Act may be given before or after such
record date, but only the Holders of record at the close of business on
such record date shall be deemed to be Holders for the purposes of determining
whether Holders of the requisite proportion of Outstanding Securities have
authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other Act, and for that purpose the
Outstanding Securities shall be computed as of such record date; provided
that no such authorization, agreement or consent by the Holders on such
record date shall be deemed effective unless it shall become effective
pursuant to the provisions of clause (a) of this Section 1.4 not later
than six months after the record date.

          Section 1.5.  
Notices, etc., to Trustee and Company.  Any request, demand, authorization,
direction, notice, consent, waiver or Act of Holders or other document
provided or permitted by this Indenture to be made upon, given or furnished
to, or filed with,

     (1)  the Trustee by any Holder or by
the Company shall be sufficient for every purpose hereunder if made, given,
furnished or filed in writing to or with the Trustee at its Corporate Trust
Office, Attention: Corporate Trust Trustee Administration, or
     (2)  the Company by the Trustee or by
any Holder shall be sufficient for every purpose hereunder (unless otherwise
herein expressly provided) if in writing and mailed, first-class postage
prepaid, to the Company addressed to it at UAL Corporation, P.O. Box 66100,
Chicago, Illinois 60666, Attention:  Treasurer or at any other address
previously furnished in writing to the Trustee by the Company.

          Section 1.6.  
Notice to Holders; Waiver.  Where this Indenture provides for notice
to Holders of any event, (i) if any of the Securities affected by such
event are Registered Securities, such notice to the Holders thereof shall
be sufficiently given (unless otherwise herein expressly provided or otherwise
agreed to by a Holder) if in writing and mailed, first-class postage prepaid,
to each such Holder affected by such event, at his address as it appears
in the Register, within the time prescribed for the giving of such notice
and (ii) if any of the Securities affected by such event are Bearer Securities,
notice to the Holders thereof shall be sufficiently given (unless otherwise
herein or in the terms of such Bearer Securities expressly provided) if
published once in an Authorized Newspaper in New York, New York, and in
such other city or cities, if any, as may be specified as contemplated
by Section 3.1(5).

          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 of
Registered Securities or the sufficiency of any notice to Holders of Bearer
Securities given as provided herein.  In any case where notice is
given to Holders by publication, neither the failure to publish such notice,
nor any defect in any notice so published, shall affect the sufficiency
of such notice with respect to other Holders of Bearer Securities or the
sufficiency of any notice to Holders of Registered Securities given as
provided herein.  Any notice mailed to a Holder in the manner herein
prescribed shall be conclusively deemed to have been received by such Holder,
whether or not such Holder actually receives such notice.

          If by reason
of the suspension of regular mail service or by reason of any other cause
it shall be impracticable to give such notice as provided above, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.  If it is impossible
or, in the opinion of the Trustee, impracticable to give any notice by
publication in the manner herein required, then such publication in lieu
thereof as shall be made with the approval of the Trustee shall constitute
a sufficient publication of such notice.

          Any request,
demand, authorization, direction, notice, consent or waiver required or
permitted under this Indenture shall be in the English language, except
that any published notice may be in an official language of the country
of publication.

          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 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.

          Section 1.7. 
Headings and Table of Contents.  The Article and Section headings
herein and the Table of Contents are for convenience only and shall not
affect the construction hereof.

          Section 1.8. 
Successors and Assigns.  All covenants and agreements in this Indenture
by the Company shall bind its successors and assigns, whether so expressed
or not.

          Any act or proceeding
that is required or permitted by any provision of this Indenture and that
is authorized or required to be done or performed by any board, committee
or officer of the Company shall and may be done and performed with like
force and effect by the like board, committee or officer of any corporation
that shall at the time be the successor or assign of the Company.

          Section 1.9. 
Separability.  In case any provision of this Indenture or the Securities
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

          Section 1.10. 
Benefits of Indenture.  Nothing in this Indenture or in the Securities,
expressed or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, the holders of Senior Indebtedness
of the Company, and the Holders, any benefit or any legal or equitable
right, remedy or claim under this Indenture.

          Section 1.11. 
Governing Law.  THIS INDENTURE, THE SECURITIES AND ANY COUPONS APPERTAINING
THERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS.  This Indenture is subject to the Trust Indenture Act and if
any provision hereof limits, qualifies or conflicts with the Trust Indenture
Act, the Trust Indenture Act shall control.

          Section 1.12. 
Legal Holidays.  In any case where any Interest Payment Date, Redemption
Date, sinking fund payment date, Stated Maturity or Maturity of any Security
shall not be a Business Day at any Place of Payment, then (notwithstanding
any other provision of this Indenture or any Security or coupon other than
a provision in the Securities of any series which specifically states that
such provision shall apply in lieu of this Section) payment of principal,
premium, if any, or interest, if any, need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day
at such Place of Payment with the same force and effect as if made on such
date; provided that no interest shall accrue on the amount so payable for
the period from and after such Interest Payment Date, Redemption Date,
sinking fund payment date, Stated Maturity or Maturity, as the case may
be.

          Section 1.13. 
Trustee to Establish Record Dates. The Trustee shall fix a record date
for the purpose of determining the Holders entitled to make, give or take
any request, demand, authorization, direction, notice, consent, waiver
or other action provided in this Indenture to be made, given or taken by
Holders. If such a record date is fixed, the Holders on such record date,
and only such Holders, shall be entitled to make, give or take such request,
demand, authorization, direction, notice, consent, waiver or other action,
whether or not such Holders remain Holders after such record date. 
No such request, demand, authorization, direction, notice, consent, waiver
or other action shall be valid or effective if made, given or taken more
than 90 days after such record date.

          Section 1.14. 
No Recourse Against Others.  No recourse for the payment of the principal
of, premium, if any, or interest, if any, on the Securities, or for any
claim based on the Securities or this Indenture, and no recourse under
or upon any obligation, covenant or agreement of the Company in this Indenture
or any indenture supplemental thereto or in any Security or because of
the creation of any indebtedness represented thereby, shall be had against
any incorporator, stockholder, officer or director, as such, past, present
or future, of the Company or of any successor corporation, either directly
or through the Company 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
of a Security by each Holder and as part of the consideration for the issue
of such Security, expressly waived and released.

 

 

ARTICLE 2

Security Forms

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

          Section 2.1. 
Forms Generally.  The Securities of each series and the coupons, if
any, to be attached thereto shall be in substantially such form (including
global form) as shall be established by delivery to the Trustee of an Officers'
Certificate or in one or more indentures supplemental hereto, in each case
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture, and may have such letters,
numbers or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with the rules of any securities
exchange or as may, consistent herewith, be determined by the Officers
executing such Securities and coupons, if any, as evidenced by their execution
of the Securities and coupons, if any. If temporary Securities of any series
are issued as permitted by Section 3.4, the form thereof also shall be
established as provided in the preceding sentence.  If the forms of
Securities and coupons, if any, of any series are established by an Officers'
Certificate, such Officers' Certificate shall be delivered to the Trustee
at or prior to the delivery of the Company Order contemplated by Section
3.3 for the authentication and delivery of such Securities.

          Unless otherwise
specified as contemplated by Section 3.1, Bearer Securities shall have
interest coupons attached.

          The permanent
Securities and coupons, if any, shall be printed, lithographed or engraved
or produced by any combination of these methods or may be produced in any
other manner, all as determined by the officers executing such Securities
and coupons, if any, as evidenced by their execution of such Securities
and coupons, if any.

          Section 2.2. 
Form of Trustee's Certificate of Authentication.  The Trustee's certificate
of authentication shall be in substantially the following form:

          This is one of
the Securities of a series issued under the within-mentioned Indenture.

 
	Dated:	The First National Bank of Chicago,
as Trustee

	 
	 	By: ________________________
	 	Authorized Signatory

          Section 2.3. 
Securities in Global Form.  If securities of or within a series are
issuable in whole or in part in temporary or permanent global form, as
specified as contemplated by Section 3.1, then, notwithstanding clause
(8) of Section 3.1(b) and the provisions of Section 3.2, any such Security
shall represent such of the outstanding securities of such series as shall
be specified therein and may provide that it shall represent the aggregate
amount of Outstanding Securities from time to time endorsed thereon and
that the aggregate amount of Outstanding Securities represented thereby
may from time to time be reduced to reflect exchanges.  Any endorsement
of a Security in global form to reflect the amount, or any increase or
decrease in the amount, or changes in the rights of Holders, of Outstanding
Securities represented thereby, shall be made by the Trustee in such manner
and upon instructions given by such Person or Persons as shall be specified
therein or in the Company Order to be delivered to the Trustee pursuant
to Section 3.3 or 3.4.  Subject to the provisions of Section 3.3 and,
if applicable, Section 3.4, the Trustee shall deliver and redeliver any
Security in global form in the manner and upon instructions given by the
Person or Persons specified therein or in the applicable Company Order. 
Any instructions by the Company with respect to endorsement or delivery
or redelivery of a Security in global form shall be in writing but need
not comply with Section 1.2 hereof and need not be accompanied by an Opinion
of Counsel.

          The provisions
of the last paragraph of Section 3.3 shall apply to any Security in global
form if such Security was never issued and sold by the Company and the
Company delivers to the Trustee the Security in global form together with
written instructions (which need not comply with Section 1.2 and need not
be accompanied by an Opinion of Counsel) with regard to the reduction in
the principal amount of Securities represented thereby, together with the
written statement contemplated by the last paragraph of Section 3.3.

          Notwithstanding
the provisions of Sections 2.1 and 3.7, unless otherwise specified as contemplated
by Section 3.1, payment of principal of, premium, if any, and interest,
if any, on any Security in permanent global form shall be made to the Person
or Persons specified therein.

          Section 2.4. 
Form of Legend for Securities in Global Form.

Any Security in global form authenticated and delivered hereunder shall
bear a legend in substantially the following form, or such other form as
deemed necessary or desirable by the Company and specified in a Company
Order delivered to the Trustee:

     This Security is in global form within the
meaning of the Indenture hereinafter referred to and is registered in the
name of a Depositary or a nominee of a Depositary.  Unless and until
it is exchanged in whole or in part for Securities in certificated form,
this Security may not be transferred except as a whole by the Depositary
to a nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or
any such nominee to a successor Depositary or a nominee of such successor
Depositary.

ARTICLE 3
The Securities

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

          Section 3.1.  
Amount Unlimited; Issuable in Series.  (a) The aggregate principal
amount of Securities which may be authenticated and delivered under this
Indenture is unlimited.  The Securities may be issued from time to
time in one or more series.

           (b) 
The following matters shall be established and (subject to Section 3.3)
set forth, or determined in the manner provided, in an Officers' Certificate
and a Board Resolution of the Company, or one or more indentures supplemental
hereto:

     (1)  the title of the Securities of
the series (which title shall distinguish the Securities of the series
from all other Securities);
     (2)  any limit upon the aggregate principal
amount of the Securities of the series which may be authenticated and delivered
under this Indenture (which limit shall not pertain to (i) Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or
in lieu of, other Securities of the series pursuant to Section 3.4, 3.5,
3.6, 8.6, or 10.7 and (ii) any Securities which, pursuant to the last paragraph
of Section 3.3, are deemed never to have been authenticated and delivered
hereunder);

     (3)  the date or dates on which the principal
of the Securities of the series is payable or the method of determination
thereof;

     (4)  the rate or rates at which the Securities
of the series shall bear interest, if any, or the method of calculating
such rate or rates of interest, the date or dates from which such interest
shall accrue or the method by which such date or dates shall be determined,
the Interest Payment Dates on which any such interest shall be payable
and any provision for the extension or deferral thereof and, with respect
to Registered Securities, the Regular Record Date, if any, for the interest
payable on any Registered Security on any Interest Payment Date;

     (5)  the place or places where, subject
to the provisions of Section 9.2, the principal of, premium, if any, and
interest, if any, on Securities of the series shall be payable;

     (6)  the period or periods within which,
the price or prices at which, the currency or currencies (including currency
units) in which, and the other terms and conditions upon which, Securities
of the series may be redeemed, in whole or in part, at the option of the
Company and, if other than as provided in Section 10.3, the manner in which
the particular Securities of such series (if less than all Securities of
such series are to be redeemed) are to be selected for redemption;

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

     (8)  if other than denominations of $1,000
and any integral multiple thereof, if Registered Securities, and if other
than denominations of $5,000 and $100,000, if Bearer Securities, the denominations
in which Securities of the series shall be issuable;

     (9)  if other than Dollars, the currency
or currencies (including currency units) in which the principal of, premium,
if any, and interest, if any, on the Securities of the series shall be
payable, or in which the Securities of the series shall be denominated,
the particular provisions applicable thereto in accordance with, in addition
to, or in lieu of the provisions of Section 3.11, and whether the Securities
of the series may be satisfied and discharged other than as provided in
Article 4;

      (10) if the payments of principal of,
premium, if any, or interest, if any, on the Securities of the series are
to be made, at the election of the Company or a Holder, in a currency or
currencies (including currency units) other than that in which such Securities
are denominated or designated to be payable, the currency or currencies
(including currency units) in which such payments are to be made, the terms
and conditions of such payments and the manner in which the exchange rate
with respect to such payments shall be determined, the particular provisions
applicable thereto in accordance with, in addition to, or in lieu of the
provisions of Section 3.11, and whether the Securities of the series may
be satisfied and discharged other than as provided in Article 4;

        (11) if the amount of payments
of principal of, premium, if any, and interest, if any, on the Securities
of the series shall be determined with reference to an index, formula or
other method (which index, formula or method may be based, without limitation,
on a currency or currencies (including currency units) other than that
in which the Securities of the series are denominated or designated to
be payable), the index, formula or other method by which such amounts shall
be determined;

          (12) if other
than the principal amount thereof, the portion of the principal amount
of such Securities of the series which shall be payable upon declaration
of acceleration thereof pursuant to Section 5.2 or the method by which
such portion shall be determined;

          (13) if other
than as provided in Section 3.7, the Person to whom any interest on any
Registered Security of the series shall be payable, the manner in which,
or the Person to whom, any interest on any Bearer Securities of the series
shall be payable, and the extent to which, or the manner in which (including
any certification requirement and other terms and conditions under which),
any interest payable on a temporary or permanent global Security on an
Interest Payment Date will be paid if other than in the manner provided
in Section 2.3 and Section 3.4, as applicable;

          (14) provisions,
if any, granting special rights to the Holders of Securities of the series
upon the occurrence of such events as may be specified;

          (15) any deletions
from, modifications of or additions to the Events of Default set forth
in Section 5.1 or covenants of the Company set forth in Article 9 pertaining
to the Securities of the series;

          (16) under what
circumstances, if any, the Company will pay additional amounts on the Securities
of that series held by a Person who is not a U.S. Person in respect of
taxes or similar charges withheld or deducted and, if so, whether the Company
will have the option to redeem such Securities rather than pay such additional
amounts (and the terms of any such option);

          (17) whether
Securities of the series shall be issuable as Registered Securities or
Bearer Securities (with or without interest coupons), or both, and any
restrictions applicable to the offering, sale or delivery of Bearer Securities
and, if other than as provided in Section 3.5, the terms upon which Bearer
Securities of a series may be exchanged for Registered Securities of the
same series and vice versa;

          (18) the date
as of which any Bearer Securities of the series and any temporary global
Security representing outstanding Securities of the series shall be dated
if other than the date of original issuance of the first Security of the
series to be issued;

          (19) the applicability,
if any, to the Securities of or within the series of Sections 4.4 and 4.5,
or such other means of defeasance or covenant defeasance as may be specified
for the Securities and coupons, if any, of such series, and whether, for
the purpose of such defeasance or covenant defeasance, the term "Government
Obligations" shall include obligations referred to in the definition of
such term which are not obligations of the United States or an agency or
instrumentality of the United States;

          (20) if other
than the Trustee, the identity of the Registrar and any Paying Agent;

          (21) any terms
which may be related to warrants issued by the Company in connection with,
or for the purchase of, Securities of such series, including whether and
under what circumstances the Securities of any series may be used toward
the exercise price of any such warrants;

          (22) the designation
of the initial Exchange Rate Agent, if any;

          (23) whether
Securities of the series shall be issued in whole or in part in temporary
or permanent global form and, if so, (i) the initial Depositary for such
global Securities and (ii) if other than as provided in Section 3.4 or
3.5, as applicable, whether and the circumstance under which beneficial
owners of interests in any Securities of the series in temporary or permanent
global form may exchange such interests for Securities of such series and
of like tenor of any authorized form and denomination;

          (24) whether
Securities of the Series shall be convertible into shares of common stock
of the Company and the terms and conditions upon which the Securities will
be convertible, including the conversion price, the conversion period and
other conversion provisions;

          (25) if other
than as provided in Article 12, the terms and conditions under which the
Securities will be subordinated to the Senior Indebtedness of the Company;
and

          (26) any other
terms of the series (which terms shall not be inconsistent with the provisions
of this Indenture), including any terms which may be required by or advisable
under United States laws or regulations or advisable in connection with
the marketing of Securities of the series.

     (c)  All Securities of any one series
and coupons, if any, appertaining to any Bearer Securities of such series
shall be substantially identical except as to denomination and the rate
or rates of interest, if any, and Stated Maturity, and the date from which
interest, if any, shall accrue and except as may otherwise be provided
in or pursuant to an Officers' Certificate pursuant to this Section 3.1
or in an indenture supplemental hereto.  All Securities of any one
series need not be issued at the same time and, unless otherwise provided,
a series may be reopened, without the consent of the Holders, for issuances
of additional Securities of such series or for the establishment of additional
terms with respect to the Securities of such series.

     (d)  If any of the terms of the Securities
of any series are established by action taken pursuant to a Board Resolution,
a copy of such Board Resolution shall be certified by the Corporate Secretary
or an Assistant Secretary of the Company and delivered to the Trustee at
or prior to the delivery of the Officers' Certificate of the Company, setting
forth, or providing the manner for determining, the terms of the Securities
of such series, and an appropriate record of any action taken pursuant
thereto in connection with the issuance of any Securities of such series
shall be delivered to the Trustee prior to the authentication and delivery
thereof.  With respect to Securities of a series subject to a Periodic
Offering, such Board Resolutions or Officers' Certificates may provide
general terms for Securities of such series and provide either that the
specific terms of particular Securities of such series shall be specified
in a Company Order, or that such terms shall be determined by the Company,
or one or more of its agents designated in the Officers' Certificate, in
accordance with the Company Order, as contemplated by the first proviso
of the third paragraph of Section 3.3.

     (e)  Each Security issued hereunder shall
provide that the Company and, by its acceptance of a Security or a beneficial
interest therein, the Holder of, and any Person that acquires a beneficial
interest in, such Security agree that for United States federal, state
and local tax purposes it is intended that such Security constitute indebtedness.

     Section 3.2.   Denominations. 
Unless otherwise provided as contemplated by Section 3.1, any Registered
Securities of a series shall be issuable in denominations of $1,000 and
any integral multiple thereof and any Bearer Securities of a series shall
be issuable in denominations of $5,000 and $100,000.

     Section 3.3.   Execution, Authentication,
Delivery and Dating.  Securities shall be executed on behalf of the
Company by its Chairman or President and Chief Executive Officer and attested
to by the Secretary of the Company.  The Company's seal shall be affixed
to the Securities or a facsimile of such seal shall be engraved, printed,
or otherwise reproduced on the Securities.  The signatures of such
officers on the Securities may be manual or facsimile.  The coupons,
if any, of Bearer Securities shall bear the facsimile signature of the
Chairman or President and Chief Executive Officer and shall be attested
by the Secretary of the Company.

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

     At any time and from time to time, the Company
may deliver Securities and any coupons appertaining thereto of any series
executed by the Company to the Trustee for authentication, together with
a Company Order for the authentication and make available for delivery
such Securities, and the Trustee in accordance with the Company Order shall
authenticate and deliver such Securities; provided, however, that in the
case of Securities offered in a Periodic Offering, the Trustee shall authenticate
and deliver such Securities from time to time in accordance with such other
procedures (including, without limitation, the receipt by the Trustee of
oral or electronic instructions from the Company or its duly authorized
agents, promptly confirmed in writing) acceptable to the Trustee as may
be specified by or pursuant to a Company Order delivered to the Trustee
prior to the time of the first authentication of Securities of such series,
as such form of Company Order may be revised from time to time.

          If the form or
terms of the Securities of a series have been established by or pursuant
to one or more Officers' Certificates as permitted by Sections 2.1 and
3.1, in authenticating such Securities and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall
be entitled to receive, and (subject to section 315(a) through (d) of the
Trust Indenture Act) shall be fully protected in relying upon, an Opinion
of Counsel stating,

          (1)  that
the forms and terms of such Securities and any coupons have been established
in conformity with the provisions of this Indenture; and

          (2)  that
such Securities together with any coupons appertaining thereto, when authenticated
and delivered by the Trustee and issued by the Company in the manner and
subject to any conditions specified in such Opinion of Counsel, will constitute
valid and legally binding obligations of the Company, enforceable in accordance
with their terms, subject to customary exceptions; provided, however, that,
with respect to Securities of a series subject to a Periodic Offering,
the Trustee shall be entitled to receive such Opinion of Counsel only once
at or prior to the time of the first authentication of Securities of such
series and that the Opinion of Counsel above may state:

          (x)  that
the forms of such Securities have been, and the terms of such Securities
(when established in accordance with such procedures as may be specified
from time to time in a Company Order, all as contemplated by and in accordance
with a Board Resolution or an Officers' Certificate pursuant to Section
3.1, as the case may be) will have been, established in conformity with
the provisions of this Indenture; and
          (y)  that
such Securities together with the coupons, if any, appertaining thereto,
when (1) executed by the Company, (2) completed, authenticated and delivered
by the Trustee in accordance with this Indenture, and (3) issued by the
Company in the manner and subject to any conditions specified in such Opinion
of Counsel, will constitute valid and legally binding obligations of the
Company, enforceable in accordance with their terms, subject to customary
exceptions.

     With respect to Securities of a series subject
to a Periodic Offering, the Trustee may conclusively rely, as to the authorization
by the Company of any of such Securities, the form and terms thereof and
the legality, validity, binding effect and enforceability thereof, upon
the Opinion of Counsel and other documents delivered pursuant to Sections
2.1 and 3.1 of this Section, as applicable, at or prior to the time of
the first authentication of Securities of such series unless and until
it has received written notification that such opinion or other documents
have been superseded or revoked.  In connection with the authentication
and delivery of Securities of a series subject to a Periodic Offering,
the Trustee shall be entitled to assume that the Company's instructions
to authenticate and deliver such Securities do not violate any rules, regulations
or orders of any governmental agency or commission having jurisdiction
over the Company.

     If the form or terms of the Securities of a
series have been established by or pursuant to one or more Officers' Certificates
as permitted by Sections 2.1 and 3.1, the Trustee shall have the right
to decline to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will adversely affect the Trustee's own rights,
duties or immunities under this Indenture or otherwise in a manner which
is not reasonably acceptable to the Trustee.  Notwithstanding the
generality of the foregoing, the Trustee will not be required to authenticate
Securities denominated in a Foreign Currency if the Trustee reasonably
believes that it would be unable to perform its duties with respect to
such Securities.

          Notwithstanding
the provisions of Section 3.1 and of the two preceding paragraphs, if all
of the Securities of any series are not to be issued at one time, it shall
not be necessary to deliver the Officers' Certificate otherwise required
pursuant to Section 3.1 at or prior to the time of the authentication of
each Security of such series if such Officers' Certificate is delivered
at or prior to the authentication upon original issuance of the first Security
of such series to be issued.

          If the Company
shall establish pursuant to Section 3.1 that the Securities of a series
are to be issued in whole or in part in global form, then the Company shall
execute and the Trustee shall, in accordance with this Section and the
Company Order with respect to such series, authenticate and deliver one
or more Securities in global form that (i) shall represent and shall be
denominated in an amount equal to the aggregate principal amount of the
Outstanding Securities of such series to be represented by such Security
or Securities in global form, (ii) shall be registered, if a Registered
Security, in the name of the Depositary for such Security or Securities
in global form or the nominee of such Depositary and (iii) shall be delivered
by the Trustee to such Depositary or pursuant to such Depositary's instruction.

          Each Depositary
designated pursuant to Section 3.1 for a Registered Security in global
form must, at the time of its designation and at all times while it serves
as Depositary, be a clearing agency registered under the Securities Exchange
Act of 1934 and any other applicable statute or regulation.  The Trustee
shall have no responsibility to determine if the Depositary is so registered. 
Each Depositary shall enter into an agreement with the Trustee governing
the respective duties and rights of such Depositary and the Trustee with
regard to Securities issued in global form.

          Each Registered
Security shall be dated the date of its authentication and each Bearer
Security (including a Bearer Security represented by a temporary global
Security) shall be dated as of the date specified as contemplated by Section
3.1.

          No Security or
coupon appertaining thereto shall be entitled to any benefits under this
Indenture or be valid or obligatory for any purpose until such Security
is authenticated by the manual signature of one of the authorized signatories
of the Trustee or an Authenticating Agent.  Such signature upon any
Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered under this Indenture
and is entitled to the benefits of this Indenture.  Except as permitted
by Section 3.6 or 3.7, the Trustee shall not authenticate and deliver any
Bearer Security unless all appurtenant coupons for interest then matured
have been detached and canceled.

          Notwithstanding
the foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section
3.9 together with a written statement (which need not comply with Section
1.2 and need not be accompanied by an Opinion of Counsel) stating that
such Security has never been issued and sold by the Company, for all purposes
of this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall not be entitled to the benefits of this
Indenture.

          Section 3.4.  
Temporary Securities.  Pending the preparation of definitive Securities
of any series, the Company may execute and, upon Company Order, the Trustee
shall authenticate and deliver temporary Securities of such series which
are printed, lithographed, typewritten, mimeographed or otherwise produced,
in any authorized denomination, substantially of the tenor and form, with
or without coupons, of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions
and other variations as the officers executing such Securities may determine,
as conclusively evidenced by their execution of such Securities and coupons,
if any.  In the case of Securities of any series, such temporary Securities
may be in global form.

          Except in the
case of temporary Securities in global form, each of which shall be exchanged
in accordance with the provisions thereof, if temporary Securities of any
series are issued, the Company will cause permanent Securities of such
series to be prepared without unreasonable delay.  After preparation
of such permanent Securities, the temporary Securities shall be exchangeable
for such permanent Securities of like tenor upon surrender of the temporary
Securities of such series at the office or agency of the Company pursuant
to Section 9.2 in a Place of Payment for such series, without charge to
the Holder.  Upon surrender for cancellation of any one or more temporary
Securities of any series (accompanied by any unmatured coupons appertaining
thereto), the Company shall execute and the Trustee shall authenticate
and deliver in exchange therefor a like principal amount of permanent Securities
of the same series of authorized denominations and of like tenor; provided,
however, that no permanent Bearer Security shall be delivered in exchange
for a temporary Registered Security; and provided further that no permanent
Bearer Security shall be delivered in exchange for a temporary Bearer Security
unless the Trustee shall have received from the person entitled to receive
the definitive Bearer Security a certificate substantially in the form
approved in the Officers' Certificate relating thereto and such delivery
shall occur only outside the United States.  Until so exchanged, the
temporary Securities of any series shall in all respects be entitled to
the same benefits under this Indenture as permanent Securities of such
series except as otherwise specified as contemplated by Section 3.1.

          Section 3.5.  
Registration, Registration of Transfer and Exchange.  The Company
shall cause to be kept at the Corporate Trust Office of the Trustee or
in any office or agency to be maintained by the Company in accordance with
Section 9.2 in a Place of Payment a register (the "Register") in which,
subject to such reasonable regulations as it may prescribe, the Company
shall provide for the registration of Registered Securities and the registration
of transfers of Registered Securities.  The Register shall be in written
form or any other form capable of being converted into written form within
a reasonable time.  The Trustee is hereby appointed "Registrar" for
the purpose of registering Registered Securities and transfers of Registered
Securities as herein provided.

          Upon surrender
for registration of transfer of any Registered Security of any series at
the office or agency maintained pursuant to Section 9.2 in a Place of Payment
for that series, the Company shall execute, and the Trustee shall authenticate
and deliver, in the name of the designated transferee or transferees, one
or more new Registered Securities of the same series, of any authorized
denominations and of a like aggregate principal amount and tenor.

          Bearer Securities
or any coupons appertaining thereto shall be transferable by delivery.

          At the option
of the Holder, Registered Securities of any series (except a Registered
Security in global form) may be exchanged for other Registered Securities
of the same series, of any authorized denominations and of a like aggregate
principal amount containing identical terms and provisions, upon surrender
of the Registered Securities to be exchanged at such office or agency. 
Whenever any Registered Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver,
the Registered Securities which the Holder making the exchange is entitled
to receive.  Unless otherwise specified as contemplated by

Section 3.1. Bearer Securities may not be issued in exchange for Registered
Securities.

          Unless otherwise
specified as contemplated by Section 3.1, at the option of the Holder,
Bearer Securities of such series may be exchanged for Registered Securities
(if the Securities of such series are issuable in registered form) or Bearer
Securities (if Bearer Securities of such series are issuable in more than
one denomination and such exchanges are permitted by such series) of the
same series, of any authorized denominations and of like tenor and aggregate
principal amount, upon surrender of the Bearer Securities to be exchanged
at any such office or agency, with all unmatured coupons and all matured
coupons in default thereto appertaining.  If the Holder of a Bearer
Security is unable to produce any such unmatured coupon or coupons or matured
coupon or coupons in default, such exchange may be effected if the Bearer
Securities are accompanied by payment in funds acceptable to the Company
and the Trustee in an amount equal to the face amount of such missing coupon
or coupons, or the surrender of such missing coupon or coupons may be waived
by the Company and the Trustee if there be furnished to them such security
or indemnity as they may require to save each of them and any Paying Agent
harmless. If thereafter the Holder of such Security shall surrender to
any Paying Agent any such missing coupon in respect of which such a payment
shall have been made, such Holder shall be entitled to receive the amount
of such payment; provided, however, that, except as otherwise provided
in Section 9.2, interest represented by coupons shall be payable only upon
presentation and surrender of those coupons at an office or agency located
outside the United States. Notwithstanding the foregoing, in case any Bearer
Security of any series is surrendered at any such office or agency in exchange
for a Registered Security of the same series after the close of business
at such office or agency on (i) any Regular Record Date and before the
opening of business at such office or agency on the relevant Interest Payment
Date, or (ii) any Special Record Date and before the opening of business
at such office or agency on the related date for payment of Defaulted Interest,
such Bearer Security shall be surrendered without the coupon relating to
such Interest Payment Date or proposed date of payment, as the case may
be (or, if such coupon is so surrendered with such Bearer Security, such
coupon shall be returned to the person so surrendering the Bearer Security),
and interest or Defaulted Interest, as the case may be, will not be payable
on such Interest Payment Date or proposed date for payment, as the case
may be, in respect of the Registered Security issued in exchange for such
Bearer Security, but will be payable only to the Holder of such coupon,
when due in accordance with the provisions of this Indenture.

          Notwithstanding
any other provision (other than the provisions set forth in the seventh
and eighth paragraphs of this Section) of this Section, unless and until
it is exchanged in whole or in part for Securities in certificated form,
a Security in global form representing all or a portion of the Securities
of a series may not be transferred except as a whole by the Depositary
for such series to a nominee of such Depositary or by a nominee of such
Depositary to such Depositary or another nominee of such Depositary or
by such Depositary or any such nominee to a successor Depositary for such
series or a nominee of such successor Depositary.

          If at any time
the Depositary for the Securities of a series notifies the Company that
it is unwilling or unable to continue as Depositary for the Securities
of such series or if at any time the Depositary for the Securities of such
series shall no longer be eligible under Section 3.3, the Company shall
appoint a successor Depositary with respect to the Securities of such series. 
If a successor Depositary for the Securities of such series is not appointed
by the Company within 90 days after the issuer receives such notice or
becomes aware of such ineligibility, the Company's election pursuant to
Section 3.1 shall no longer be effective with respect to the Securities
of such series and the Company shall execute, and the Trustee, upon receipt
of a Company Order for the authentication and delivery of certificated
Securities of such series of like tenor, shall authenticate and deliver
Securities of such series of like tenor in certificated form, in authorized
denominations and in an aggregate principal amount equal to the principal
amount of the Security or Securities of such series of like tenor in global
form in exchange for such Security or Securities in global form.

          The Company may
at any time in its sole discretion determine that Securities of a series
issued in global form shall no longer be represented by such a Security
or Securities in global form.  In such event the Company shall execute,
and the Trustee, upon receipt of a Company Order for the authentication
and delivery of certificated Securities of such series of like tenor, shall
authenticate and deliver, Securities of such series of like tenor in certificated
form, in authorized denominations and in an aggregate principal amount
equal to the principal amount of the Security or Securities of such series
of like tenor in global form in exchange for such Security or Securities
in global form.

          If specified
by the Company pursuant to Section 3.1 with respect to a series of Securities,
the Depositary for such series may surrender a Security in global form
of such series in exchange in whole or in part for Securities of such series
in certificated form on such terms as are acceptable to the Company and
such Depositary. Thereupon, the Company shall execute, and the Trustee
shall authenticate and deliver, without service charge,

     (i)  to each Person specified by such
Depositary a new certificated Security or Securities of the same series
of like tenor, of any authorized denomination as requested by such Person
in aggregate principal amount equal to and in exchange for such Person's
beneficial interest in the Security in global form; and
     (ii) to such Depositary a new Security in global
form of like tenor in a denomination equal to the difference, if any, between
the principal amount of the surrendered Security in global form and the
aggregate principal amount of certificated Securities delivered to Holders
thereof.

          Upon the exchange
of a Security in global form for Securities in certificated form, such
Security in global form shall be canceled by the Trustee.  Unless
expressly provided with respect to the Securities of any series that such
Security may be exchanged for Bearer Securities, Securities in certificated
form issued in exchange for a Security in global form pursuant to this
Section shall be registered in such names and in such authorized denominations
as the Depositary for such Security in global form, pursuant to instructions
from its direct or indirect participants or otherwise, shall instruct the
Trustee.  The Trustee shall deliver such Securities to the Persons
in whose names such Securities are so registered.

          Whenever any
Securities are surrendered for exchange, the Company shall execute, and
the Trustee shall authenticate and deliver, the Securities which the Holder
making the exchange is entitled to receive.

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

          Every Registered
Security presented or surrendered for registration of transfer or for exchange
shall (if so required by the Company, the Registrar or the Trustee) be
duly endorsed, or be accompanied by a written instrument of transfer in
form satisfactory to those of the Company, the Registrar and the Trustee
requiring such written instrument of transfer duly executed, by the Holder
thereof or his attorney duly authorized in writing.

          No service charge
shall be made for any registration of transfer or for any exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any
registration or transfer or exchange of Securities, other than exchanges
pursuant to Section 3.4 or 10.7 not involving any transfer.

          The Company shall
not be required (i) to issue, register the transfer of, or exchange any
Securities for a period beginning at the opening of business 15 days before
any selection for redemption of Securities of like tenor and of the series
of which such Security is a part and ending at the close of business on
the earliest date on which the relevant notice of redemption is deemed
to have been given to all Holders of Securities of like tenor and of such
series to be redeemed; (ii) to register the transfer of or exchange any
Registered Security so selected for redemption, in whole or in part, except
the unredeemed

portion of any Security being redeemed in part; or (iii) to exchange
any Bearer Security so selected for redemption, except that such a Bearer
Security may be exchanged for a Registered Security of that series and
like tenor; provided that such Registered Security shall be simultaneously
surrendered for redemption.

          Section 3.6.  
Replacement Securities.  If a mutilated Security or a Security with
a mutilated coupon appertaining to it is surrendered to the Trustee, together
with, in proper cases, such security or indemnity as may be required by
the Company or the Trustee to save each of them harmless, the Company shall
execute and the Trustee shall authenticate and deliver a replacement Registered
Security, if such surrendered Security was a Registered Security, or a
replacement Bearer Security with coupons corresponding to the coupons appertaining
to the surrendered Security, if such surrendered Security was a Bearer
Security, of the same series and date of maturity, if the Trustee's requirements
are met.

          If there shall
be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security or Security with a destroyed,
lost or stolen coupon and (ii) such security or indemnity as may be required
by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or the Trustee that such
Security or coupon has been acquired by a bona fide purchaser, the Company
shall execute and the Trustee shall authenticate and deliver in lieu of
any such destroyed, lost or stolen Security or in exchange for the Security
to which a destroyed, lost or stolen coupon appertains (with all appurtenant
coupons not destroyed, lost or stolen), a replacement Registered Security,
if such Holder's claim appertains to a Registered Security, or a replacement
Bearer Security with coupons corresponding to the coupons appertaining
to the destroyed, lost or stolen Bearer Security or the Bearer Security
to which such lost, destroyed or stolen coupon appertains, if such Holder's
claim appertains to a Bearer Security, of the same series and principal
amount, containing identical terms and provisions and bearing a number
not contemporaneously outstanding with coupons corresponding to the coupons,
if any, appertaining to the destroyed, lost or stolen Security.

          In case any such
mutilated, destroyed, lost or stolen Security or coupon has become or is
about to become due and payable, the Company in its discretion may, instead
of issuing a new Security or coupon, pay such Security or coupon; provided,
however, that payment of principal of and any premium or interest on Bearer
Securities shall, except as otherwise provided in Section 9.2, be payable
only at an office or agency located outside the United States and, unless
otherwise specified as contemplated by Section 3.1, any interest on Bearer
Securities shall be payable only upon presentation and surrender of the
coupons appertaining thereto.

          Upon the issuance
of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Trustee) connected therewith.

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

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

          Section 3.7.  
Payment of Interest; Interest Rights Preserved.  (a)  Unless
otherwise provided as contemplated by Section 3.1, interest, if any, on
any Registered Security which is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person
in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest at the office or agency maintained for such purpose pursuant to
Section 9.2; provided, however, that, at the option of the Company, interest
on any series of Registered Securities that bear interest may be paid (i)
by check mailed to the address of the Person entitled thereto as it shall
appear on the Register of Holders of Securities of such series or (ii)
to the extent specified as contemplated by Section 3.1, by wire transfer
to an account maintained by the Person entitled thereto as specified in
the Register of Holders of Securities of such series.

          Unless otherwise
provided as contemplated by Section 3.1, (i) interest, if any, on Bearer
Securities shall be paid only against presentation and surrender of the
coupons for such interest installments as are evidenced thereby as they
mature and (ii) original issue discount, if any, on Bearer Securities shall
be paid only against presentation and surrender of such Securities; in
either case at the office of a Paying Agent located outside the United
States, unless the Company shall have otherwise instructed the Trustee
in writing provided that any such instruction for payment in the United
States does not cause any Bearer Security to be treated as a "registration-required
obligation" under the United States law and regulations.  The interest,
if any, on any temporary Bearer Security shall be paid, as to any installment
of interest evidenced by a coupon attached thereto only upon presentation
and surrender of such coupon and, as to other installments of interest,
only upon presentation of such Security for notation thereon of the payment
of such interest.  If at the time a payment of principal of or interest,
if any, on a Bearer Security or coupon shall become due, the payment of
the full amount so payable at the office or offices of all the Paying Agents
outside the United States is illegal or effectively precluded because of
the imposition of exchange controls or other similar restrictions on the
payment of such amount in Dollars, then the Company may instruct the Trustee
to make such payments at a Paying Agent located in the United States, provided
that provision for such payment in the United States would not cause such
Bearer Security to be treated as a "registration-required obligation" under
the United States law and regulations.

          (b)  Unless
otherwise provided as contemplated by Section 3.1, any interest on any
Registered Security of any series which is payable, but is not punctually
paid or duly provided for, on any interest payment date (herein called
"Defaulted Interest") shall forthwith cease to be payable to the Holder
on the relevant Regular Record Date by virtue of having been such Holder,
and such Defaulted Interest may be paid by the Company, at its election
in each case, as provided in clause (1) or (2) below:

     (1)  The Company may elect to make payment
of any Defaulted Interest to the Persons in whose names the Registered
Securities of such series (or their respective Predecessor Securities)
are registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest, which shall be fixed in the following
manner.  The Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited
to be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as in this clause (1) provided.  Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted Interest which
shall be not more than 15 days and not less than 10 days prior to the date
of the proposed payment and not less than 10 days after the receipt by
the Trustee of the notice of the proposed payment.  The Trustee shall
promptly notify the Company of such Special Record Date and, in the name
and at the expense of the Company, shall cause notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to each Holder of Registered Securities of
such series at his address as it appears in the Register, not less than
10 days prior to such Special Record Date.  Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor
having been so mailed, such Defaulted Interest shall be paid to the Persons
in whose names the Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on such Special Record
Date and shall no longer be payable pursuant to the following clause (2).
     (2)  The Company may make payment of any
Defaulted Interest to the Persons in whose names the Registered Securities
of such series (or their respective Predecessor Securities) are registered
at the close of business on a specified date in any other lawful manner
not inconsistent with the requirements of any securities exchange on which
such Securities may be listed, and upon such notice as may be required
by such exchange, if, after notice given by the Company to the Trustee
of the proposed payment pursuant to this clause (2), such manner of payment
shall be deemed practicable by the Trustee.

           (c) 
Subject to the foregoing provisions of this Section and Section 3.5, each
Security delivered under this Indenture upon registration of transfer of
or in exchange for or in lieu of any other Security shall carry the rights
to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

          Section 3.8.  
Persons Deemed Owners.  Prior to due presentment of any Registered
Security for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Person in whose name
such Registered Security is registered as the owner of such Registered
Security for the purpose of receiving payment of principal of, premium,
if any, and (subject to Section 3.7) interest, if any, on such Registered
Security and for all other purposes whatsoever, whether or not such Registered
Security be overdue, and neither the Company, the Trustee nor any agent
of the Company or the Trustee shall be affected by notice to the contrary.

          The Company,
the Trustee and any agent of the Company or the Trustee may treat the bearer
of any Bearer Security and the bearer of any coupon as the absolute owner
of such Bearer Security or coupon for the purpose of receiving payment
thereof or on account thereof and for all other purposes whatsoever, whether
or not such Bearer Security or coupon be overdue, and neither the Company,
the Trustee nor any agent of the Company or the Trustee shall be affected
by notice to the contrary.

          None of the Company,
the Trustee or any agent of the Company or the Trustee shall have any responsibility
or liability for any aspect of the records relating to or payments made
on account of beneficial ownership interests of a Security in global form,
or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.  Notwithstanding the foregoing, with
respect to any Security in global form, nothing herein shall prevent the
Company or the Trustee, or any agent of the Company or the Trustee, from
giving effect to any written certification, proxy or other authorization
furnished by any Depositary (or its nominee), as a Holder, with respect
to such Security in global form or impair, as between such Depositary and
owners of beneficial interests in such Security in global form, the operation
of customary practices governing the exercise of the rights of such Depositary
(or its nominee) as Holder of such Security in global form.

          Section 3.9.  
Cancellation.  The Company at any time may deliver Securities and
coupons to the Trustee for cancellation.  The Registrar and any Paying
Agent shall forward to the Trustee any Securities and coupons surrendered
to them for replacement, for registration of transfer, or for exchange
or payment.  The Trustee shall cancel all Securities and coupons surrendered
for replacement, for registration of transfer, or for exchange, payment,
redemption or cancellation and shall return all such canceled Securities
to the Company.  The Company may not issue new Securities to replace
Securities that it has paid or delivered to the Trustee for cancellation,
except as expressly permitted in the terms of Securities for any particular
series or as permitted pursuant to the terms of this Indenture.

          Section 3.10. 
Computation of Interest.  Except as otherwise specified as contemplated
by Section 3.1, (i) interest on any Securities that bear interest at a
fixed rate shall be computed on the basis of a 360-day year of twelve 30-day
months and, for any period shorter than a full quarterly period for which
interest is computed, on the basis of the actual number of days elapsed
in such period, and (ii) interest on any Securities that bear interest
at a variable rate shall be computed on the basis of the actual number
of days in an interest period divided by 360.

          Section 3.11. 
Currency and Manner of Payment in Respect of Securities.  (a) 
Unless otherwise specified with respect to any Securities pursuant to Section
3.1, with respect to Registered Securities of any series not permitting
the election provided for in paragraph (b) below or the Holders of which
have not made the election provided for in paragraph (b) below, and with
respect to Bearer Securities of any series, except as provided in paragraph
(d) below, payment of the principal of, premium, if any, and interest,
if any, on any Registered or Bearer Security of such series will be made
in the currency or currencies or currency unit or units in which such Registered
Security or Bearer Security, as the case may be, is payable.  The
provisions of this

Section 3.11 may be modified or superseded pursuant to Section 3.1 with
respect to any Securities.  For all purposes of this Indenture, currency
units shall include any composite currency.

          (b)  It
may be provided pursuant to Section 3.1, with respect to Registered Securities
of any series, that Holders shall have the option, subject to paragraphs
(d) and (e) below, to receive payments of principal of, premium, if any,
or interest, if any, on such Registered Securities in any of the currencies
or currency units which may be designated for such election by delivering
to the Trustee (or the applicable Paying Agent) a written election with
signature guarantees and in the applicable form established pursuant to
Section 3.1, not later than the close of business on the Election Date
immediately preceding the applicable payment date.  If a Holder so
elects to receive such payments in any such currency or currency unit,
such election will remain in effect for such Holder or any transferee of
such Holder until changed by such Holder or such transferee by written
notice to the Trustee (or any applicable Paying Agent) for such series
of Registered Securities (but any such change must be made not later than
the close of business on the Election Date immediately preceding the next
payment date to be effective for the payment to be made on such payment
date, and no such change of election may be made with respect to payments
to be made on any Registered Security of such series with respect to which
an Event of Default has occurred or with respect to which the Company has
deposited funds pursuant to Article 4 or with respect to which a notice
of redemption has been given by the Company).  Any Holder of any such
Registered Security who shall not have delivered any such election to the
Trustee (or any applicable Paying Agent) not later than the close of business
on the applicable Election Date will be paid the amount due on the applicable
payment date in the relevant currency or currency unit as provided in Section
3.11(a).  The Trustee (or the applicable Paying Agent) shall notify
the Exchange Rate Agent as soon as practicable after the Election Date
of the aggregate principal amount of Registered Securities for which Holders
have made such written election.

          (c)  If
the election referred to in paragraph (b) above has been provided for with
respect to any Registered Securities of a series pursuant to Section 3.1,
then, unless otherwise specified pursuant to Section 3.1 with respect to
any such Registered Securities, not later than the fourth Business Day
after the Election Date for each payment date for such Registered Securities,
the Exchange Rate Agent will deliver to the Company a written notice specifying,
in the currency or currencies or currency unit or units in which Registered
Securities of such series are payable, the respective aggregate amounts
of principal of, premium, if any, and interest, if any, on such Registered
Securities to be paid on such payment date, and specifying the amounts
in such currency or currencies or currency unit or units so payable in
respect of such Registered Securities as to which the Holders of Registered
Securities denominated in any currency or currencies or currency unit or
units shall have elected to be paid in another currency or currency unit
as provided in paragraph (b) above.  If the election referred to in
paragraph (b) above has been provided for with respect to any Registered
Securities of a series pursuant to Section 3.1, and if at least one Holder
has made such election, then, unless otherwise specified pursuant to Section
3.1, on the second Business Day preceding such payment date the Company
will deliver to the Trustee (or the applicable Paying Agent) an Exchange
Rate Officers' Certificate in respect of the Dollar, Foreign Currency or
Currencies, ECU or other currency unit payments to be made on such payment
date. Unless otherwise specified pursuant to Section 3.1, the Dollar, Foreign
Currency or Currencies, ECU or other currency unit amount receivable by
Holders of Registered Securities who have elected payment in a currency
or currency unit as provided in paragraph (b) above shall be determined
by the Company on the basis of the applicable Market Exchange Rate in effect
on the second Business Day (the "Valuation Date") immediately preceding
each payment date, and such determination shall be conclusive and binding
for all purposes, absent manifest error.

          (d)  If
a Conversion Event occurs with respect to a Foreign Currency, ECU or any
other currency unit in which any of the Securities are denominated or payable
otherwise than pursuant to an election provided for pursuant to paragraph
(b) above, then, with respect to each date for the payment of principal
of, premium, if any, and interest, if any, on the applicable Securities
denominated or payable in such Foreign Currency, ECU or such other currency
unit occurring after the last date on which such Foreign Currency, ECU
or such other currency unit was used (the "Conversion Date"), the Dollar
shall be the currency of payment for use on each such payment date (but
such Foreign Currency, ECU or such other currency unit that was previously
the currency of payment shall, at the Company's election, resume being
the currency of payment on the first such payment date preceded by 15 Business
Days during which the circumstances which gave rise to the Dollar becoming
such currency no longer prevail).  Unless otherwise specified pursuant
to Section 3.1, the Dollar amount to be paid by the Company to the Trustee
or any applicable Paying Agent and by the Trustee or any applicable Paying
Agent to the Holders of such Securities with respect to such payment date
shall be, in the case of a Foreign Currency other than a currency unit,
the Dollar Equivalent of the Foreign Currency or, in the case of a Foreign
Currency that is a currency unit, the Dollar Equivalent of the Currency
Unit, in each case as determined by the Exchange Rate Agent in the manner
provided in paragraph (f) or (g) below.

          (e)  Unless
otherwise specified pursuant to Section 3.1, if the Holder of a Registered
Security denominated in any currency or currency unit shall have elected
to be paid in another currency or currency unit or in other currencies
as provided in paragraph (b) above, and (i) a Conversion Event occurs with
respect to any such elected currency or currency unit, such Holder shall
receive payment in the currency or currency unit in which payment would
have been made in the absence of such election and (ii) if a Conversion
Event occurs with respect to the currency or currency unit in which payment
would have been made in the absence of such election, such Holder shall
receive payment in Dollars as provided in paragraph (d) of this Section
3.11 (but, subject to any contravening valid election pursuant to paragraph
(b) above, the elected payment currency or currency unit, in the case of
the circumstances described in clause (i) above, or the payment currency
or currency unit in the absence of such election, in the case of the circumstances
described in clause (ii) above, shall, at the Company's election, resume
being the currency or currency unit of payment with respect to Holders
who have so elected, but only with respect to payments on payment dates
preceded by 15 Business Days during which the circumstances which gave
rise to such currency or currency unit, in the case of the circumstances
described in clause (i) above, or the Dollar, in the case of the circumstances
described in clause (ii) above, becoming the currency or currency unit,
as applicable, of payment, no longer prevail).

          (f)  The
"Dollar Equivalent of the Foreign Currency" shall be determined by the
Exchange Rate Agent and shall be obtained for each subsequent payment date
by the Exchange Rate Agent by converting the specified Foreign Currency
into Dollars at the Market Exchange Rate on the Conversion Date.

          (g)  The
"Dollar Equivalent of the Currency Unit" shall be determined by the Exchange
Rate Agent and, subject to the provisions of paragraph (h) below, shall
be the sum of each amount obtained by converting the Specified Amount of
each Component Currency (as each such term is defined in paragraph (h)
below) into Dollars at the Market Exchange Rate for such Component Currency
on the Valuation Date with respect to each payment.

           (h) 
For purposes of this Section 3.11 the following terms shall have the following
meanings:

          A "Component
Currency" shall mean any currency which, on the Conversion Date, was a
component currency of the relevant currency unit, including, but not limited
to, ECU.

          "Election Date"
shall mean the Regular Record Date for the applicable series of Registered
Securities as specified pursuant to Section 3.1 by which the written election
referred to in Section 3.11(b) may be made.

          A "Specified
Amount" of a Component Currency shall mean the number of units of such
Component Currency or fractions thereof which such Component Currency represented
in the relevant currency unit, including, but not limited to, ECU, on the
Conversion Date.  If after the Conversion Date the official unit of
any Component Currency is altered by way of combination or subdivision,
the Specified Amount of such Component Currency shall be divided or multiplied
in the same proportion.  If after the Conversion Date two or more
Component Currencies are consolidated into a single currency, the respective
Specified Amounts of such Component Currencies shall be replaced by an
amount in such single currency equal to the sum of the respective Specified
Amounts of such consolidated Component Currencies expressed in such single
currency, and such amount shall thereafter be a Specified Amount and such
single currency shall thereafter be a Component Currency.  If after
the Conversion Date any Component Currency shall be divided into two or
more currencies, the Specified Amount of such Component Currency shall
be replaced by specified amounts of such two or more currencies, the sum
of which, at the Market Exchange Rate of such two or more currencies on
the date of such replacement, shall be equal to the Specified Amount of
such former Component Currency and such amounts shall thereafter be Specified
Amounts and such currencies shall thereafter be Component Currencies. 
If, after the Conversion Date of the relevant currency unit, including,
but not limited to, ECU, a Conversion Event (other than any event referred
to above in this definition of "Specified Amount") occurs with respect
to any Component Currency of such currency unit and is continuing on the
applicable Valuation Date, the Specified Amount of such Component Currency
shall, for purposes of calculating the Dollar Equivalent of the Currency
Unit, be converted into Dollars at the Market Exchange Rate in effect on
the Conversion Date of such Component Currency.

          All decisions
and determinations of the Exchange Rate Agent regarding the Dollar Equivalent
of the Foreign Currency, the Dollar Equivalent of the Currency Unit, the
Market Exchange Rate and changes in the Specified Amounts as specified
above shall be in its sole discretion and shall, in the absence of manifest
error, be conclusive for all purposes and irrevocably binding upon the
Company, the Trustee (and any applicable Paying Agent) and all Holders
of Securities denominated or payable in the relevant currency, currencies
or currency units.  The Exchange Rate Agent shall promptly give written
notice to the Company and the Trustee of any such decision or determination.

          In the event
that the Company determines in good faith that a Conversion Event has occurred
with respect to a Foreign Currency, the Company will promptly give written
notice thereof to the Trustee (or any applicable Paying Agent) and to the
Exchange Rate Agent (and the Trustee (or such Paying Agent) will promptly
thereafter give notice in the manner provided in Section 1.6 to the affected
Holders) specifying the Conversion Date.  In the event the Company
so determines that a Conversion Event has occurred with respect to ECU
or any other currency unit in which Securities are denominated or payable,
the Company will promptly give written notice thereof to the Trustee (or
any applicable Paying Agent) and to the Exchange Rate Agent (and the Trustee
(or such Paying Agent) will promptly thereafter give notice in the manner
provided in Section 1.6 to the affected Holders) specifying the Conversion
Date and the Specified Amount of each Component Currency on the Conversion
Date.  In the event the Company determines in good faith that any
subsequent change in any Component Currency as set forth in the definition
of Specified Amount above has occurred, the Company will similarly give
written notice to the Trustee (or any applicable Paying Agent) and to the
Exchange Rate Agent.

          The Trustee of
the appropriate series of Securities shall be fully justified and protected
in relying and acting upon information received by it from the Company
and the Exchange Rate Agent and shall not otherwise have any duty or obligation
to determine the accuracy or validity of such information independent of
the Company or the Exchange Rate Agent.

          Section 3.12. 
Appointment and Resignation of Exchange Rate Agent.  (a)  Unless
otherwise specified pursuant to Section 3.1, if and so long as the Securities
of any series (i) are denominated in a currency other than Dollars or (ii)
may be payable in a currency other than Dollars, or so long as it is required
under any other provision of this Indenture, then the Company will maintain
with respect to each such series of Securities, or as so required, at least
one Exchange Rate Agent. The Company will cause the Exchange Rate Agent
to make the necessary foreign exchange determinations at the time and in
the manner specified pursuant to Section 3.11 for the purpose of determining
the applicable rate of exchange and, if applicable, for the purpose of
converting the issued currency or currencies or currency unit or units
into the applicable payment currency or currency unit for the payment of
principal, premium, if any, and interest, if any, pursuant to Section 3.11.

          (b)  No
resignation of the Exchange Rate Agent and no appointment of a successor
Exchange Rate Agent pursuant to this Section shall become effective until
the acceptance of appointment by the successor Exchange Rate Agent as evidenced
by a written instrument delivered to the Company and the Trustee of the
appropriate series of Securities accepting such appointment executed by
the successor Exchange Rate Agent.

          (c)  If
the Exchange Rate Agent shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of the Exchange Rate
Agent for any cause, with respect to the Securities of one or more series,
the Company, by or pursuant to a Board Resolution, shall promptly appoint
a successor Exchange Rate Agent or Exchange Rate Agents with respect to
the Securities of that or those series (it being understood that any such
successor Exchange Rate Agent may be appointed with respect to the Securities
of one or more or all of such series and that, unless otherwise specified
pursuant to Section 3.1, at any time there shall only be one Exchange Rate
Agent with respect to the Securities of any particular series that are
originally issued by the Company on the same date and that are initially
denominated and/or payable in the same currency or currencies or currency
unit or units).

          Section 3.13. 
CUSIP Numbers.  The Company in issuing the Securities may use "CUSIP"
numbers (if then generally in use), and, if so, the Trustee shall use "CUSIP"
numbers (in addition to the other identification numbers printed on the
Securities) in notices of redemption as a convenience to Holders; provided
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the
other identification numbers printed on the Securities, and any such redemption
shall not be affected by any defect in or omission of such numbers.

ARTICLE 4

Satisfaction, Discharge and Defeasance

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

          Section 4.1. 
Termination of Company's Obligations Under the Indenture.  Except
as otherwise provided as contemplated by Section 3.1, this Indenture shall
upon Company Request cease to be of further effect with respect to Securities
of or within any series and any coupons appertaining thereto (except as
to any surviving rights of registration of transfer or exchange of such
Securities and replacement of such Securities which may have been lost,
stolen or mutilated as herein expressly provided for) and the Trustee,
at the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture with respect to such Securities
and any coupons appertaining thereto when:

          (1)  either

     (A)  all such Securities previously
authenticated and delivered and all coupons appertaining thereto (other
than (i) such coupons appertaining to Bearer Securities surrendered in
exchange for Registered Securities and maturing after such exchange, surrender
of which is not required or has been waived as provided in Section 3.5,
(ii) such Securities and coupons which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 3.6, (iii)
such coupons appertaining to Bearer Securities called for redemption and
maturing after the relevant Redemption Date, surrender of which has been
waived as provided in Section 10.6 and (iv) such Securities and coupons
for whose payment money has theretofore been deposited in trust or segregated
and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 9.3) have been delivered
to the Trustee for cancellation; or
     (B)  all Securities of such series and,
in the case of (i) or (ii) below, any coupons appertaining thereto not
theretofore delivered to the Trustee for cancellation

          (i) have become
due and payable,

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

          (iii) if redeemable
at the option of the Company, are to be called for redemption within one
year under arrangements satisfactory to the Trustee for the giving of notice
of redemption by the Trustee in the name, and at the expense, of the Company,
and the Company, in the case of (i), (ii) or (iii) above, has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in
trust for the purpose an amount in the currency or currencies or currency
unit or units in which the Securities of such series are payable, sufficient
to pay and discharge the entire indebtedness on such Securities and such
coupons not theretofore delivered to the Trustee for cancellation, for
principal, premium, if any, and interest, if any, with respect thereto,
to the date of such deposit (in the case of Securities which have become
due and payable) or to the Stated Maturity or Redemption Date, as the case
may be;

 

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

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

Notwithstanding the satisfaction and discharge of this Indenture, the obligation
of the Company to the Trustee and any predecessor Trustee under Section
6.9, the obligations of the Company to any Authenticating Agent under Section
6.14 and, if money shall have been deposited with the Trustee pursuant
to subclause (B) of clause (1) of this Section, the obligations of the
Trustee under Section 4.2 and the last paragraph of Section 9.3 shall survive.

          Section 4.2.  
Application of Trust Funds.  Subject to the provisions of the last
paragraph of Section 9.3, all money deposited with the Trustee pursuant
to Section 4.1 shall be held in trust and applied by it, in accordance
with the provisions of the Securities, the coupons and this Indenture,
to the payment, either directly or through any Paying Agent (including
the Company acting as its own Paying Agent) as the Trustee may determine,
to the Persons entitled thereto, of the principal, premium, if any, and
any interest for whose payment such money has been deposited with or received
by the Trustee, but such money need not be segregated from other funds
except to the extent required by law.

          Section 4.3.  
Applicability of Defeasance Provisions; Company's Option to Effect Defeasance
or Covenant Defeasance.  If pursuant to Section 3.1 provision is made
for either or both of (i) defeasance of the Securities of or within a series
under Section 4.4 or (ii) covenant defeasance of the Securities of or within
a series under Section 4.5, then the provisions of such Section or Sections,
as the case may be, together with the provisions of Sections 4.6 through
4.9 inclusive, with such modifications thereto as may be specified pursuant
to Section 3.1 with respect to any Securities, shall be applicable to such
Securities and any coupons appertaining thereto, and the Company may at
its option by Board Resolution, at any time, with respect to such Securities
and any coupons appertaining thereto, elect to have Section 4.4 (if applicable)
or Section 4.5 (if applicable) be applied to such Outstanding Securities
and any coupons appertaining thereto upon compliance with the conditions
set forth below in this Article.

          Section 4.4.  
Defeasance and Discharge.  Upon the Company's exercise of the option
specified in Section 4.3 applicable to this Section with respect to the
Securities of or within a series, the Company shall be deemed to have been
discharged from its obligations with respect to such Securities and any
coupons appertaining thereto on the date the conditions set forth in Section
4.6 are satisfied (hereinafter "defeasance").  For this purpose, such
defeasance means that the Company shall be deemed to have paid and discharged
the entire indebtedness represented by such Securities and any coupons
appertaining thereto which shall thereafter be deemed to be "Outstanding"
only for the purposes of Section 4.7 and the other Sections of this Indenture
referred to in clause (ii) of this Section, and to have satisfied all its
other obligations under such Securities and any coupons appertaining thereto
and this Indenture insofar as such Securities and any coupons appertaining
thereto are concerned (and the Trustee, at the expense of the Company,
shall on Company Order execute proper instruments acknowledging the same),
except the following which shall survive until otherwise terminated or
discharged hereunder: (i) the rights of Holders of such Securities and
any coupons appertaining thereto to receive, solely from the trust funds
described in Section 4.6(a) and as more fully set forth in such Section,
payments in respect of the principal of, premium if any, and interest,
if any, on such Securities or any coupons appertaining thereto when such
payments are due; (ii) the Company's obligations with respect to such Securities
under Sections 3.5, 3.6, 9.2 and 9.3 and with respect to the payment of
additional amounts, if any, payable with respect to such Securities as
specified pursuant to Section 3.l(b)(16); (iii) the rights, powers, trusts,
duties and immunities of the Trustee hereunder; and (iv) this Article 4. 
Subject to compliance with this Article 4, the Company may exercise its
option under this Section notwithstanding the prior exercise of its option
under Section 4.5 with respect to such Securities and any coupons appertaining
thereto.  Following a defeasance, payment of such Securities may not
be accelerated because of an Event of Default.

          Section 4.5.  
Covenant Defeasance.  Upon the Company's exercise of the option specified
in Section 4.3 applicable to this Section with respect to any Securities
of or within a series, the Company shall be released from its obligations
under Article 7 and Sections 9.4 and 9.5, and, if specified pursuant to
Section 3.1, its obligations under any other covenant, with respect to
such Securities and any coupons appertaining thereto on and after the date
the conditions set forth in Section 4.6 are satisfied (hereinafter, "covenant
defeasance"), and such Securities and any coupons appertaining thereto
shall thereafter be deemed to be not "Outstanding" for the purposes of
any direction, waiver, consent or declaration or Act of Holders (and the
consequences of any thereof) in connection with Article 7 and Sections
9.4 and 9.5, or such other covenant, but shall continue to be deemed "Outstanding"
for all other purposes hereunder.  For this purpose, such covenant
defeasance means that, with respect to such Securities and any coupons
appertaining thereto, the Company may omit to comply with and shall have
no liability in respect of any term, condition or limitation set forth
in any such Section or such other covenant, whether directly or indirectly,
by reason of any reference elsewhere herein to any such Section or such
other covenant or by reason of reference in any such Section or such other
covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a Default or an Event of Default
under Section 5.1(3) or 5.1(5) or otherwise, as the case may be, but, except
as specified above, the remainder of this Indenture and such Securities
and any coupons appertaining thereto shall be unaffected thereby.

          Section 4.6.  
Conditions to Defeasance or Covenant Defeasance.  The following shall
be the conditions to application of Section 4.4 or Section 4.5 to any Securities
of or within a series and any coupons appertaining thereto:

     (a)  The Company shall have deposited
or caused to be deposited irrevocably with the Trustee (or another trustee
satisfying the requirements of Section 6.11 who shall agree to comply with,
and shall be entitled to the benefits of, the provisions of Sections 4.3
through 4.9 inclusive and the last paragraph of Section 9.3 applicable
to the Trustee, for purposes of such Sections also a "Trustee") as trust
funds in trust for the purpose of making the payments referred to in clauses
(x) and (y) of this Section 4.6(a), specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of such Securities
and any coupons appertaining thereto, with instructions to the Trustee
as to the application thereof, (A) money in an amount (in such currency,
currencies or currency unit in which such Securities and any coupons appertaining
thereto are then specified as payable at Maturity), or (B) if Securities
of such series are not subject to repayment at the option of Holders, Government
Obligations which through the payment of interest and principal in respect
thereof in accordance with their terms will provide, not later than one
day before the due date of any payment referred to in clause (x) or (y)
of this Section 4.6(a), money in an amount or (C) a combination thereof
in an amount, sufficient, in the opinion of a nationally recognized firm
of independent certified public accountants expressed in a written certification
thereof delivered to the Trustee, to pay and discharge, and which shall
be applied by the Trustee to pay and discharge, (x) the principal of, premium,
if any, and interest, if any, on such Securities and any coupons appertaining
thereto on the Maturity of such principal or installment of principal or
interest and (y) any mandatory sinking fund payments applicable to such
Securities on the day on which such payments are due and payable in accordance
with the terms of this Indenture and such Securities and any coupons appertaining
thereto.  Before such a deposit the Company may make arrangements
satisfactory to the Trustee for the redemption of Securities at a future
date or dates in accordance with Article 10, which shall be given effect
in applying the foregoing.
     (b)  Such defeasance or covenant defeasance
shall not result in a breach or violation of, or constitute a Default or
Event of Default under, this Indenture or result in a breach or violation
of, or constitute a default under, any other material agreement or instrument
to which the Company is a party or by which it is bound.

     (c)  No Default or Event of Default under
Section 5.1(4) or 5.1(5) with respect to such Securities and any coupons
appertaining thereto shall have occurred and be continuing during the period
commencing on the date of such deposit and ending on the 91st day after
such date (it being understood that this condition shall not be deemed
satisfied until the expiration of such period).

     (d)  In the case of an election under
Section 4.4, the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel to the effect that (i) the Company
has received from, or there has been published by, the Internal Revenue
Service a ruling, or (ii) since the date of execution of this Indenture,
there has been a change in the applicable Federal income tax law, in either
case to the effect that, and based thereon such opinion shall confirm that,
the Holders of such Securities and any coupons appertaining thereto will
not recognize income, gain or loss for Federal income tax purposes as a
result of such defeasance and will be subject to Federal income tax on
the same amount and in the same manner and at the same times, as would
have been the case if such deposit, defeasance and discharge had not occurred.

     (e)  In the case of an election under
Section 4.5, the Company shall have delivered to the Trustee an Opinion
of Counsel to the effect that the Holders of such Securities and any coupons
appertaining thereto will not recognize income, gain or loss for Federal
income tax purposes as a result of such covenant defeasance and will be
subject to Federal income tax on the same amounts, in the same manner and
at the same times as would have been the case if such covenant defeasance
had not occurred.

     (f)  The Company shall have delivered
to the Trustee an Officers' Certificate and an Opinion of Counsel, each
stating that all conditions precedent to the defeasance under Section 4.4
or the covenant defeasance under Section 4.5 (as the case may be) have
been complied with and an Opinion of Counsel to the effect that either
(i) as a result of a deposit pursuant to subsection (a) above and the related
exercise of the Company's option under Section 4.4 or Section 4.5 (as the
case may be), registration is not required under the Investment Company
Act of 1940, as amended, by the Company, with respect to the trust funds
representing such deposit or by the trustee for such trust funds or (ii)
all necessary registrations under said act have been effected.

     (g)  Such defeasance or covenant defeasance
shall be effected in compliance with any additional or substitute terms,
conditions or limitations which may be imposed on the Company in connection
therewith as contemplated by Section 3.1.

          Section 4.7.  
Deposited Money and Government Obligations to Be Held in Trust.  Subject
to the provisions of the last paragraph of Section 9.3, all money and Government
Obligations (or other property as may be provided pursuant to Section 3.1)
(including the proceeds thereof) deposited with the Trustee pursuant to
Section 4.6 in respect of any Securities of any series and any coupons
appertaining thereto shall be held in trust and applied by the Trustee,
in accordance with the provisions of such Securities and any coupons appertaining
thereto and this Indenture, to the payment, either directly or through
any Paying Agent (including the Company acting as its own Paying Agent)
as the Trustee may determine, to the Holders of such Securities and any
coupons appertaining thereto of all sums due and to become due thereon
in respect of principal, premium, if any, and interest, if any, but such
money need not be segregated from other funds except to the extent required
by law.

          Unless otherwise
specified with respect to any Security pursuant to Section 3.1, if, after
a deposit referred to in Section 4.6(a) has been made, (i) the Holder of
a Security in respect of which such deposit was made is entitled to, and
does, elect pursuant to Section 3.11(b) or the terms of such Security to
receive payment in a currency or currency unit other than that in which
the deposit pursuant to Section 4.6(a) has been made in respect of such
Security, or (ii) a Conversion Event occurs as contemplated in Section
3.11(d) or 3.11(e) or by the terms of any Security in respect of which
the deposit pursuant to Section 4.6(a) has been made, the indebtedness
represented by such Security and any coupons appertaining thereto shall
be deemed to have been, and will be, fully discharged and satisfied through
the payment of the principal of, premium, if any, and interest, if any,
on such Security as the same becomes due out of the proceeds yielded by
converting (from time to time as specified below in the case of any such
election) the amount or other property deposited in respect of such Security
into the currency or currency unit in which such Security becomes payable
as a result of such election or Conversion Event based on the applicable
Market Exchange Rate for such currency or currency unit in effect on the
second Business Day prior to each payment date, except in the case of a
Conversion Event with respect to such currency or currency unit which is
in effect (as nearly as feasible) at the time of the Conversion Event.

          Section 4.8.  
Transfers and Distribution at Company Request.  To the extent permitted
by the Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 76, as amended or interpreted by the Financial Accounting
Standards Board from time to time, or any successor thereto ("Standard
No. 76"), or to the extent permitted by the Commission, the Trustee shall,
from time to time, take one or more of the following actions as specified
in a Company Request:

     (a)  Retransfer, reassign and deliver
to the Company any securities deposited with the Trustee pursuant to Section
4.6(a), provided that the Company shall, in substitution therefor, simultaneously
transfer, assign and deliver to the Trustee other Government Obligations
appropriate to satisfy the Company's obligations in respect of the relevant
Securities; and
     (b)  The Trustee (and any Paying Agent)
shall promptly pay to the Company, upon Company Request, any excess money
or securities held by them at any time, including, without limitation,
any assets deposited with the Trustee pursuant to Section 4.6(a) exceeding
those necessary for the purposes of Section 4.6(a).  The Trustee shall
not take the actions described in subsections (a) and (b) of this Section
4.8 unless it shall have first received a written report of Arthur Andersen
LLP, or another nationally recognized independent public accounting firm,
(i) expressing their opinion that the contemplated action is permitted
by Standard No. 76 or the Commission, for transactions accounted for as
extinguishment of debt under the circumstances described in paragraph 3.c
of Standard No. 76 or any successor provision, and (ii) verifying the accuracy,
after giving effect to such action or actions, of the computations which
demonstrate that the amounts remaining to be earned on the Government Obligations
deposited with the Trustee pursuant to Section 4.6(a) will be sufficient
for purposes of Section 4.6(a).

 

 

ARTICLE 5
Defaults and Remedies

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

          Section 5.1.  
Events of Default.  An "Event of Default" occurs with respect to the
Securities of any series if (whatever the reason for such Event of Default
and whether it shall be occasioned by the provisions of Article 12 or be
voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):

     (1)  the Company defaults in the payment
of interest on any Security of that series or any coupon appertaining thereto
or any additional amount payable with respect to any Security of that series
as specified pursuant to Section 3.1(b)(16) when the same becomes due and
payable and such default continues for a period of 30 days;
     (2)  the Company defaults in the payment
of the principal of or any premium on any Security of that series when
the same becomes due and payable at its Maturity or on redemption or otherwise,
or in the payment of a mandatory sinking fund payment when and as due by
the terms of the Securities of that series, and in each case such default
continues for a period of ten days;

     (3)  the Company defaults in the performance
of, or breaches, any covenant or warranty of the Company in this Indenture,
with respect to any Security of that series (other than a covenant or warranty
a default in whose performance or whose breach is elsewhere in this Section
specifically dealt with), and such default or breach continues for a period
of 60 days after there has been given, by registered or certified mail,
to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the Outstanding Securities
of that series, a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a "Notice of
Default" hereunder;

     (4)  the Company pursuant to or within
the meaning of any Bankruptcy Law (A) commences a voluntary case, (B) consents
to the entry of an order for relief against it in an involuntary case,
(C) consents to the appointment of a Custodian of it or for all or substantially
all of its property, or (D) makes a general assignment for the benefit
of its creditors;

     (5)  a court of competent jurisdiction
enters an order or decree under any Bankruptcy Law that (A) is for relief
against the Company in an involuntary case, (B) appoints a Custodian of
the Company for all or substantially all of its property, or (C) orders
the liquidation of the Company; and the order or decree remains unstayed
and in effect for 90 days; or

     (6)  any other Event of Default provided
as contemplated by Section 3.1 with respect to Securities of that series.

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

          Section 5.2.  
Acceleration; Rescission and Annulment. If an Event of Default with respect
to the Securities of any series at the time Outstanding occurs and is continuing,
the Trustee or the Holders of at least 25% in aggregate principal amount
of all of the outstanding Securities of that series, by written notice
to the Company (and, if given by the Holders, to the Trustee), may declare
the principal (or, if the Securities of that series are Original Issue
Discount Securities or Indexed Securities, such portion of the principal
amount as may be specified in the terms of that series) of all the Securities
of that series to be due and payable and upon any such declaration such
principal (or, in the case of original Issue Discount Securities or Indexed
Securities, such specified amount) shall be immediately due and payable.

          At any time after
such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money
due has been obtained by the Trustee as hereinafter in this Article provided,
the Holders of a majority in aggregate principal amount of the outstanding
Securities of that series, by written notice to the Trustee, may rescind
and annul such declaration and its consequences if all existing Defaults
and Events of Default with respect to Securities of that series, other
than the non-payment of the principal of Securities of that series which
have become due solely by such declaration of acceleration, have been cured
or waived as provided in Section 5.7.  No such rescission shall affect
any subsequent default or impair any right consequent thereon.

          Section 5.3.  
Collection of Indebtedness and Suits for Enforcement by Trustee. 
The Company covenants that if

     (1)  default is made in the payment
of any interest on any Security or coupon, if any, when such interest becomes
due and payable and such default continues for a period of 30 days, or
     (2)  default is made in the payment of
the principal of (or premium, if any, on) any Security at the Maturity
thereof and such default continues for a period of 10 days, the Company
will, upon demand of the Trustee, pay to it, for the benefit of the Holders
of such Securities or coupons, if any, the whole amount then due and payable
on such Securities for principal, premium, if any, and interest, if any,
and, to the extent that payment of any such interest shall be legally enforceable,
interest on any overdue principal or premium, if any, and on any overdue
interest, at the rate or rates prescribed therefor in such Securities or
coupons, if any, and, in addition thereto, such further amount as shall
be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

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

          Section 5.4.  
Trustee May File Proofs of Claim.  The Trustee may file such proofs
of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee and the Holders of Securities
allowed in any judicial proceedings relating to the Company, its creditors
or its property.

          Section 5.5.  
Trustee May Enforce Claims Without Possession of Securities.  All
rights of action and claims under this Indenture or the Securities may
be prosecuted and enforced by the Trustee without the possession of any
of the Securities or the production thereof in any proceeding relating
thereto.

          Section 5.6.  
Delay or Omission Not Waiver.  No delay or omission by the Trustee
or any Holder of any Securities to exercise any right or remedy accruing
upon an Event of Default shall impair any such right or remedy or constitute
a waiver of or acquiescence in any such Event of Default.

          Section 5.7.  
Waiver of Past Defaults.  The Holders of a majority in aggregate principal
amount of Outstanding Securities of any series by notice to the Trustee
may waive on behalf of the Holders of all Securities of such series a past
Default or Event of Default with respect to that series and its consequences
except (i) a Default or Event of Default in the payment of the principal
of, premium, if any, or interest, if any, on any Security of such series
or any coupon appertaining thereto or (ii) in respect of a covenant or
provision hereof which pursuant to Section 8.2 cannot be amended or modified
without the consent of the Holder of each outstanding Security of such
series adversely affected.  Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed
to have been cured, for every purpose of this Indenture.

          Section 5.8.  
Control by Majority.  The Holders of a majority in aggregate principal
amount of the Outstanding Securities of each series affected (with each
such series voting as a class) 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 it with respect
to Securities of that series; provided, however, that (i) the Trustee may
refuse to follow any direction that conflicts with law or this Indenture,
(ii) the Trustee may refuse to follow any direction that is unduly prejudicial
to the rights of the Holders of Securities of such series not consenting,
or that would in the good faith judgment of the Trustee have a substantial
likelihood of involving the Trustee in personal liability and (iii) the
Trustee may take any other action deemed proper by the Trustee which is
not inconsistent with such direction.

          Section 5.9.  
Limitation on Suits by Holders.  No Holder of any Security of any
series or any related coupons shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment
of a receiver or trustee, or for any other remedy hereunder, unless:

     (1)  the Holder has previously given
written notice to the Trustee of a continuing Event of Default with respect
to the Securities of that series;
     (2)  the Holders of at least 25% in aggregate
principal amount of the Outstanding Securities of that series have made
a written request to the Trustee to institute proceedings in respect of
such Event of Default in its own name as Trustee hereunder;

     (3)  such Holder or Holders have offered
to the Trustee indemnity satisfactory to the Trustee against any loss,
liability or expense to be, or which may be, incurred by the Trustee in
pursuing the remedy;

     (4)  the Trustee for 60 days after its
receipt of such notice, request and the offer of indemnity has failed to
institute any such proceedings; and

     (5)  during such 60-day period, the Holders
of a majority in aggregate principal amount of the Outstanding Securities
of that series have not given to the Trustee a direction inconsistent with
such written request.

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

          Section 5.10. 
Rights of Holders to Receive Payment.  Notwithstanding any other provision
of this Indenture, but subject to Section 9.2, the right of any Holder
of a Security or coupon to receive payment of principal of, premium, if
any, and, subject to Sections 3.5 and 3.7, interest, if any, on the Security,
on or after the respective due dates expressed in the Security (or, in
case of redemption, on the redemption dates) and the right of any Holder
of a coupon to receive payment of interest due as provided in such coupon,
or, subject to Section 5.9, to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of such Holder.

          Section 5.11. 
Application of Money Collected.  Subject to Article 12, if the Trustee
collects any money pursuant to this Article, it shall pay out the money
in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal, premium,
if any, or interest, if any, upon presentation of the Securities and any
coupons appertaining thereto and the notation thereon of the payment if
only partially paid and upon surrender thereof if fully paid:

     First: to the Trustee for amounts due under
Section 6.9;
     Second: to Holders of Securities and coupons
in respect of which or for the benefit of which such money has been collected
for amounts due and unpaid on such Securities for principal of, premium,
if any, and interest, if any, ratably, without preference or priority of
any kind, according to the amounts due and payable on such Securities for
principal, premium, if any, and interest, if any, respectively; and

     Third: to the Person or Persons entitled thereto.

          Section 5.12. 
Restoration of Rights and Remedies.  If the Trustee or any Holder
has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder,
then and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights
and remedies of the Trustee and the Holders shall continue as though no
such proceeding had been instituted.

          Section 5.13. 
Rights and Remedies Cumulative. Except as otherwise provided with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities
in the last paragraph of Section 3.6, no right or remedy herein conferred
upon or reserved to the Trustee or the Holders is intended to be exclusive
of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity
or otherwise.  The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

          Section 5.14. 
Undertaking for Costs.  In any suit for the enforcement of any right
or remedy under this Indenture, or in any suit against the Trustee for
any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs
of such suit, and may assess costs against any such party litigant, in
the manner and to the extent provided in the Trust Indenture Act; provided
that neither this Section nor the Trust Indenture Act shall be deemed to
authorize any court to require such an undertaking or to make such an assessment
in any suit instituted by the Company, and any provision of the Trust Indenture
Act to such effect is hereby expressly excluded from this Indenture, as
permitted by the Trust Indenture Act.

          Section 5.15. 
Action Respecting Securities Held in UAL Corporation Capital Trust. 
With respect to any series of Securities held as trust assets of a UAL
Corporation Capital Trust and with respect to which a Security Exchange
has not theretofore occurred, any authorization, approval, consent, request,
notice, waiver or other action of Holders required or permitted to be taken
under this Indenture or pursuant to the terms of any Security, in addition
to any other authorization, approval, consent, request, notice, waiver
or other action required hereunder, will require such authorization, approval,
consent, request, notice, waiver or other action of holders of the Preferred
Securities and the Common Securities of such UAL Corporation Capital Trust
as may be required under the Declaration of Trust of such UAL Corporation
Capital Trust.

 

 

ARTICLE 6

The Trustee

-----------

          Section 6.1.  
Certain Duties and Responsibilities.  (a) Except during the continuance
of an Event of Default:

     (1)  the Trustee undertakes to perform
such duties and only such duties as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and
     (2)  in the absence of bad faith on its
part, the Trustee may conclusively rely, as to the truth of the statements
and the correctness of the opinions expressed therein, upon certificates
or opinions furnished to the Trustee and conforming to the requirements
of this Indenture; but in the case of any such certificates or opinions
which by any provision hereof are specifically required to be furnished
to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Indenture.

          (b)  In case
an Event of Default has occurred and is continuing with respect to the
Securities of any series, the Trustee shall exercise such of the rights
and powers vested in it by this Indenture with respect to the Securities
of such series, and use the same degree of care and skill in their exercise,
as a prudent person would exercise or use under the circumstances in the
conduct of his or her own affairs.

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

     (1)  this subsection shall not be construed
to limit the effect of subsection (a) of this Section;
     (2)  the Trustee shall not be liable for
any error of judgment made in good faith by a Responsible Officer, unless
it shall be proved that the Trustee was negligent in ascertaining the pertinent
facts; and

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

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

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

          Section 6.2.  
Rights of Trustee.  Subject to the provisions of the Trust Indenture
Act:

     (a)  The Trustee may rely and shall
be protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note or other paper or document believed by it
to be genuine and to have been signed or presented by the proper party
or parties.
     (b)  Any request or direction of the Company
mentioned herein shall be sufficiently evidenced by a Company Request or
Company Order (other than delivery of any Security, and any coupons appertaining
thereto, to the Trustee for authentication and delivery pursuant to Section
3.3, which shall be sufficiently evidenced as provided therein), and any
resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution.

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

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

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

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

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

     (h)  The Trustee shall not be liable for
any action it takes or omits to take in good faith which it believes to
be authorized or within its rights or powers.

     (i)  The Trustee shall not be required
to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder, or in the exercise of
its rights or powers, if it shall have reasonable grounds for believing
that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.

          Section 6.3.  
Trustee May Hold Securities.  The Trustee, any Paying Agent, any Registrar
or any other agent of the Company, in its individual or any other capacity,
may become the owner or pledgee of Securities and coupons and, subject
to Sections 310(b) and 311 of the Trust Indenture Act, may otherwise deal
with the Company, an Affiliate or Subsidiary with the same rights it would
have if it were not Trustee, Paying Agent, Registrar or such other agent.

          Section 6.4.  
Money Held in Trust.  Money held by the Trustee in trust hereunder
need not be segregated from other funds except to the extent required by
law.  The Trustee shall be under no liability for interest on any
money received by it hereunder except as otherwise agreed to in writing
with the Company.

          Section 6.5.  
Trustee's Disclaimer.  The recitals contained herein and in the Securities,
except the Trustee's certificate of authentication, shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for
their correctness.  The Trustee makes no representation as to the
validity or adequacy of this Indenture, the Securities or any coupon. 
The Trustee shall not be accountable for the Company's use of the proceeds
from the Securities or for monies paid over to the Company pursuant to
the Indenture.

          Section 6.6.  
Notice of Defaults.  If a Default occurs and is continuing with respect
to the Securities of any series and if it is known to the Trustee, the
Trustee shall, within 90 days after it occurs, transmit, in the manner
and to the extent provided in Section 313(c) of the Trust Indenture Act,
notice of all uncured Defaults known to it; provided, however, that, in
the case of a Default in payment on the Securities of any series, the Trustee
may withhold the notice if and so long as the board of directors, the executive
committee or a committee of its Responsible Officers in good faith determines
that withholding such notice is in the interests of Holders of Securities
of that series; provided further that, in the case of any default or breach
of the character specified in Section 5.1(3) with respect to the Securities
and coupons of such series, no such notice to Holders shall be given until
at least 60 days after the occurrence thereof.  For the purpose of
this Section, the term "default" means any event which is, or after notice
or lapse of time or both would become, an Event of Default with respect
to Securities of such series.

          Section 6.7.  
Reports by Trustee to Holders.  (a)  Within 60 days after each
May 15 of each year commencing with the first May 15 after the first issuance
of Securities pursuant to this Indenture, the Trustee shall transmit by
mail to all Holders of Securities as provided in Section 313(c) of the
Trust Indenture Act a brief report dated as of such May 15 if required
by Section 313(a) of the Trust Indenture Act.  The Trustee also shall
comply with Section 313(b) and (d) of the Trust Indenture Act.

          (b)  A copy
of each such report shall, at the time of such transmission to Holders,
be filed by the Trustee with each stock exchange, if any, upon which the
Securities are listed, with the Commission and with the Company. 
The Company will promptly notify the Trustee when the Securities are listed
on any stock exchange.

          Section 6.8.  
Securityholder Lists.  The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it
of the names and addresses of Holders of Securities of each series. 
If the Trustee is not the Registrar, the Company shall furnish to the Trustee
semiannually on or before the last day of June and December in each year,
and at such other times as the Trustee may request in writing, a list,
in such form and as of such date as the Trustee may reasonably require,
containing all the information in the possession of the Registrar, the
Company or any of its Paying Agents other than the Trustee as to the names
and addresses of Holders of Securities of each such series.  If there
are Bearer Securities of any series outstanding, even if the Trustee is
the Registrar, the Company shall furnish to the Trustee such a list containing
such information with respect to Holders of such Bearer Securities only.

          Section 6.9.  
Compensation and Indemnity.  (a) The Company shall pay to the Trustee
from time to time such compensation as shall be agreed to in writing between
the Company and the Trustee for all services rendered by it hereunder. 
The Trustee's compensation shall not be limited by any law on compensation
of a trustee of an express trust.  The Company shall reimburse the
Trustee upon request for all reasonable out-of-pocket expenses incurred
by it in connection with the performance of its duties under this Indenture,
except any such expense as may be attributable to its negligence or bad
faith.

          (b)  The
Company shall indemnify the Trustee and any predecessor Trustee for, and
hold it harmless against, any loss, liability or expense, including taxes
(other than taxes based upon, measured by or determined by the income of
the Trustee), incurred by it without negligence or bad faith on its part
arising out of or in connection with its acceptance or administration of
the trust or trusts hereunder.  The Trustee shall notify the Company
promptly of any claim for which it may seek indemnity.  The Company
shall defend the claim and the Trustee shall cooperate in the defense. 
The Trustee may have separate counsel and the Company shall pay the reasonable
fees and expenses of such counsel.  The Company need not pay for any
settlement made without its consent.

          (c)  The
Company need not reimburse any expense or indemnify against any loss or
liability incurred by the Trustee through negligence or bad faith.

          (d)  To
secure the payment obligations of the Company pursuant to this Section,
the Trustee shall have a lien prior to the Securities of any series on
all money or property held or collected by the Trustee, except that held
in trust to pay principal, premium, if any, and interest, if any, on particular
Securities.

          (e)  When
the Trustee incurs expenses or renders services in connection with an Event
of Default specified in Section 5.1(4) or Section 5.1(5), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of administration
under any applicable Federal or state bankruptcy, insolvency or other similar
law.

          (f)  The
provisions of this Section shall survive the termination of this Indenture.

          Section 6.10. 
Replacement of Trustee.  (a)  The resignation or removal of the
Trustee and the appointment of a successor Trustee shall become effective
only upon the successor Trustee's acceptance of appointment as provided
in Section 6.11.

          (b)  The
Trustee may resign at any time with respect to the Securities of any series
by giving written notice thereof to the Company.  If the instrument
of acceptance by a successor Trustee required by Section 6.11 shall not
have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

          (c)  The
Holders of a majority in aggregate principal amount of the Outstanding
Securities of any series may remove the Trustee with respect to that series
by so notifying the Trustee and the Company and may appoint a successor
Trustee for such series with the Company's consent.

          (d)  If
at any time:

     (1)  the Trustee fails to comply with
Section 310(b) of the Trust Indenture Act after written request therefor
by the Company or by any Holder who has been a bona fide Holder of a Security
for at least six months;
     (2)  the Trustee shall cease to be eligible
under Section 310(a) of the Trust Indenture Act and shall fail to resign
after written request therefor by the Company or by any Holder of a Security
who has been a bona fide Holder of a Security for at least six months;
or

     (3)  the Trustee becomes incapable of
acting, is adjudged a bankrupt or an insolvent or a receiver or public
officer takes charge of the Trustee or its property or affairs for the
purpose of rehabilitation, conservation or liquidation; then, in any such
case, (i) the Company by or pursuant to a Board Resolution may remove the
Trustee with respect to all Securities, or (ii) subject to Section 315(e)
of the Trust Indenture Act, any Holder who has been a bona fide Holder
of a Security for at least six months may, on behalf of himself and all
other persons similarly situated, petition any court of competent jurisdiction
for the removal of the Trustee with respect to all Securities and the appointment
of a successor Trustee or Trustees.

          (e)  If the
Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, with respect to Securities of one or more series, the Company,
by or pursuant to Board Resolution, shall promptly appoint a successor
Trustee with respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect
to the Securities of one or more or all of such series and that at any
time there shall be only one Trustee with respect to the Securities of
any particular series) and shall comply with the applicable requirements
of Section 6.11.  If, within one year after such resignation, removal
or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act
of the Holders of a majority in principal amount of the Outstanding Securities
of such series delivered to the Company and the retiring Trustee, the successor
Trustee so appointed shall, forthwith upon its acceptance of such appointment
in accordance with the applicable requirements of Section 6.11, become
the successor Trustee with respect to the Securities of such series and
to that extent supersede the successor Trustee appointed by the Company. 
If no successor Trustee with respect to the Securities of any series shall
have been so appointed by the Company or the Holders and accepted appointment
in the manner required by Section 6.11, any Holder who has been a bona
fide Holder of a Security of such series for at least six months may, on
behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

          Section 6.11. 
Acceptance of Appointment by Successor.  (a) In case of the appointment
hereunder of a successor Trustee with respect to all Securities, every
such successor Trustee shall execute, acknowledge and deliver to the Company
and to the retiring Trustee an instrument accepting such appointment. 
Thereupon, the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee, without further act, deed or conveyance,
shall become vested with all the rights, powers and duties of the retiring
Trustee; but, on the request of the Company or the successor Trustee, such
retiring Trustee shall, upon payment of its charges, execute and deliver
an instrument transferring to such successor Trustee all the rights, powers
and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder.

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

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

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

          (e)  The
Company shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series in the manner
provided for notices to the Holders of Securities in Section 1.6. 
Each notice shall include the name of the successor Trustee with respect
to the securities of such series and the address of its Corporate Trust
office.

          Section 6.12. 
Eligibility; Disqualification.  There shall at all times be a Trustee
hereunder which shall be eligible to act as Trustee under Section 310(a)(1)
of the Trust Indenture Act and shall have a combined capital and surplus
of at least $75,000,000.  If such corporation publishes reports of
condition at least annually, pursuant to law or the requirements of Federal,
State, Territorial 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. 
If at any time the Trustee shall cease to be eligible in accordance with
the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article.

          Section 6.13. 
Merger, Conversion, Consolidation or Succession to Business.  Any
corporation into which the Trustee may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all the corporate trust business of
the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the
part of any of the parties hereto.  In case any Securities shall have
been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating
Trustee may adopt such authentication and deliver the Securities so authenticated
with the same effect as if such successor Trustee had itself authenticated
such Securities.

          Section 6.14. 
Appointment of Authenticating Agent.  The Trustee may appoint an Authenticating
Agent or Agents with respect to one or more series of Securities which
shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue, exchange, registration of transfer
or partial redemption thereof, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee hereunder.  Any
such appointment shall be evidenced by an instrument in writing signed
by a Responsible Officer of the Trustee, a copy of which instrument shall
be promptly furnished to the Company.  Wherever reference is made
in this Indenture to the authentication and delivery of Securities by the
Trustee or the Trustee's certificate of authentication, such reference
shall be deemed to include authentication and delivery on behalf of the
Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent.  Each
Authenticating Agent shall be acceptable to the Company and, except as
may otherwise be provided pursuant to Section 3.1, shall at all times be
a bank or trust company or corporation organized and doing business and
in good standing under the laws of the United States of America or of any
State or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less
than $1,500,000 and subject to supervision or examination by Federal or
State authorities.  If such Authenticating Agent publishes reports
of condition at least annually, pursuant to law or the requirements of
the aforesaid supervising or examining authority, then, for the purposes
of this Section, the combined capital and surplus of such Authenticating
Agent shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time
an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

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

          An Authenticating
Agent for any series of Securities may at any time resign by giving written
notice of resignation to the Trustee for such series and to the Company. 
The Trustee for any series of Securities may at any time terminate the
agency of an Authenticating Agent by giving written notice of termination
to such Authenticating Agent and to the Company.  Upon receiving such
a notice of resignation or upon such a termination, or in case at any time
such Authenticating Agent shall cease to be eligible in accordance with
the provisions of this Section, the Trustee for such series may appoint
a successor Authenticating Agent which shall be acceptable to the Company
and shall give notice of such appointment to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve
in the manner set forth in Section 1.6.  Any successor Authenticating
Agent upon acceptance of its appointment hereunder shall become vested
with all the rights, powers and duties of its predecessor hereunder, with
like effect as if originally named as an Authenticating Agent herein. 
No successor Authenticating Agent shall be appointed unless eligible under
the provisions of this Section.

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

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

     This is one of the Securities of a series issued
under the within-mentioned Indenture.

 
	Dated: ____________________	The First National Bank of Chicago,

as Trustee
	 	By________________________
	 	as Authenticating Agent
	 	By________________________
	 	Authorized Signatory

Sections 6.2, 6.3, 6.5 and 6.9 shall be applicable to any Authenticating
Agent.

          Section 6.15. 
Trustee's Application for Instructions from the Company.  Any application
by the Trustee for written instructions from the Company may, at the option
of the Trustee, set forth in writing any action proposed to be taken or
omitted by the Trustee under this Indenture and the date on and/or after
which such action shall be taken or such omission shall be effective. 
The Trustee shall not be liable for any action taken by, or omission of,
the Trustee in accordance with a proposal included in such application
on or after the date specified in such application (which date shall not
be less than fifteen Business Days after the date any officer of the Company
actually receives such application, unless any such officer shall have
consented in writing to any earlier date) unless prior to taking any such
action (or the effective date in the case of an omission), the Trustee
shall have received written instructions in response to such application
specifying the action to be taken or omitted.

 

 

ARTICLE 7

Consolidation, Merger or Sale by the Company

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

          The Company may
merge or consolidate with or into any other corporation or sell, convey,
transfer or otherwise dispose of all or substantially all of its assets
to any person, firm or corporation, if (i)(A) in the case of a merger or
consolidation, the Company is the surviving corporation or (B) in the case
of a merger or consolidation where the Company is not the surviving corporation
and in the case of any such sale, conveyance or other disposition, the
successor or acquiring corporation is a corporation organized and existing
under the laws of the United States or a State thereof and such corporation
expressly assumes by supplemental indenture all the obligations of the
Company under the Securities and any coupons appertaining thereto and under
this Indenture, (ii) immediately thereafter, giving effect to such merger
or consolidation, or such sale, conveyance, transfer or other disposition,
no Default or Event of Default shall have occurred and be continuing, and
(iii) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel each stating that such merger or consolidation,
or such sale, conveyance, transfer or other disposition complies with this
Article and that all conditions precedent herein provided for relating
to such transaction have been complied with.  In the event of the
assumption by a successor corporation of the obligations of the Company
as provided in clause (i)(B) of the immediately preceding sentence, such
successor corporation shall succeed to and be substituted for the Company
hereunder and under the Securities and any coupons appertaining thereto
and all such obligations of the Company shall terminate.

ARTICLE 8

Supplemental Indentures

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

          Section 8.1.  
Supplemental Indentures Without Consent of Holders.  Without the consent
of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into indentures
supplemental hereto, in form reasonably satisfactory to the Trustee, for
any of the following purposes:

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

     (3)  to add any additional Events of Default
with respect to all or any series of Securities;

     (4)  to add to or change any of the provisions
of this Indenture to such extent as shall be necessary to facilitate the
issuance of Bearer Securities (including, without limitation, to provide
that Bearer Securities may be registrable as to principal only) or to facilitate
the issuance of Securities in global form;

     (5)  to add to, change or eliminate any
of the provisions of this Indenture, provided that any such addition, change
or elimination shall become effective only when there is no Security Outstanding
of any series created prior to the execution of such supplemental indenture
which is entitled to the benefit of such provision;

                        
(6)  to secure the Securities;

     (7)  to establish the form or terms
of Securities of any series as permitted by Sections 2.1 and 3.1;
     (8)  to evidence and provide for the acceptance
of appointment hereunder by a successor Trustee with respect to the Securities
of one or more series and to add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, pursuant to the requirements
of Section 6.10;

     (9)  if allowed without penalty under
applicable laws and regulations, to permit payment in the United States
(including any of the states and the District of Columbia), its territories,
its possessions and other areas subject to its jurisdiction of principal,
premium, if any, or interest, if any, on Bearer Securities or coupons,
if any;

     (10) to correct or supplement any provision
herein or in any supplemental indenture which may be defective or inconsistent
with any other provision herein or in any supplemental indenture, to cure
any ambiguity or correct any mistake or to make any other provisions with
respect to matters or questions arising under this Indenture, provided
such action shall not adversely affect the interests of the Holders of
Securities of any series; or

     (11) to comply with any requirement of the
Commission in connection with the qualification of this Indenture under
the Trust Indenture Act.

          Section 8.2. 
Supplemental Indentures With Consent of Holders.  With the written
consent of the Holders of a majority of the aggregate principal amount
of the Outstanding Securities of each series adversely affected by such
supplemental indenture, the Company and the Trustee may enter into an indenture
or indentures supplemental hereto to add any provisions to or to change
or eliminate any provisions of this Indenture or of any other indenture
supplemental hereto or to modify the rights of the Holders of Securities
of each such series; provided, however, that without the consent of the
Holder of each Outstanding Security affected thereby, an amendment under
this Section may not:

     (1)  change the Stated Maturity of the
principal of, or any installment of principal of or interest on, any Security
(except that a valid extension of an interest payment period by the Company,
in accordance with the terms of any indenture supplemental hereto, shall
not constitute a change for this purpose) or reduce the principal amount
thereof or the rate of interest thereon or any premium payable upon the
redemption thereof, or reduce the amount of the principal of an Original
Issue Discount Security that would be due and payable upon a declaration
of acceleration of the Maturity thereof pursuant to Section 5.2, or change
the coin or currency in which, any Securities or any premium or the interest
thereon is payable, or impair the right to institute suit for the enforcement
of any such payment on or after the Stated Maturity thereof (or, in the
case of redemption, on or after the Redemption Date), or modify the provisions
of this indenture with respect to the subordination of the Securities,
or adversely affect the right to convert any Security as may be provided
pursuant to Section 3.1 herein;
     (2)  reduce the percentage of principal
amount of the Outstanding Securities of any series, the consent of whose
Holders is required for any such supplemental indenture, or the consent
of whose Holders is required for any waiver (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their consequences)
provided for in this Indenture;

     (3)  change any obligation of the Company
to maintain an office or agency in the places and for the purposes specified
in Section 9.2;

     (4)  adversely affect the right to convert
the Securities of any series as provided in Article 12 hereof; or

     (5)  make any change in Section 5.7 or
this Section 8.2 except to increase any percentage or to provide that certain
other provisions of this Indenture cannot be modified or waived with the
consent of the Holders of each Outstanding Security affected thereby.

          For the purposes
of this Section 8.2, if the Securities of any series are issuable upon
the exercise of warrants, any holder of an unexercised and unexpired warrant
with respect to such series shall not be deemed to be a Holder of Outstanding
Securities of such series in the amount issuable upon the exercise of such
warrants.

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

          It is not necessary
under this Section 8.2 for the Holders to consent to the particular form
of any proposed supplemental indenture, but it is sufficient if they consent
to the substance thereof.

          The Company may,
but shall not be obligated to, fix a record date for the purpose of determining
the Persons entitled to consent to any indenture supplemental hereto. 
If a record date is fixed, the Holders on such record date, or their duly
designated proxies, and only such Persons, shall be entitled to consent
to such supplemental indenture, whether or not such Holders remain Holders
after such record date; provided, that unless such consent shall have become
effective by virtue of the requisite percentage having been obtained prior
to the date which is 90 days after such record date, any such consent previously
given shall automatically and without further action by any Holder be canceled
and of no further effect.

          Section 8.3.  
Compliance with Trust Indenture Act.  Every supplemental indenture
executed pursuant to this Article shall comply with the requirements of
the Trust Indenture Act as then in effect.

          Section 8.4.  
Execution of Supplemental Indentures.  In executing, or accepting
the additional trusts created by, any supplemental indenture permitted
by this Article or the modification thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution
of such supplemental indenture is authorized or permitted by this Indenture. 
The Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities
under this Indenture or otherwise.

          Section 8.5.  
Effect of Supplemental Indentures.  Upon the execution of any supplemental
indenture under this article, this Indenture shall be modified in accordance
therewith, and such supplemental indenture shall form a part of this Indenture
for all purposes; and every Holder of Securities theretofore or thereafter
authenticated and delivered hereunder and of any coupon appertaining thereto
shall be bound thereby.

          Section 8.6.  
Reference in Securities to Supplemental Indentures.  Securities, including
any coupons, of any series authenticated and delivered after the execution
of any supplemental indenture pursuant to this Article may, and shall if
required by the Trustee, bear a notation in form approved by the Trustee
as to any matter provided for in such supplemental indenture.  If
the Company shall so determine, new Securities including any coupons of
any series so modified as to conform, in the opinion of the Trustee and
the Company, to any such supplemental indenture may be prepared and executed
by the Company and authenticated and delivered by the Trustee in exchange
for Outstanding Securities including any coupons of such series.

ARTICLE 9

Covenants

---------

          Section 9.1.  
Payment of Principal, Premium, If Any, and Interest.  The Company
covenants and agrees for the benefit of the Holders of each series of Securities
that it will duly and punctually pay the principal of, premium, if any,
and interest, if any, on the Securities of that series in accordance with
the terms of the Securities of such series, any coupons appertaining thereto
and this Indenture.  An installment of principal or interest shall
be considered paid on the date it is due if the Trustee or Paying Agent
holds on that date money designated for and sufficient to pay the installment.

          If at any time
while the Trustee is the Holder of any Securities, any UAL Corporation
Capital Trust or the Trustee is required to pay any taxes, duties, assessments
or governmental charges of whatever nature (other than withholding taxes)
imposed by the United States, or any other taxing authority, then, in any
such case, the Company will pay as additional interest ("Additional Interest")
on the Securities held by the Trustee, such amounts as shall be required
so that the net amounts received and retained by such UAL Corporation Capital
Trust and the Trustee after paying any such taxes, duties, assessments
or other governmental charges will be not less than the amounts such UAL
Corporation Capital Trust and the Trustee would have received had no such
taxes, duties, assessments or other governmental charges been imposed.

          Section 9.2.  
Maintenance of Office or Agency.  If Securities of a series are issued
as Registered Securities, the Company will maintain in each Place of Payment
for any series of Securities an office or agency where Securities of that
series may be presented or surrendered for payment, where Securities of
that series may be surrendered for registration of transfer or exchange,
where Securities may be surrendered for conversion and where notices and
demands to or upon the Company in respect of the Securities of that series
and this Indenture may be served.  If Securities of a series are issuable
as Bearer Securities, the Company will maintain, (i) subject to any laws
or regulations applicable thereto, an office or agency in a Place of Payment
for that series which is located outside the United States, where Securities
of that series and related coupons may be presented and surrendered for
payment; provided, however, that if the Securities of that series are listed
on The International Stock Exchange of the United Kingdom and the Republic
of Ireland Limited, the Luxembourg Stock Exchange or any other stock exchange
located outside the United States and such stock exchange shall so require,
the Company will maintain a Paying Agent for the Securities of that series
in London, Luxembourg or any other required city located outside the United
States, as the case may be, so long as the Securities of that series are
listed on such exchange, and (ii) subject to any laws or regulations applicable
thereto, in a Place of Payment for that series located outside the United
States, where Securities of that series may be surrendered for exchange
and where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served.  The Company
will give prompt written notice to the Trustee of the location, and any
change in the location, of any such office or agency.  If at any time
the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate
Trust Office of the Trustee, and the Company hereby appoints the Trustee
as its agent to receive all such presentations, surrenders, notices and
demands.

          Unless otherwise
specified as contemplated by Section 3.1, no payment of principal, premium
or interest on Bearer Securities shall be made at any office or agency
of the Company in the United States, by check mailed to any address in
the United States, by transfer to an account located in the United States
or upon presentation or surrender in the United States of a Bearer Security
or coupon for payment, even if the payment would be credited to an account
located outside the United States; provided, however, that, if the Securities
of a series are denominated and payable in Dollars, payment of principal
of and any premium or interest on any such Bearer Security shall be made
at the office of the Company's Paying Agent in the Borough of Manhattan,
The City of New York, if (but only if) payment in Dollars of the full amount
of such principal, premium or interest, as the case may be, at all offices
or agencies outside the United States maintained for the purpose by the
Company in accordance with this Indenture is illegal or effectively precluded
by exchange controls or other similar restrictions.

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

          Unless otherwise
specified as contemplated by Section 3.1, the Trustee shall initially serve
as Paying Agent.

          Section 9.3.  
Money for Securities to Be Held in Trust; Unclaimed Money.  If the
Company shall at any time act as its own Paying Agent with respect to any
series of Securities, it will, on or before each due date of the principal
of, premium, if any, or interest, if any, on any of the Securities of that
series, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal, premium, if any, or interest,
if any, so becoming due until such sums shall be paid to such persons or
otherwise disposed of as herein provided and will promptly notify the Trustee
in writing of its action or failure so to act.

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

     (1)  hold all sums held by it for the
payment of the principal of, premium, if any, or interest, if any, on Securities
of that series in trust for the benefit of the Persons entitled thereto
until such sums shall be paid to such Persons or otherwise disposed of
as herein provided;
     (2)  give the Trustee notice of any default
by the Company (or any other obligor upon the Securities of that series)
in the making of any payment of principal, premium, if any, or interest,
if any, on the Securities; and

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

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

          Any money deposited
with the Trustee or any Paying Agent, or then held by the Company, in trust
for the payment of any principal, premium or interest on any Security of
any series and remaining unclaimed for two years after such principal,
premium, if any, or interest, if any, has become due and payable shall
be paid to the Company on Company Request or (if then held by the Company)
shall be discharged from such trust; and the Holder of such Security and
coupon, if any, shall thereafter, as an unsecured general creditor, look
only to the Company for payment thereof, and all liability of the Trustee
or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any
such repayment, may at the expense of the Company cause to be published
once, in a newspaper published in the English language, customarily published
on each Business Day and of general circulation in The City of New York,
or cause to be mailed to such Holder, notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than
30 days from the date of such publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

          Section 9.4.  
Corporate Existence.  Subject to Article 7, the Company will at all
times do or cause to be done all things necessary to preserve and keep
in full force and effect its corporate existence; provided that nothing
in this Section 9.4 shall prevent the abandonment or termination of any
right or franchise of the Company, if, in the opinion of the Company, such
abandonment or termination is in the best interests of the Company and
does not materially adversely affect the ability of the Company to operate
its business or to fulfill its obligations hereunder.

          Section 9.5.  
Insurance.  The Company covenants and agrees that it will maintain,
and cause each of its Subsidiaries to maintain, insurance with responsible
and reputable insurance companies or associations or through a program
of self-insurance in such amounts and covering such risks as are consistent
with sound business practice for corporations engaged in the same or a
similar business similarly situated.

          Section 9.6.  
Reports by the Company.  The Company covenants:

     (a)  to file with the Trustee, within
30 days after the Company is required to file the same with the Commission,
copies of the annual reports and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the Commission
may from time to time by rules and regulations prescribe) which it may
be required to file with the Commission pursuant to section 13 or section
15(d) of the Securities Exchange Act of 1934, as amended; or, if it is
not required to file information, documents or reports pursuant to either
of such sections, then to file with the Trustee and the Commission, in
accordance with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents
and reports which may be required pursuant to section 13 of the Securities
Exchange Act of 1934, as amended, in respect of a security listed and registered
on a national securities exchange as may be prescribed from time to time
in such rules and regulations;
     (b)  to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from
time to time by the Commission, such additional information, documents
and
reports with respect to compliance by it with the conditions and covenants
provided for in this Indenture, as may be required from time to time by
such rules and regulations; and

     (c)  to transmit to all Holders of Securities,
within 30 days after the filing thereof with the Trustee, in the manner
and to the extent provided in section 313(c) of the Trust Indenture Act,
such summaries of any information, documents and reports required to be
filed by it pursuant to subsections (a) and (b) of this Section 9.6, as
may be required by rules and regulations prescribed from time to time by
the Commission.

     Delivery of such reports, information and documents
to the Trustee is for informational purposes only and the Trustee's receipt
of such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the
Company's compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers' Certificates).

          Section 9.7.  
Annual Review Certificate.  The Company covenants and agrees to deliver
to the Trustee, within 120 days after the end of each fiscal year of the
Company, a brief certificate from the principal executive officer, principal
financial officer, or principal accounting officer as to his or her knowledge
of the Company's compliance with all conditions and covenants under this
Indenture.  For purposes of this Section 9.7, such compliance shall
be determined without regard to any period of grace or requirement of notice
provided under this Indenture.

          Section 9.8.  
Limitation on Dividends and Capital Stock Acquisitions.  The Company
covenants and agrees that, if at any time it has failed to make any payment
of interest, principal or premium on the Securities when due (after giving
effect to any grace period for payment thereof as provided in Section 5.1), 
the Company will not, until all defaulted interest on the Securities and
all principal and premium, if any, then due and payable on the Securities
shall have been paid in full, (i) declare, set aside or pay any dividend
or distribution on any capital stock of the Company (except for dividends
or distributions in shares of its capital stock or rights to acquire shares
of its capital stock), or (ii) repurchase, redeem or otherwise acquire,
or make any sinking fund payment for the purchase or redemption of, any
shares of its capital stock (except by conversion into or exchange for
shares of its capital stock and except for a redemption, purchase or other
acquisition of shares of its capital stock made for the purpose of an employee
incentive plan or benefit plan of the Company or any of its subsidiaries);
provided, however, that any moneys theretofore deposited in any sinking
fund with respect to any preferred stock of the Company in compliance with
this Section 9.8 and the provisions of such sinking fund may thereafter
be applied to the purchase or redemption of such preferred stock in accordance
with the terms of such sinking fund without regard to the restrictions
in this Section 9.8.

          Section 9.9.  
Notice of Default.  The Company shall file with the Trustee written
notice of the occurrence of any Default or Event of Default within 30 Business
Days of its becoming aware of any such Default or Event of Default.

 

 

ARTICLE 10

Redemption

----------

          Section 10.1. 
Applicability of Article.  Securities (including coupons, if any)
of any series which are redeemable before their Stated Maturity shall be
redeemable in accordance with their terms and (except as otherwise specified
as contemplated by Section 3.1 for Securities of any series) in accordance
with this Article.

          Section 10.2. 
Election to Redeem; Notice to Trustee.  The election of the Company
to redeem any Securities, including coupons, if any, shall be evidenced
by or pursuant to a Board Resolution or an Officers' Certificate. 
In the case of any redemption at the election of the Company of less than
all the Securities or coupons, if any, of any series, the Company shall,
at least 60 days prior to the Redemption Date fixed by the Company (unless
a shorter notice shall be satisfactory to the Trustee), notify the Trustee
of such Redemption Date, of the principal amount of Securities of such
series to be redeemed and, if applicable, of the tenor of the Securities
to be redeemed.  In the case of any redemption of Securities (i) prior
to the expiration of any restriction on such redemption provided in the
terms of such Securities or elsewhere in this Indenture or (ii) pursuant
to an election of the Company which is subject to a condition specified
in the terms of such Securities, the Company shall furnish the Trustee
with an Officers' Certificate evidencing compliance with such restriction
or condition.

          Section 10.3. 
Selection of Securities to Be Redeemed. Unless otherwise specified as contemplated
by Section 3.1, if less than all the Securities (including coupons, if
any) of a series with the same original issue date, interest rate and Stated
Maturity are to be redeemed, the Trustee, not more than 45 days prior to
the redemption date, shall select the Securities of the series to be redeemed
in such manner as the Trustee shall deem fair and appropriate.  The
Trustee shall make the selection from Securities of the series that are
Outstanding and that have not previously been called for redemption and
may provide for the selection for redemption of portions (equal to the
minimum authorized denomination for Securities, including coupons, if any,
of that series or any integral multiple thereof) of the principal amount
of Securities, including coupons, if any, of such series of a denomination
larger than the minimum authorized denomination for Securities of that
series.  The Trustee shall promptly notify the Company in writing
of the Securities selected by the Trustee for redemption and, in the case
of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.

          For purposes
of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities (including coupons, if any) shall
relate, in the case of any Securities (including coupons, if any) redeemed
or to be redeemed only in part, to the portion of the principal amount
of such Securities (including coupons, if any) which has been or is to
be redeemed.

          Section 10.4. 
Notice of Redemption.  Unless otherwise specified as contemplated
by Section 3.1, notice of redemption shall be given in the manner provided
in Section 1.6 not less than 30 days nor more than 60 days prior to the
Redemption Date to the Holders of the Securities to be redeemed.

          All notices of
redemption shall state:

          (1)  the
Redemption Date;

          (2)  the
Redemption Price;

          (3)  if
fewer than all the Outstanding Securities of a series are to be redeemed,
the identification (and, in the case of partial redemption, the principal
amounts) of the particular Security or Securities to be redeemed;

          (4)  in
case any Security is to be redeemed in part only, the notice which relates
to such Security shall state that on and after the Redemption Date, upon
surrender of such Security, the holder will receive, without a charge,
a new Security or Securities of authorized denominations for the principal
amount thereof remaining unredeemed;

          (5)  the
Place or Places of Payment where such Securities, together in the case
of Bearer Securities with all coupons appertaining thereto, if any, maturing
after the Redemption Date, are to be surrendered for payment for the Redemption
Price;

          (6)  that
Securities of the series called for redemption and all unmatured coupons,
if any, appertaining thereto must be surrendered to the Paying Agent to
collect the Redemption Price;

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

          (8)  that
the redemption is for a sinking fund, if such is the case;

          (9)  that,
unless otherwise specified in such notice, Bearer Securities of any series,
if any, surrendered for redemption must be accompanied by all coupons maturing
subsequent to the Redemption Date or the amount of any such missing coupon
or coupons will be deducted from the Redemption Price, unless security
or indemnity satisfactory to the Company, the Trustee and any Paying Agent
is furnished; and

          (10) CUSIP number.

          Notice of redemption
of Securities to be redeemed shall be given by the Company or, at the Company
s request, by the Trustee in the name and at the expense of the Company.

          Section 10.5. 
Deposit of Redemption Price.  On or prior to 12:00 noon New York City
time on any Redemption Date, the Company shall deposit with the Trustee
or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 9.3) an amount
of money in the currency or currencies (including currency units or composite
currencies) in which the Securities of such series are payable (except
as otherwise specified pursuant to Section 3.1 for the Securities of such
series) sufficient to pay on the Redemption Date the Redemption Price of,
and (unless the Redemption Date shall be an Interest Payment Date) interest
accrued to the Redemption Date on, all Securities or portions thereof which
are to be redeemed on that date.

          Unless any Security
by its terms prohibits any sinking fund payment obligation from being satisfied
by delivering and crediting Securities (including Securities redeemed otherwise
than through a sinking fund), the Company may deliver such Securities to
the Trustee for crediting against such payment obligation in accordance
with the terms of such Securities and this Indenture.

          Section 10.6. 
Securities Payable on Redemption Date.  Notice of redemption having
been given as aforesaid, the Securities so to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein
specified, and from and after such date (unless the Company shall default
in the payment of the Redemption Price and accrued interest) such Securities
shall cease to bear interest and the coupons for any such interest appertaining
to any Bearer Security so to be redeemed, except to the extent provided
below, shall be void.  Except as provided in the next succeeding paragraph,
upon surrender of any such Security, including coupons, if any, for redemption
in accordance with said notice, such Security shall be paid by the Company
at the Redemption Price, together with accrued interest to the Redemption
Date; provided, however, that installments of interest on Bearer Securities
whose Stated Maturity is prior to the Redemption Date shall be payable
only at an office or agency located outside the United States and its possessions
(except as otherwise provided in Section 9.2) and, unless otherwise specified
as contemplated by Section 3.1, only upon presentation and surrender of
coupons for such interest; and provided further that, unless otherwise
specified as contemplated by Section 3.1, installments of interest on Registered
Securities whose Stated Maturity is prior to the Redemption Date shall
be payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant
Record Dates according to their terms and the provisions of Section 3.7.

          If any Bearer
Security surrendered for redemption shall not be accompanied by all appurtenant
coupons maturing after the Redemption Date, such Bearer Security may be
paid after deducting from the Redemption Price an amount equal to the face
amount of all such missing coupons, or the surrender of such missing coupon
or coupons may be waived by the Company and the Trustee if there be furnished
to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless.  If thereafter the Holder of such
Bearer Security shall surrender to the Trustee or any Paying Agent any
such missing coupon in respect of which a deduction shall have been made
from the Redemption Price, such Holder shall be entitled to receive the
amount so deducted; provided, however, that interest represented by coupons
shall be payable only at an office or agency located outside of the United
States (except as otherwise provided pursuant to Section 9.2) and, unless
otherwise specified as contemplated by Section 3.1, only upon presentation
and surrender of those coupons.

          If any Security
called for redemption shall not be so paid upon surrender thereof for redemption,
the principal (and premium, if any) shall, until paid, bear interest from
the Redemption Date at the rate prescribed therefor in the Security.

          Section 10.7. 
Securities Redeemed in Part.  Upon surrender of a Security that is
redeemed in part at any Place of Payment therefor (with, if the Company
or the Trustee so requires, due endorsement by, or a written instrument
of transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or his attorney duly authorized in writing), the
Company shall execute and the Trustee shall authenticate and deliver to
the Holder of that Security, without service charge, a new Security or
Securities of the same series, the same form and the same Maturity in any
authorized denomination equal in aggregate principal amount to the unredeemed
portion of the principal of the Security surrendered.

 

 

ARTICLE 11

Sinking Funds

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

          Section 11.1. 
Applicability of Article.  The provisions of this Article shall be
applicable to any sinking fund for the retirement of Securities of a series
except as otherwise specified as contemplated by Section 3.1 for Securities
of such series.  The minimum amount of any sinking fund payment provided
for by the terms of Securities of any series is herein referred to as a
"mandatory sinking fund payment," and any payment in excess of such minimum
amount provided for by the terms of Securities of any series is herein
referred to as an "optional sinking fund payment."  If provided for
by the terms of Securities of any series, the cash amount of any sinking
fund payment may be subject to reduction as provided in Section 11.2. Each
sinking fund payment shall be applied to the redemption of Securities of
any series as provided for by the terms of Securities of such series.

          Section 11.2. 
Satisfaction of Sinking Fund Payments with Securities.  The Company
(i) may deliver Outstanding Securities of a series (other than any previously
called for redemption) together, in the case of Bearer Securities of such
series, with all unmatured coupons appertaining thereto and (ii) may apply
as a credit Securities of a series which have been redeemed either at the
election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to
the terms of such Securities, in each case in satisfaction of all or any
part of any sinking fund payment with respect to the Securities of such
series required to be made pursuant to the terms of such Securities as
provided for by the terms of such series; provided that such Securities
have not been previously so credited.  Such Securities shall be received
and credited for such purpose by the Trustee at the Redemption Price specified
in such Securities for redemption through operation of the sinking fund
and the amount of such sinking fund payment shall be reduced accordingly.

          Section 11.3. 
Redemption of Securities for Sinking Fund.  Not less than 60 days
prior to each sinking fund payment date for any series of Securities, the
Company will deliver to the Trustee an Officers' Certificate specifying
the amount of the next ensuing sinking fund payment for that series pursuant
to the terms of that series, the portion thereof, if any, which is to be
satisfied by payment of cash and the portion thereof, if any, which is
to be satisfied by delivering and crediting Securities of that series pursuant
to Section 11.2 and will also deliver to the Trustee any Securities to
be so delivered.  Not less than 30 days before each such sinking fund
payment date, the Trustee shall select the Securities to be redeemed upon
such sinking fund payment date in the manner specified in Section 10.3
and cause notice of the redemption thereof to be given in the name of and
at the expense of the Company in the manner provided in Section 10.4. 
Such notice having been duly given, the redemption of such Securities shall
be made upon the terms and in the manner stated in Sections 10.6 and 10.7.

 

 

ARTICLE 12

Subordination of Securities

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

          Section 12.1. 
Securities Subordinated to Senior Indebtedness.

          (a)  The
Company agrees, and each Holder of the Securities by acceptance thereof
likewise agrees, that the payment of the principal of, premium, if any,
and interest, if any, on the Securities is subordinated, to the extent
and in the manner provided in this Article 12, to the prior payment in
full of all Senior Indebtedness of the Company.

          (b)  All
provisions of this Article 12 shall be subject to Section 12.14.

          Section 12.2. 
Company Not to Make Payments with Respect to Securities in Certain Circumstances;
Limitations on Acceleration of Securities.

          (a)  Upon
the maturity of any Senior Indebtedness of the Company by lapse of time,
acceleration or otherwise, all obligations with respect thereto shall first
be paid in full, or such payment duly provided for in cash or in a manner
satisfactory to the holders of such Senior Indebtedness, before any payment
is made on account of the principal of, premium, if any, or interest, if
any, on the Securities or to redeem, retire, purchase, deposit moneys for
the defeasance of or acquire any of the Securities.

          (b)  Upon
the happening of (i) any default in payment of any Senior Indebtedness
of the Company or (ii) any other default on Senior Indebtedness of the
Company and the maturity of such Senior Indebtedness is accelerated in
accordance with its terms, then, unless (w) such default relates to Senior
Indebtedness of the Company in an aggregate amount equal to or less than
$20 million, (x) such default shall have been cured or waived or shall
have ceased to exist, (y) any such acceleration has been rescinded, or
(z) such Senior Indebtedness has been paid in full, no direct or indirect
payment in cash, property or securities, by set-off or otherwise (except
payment of the Securities from funds previously deposited in accordance
with Section 4.1 at any time such deposit was not prohibited by this Indenture),
shall be made or agreed to be made by the Company on account of the principal
of, premium, if any, or interest, if any, on the Securities, or in respect
of any redemption, retirement, purchase, deposit of moneys for the defeasance
or other acquisition of any of the Securities in the case of such a default
in Senior Indebtedness of the Company, the Company shall not deposit money
for any such payment or distribution with the Trustee or any Paying Agent
nor shall the Company (if the Company is acting as its own Paying Agent)
segregate and hold in trust money for any such payment or distribution.

          (c)  Upon
the happening of an event of default (other than under circumstances when
the terms of paragraph (b) of this Section 12.2 are applicable) with respect
to any Senior Indebtedness of the Company pursuant to which the holders
thereof are entitled under the terms of such Senior Indebtedness to immediately
accelerate the maturity thereof (without further notice or expiration of
any applicable grace periods), upon written notice thereof given to each
of the Company and the Trustee by the trustee for or other representative
of the holders of at least $25 million of Senior Indebtedness of the Company
(a "Payment Notice"), then, unless and until such event of default shall
have been cured or waived or shall have ceased to exist, no direct or indirect
payment in cash, property or securities, by set-off or otherwise (except
payment of the Securities from funds previously deposited in accordance
with Section 4.1 at any time such deposit was not prohibited by this Indenture),
shall be made or agreed to be made by the Company on account of the principal
of or premium, if any, or interest, if any, on the Securities, or in respect
of any redemption, retirement, purchase, deposit of moneys for the defeasance
or other acquisition of any of the Securities, and the Company shall not
deposit money for any such payment or distribution with the Trustee or
any Paying Agent nor shall the Company or a Subsidiary (if the Company
or such Subsidiary is acting as Paying Agent) segregate and hold in trust
money for any such payment or distribution (a "Payment Block"); provided,
however, that this Section 12.2(c) shall not prevent the making of any
payment for more than 120 days after a Payment Notice shall have been given
unless the Senior Indebtedness in respect of which such event of default
exists has been declared due and payable in its entirety, in which case
no such payment shall be made until such acceleration has been rescinded
or annulled or such Senior Indebtedness has been paid in full in accordance
with its terms.  Notwithstanding the foregoing, (i) not more than
one Payment Notice shall be given with respect to a particular event of
default (which shall not bar subsequent Payment Notices for other such
events of default), (ii) all events of default under Senior Indebtedness
occurring within any 30-day period shall be treated as one event of default
to the extent that one or more Payment Notices are issued in connection
therewith and (iii) no more than two Payment Blocks shall be permitted
within any period of 12 consecutive months.  Any payment made in contravention
of the provisions of this Section 12.2(c) shall be returned to the Company.

          (d)  In
the event that, notwithstanding the provisions of Section 12.2(a) or 12.2(b),
the Trustee or the Holder of any Security shall have received any payment
on account of the principal of or premium, if any, or interest, if any,
on the Securities in contravention of Section 12.2(a) or 12.2(b) or after
the happening of a default in payment of any Senior Indebtedness of the
Company, or any acceleration of the maturity of any Senior Indebtedness
of the Company, then, in either such case, except in the case of any such
default which shall have been cured or waived or shall have ceased to exist,
such payment (subject to the provisions of Sections 12.6 and 12.7) shall
be held for the benefit of, and shall be paid over and delivered to, the
holders of such Senior Indebtedness of the Company (pro rata as to each
of such holders on the basis of the respective amounts of Senior Indebtedness
of the Company held by them) or their representative or the trustee under
the indenture or other agreement (if any) pursuant to which Senior Indebtedness
of the Company may have been issued, as their respective interests may
appear, for application to the payment of all Senior Indebtedness of the
Company remaining unpaid to the extent necessary to pay all Senior Indebtedness
of the Company in full in accordance with its terms, after giving effect
to any concurrent payment or distribution to or for the holders of Senior
Indebtedness of the Company.

          (e)  (1) 
Upon the occurrence of an Event of Default under Section 5.1(1) through
(3) and (6), the Trustee or holders of 25% of the outstanding principal
amount of the Securities of any series must give notice of such Event of
Default and the intention to accelerate to the Company and any holders
of Senior Indebtedness which have theretofore requested of the Trustee
such notice, and no acceleration of the Securities of any series shall
be effective unless and until such Event of Default is continuing on the
sixtieth day after the date of delivery of such notice.  The Company
may pay the holders of the Securities of any series any defaulted payment
and all other amounts due following any such acceleration of the maturity
of the Securities if Section 12.2(a) would not prohibit such payment to
be made at that time.

          (2)  Nothing
in this Article 12 shall prevent or delay the Trustee or the holders of
the Securities from taking any action in connection with the acceleration
of the maturity of the Securities pursuant to Section 5.2 upon the occurrence
of an Event of Default under either of Section 5.1(4) or 5.1(5).

          (3)  Except
as provided in Section 12.2(e)(1), a failure to make any payment with respect
to the Securities as a result of the rights of holders of Senior Indebtedness
of the Company described in Section 12.2(b) or 12.2(c) will not have any
effect on the right of holders of the Securities to accelerate the maturities
thereof as a result of such payment default.  The Company shall give
prompt written notice to the Trustee of any default in the payment of principal
of or interest on any Senior Indebtedness of the Company, and in the event
of any such default, shall provide to the Trustee, in the form of an Officers'
Certificate, the names, addresses and respective amounts due holders of
such Senior Indebtedness or the name and address of the trustee acting
on their behalf, if any. The Trustee shall be entitled to rely conclusively
on such Officers' Certificate without independent verification.

          Section 12.3. 
Securities Subordinated to Prior Payment of All Senior Indebtedness on
Dissolution, Liquidation or Reorganization of the Company.  Upon the
distribution of assets of the Company in any Dissolution, winding up, liquidation
(total or partial) or similar proceeding relating to the Company (whether
in bankruptcy, insolvency or receivership proceedings or upon an assignment
for the benefit of creditors or otherwise):

     (1)  the holders of all Senior Indebtedness
of the Company shall first be entitled to receive payment in full of all
Senior Indebtedness (or to have such payment duly provided for in a manner
satisfactory to them) in cash or in a manner satisfactory to the holders
of Senior Indebtedness of the Company before the Holders of the Securities,
in the case of Senior Indebtedness of the Company, are entitled to receive
any payment on account of the principal of, premium, if any, or interest,
if any, on the Securities;
     (2)  any payment or distribution of assets
of the Company of any kind or character, whether in cash, property or securities
(other than securities of the Company as reorganized or readjusted or securities
of the Company or any other company, trust or corporation provided for
by a plan of reorganization or readjustment, the payment of which is junior
or otherwise subordinate, at least to the extent provided in this Article
12 with respect to the Securities, to the payment of all Senior Indebtedness
of the Company at the time outstanding and to the payment of all securities
issued in exchange therefor to the holders of the Senior Indebtedness of
the Company at the time outstanding), to which the Holders of the Securities
or the Trustee on behalf of the Holders of the Securities would be entitled
except for the provisions of this Article 12, shall be paid by the liquidating
trustee or agent or other person making such payment or distribution directly
to the holders of the Senior Indebtedness of the Company or their representatives
or to the trustee under any indenture under which such Senior Indebtedness
may have been issued (pro rata) as to each such holder, representative
or trustee on the basis of respective amounts of unpaid Senior Indebtedness
held or represented by each), to the extent necessary to make payment in
full of all Senior Indebtedness of the Company remaining unpaid, after
giving effect to any concurrent payment or distribution or provision therefor
to the holders of such Senior Indebtedness; and

     (3)  in the event that notwithstanding
the foregoing provisions of this Section 12.3, any payment or distribution
of assets of the Company of any kind or character, whether in cash, property
or securities (other than securities of the Company as reorganized or readjusted
or securities of the Company or any other company, trust or corporation
provided for by a plan of reorganization or readjustment, the payment of
which is junior or otherwise subordinate, at least to the extent provided
in this Article 12 with respect to the Securities, to the payment of all
Senior Indebtedness of the Company at the time outstanding and to the payment
of all securities issued in exchange therefor to the holders of the Senior
Indebtedness of the Company at the time outstanding), shall be received
by the Trustee or the Holders of the Securities on account of principal
of, premium, if any, or interest, if any, on the Securities before all
Senior Indebtedness of the Company is paid in full in cash or in a manner
satisfactory to the holders of such Senior Indebtedness in accordance with
its terms, or effective provision made for its payment, such payment or
distribution (subject to the provisions of Sections 12.6 and 12.7) shall
be received and held for the benefit of and paid over to the holders of
the Senior Indebtedness of the Company remaining unpaid or unprovided for
or their representative, or to the trustee under any indenture under which
such Senior Indebtedness of the Company may have been issued (pro rata
as provided in paragraph (2) above), for application to the payment of
such Senior Indebtedness of the Company to the extent necessary to pay
all such Senior Indebtedness of the Company in full in cash or in a manner
satisfactory to the holders of Senior Indebtedness of the Company, in accordance
with its terms, after giving effect to any concurrent payment or distribution
or provision therefor to the holders of such Senior Indebtedness of the
Company.

          The Company shall
give prompt written notice to the Trustee of any dissolution, winding up,
liquidation or reorganization of the Company or any assignment for the
benefit of the Company's creditors tending toward the liquidation of the
business and assets of the Company.

          Section 12.4. 
Holders to Be Subrogated to Rights of Holders of Senior Indebtedness. 
Upon the payment in full of all Senior Indebtedness of the Company in cash
or in a manner satisfactory to the holders of such Senior Indebtedness,
the Holders of the Securities shall be subrogated equally and ratably to
the rights of the holders of Senior Indebtedness of the Company to receive
payments or distributions of assets of the Company applicable to the Senior
Indebtedness of the Company until all amounts owing on the Securities shall
be paid in full, and for the purpose of such subrogation no payments or
distributions to the holders of Senior Indebtedness of the Company by or
on behalf of the Company or by or on behalf of Holders of the Securities
by virtue of this Article 12 which otherwise would have been made to the
Holders of the Securities shall, as between the Company and the Holders
of the Securities, be deemed to be payment by the Company to or on account
of Senior Indebtedness of the Company, it being understood that the provisions
of this Article 12 are intended solely for the purpose of defining the
relative rights of the Holders of the Securities, on the one hand, and
the holders of Senior Indebtedness of the Company, on the other hand.

          Section 12.5. 
Obligation of the Company Unconditional. Nothing contained in this Article
12 or elsewhere in this Indenture or in any Security is intended to or
shall impair, as between the Company and the Holders of the Securities,
the obligations of the Company, which are absolute and unconditional, to
pay to the Holders of the Securities the principal of (and premium, if
any) and interest, if any, on the Securities as and when the same shall
become due and payable in accordance with their terms, or is intended to
or shall affect the relative rights of the Holders of the Securities and
creditors of the Company other than the holders of Senior Indebtedness
of the Company, nor, except as expressly provided in this Article 12, shall
anything herein or in the Securities prevent the Trustee or the Holder
of any Security from exercising all remedies otherwise permitted by applicable
law upon default under this Indenture, subject to the rights, if any, under
this Article 12 of the holders of Senior Indebtedness of the Company in
respect of cash, property or securities of the Company upon the exercise
of any such remedy.  Upon any distribution of assets of the Company
referred to in this Article 12, the Trustee, subject to the provisions
of Section 6.1, and the Holders of the Securities shall be entitled to
rely upon any order or decree by any court of competent jurisdiction in
which such dissolution, winding up, liquidation or reorganization proceedings
are pending, or a certificate of the liquidating trustee or agent or other
person making any distribution to the Trustee or the Holders of the securities,
for the purpose of ascertaining the persons entitled to participate in
such distribution, the holders of Senior Indebtedness of the Company and
other indebtedness of the Company, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article 12.

          Nothing contained
in this Article 12 or elsewhere in this Indenture or in any Security is
intended to or shall affect the obligations of the Company to make, or
prevent the Company from making, at any time except during the pendency
of any dissolution, winding up, liquidation (total or partial) or similar
proceeding, and except during the continuance of any event specified in
Section 12.2 (not cured or waived), payments at any time of the principal
of (or premium, if any) or interest, if any, on the Securities.

          Section 12.6. 
Knowledge of Trustee.  Notwithstanding any provision of this Indenture,
the Trustee shall not at any time be charged with knowledge of the existence
of any facts which would prohibit the making of any payment of monies to
or by the Trustee until three Business Days after a Responsible Officer
of the Trustee on behalf of the Trustee shall have received at the Corporate
Trust Office of the Trustee written notice thereof from the Company, any
Holder, or the holder or representative of any class of Senior Indebtedness
of the Company identifying the specific sections of this Indenture involved
and describing in detail the facts that would obligate the Trustee to withhold
payments to Holders of Securities, and prior to such time, the Trustee,
subject to the provisions of Section 6.1, shall be entitled in all respects
conclusively to assume that no such facts exist.  The Trustee shall
be entitled to rely on the delivery to it of a written notice by an individual
representing himself to be a holder of Senior Indebtedness of the Company
(or a trustee on behalf of such holder) to establish that such notice has
been given by a holder of any such Senior Indebtedness or a trustee on
behalf of any such holder.

          In the event
that the Trustee determines in good faith that further evidence is required
with respect to the right of any person as a holder of Senior Indebtedness
of the Company to participate in any payment or distribution pursuant to
this Article, the Trustee may request such person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
of the Company held by such person, the extent to which such person is
entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such person under this Article, and if such
evidence is not furnished, the Trustee may defer any payment to such person
pending judicial determination as to the right of such person to receive
such payment.

          Section 12.7. 
Application by Trustee of Moneys Deposited with It.  If two Business
Days prior to the date on which by the terms of this Indenture any moneys
deposited with the Trustee or any Paying Agent (other than the Company
or a Subsidiary) may become payable for any purpose (including, without
limitation, the payment of the principal of, premium, if any, or interest,
if any, on any Security) the Trustee shall not have received with respect
to such moneys the notice provided for in Section 12.6, then the Trustee
shall have full power and authority to receive such monies and to apply
the same to the purpose for which they were received and shall not be affected
by any notice to the contrary which may be received by it on or after such
date.  This Section 12.7 shall be construed solely for the benefit
of the Trustee and Paying Agent and shall not otherwise affect the rights
of holders of such Senior Indebtedness.

          Section 12.8. 
Subordination Rights Not Impaired by Acts or Omissions of Company or Holders
of Senior Indebtedness.  No right of any present or future holders
of any Senior Indebtedness of the Company to enforce subordination as provided
herein shall at any time in any way be prejudiced or impaired by any act
or failure to act on the part of the Company or by any act or failure to
act by any such holder, or by any noncompliance by the Company with the
terms of this Indenture, regardless of any knowledge thereof which any
such holder may have or be otherwise charged with.

          Section 12.9. 
Holders Authorize Trustee to Effectuate Subordination of Securities. 
Each Holder of the Securities by his acceptance thereof authorizes and
expressly directs the Trustee on such Holder's behalf to take such action
as may be necessary or appropriate in the discretion of the Trustee to
effectuate the subordination provided in this Article 12 and appoints the
Trustee such Holder's attorney in-fact for such purpose, including, without
limitation, in the event of any dissolution, winding up, liquidation or
reorganization of the Company (whether in bankruptcy, insolvency or receivership
proceedings or upon an assignment for the benefit of creditors or otherwise)
tending towards liquidation of the business and assets of the Company,
the timely filing of a claim for the unpaid balance of such Holder's Securities
in the form required in said proceedings.  If the Trustee does not
file a proper claim or proof of debt in the form required in such proceedings
before the expiration of the time to file such claim or claims, then the
holders of Senior Indebtedness of the Company are hereby authorized to
have the right to file and are hereby authorized to file an appropriate
claim for and on behalf of the Holders of said Securities.

          Section 12.10.
Right of Trustee to Hold Senior Indebtedness. The Trustee shall be entitled
to all of the rights set forth in this Article 12 in respect of any Senior
Indebtedness of the Company at any time held by it to the same extent as
any other holder of such Senior Indebtedness of the Company, and nothing
in this Indenture shall be construed to deprive the Trustee of any of its
rights as such holder. With respect to the holders of Senior Indebtedness
of the Company, the Trustee undertakes to perform or to observe only such
of its covenants and obligations as are specifically set forth in this
Article 12, and no implied covenants or obligations with respect to the
holders of Senior Indebtedness of the Company shall be read into this Indenture
against the Trustee.  The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Senior Indebtedness of the Company, and the Trustee
shall not be liable to any holder of Senior Indebtedness of the Company
if it shall mistakenly pay over or deliver to Holders of Securities, the
Company or any other Person moneys or assets to which any holder of such
Senior Indebtedness shall be entitled by virtue of this Article 12 or otherwise.

          Section 12.11.
Article 12 Not to Prevent Events of Default.  The failure to make
a payment on account of principal or interest by reason of any provision
in this Article 12 shall not be construed as preventing the occurrence
of an Event of Default under Section 5.1.

          Section 12.12.
Paying Agents Other Than the Trustee.  In case at any time any Paying
Agent (including, without limitation, the Company or any Subsidiary) other
than the Trustee shall have been appointed by the Company and be then acting
hereunder, the term "Trustee" as used in this Article 12 shall in such
case (unless the context shall otherwise require) be construed as extending
to and including such Paying Agent (except the Company and its subsidiaries
in the case of Sections 12.6 and 12.7) within its meaning as fully for
all intents and purposes as if such Paying Agent were named in this Article
12 in addition to or in place of the Trustee.

          Section 12.13.
Trustee's Compensation Not Prejudiced.  Nothing in this Article 12
shall apply to amounts due to the Trustee pursuant to Section 6.9.

          Section 12.14.
Trust Moneys Not Subordinated.  Notwithstanding anything contained
herein to the contrary, payments from money held in trust under Article
4 by the Trustee for the payment of principal of, premium if any, and interest,
if any, on the Securities shall not be subordinated to the prior payment
of any Senior Indebtedness of the Company or subject to the restrictions
set forth in this Article 12 and none of the Holders shall be obligated
to pay over any such amount to the Company or any holder of Senior Indebtedness
of the Company or any other creditor of the Company.

          Section 12.15.
Reliance on Judicial Order or Certificate of Liquidating Agent.  Upon
any payment or distribution of assets of the Company referred to in this
Article Twelve, the Trustee and the Holders of the Securities shall be
entitled to rely upon any order or decree entered by any court of competent
jurisdiction in which such insolvency, bankruptcy, receivership, liquidation,
reorganization, dissolution, winding up or similar case or proceeding is
pending, or a certificate of the trustee in bankruptcy, liquidating trustee,
custodian, receiver, assignee for the benefit of creditors, agent or other
person making such payment or distribution, delivered to the Trustee or
to the Holders of Securities, for the purpose of ascertaining the persons
entitled to participate in such payment or distribution, the holders of
Senior Indebtedness and other indebtedness of the Company, the amount thereof
or payable thereon, the amount or amounts paid or distributed thereon and
all other facts pertinent thereto or to this Article Twelve.

          Section 12.16.
Trustee Not Fiduciary for Holders or Senior Indebtedness of the Company. 
The Trustee shall not be deemed to owe any fiduciary duty to the Holders
of any Senior Indebtedness and shall not be liable to any such holders
if the Trustee shall in good faith mistakenly pay over or distribute to
Holders of Securities or to the Company or to any other person cash, property
or securities to which any holders of Senior Indebtedness of the Company
shall be entitled by virtue of this Article Twelve or otherwise. The Trustee
shall not be charged with knowledge of the existence of Senior Indebtedness
of the Company or of any facts that would prohibit any payment hereunder
unless a Responsible Officer of the Trustee shall have received notice
to that effect at the address of the Trustee, provided that the Trustee
shall be deemed to have knowledge of the existence of any Senior Indebtedness
to which it acts as Trustee.  With respect to the holders of Senior
Indebtedness of the Company, the Trustee undertakes to perform or to observe
only such of its covenants or obligations as are specifically set forth
in this Article Twelve and no implied covenants or obligations with respect
to holders of Senior Indebtedness of the Company shall be read into this
Indenture against the Trustee.

 

 

_______________________

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

 

 

	UAL CORPORATION
	By:  /s/ Douglas A. Hacker
	Title:  Senior Vice President
	and Chief Financial Officer

 

 
	Attest:
	/s/ Francesca M. Maher
	Title:  Corporate Secretary

	THE FIRST NATIONAL BANK OF CHICAGO,
	TRUSTEE
	By:  /s/ Richard D. Manella
	Title:  Vice President

	Attest:
	/s/ Leland Hansen
	Title: Assistant Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]